[NATIONAL]

India, China diplomats discuss Ladakh faceoff, 16^th round of military talks next

India and China didn’t make much headway in another round of diplomatic talks on Tue on the standoff at the Line of Actual Control, agreeing only to continue discussions on outstanding issues and to convene the next meeting of senior military commanders at an early date. The Working Mechanism for Consultation and Coordination on India-China border affairs, which met virtually for the first time since Nov 2021, reviewed the situation along the LAC in the western sector in Ladakh, and both sides agreed to continue diplomatic and military talks. The disengagement and de-escalation process between India and China has been deadlocked since the two sides pulled back frontline troops from the north and south banks of Pangong Lake in Feb last year and from Gogra in Aug 2021 [significant to China]. There has been no forward movement on disengagement at key friction points such as Hot Springs and Depsang. They further agreed to hold the next or 16^th round of talks between senior military commanders at an early date to “achieve the objective of complete disengagement from all friction points along the LAC”, the statement added. [the 16^th round talk may go up to the 60^th round but no goal can be achieved by it, as the decision is to be taken from the top level] (here)

Putin needs help from China and India on oil Europe does not want: Report

President Vladimir Putin may need to count even more on China and India should the EU ban Russian oil, with few other takers in Asia able to process the type of crude Europe typically buys. EU leaders agreed to pursue a partial embargo on Russian crude oil shipped on the sea, potentially costing Putin up to $10 billion a year in lost export revenue. Though that could eventually leave more of Russia’s flagship Urals crude — an oil brand that had been popular in Europe — needing a new home, there will be limited buyers in Asia. That’s because the grade can’t easily be refined in large quantities in countries such as Sri Lanka and Indonesia. That could lead China and India, which do have refineries that can process the Urals, to pick up extra barrels. With Shanghai emerging from its months-long lockdown, Chinese state-owned and private refiners may have a renewed appetite to buy more from Russia. (here)

Indus water talks: India tells Pak its projects compliant; continues to provide flood data 

The two-day Indus water Permanent Indus Commission between India and Pakistan ended on Tue with New Delhi telling Islamabad that its hydropower projects on western rivers are compliant under the 1960 pact and that it will continue to provide Islamabad with advance flood information as envisaged under the treaty. The key focus of the 118^th PIC was to finalize the annual report for the year ending Mar 31^st, 2022. An officer in the Ministry told WION that no technical discussion took place in the meeting, and while Pakistan’s objection to the design of Indian hydroelectric power projects on the western rivers was not part of the agenda, New Delhi pointed out that the projects are in line with the treaty. Pakistan has been raising objections to the proposed Pakal Dul Hydroelectric Project over the river Marusudar, a tributary of the Chenab River, located in the Kishtwar district of the J&K. The project, being built at Rs 8112.12 cr, is envisaged as a storage scheme and is anticipated to be completed by Jul 2025. It has been decided that commissioners from both sides will visit the Indus Basin after the end of the flood season at a mutually convenient date. (here)

India cautions over ‘heightened’ threat of misuse of biological agents as weapons

India has cautioned over the “heightened” threat of misuse of biological agents and chemicals as weapons against the backdrop of the COVID-19 pandemic and called on the international community to address the rapid evolution of proliferation risks. It said new and emerging technologies may increase the risk of Weapons of Mass Destruction access by terrorist groups and other non-state actors. “The access to these weapons of mass destruction by terrorists and other non-state actors adds a serious dimension to threats posed by these weapons to international peace and security,” A. Amarnath, a counselor at India’s UN Mission, said on Tue. Speaking at the open consultations of the UNSC 1540 Committee on the proliferation of nuclear, chemical, and biological weapons, he said a key area that needs the focus of the international community is the rapid evolution of proliferation risks. (here)

