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THIS WEEK:

China opens to foreign healthcare and finance, Xi addresses world leaders’ meeting on climate change, China and Indonesia upgrade talks on diplomacy and defense, new emphasis on Sino-Vietnamese cooperation, and Beijing pledges to work with next pope

1. China Opens to Foreign Healthcare and Finance

What Happened: China announced over 150 new measures to open its healthcare and finance sectors to foreign business. It will ease restrictions on foreign ownership and investments in hospitals and medical training programs and streamline import approvals for drugs to treat rare diseases, while expanding cross-border RMB operations, deepening the Qualified Foreign Limited Partnerships program, and opening green finance to global institutional investors.

Why It Matters: With trade headwinds mounting, China is under pressure to pivot inward and boost domestic demand, and the services sector offers the most untapped potential. The push comes after a multiyear slide in foreign direct investment. Rebuilding investor confidence is critical to reset expectations that China is reopening in earnest. Still, foreign businesses remain cautious after years of regulatory unpredictability, a sluggish post-COVID rebound, and broader political uncertainty.
 
By Lizzi C. Lee, Fellow on Chinese Economy, Center for China Analysis (@wstv_lizzi)

Learn More: Watch the latest episode in CCA's series, China's DeepSeek Moment, on the U.S.-China battle over AI governance.

2. Xi Addresses World Leaders’ Meeting on Climate Change

What Happened: On April 23, President Xi Jinping addressed the Leaders Meeting on Climate and the Just Transition convened by UN Secretary-General Antonio Guterres and Brazilian President Luiz Inácio Lula da Silva. Xi reaffirmed China’s commitment to the Paris Agreement and to advancing climate action through multilateralism and deeper international cooperation.
 
Why It Matters: This is the first time since 2021 that Xi has given remarks on climate change in an international forum. He announced that China’s Nationally Determined Contribution (NDC) will be released ahead of COP 30 in November and will cover all economic sectors and greenhouse gases. China’s NDC will be a crucial indicator of its climate ambitions.

By Taylah Bland, Fellow on Climate and the Environment, Center for China Analysis (@Taylahbland)
 
Learn More: Taylah explores China’s role in climate action in “The U.S. Will Leave a Void in Climate Leadership. Can China Fill It?”

3. China and Indonesia Upgrade Talks on Diplomacy and Defense

What Happened: China and Indonesia held their first ministerial-level 2+2 dialogue in Beijing on April 21. Chinese Foreign Minister Wang Yi and Defense Minister Dong Jun chaired the meeting, together with Indonesian Foreign Minister Sugiono and Defense Minister Sjafrie Sjamsoeddin. The two sides signed a memorandum of understanding establishing a comprehensive strategic dialogue and agreed to cooperate on defense and maritime security. 

Why It Matters: Indonesia remains one of China’s most important partners in Southeast Asia, and the dialogue speaks to their growing diplomatic and security ties. As China continues to assert its maritime rights within the disputed nine-dash line in the South China Sea, Beijing hopes that its close partnership with Jakarta will offset pushback by other ASEAN members, notably the Philippines and Vietnam. 

By Lyle Morris, Senior Fellow on Foreign Policy and National Security, Center for China Analysis (@LyleJMorris)

Learn More: Read more about China’s relations with ASEAN countries in “The South China Sea and the Trump Factor.”

4. New Emphasis on Sino-Vietnamese Cooperation

What Happened: Xi Jinping emphasized the importance of future Sino-Vietnamese relations during his recent visit to Hanoi, emphasizing the need to enhance mutual political trust rooted in their distinct “red gene.” Cai Qi met with his counterpart, Tran Cam Tu, and pledged to strengthen the “inter-party channel” between the Chinese Communist Party (CCP) and the Communist Party of Vietnam (CPV).

Why It Matters: Beijing and Hanoi are assessing two key bilateral initiatives, the “CCP-CPV Cooperation Plan 2021–2025” and the “CCP-CPV Cadres Training Cooperation Plan 2021–2025,” which aim to strengthen the relationship between the two countries by fostering shared values of Communism and facilitating a 3+3 strategic dialogue that focuses on diplomacy, defense, and public security.

By Lobsang Tsering, Senior Research Associate, Center for China Analysis

Learn More: ASPI Non-Resident Distinguished Fellow James Crabtree analyzed “U.S.–China–Southeast Asia Relations in a Second Trump Administration.”

5. Beijing Pledges to Work with Next Pope

What Happened: In a brief statement expressing condolences over the passing of Pope Francis, a Foreign Ministry spokesperson said, “China and the Vatican have maintained constructive engagement and conducted useful exchanges in recent years” and that “China stands ready to work with the Vatican for continued improvement of China-Vatican ties.” Official media reported the Pope’s death in short, factual dispatches, without commentary.

Why It Matters: Ties improved during Francis’ papacy — a historic agreement on the mutual recognition of bishops was struck in 2018 — but the Vatican’s recognition of Taiwan and Beijing’s insistence on controlling religious expression are major obstacles to better relations. Nonetheless, and despite opposition from some conservative Catholics, engaging with China will remain a central tenet of Vatican diplomacy during the next pope’s reign.

By G.A. Donovan, Fellow on Chinese Society and Political Economy, Center for China Analysis (@GA_DonovanASPI)

Learn More: Watch “China’s Wellness Boom: Healthy Mind, Healthy Spirit,” a discussion moderated by G.A. on why more people are turning to religion and psychology to manage the stresses of life in modern China.