[NEWS OF THE DAY]

Interests outweigh differences, let’s meet halfway: China to India

China and India’s “common interests far outweigh differences”, Chinese foreign minister Wang Yi has said, adding that the two countries should put the differences on the border in their appropriate place and seek to resolve the dispute through dialogue and consultation. [old dialogue]. The two countries should support rather than undermine each other and enhance trust rather than be suspicious, Wang said in his first meeting with ambassador Pradeep Kumar Rawat, who became India’s envoy to China in Mar, in Beijing on Wed. Wang said the two sides “should meet each other halfway to push bilateral relations back onto the track of stable and healthy development at an early date…” (here)

China hosts Brics meeting amid rising economic concerns

Amid a growing political divide between Beijing and New Delhi and rising concerns over the global economic outlook, Chinese President Xi Jinping is hosting a virtual summit with the leaders of Brazil, Russia, India, and South Africa, (BRICS) on Thu. China has refused to condemn Russia’s invasion while criticizing sanctions brought against Moscow. India has bought large amounts of Russian oil at a heavy discount, and S Africa abstained from a UN vote condemning Russia’s actions. Along with Xi, Indian PM Narendra Modi, Russian President Vladimir Putin, South African President Cyril Ramaphosa, and Brazilian President Jair Bolsonaro are scheduled to join the two days of discussions. (here)

‘Ukraine crisis is a wakeup call’: Xi Jinping warns against ‘expanding military alliances’

With Russia, which invaded Ukraine, and India, with which China had a border clash in attendance, President Xi Jinping warned against “expanding military” alliances, while speaking at the BRICS Business Forum on Wed (Jun 22) ahead of the 14^th BRICS virtual summit. His comments came amid talk of more countries like Sweden and Finland seeking to join NATO, and as India, the US, Japan, and Australia expanding cooperation under Quad, which Chinese circles derisively refer to as Asian NATO. As per the Chinese state media, Xi warned against “expanding military alliances and seeking one’s own security at the expense of other countries’ security“. The Chinese foreign ministry said that the theme of the event is to foster a high-quality partnership for better global development. (here) China has sought to use the BRICS to further its vision of an alliance to counter the US-led democratic world order while expanding its economic and political footprint. That has produced few tangible results, but Xi remains committed to the idea of an alternative – and principally authoritarian – global governance mode, investing heavily in countries like Cambodia while cracking down on civil rights in Hong Kong and boosting its military to assert its claims in the South China Sea and threats to annex Taiwan by force. China and India have meanwhile feuded over their disputed border and New Delhi has forged defense partnerships with the US, Japan, and Australia in what is known as “The Quad”.

China’s appalling behavior in the South China Sea akin to what India saw at LAC: Australian Defence Minister

China’s appalling behavior in the South China Sea (SCS) is similar to what India witnessed at the Line of Actual Control (LAC), said Richard Marles, Australia’s Deputy PM and Minister for Defence. Marles said one country seeks to settle its border disputes not by rules but with power and that is a concern. Speaking to media persons in New Delhi, he said, “China is seeking to shape the world around it in ways that we have not seen before and that has evolved over the last decade. In the last few years, we are seeing a more assertive China.” In SCS, the construction of artificial islands and island reclamation are taking place. Be it LAC or SCS, China is challenging the established rules-based order which is important for the region, he added. Marles explained how China is Australia’s largest trading partner. “China is our biggest security anxiety and so is for India. …We are working closely to build our relationship in terms of economic and defense together,” he said. On AUKUS, he said that it is a Technology exchange between Australia, the UK, and the US, it is not a security exchange. (here) Marles on Thu said that defense engagement between India and Australia will ensure closer ties between the two strategic partners. He added, “Quad is not a security alliance“. A day earlier, he held a bilateral meeting with his Indian counterpart as both sides reviewed the regional security situation and reaffirmed their shared objective of an open, free, and rules-based Indo-Pacific region. Marles, who arrived in India on Mon on a 4-day visit, today said he has invited Rajnath Singh to visit Australia. (here)

India, China purchasing more Russian oil than earlier believed, says the US

One of US President Joe Biden’s economic advisers has said that India and China may have been buying more Russian oil than previously believed by the US govt. He said that purchase of Russian oil by the two large countries is easing supply constraints in global markets and driving the recent oil price decline. West Texas Intermediate lost 5.6% to $103.31 a barrel, while Brent was off 5.2% at $108.62. At the start of 2022, around two-thirds of Russian crude was being exported to Europe, now about 50% of the nation’s oil is going to Asia, most of which additional oil has gone to two countries—China and India—reports the NYT citing shipping data by Kpler, a market research firm. The other biggest importer of Russian oil has been India, which has gone from taking in almost no Russian oil to bringing in more than 760,000 barrels a day. (here)

[NATIONAL]