At least a dozen active terror launch pads along LoC: Intelligence Reports

It’s halfway through summer in Jammu and Kashmir, and intelligence reports say at least a dozen launch pads close to the line of control are active, full of terrorists either ready to infiltrate or to attack Indian army posts. Some of the “active” launch pads are: Dudhnihal, (opposite the Keran sector), Jura (opposite Tangdhar), Domel (opposite Gurez), Dadot/ Mattrian/ Machhi Tekri (opposite the Bhimber Galli area), Atmuqam (opposite the Keran sector), Sonar (opposite to Gurez), Haji Bala/ Tejian (face the Macchal sector), Jhanda (Near Bhimber Galli) Lipa (Opposite to Naugam), Chrikot (close to Poonch). They may be involved in a BAT or battle action team and could attack Indian posts along the LoC. Or, they could plant an IED near an Indian post. Officials had warned of such launch pads earlier this year in April as well, saying that 60-80 terrorists are receiving training at these launch pads and are ready to be pushed across the border into India during the summer months. (here)

Major terror attack averted in Srinagar, 6 Chinese grenades recovered, placed along NH 44

Security forces on Mon averted a major tragedy by detecting and defusing six hand grenades placed by militants on the busy Parimpora-Panthachowk axis in Srinagar, officials said here. “During a routine road opening exercise along National Highway 44, alert troopers of the 73 Battalion of the CRPF recovered six Chinese grenades from a sandbag placed on a divider of the road,” a spokesperson of the force said.

Govt. Examining Records Of 30 Serving & Retired Officers For Next CDS

Fitness and medical history will be key criteria for choosing the next Chief of Defence Staff, a post vacant since General Bipin Rawat died in a helicopter crash last Dec. The Centre is examining records of close to 30 serving + retired officers. The medical records of serving officers are available with the govt. The list of officers whose details have been sought includes the 5 senior-most officers of the triforces – 3 serving chiefs,– besides 12 serving officers of the commander-in-chief rank. The govt has also sought records of all officers of the rank of chiefs of service and commanders-in-chief who have retired since Jan 2020. Several prominent officers who recently retired are on the list under consideration. (here)

First-order for indigenous air to air missiles placed

India has placed its first order for indigenous air to air missiles, in a move that will cut dependency on Russia for munitions and give the bulk of its fighter jets a combat edge that was missing during the Balakot air engagements with Pakistan. The order worth Rs 2,971 crore for ASTRA MK-I Beyond Visual Range, Air to Air Missile was signed with Bharat Dynamics Limited for an undisclosed number of missiles. These will be fitted onboard Su 30 MKI fighter jets of the Indian Air Force as well as the naval MiG 29K/KUB carrier-borne combat aircraft. Developed by the Defence Research and Development Organisation, Astra MK1 out-ranges the current set of Russian-origin air-to-air missiles being used by the air force that was found wanting during an aerial faceoff in the aftermath of the Balakot airstrikes in 2019. The missile has a range of over 100 km, giving the air force extended time to take on threats from across the border. These missiles are set to progressively replace all Russian imports of long-range air to air missiles in the future and further variants are being developed that will take their target range beyond 200 km. (here)

Can’t rely on hydropower in long run, says NDMA in a report examining Chamoli disaster

The govt may need to pursue alternative sources of energy in the long run instead of relying on hydropower from Uttarakhand, the National Disaster Management Authority (NDMA) has said in a report investigating the aftermath of the 2021 Chamoli disaster. In Feb 2021, a flood in Uttarakhand’s Chamoli killed 80 people. A year later, the NDMA report says many hydropower plants set up in the Himalayan region are located in an ‘environmentally fragile’ area. The NDMA has said that, among other reasons, a lack of predictive thinking by the district administration and project proponents, as well as a dearth of early warning systems, led to the disaster taking on massive proportions.

Israel Defence Minister Gantz to visit India, meet Rajnath Singh, Doval

Benjamin (Benny) Gantz, the defense minister of Israel, will be in New Delhi on Thu for talks with defense minister Rajnath Singh and national security advisor Ajit Doval. Gantz, who was earlier Alternate PM of Israel, is a retired Army general and high-profile political leader and on the agenda, are closer defense ties between the two countries. In New Delhi till Fri, Gantz will discuss issues that relate to the new mantras of South Block— co-development and co-production with India. This could be advantageous for Israel as its defense industries have been working together with India in the past. One major project has been the MRSAM (Medium Range Surface to Air Missile) for the Air Force and also, the Navy. This was jointly developed by the Defence Research and Development Organisation and the Israel Aerospace Industries. India and Israel also have a joint working group at the defense secretary level to work together towards the development and other areas. The visit of Gantz comes in the wake of plans for a likely visit by Israel PM Naftali Bennett, which had to be postponed due to Covid. (here)

ED Summons Sonia Gandhi & Rahul Gandhi In National Herald Case; Congress Cries Foul

The Enforcement Directorate issued a notice to Congress president Sonia Gandhi and Wayanad MP Rahul Gandhi in the National Herald case. Both of them are among the promoters and shareholders of Young Indian Pvt. Limited, which owns the National Herald newspaper. Addressing an emergency press conference on Wed, Congress general secy contended that BJP is trying to suppress the National Herald akin to the British. Meanwhile, Congress MP revealed that Sonia Gandhi will appear before the agency on Jun 8. Interestingly, the case was registered during they were in power. In 2013, BJP Rajya Sabha MP (not then) filed a private criminal complaint wherein he accused Gandhi’s mother-son duo and others of conspiring to cheat and misappropriate funds. He specifically highlighted that Young Indian Pvt. Limited paid only Rs.50 lakh to obtain the right to recover Rs.90.25 crore that AJL owed to Congress. On Dec 19, 2015, the duo got bail on furnishing a personal bond of Rs.50k each and a surety after the court ruled out apprehension that they will flee the country. (here)

[NEIGHBORHOOD]

China’s real estate mess put the global economy on crutches

The deep recession in China’s real estate companies is becoming a major problem for the country as well as for the world’s economy. The property market was one of the few cherished destinations for household savings. The developers and homebuyers were also willing to take the loans from the banks but these good days for China ended last year. The household debt touched over USD 10 trillion. And around 27% of bank loans in China are tied to real estate, reported a think tank, Policy Research Group (POREG). This industry was known to be the biggest job creator in China but now it is termed as “Lehman moment”, in comparison to the 2008 bankruptcy of Lehman Brothers, which was a trigger for the global financial crisis. More so, when the number of empty homes has crossed the 65 mn mark (90 mn according to some) – enough to house the population of France, and raised the spectre of a global economy on crutches. The housing market in China is now seen as ‘a national threat’ as prices rise sky-high, just like the buildings, according to Think Tank citing New York Times. (here)

Chinese companies evade taxes in Bangladesh

The Chinese companies suffered from a poor image after the media reported about their tax evasion case in Bangladesh, but seems to have failed to deter them. Last year, in Dec, Bangladesh authorities discovered that China Road and Bridge Corporation (CRBC), a subsidiary of China Communications Construction Company (CCCC), was involved in the tax evasion while importing the construction material for govt projects, Bangladesh Live News reported. After the case of misuse of funds in megaprojects came under the spotlight, the Bangladesh authorities forced the Chinese govt to withdraw from financing 3 infrastructure projects. But it seems that these media reports don’t stop Chinese companies from hiring the sub-contractors from Beijing and also show them as a part of the main company to avoid paying the taxes to the B’desh govt, BLN reported citing some unconfirmed reports. Some media reports suggest that the port authorities/ customs were under tremendous pressure from senior levels not to disclose the name and real identities of Chinese companies. (here)

Beijing’s air and sea patrols near Taiwan a ‘necessary action against collusion’ with the US, PLA says

The PLA Eastern Theatre Command said its combat-readiness patrols in air and sea territories near Taiwan this week were “necessary action” against “collusion” between Taiwan and the United States. A statement by the Eastern Theatre Command issued on Wed accused the US of hypocrisy on the issue of Taiwan, with alleged support for advocates of Taiwan’s independence, a position it said was a betrayal of US alignment with the one-China policy. (here). China once again showed its assertiveness toward Taiwan when its 30 warplanes made incursions into the island nation’s air defense identification zone, or ADIZ on Mon, while US congressional delegation was on a surprise visit to Taiwan. PLA drills came as a US delegation led by Senator Tammy Duckworth arrived in Taiwan for a 3-day visit on regional security and other issues. In response, the Taiwanese military issued radio warnings and deployed air defense missile systems to monitor the activities, the Taiwan ministry added. [worth recalling that Pentagon Chief stated in Senate that the “the best US policy towards Taiwan is to Keep Beijing confused, as reported].