US: Ilhan Omar introduces House resolution over India’s human rights record

Ilhan Omar, a politically controversial Democratic Congresswoman from Minnesota, has introduced a resolution in the US House of Representatives condemning India’s alleged human rights record and ‘violations’ of religious freedom, “including those targeting Muslims, Christians, Sikhs, Dalits, Adivasis, and other religious and cultural minorities”. Expressing “grave concern about the worsening treatment of religious minorities in India”, the resolution calls on the Secretary of State to designate India as a “country of particular concern”, a recommendation also made by the US Commission on International Religious Freedom (USCIRF). Omar, a Somali-American who has in the past taken a critical position against India, visited Pakistan, including Pakistan-occupied Kashmir, in Apr 2022, [which has been termed as “the visit of Omar is not under official capacity” by the state Department]. Then the Indian MEA responded “… If such a politician wishes to practice her narrow-minded politics at home, that may be her business. But violating our territorial integrity and sovereignty in its pursuit makes it ours. This visit is condemnable.” (here)

PM Hasina set to visit India on Sept 6-7 for a meeting with Modi

Dhaka and Delhi have fixed the schedule and the Prime Minister gave verbal approval. She will now sign it in a day or two,” a foreign ministry official confirmed to The Daily Star last night (June 22). The schedule of the PM-level meeting was discussed during the Joint Consultative Commission meeting between Bangladesh Foreign Min AK Abdul Momen and Indian External Affairs Minister on June 19. The FM official said before the PM-level meeting in New Delhi, that the two countries will hold Joint Rivers Commission (JRC) meeting, a ministerial-level meeting, which has not been held in the last 10 years although water sharing of transboundary rivers is a crucial issue between the two countries. (here)

India emerges frontrunner for Malaysian fighter jet order

India has emerged as the frontrunner for a Malaysian requirement of light combat aircraft, with a package deal on the table that would include maintenance and spares for the nation’s Russian-origin Su 30 fighter jets. India has offered an attractive financial package for its Tejas Light Combat Aircraft and has committed that it can keep Malaysia’s fleet of Su 30 jets flightworthy, given the vast spares reserve and technical expertise available with Hindustan Aeronautics Limited. Other contenders for the deal — primarily S Korea and China — are not in a position to offer this package as they do not have backend contracts with Russian manufacturers to work on the Sukhoi fighters. Malaysia has 18 of the Su 30 MKM fighters, which are very similar to the MKI version that is in service with the Indian Air Force. The detailed discussions on the dual package have taken place and a final decision may be possible under the G2G route. (here)

Foreign Secy meets Sri Lankan President, PM to discuss the economic crisis

A 4-member Indian delegation led by Foreign Secretary Vinay Kwatra met Sri Lankan President Gotabaya Rajapaksa and PM Ranil Wickremesinghe on Thu to assess the bilateral assistance provided by New Delhi in the wake of the island nation’s ongoing economic crisis. According to Sri Lanka’s Ministry of Foreign Affairs, Kwatra is accompanied by the Secy, Economic Affairs, Chief Economic Advisor, and Joint Secy of the Indian Ocean Region. At the meeting, the Indian delegation examined the possibility of another tranche of the financial package to be disbursed to Sri Lanka. As a single country, India with over $3.5 bn since Jan has provided the biggest assistance to Sri Lanka, especially for the import of essentials. On Wed, PM told Parliament about the need to have a plan to revive the economy, adding that India too would not be able to continue to assist Sri Lanka in the way she has been doing. (here)

PM Modi Meets the Chairman of Foxconn

Prime Minister met Young Liu, Chairman, Foxconn, on Thu. He informed on Twitter. “I welcome their plans for expanding electronics manufacturing capacity in India, including in semiconductors.” Our push for Electric Vehicle manufacturing is in line with our commitment to Net Zero emissions. India has an $85 billion opportunity in the global $500 billion semiconductor manufacturing supply chain market comprising materials (gases, chemicals, minerals, equipment, and services), a new report showed on Fri. The ongoing disruptions in the semiconductor industry and ESDM (electronic system design and manufacturing) supply chain have reiterated the importance of diversified and reliable resources. Consequently, central govts and big corporations worldwide are adding futuristic manufacturing capabilities such as FABs and ATMPs to fuel the widespread national semiconductor independence trend by creating regional chip manufacturing hubs.

4^th India-New Zealand Foreign Ministry Consultations

The 4^th Foreign Ministry Consultations between India and New Zealand were held in New Delhi on June 23, 2022. Secretary (East) led the Indian delegation while the New Zealand side was led by Deputy Secretary, Americas and Asia Group, Ministry of Foreign Affairs and Trade. Reviewing the existing warm and friendly bilateral relations, including trade and investment, defense and security, people-to-people ties, counter-terrorism, cyber security, and disarmament, both sides expressed keenness to further enhance engagement and deepen ties in various areas. The two sides reiterated the importance of a free, open, inclusive, and stable Indo-Pacific. Discussions were also held on ways to strengthen coordination at regional and multilateral fora.