China should give up ‘illusion’ of avoiding US rivalry, Beijing think tank says

China should give up the “illusion” of avoiding competition with the United States, and even be prepared for the worst-case scenario of possible military conflict, a Chinese think tank has advised, while also urging Beijing to seek ways to reduce tensions. The Chongyang Institute said the war in Ukraine had intensified US worries about and strategy against China, heightening the risk of an “all-out” confrontation between the two major powers. “To respond to US President Joe Biden’s all-out competitive offensive, China should give up its illusions, and make every effort to guard against the possibility of a showdown of high-intensity military confrontation,” the institute said in a report released on Sun. China should prepare for the worst, but seek bilateral cooperation to avoid it, the institute urges in a recent report. (here)

US ‘actively considering’ China trade tariffs move, but need to find a balance

Deputy US Treasury secretary Wally Adeyemo said on Tue that the Biden administration is considering whether to cut some tariffs on Chinese goods, but needs to balance short-term price reduction goals against the longer-term need to address unfair competition from China. “We’re actively considering what we do with regard to those tariffs,” Adeyemo told CNN in a live interview. “I think the important thing for every American to know is that the president is committed to doing everything we can to bring down costs in a sustainable way.” Adeyemo’s comments come amid a debate over the merits of reducing some of the tariffs on Chinese imports as a way to ease high inflation. (here)

PM Shehbaz vows to take Pak-Turk bilateral trade to $5b in the next 3 years

Prime Minister Shehbaz Sharif has vowed to take Pakistan and Turkey’s bilateral trade to $5 billion in the next 3 years and urged Turk investors to come to Pakistan while assuring his full support to them. PM Sharif is currently in Turkey on a maiden 3-day official visit. During his visit, PM will have a tete-a-tete with President Recep Tayyip Erdogan, which will be followed by delegation-level talks. Besides discussing the Pakistan-Turkey bilateral relations, the 2 leaders will also exchange views on regional and international issues. The prime minister also reiterated Pakistan’s stance of support to Turkey on the Cyprus issue. Referring to the recent launch of the third PN MILGEM corvette for Pakistan Navy PNS BADR, PM also urged deepening bilateral defense ties and said an “enemy of Turkey is an enemy of Pakistan.” The PM Shehbaz assured to work out an option of visa-on-arrival for Turkish investors. As per the MOFA, FM thanked Ankara for its steadfast support and principled position on the J&K dispute. (here)

Pakistan, India have a lot to gain from mutually beneficial trade: Shehbaz Sharif

Pakistan Prime Minister Shehbaz Sharif has said that Islamabad is looking to forge partnerships for its geo-economics strategy, especially within the region, which includes New Delhi. He was responding to a question about trade with India in an interview with Turkish media outlet Anadolu Agency ahead of his 3-day visit to the country, Dawn reported. Shehbaz said that as part of its shift from geo-strategy to geo-economics, Pakistan is looking to forge partnerships, especially within the region, based on connectivity. “Pakistan and India have a lot to gain from mutually beneficial trade,” he said as quoted by Dawn. It is to be noted that after coming to power in early April, Shehbaz has written a letter to his Indian counterpart expressing his desire for peaceful ties with India and the resolution of all the outstanding issues. (here)

‘Hard to imagine buying Russian oil’: Miftah Ismail says in a CNN interview

Finance Minister Miftah Ismail on Tue said that Western sanctions have made importing oil from Moscow impossible despite the Pak govt’s request to buy wheat from Russia and Ukraine. “Russia has not offered us any oil either. It is difficult for me to imagine buying Russian oil,” Miftah said in a conversation with CNN. The minister said that as Russia is facing sanctions, it hasn’t responded to the previous govt’s letter seeking imports. Regardless of this, the incumbent government has again asked both Moscow and Ukraine, whoever can, to export wheat to Pakistan. (here)