At CHOGM, Jaishankar underscores the importance of collectively addressing crucial challenges

External Affairs Minister S Jaishankar on Thu lauded the Indian democracy which offers numerous examples for the Commonwealth and underscored the importance of collectively addressing the crucial challenges, including post-COVID recovery, climate change, and ongoing global conflicts. Addressing the Commonwealth Heads of Government Meeting (CHOGM) Foreign Ministers’ plenary on the theme of Democracy, Peace, and Governance, Jaishankar said India’s digital backbone is of particular relevance. Jaishankar is leading the Indian delegation to the CHOGM, which had earlier been postponed twice due to the Covid. The theme of the 26^th CHOGM Summit is: “Delivering a Common Future: Connecting, Innovating, Transforming”. The Leaders of the Commonwealth Member States are scheduled to deliberate on issues of contemporary relevance, including global challenges like – climate change, food security, and health issues and are likely to adopt the following 4 Outcome Documents, the Ministry of External Affairs said in a statement on Tue. India is also one of the largest contributors to the Commonwealth and has assisted the organization with technical assistance and capacity building. (here)

[NEIGHBORHOOD]

Pakistan, IMF Say Key Progress Made In $6 Billion Bailout Talks

Key progress has been made in talks on the revival of Pakistan’s International Monetary Fund bailout program, both sides said on Wed, with Islamabad expecting the lender to increase the size and duration of the 39-month, $6 billion facilities. The statements came as Pakistan’s economy teeters on the brink of a financial crisis, with foreign exchange reserves drying up fast and the Pakistani rupee at record lows against the US dollar as uncertainty surrounded the IMF program. Pakistan unveiled a $47 billion budget for 2022-23 this month aimed at tight fiscal consolidation in a bid to convince the IMF. However, the lender later said additional measures were needed to bring Pakistan’s budget in line with the key objectives of the IMF program. The two sides held talks on Tue night and agreed on the budget and fiscal measures but still need to agree on a set of monetary targets, Finance Minister Miftah Ismail said. (here)

China’s payments, fintech sectors to ‘play bigger role’ in boosting economy, President Xi says, in positive signal for Big Tech

President Xi Jinping on Wed conveyed his support for China’s mobile payments and financial technology platforms at a senior leadership meeting, where he encouraged these operators to “play a bigger role” in strengthening the world’s second-largest economy. That meeting by the Central Comprehensively Deepening Reforms Commission, a policy formulation and implementation body headed by Xi, approved a work plan on “enhancing regulation over big payment platforms, while promoting the regulated and healthy development of payment and fintech businesses”, according to state-run Xinhua News Agency. Xi said China’s payments and fintech platforms should “return to their roots”, which is a veiled reference to refrain from disorderly expansion and anticompetitive behavior that had brought major risks to China’s finance sector. (here)

Japan tracks eight Russian and Chinese warships near its territory

At least eight Russian and Chinese warships have been spotted in the seas near Japan this week, another sign of the apparent pressure the two partners have been putting on Tokyo as relations deteriorate over Ukraine and Taiwan respectively. Japan’s Defense Ministry on Tue said its forces had observed 5 Russian warships led by an anti-submarine destroyer steaming through the Tsushima Strait, which separates Japan and South Korea. Meanwhile, at least two Chinese warships and a supply ship were spotted Tue in the Izu Islands, about 500 km south of the capital Tokyo. One of those ships appeared to be the Lhasa, a Type 55 guided-missile destroyer and one of China’s most powerful surface ships. The ministry said that the group has been operating in waters near Japan since June 12. (here)

Xi’s critic’s launched a campaign against the Chinese President ahead of the election

The critics of President Xi Jinping launched a campaign titled ‘Jade Campaign/Overthrow Xi Save China Campaign‘ ahead of the election as Xi seeks to extend his presidency beyond 2023. Non-mainstream Chinese news websites and some Twitters account including Cai Xia shared the campaign text on their accounts. “On the eve of the 20^th Communist Party Congress, this is the best time for we the people to save ourselves, and perhaps even the last window of opportunity for the Chinese nation. Xi’s campaign-style pandemic prevention has caused immeasurable damage across the country,” the campaign text reads. A megacity like Shanghai can be locked down at will, destroying the economy, and causing numerous humanitarian disasters and unprecedented levels of anger. Now Xi is at his lowest point; he has not grasped absolute power and he is under pressure,” the campaign added. It further stated that people are angry with the Chinese President. “Currently, public discontent is boiling in China; people are desperate for change; everyone is disgusted with Xi, and the international community is strongly anti-Xi. Xi faces the same fate as Romania’s Ceausescu. On that day, at a meeting of the National Assembly, someone suddenly shouted, “Down with Ceausescu!” Thousands of people started to shout too, and the regime was quickly over.” (here)