China’s loss of supply chains may become India’s gain in post-Covid era

The government expects the program for electronics alone could lead to $153 billion worth of manufactured goods over the next five years and create about one million jobs directly and indirectly

India’s latest set of incentives to entice businesses moving away from China seem to be working, with companies from Samsung Electronics Co. to Apple Inc.’s assembly partners showing interest in investing in the South Asian nation.

Prime Minister Narendra Modi’s government in March announced incentives that make niche firms — electronics manufacturers — eligible for a payment of 4 per cent-6 per cent of their incremental sales over the next five years. The result: about two dozen companies pledged $1.5 billion of investments to set up mobile-phone factories in the country.

Besides Samsung, those that have shown interest are Hon Hai Precision Industry Co., known as Foxconn, Wistron Corp. and Pegatron Corp. India has also extended similar incentives to pharmaceutical businesses, and plans to cover more sectors, which may include automobiles, textiles, and food processing under the program.

While companies have been actively looking to diversify supply chains amid the US-China trade tensions and the coronavirus outbreak, it hasn’t yet translated into big gains for India despite the nation making it cheaper for businesses to open shop. Vietnam remains the most favored destination, followed by Cambodia, Myanmar, Bangladesh and Thailand, according to a recent survey by Standard Chartered Plc…Read More

Ladakh: Govt says 'intricate' discussions on disengagement continue

The Indian statement was silent on New Delhi's demand for China to ensure a reversion to the "status quo ante" of April, before PLA crossed the LAC at six points in Eastern Ladakh

After a 14-hour meeting in Ladakh between Chinese and Indian military commanders on Tuesday, the government said the two sides continue to discuss ways to disengage their troops that continue to face off in several locations. “The two sides remain committed to the objective of complete disengagement. This process is intricate and requires constant verification. They are taking it forward through regular meetings at diplomatic and military level,” said a ministry of defence (MoD) statement.

Sources close to the government admit there was no breakthrough in Tuesday’s fourth round of talks between India’s corps commander in Leh, Lieutenant General Harinder Singh and China’s commander of the South Xinjiang Military Region, Major General Liu Lin. “The Senior Commanders reviewed the progress on implementation of the first phase of disengagement and discussed further steps to ensure complete disengagement,” stated the MoD.

Tellingly, the defence ministry was silent on New Delhi’s demand for China to ensure a reversion to the “status quo ante” of April, before troops of the People’s Liberation Army (PLA) crossed the Line of Actual Control (LAC) at six points in Eastern Ladakh...Read More

China sees India's ban on apps as 'discriminatory', calls for reversal

Chinese Commerce Ministry Spokesman Gao Feng said that China has not taken any restrictive measures against Indian products and services

Days after India banned 59 Chinese apps for engaging in activities "prejudicial" to the sovereignty and integrity of the country, Beijing on Thursday issued a predictable reaction, describing New Delhi's actions as "discriminatory" while calling for the reversal of the ban. India on Monday banned 59 apps with Chinese links, including the hugely popular TikTok and UC Browser, for engaging in "activities which are prejudicial to sovereignty and integrity of India, defence of India, security of state and public order". The ban also comes in the backdrop of the current stand-off along the Line of Actual control in eastern Ladakh with Chinese troops.
Responding to reports that both countries are strengthening import regulations and suppressing each other's export goods amid the tense border situation and its impact on China's foreign trade enterprises exports to India, Chinese Commerce Ministry Spokesman Gao Feng said that China has not taken any restrictive measures against Indian products and services.

"First of all, I want to clarify that China has not taken any restrictive and discriminatory measures against Indian products and services, he said, according to the transcript posted on the ministry's website. India's practices violate relevant World Trade Organization rules," Gao said. The spokesman also expressed hope that India would immediately correct the discriminatory practices against China and Chinese enterprises.

India tally rises to 440K; Patanjali launches ayurvedic drug for Covid-19

According to government data, the situation in India is not as alarming as some of the other countries, given a limited spread on a per-capita basis

India reported nearly 15,000 coronavirus cases in the last 24 hours, taking the total to 440,215, an increase of 3.5% according to the Health Ministry.The country’s death toll has crossed the 14,000 mark with 312 fatalities in a day. India is the fourth-most-affected country by total cases, and eighth by death toll.

According to government data, however, the situation in India is not as alarming as some of the other countries, given a limited spread on a per-capita basis. India has 30.04 coronavirus cases per 100,000 population, which is just a little more than a third of the global average of 114.67, the health ministry has said, referring to the WHO Situation Report 153, dated June 21.

In a piece of good news, India’s unemployment rate fell to its pre-lockdown level of 8.5 per cent in the week ended June 21. The rate had spiked from 8.75 per cent in March to 23.5 per cent in April and peaked at 27 per cent in May. Baba Ramdev-led Patanjali Ayurved, meanwhile, is launching a medicine, ‘Coronil’, for treating Covid-19 in Haridwar today. Acharya Balkrishna, Chief Executive Officer (CEO) of Patanjali, had earlier this month claimed that an Ayurvedic medicine developed by the company has been able to cure Covid-19 patients within 5-14 days…Read More

Galwan clash: PM must be mindful of his words, says Manmohan Singh

On Friday, Modi had said, at an all-party meeting: "Neither is anyone inside our territory nor are any of our posts captured."

Without charging Prime Minister Narendra Modi directly, former PM Manmohan Singh said Modi must “always be mindful of the implications of his words.”

“At this moment, we stand at historic crossroads. Our government's decisions and actions will have serious bearing on how future generations perceive us. Those who lead us bear the weight of a solemn duty. In our democracy that responsibility rests with the office of the Prime Minister. The prime minister must always be mindful of the implications of his words and declarations on our nation's security as also strategic and territorial interests," Singh said, in his first reaction after the India-China clash at Galwan Valley in which 20 soldiers lost their lives.

On Friday, Modi had said, at an all-party meeting: “Neither is anyone inside our territory nor are any of our posts captured.” The Congress questioned the statement and questioned whether Modi meant Indian territory had been ceded to China. The PMO warned everyone not to derive a "mischievous interpretation" of PM Modi's remark.

"The prime minister's observations that there was no Chinese presence on our side of the Line of Actual Control (LAC) pertained to the situation as a consequence of the bravery of our armed forces. The sacrifices of the soldiers of the 16 Bihar Regiment foiled the attempt of the Chinese side to erect structures and also cleared the attempted transgression at this point of the LAC on that day," the government said...

China must use diplomacy to settle border issues with India: US House panel

We see increasing forces of China moved up to the north of India on the Line of Actual Control there on the Indian border, says US Secretary of State Mike Pompeo

China has moved up its forces along the Line of Actual Control (LAC) with India, US Secretary of State Mike Pompeo has said, asserting that authoritarian regimes take these kinds of actions.Several areas along the LAC in Ladakh and North Sikkim have witnessed major military build-up by both the Indian and Chinese armies recently, in a clear signal of escalating tension and hardening of respective positions by the two sides even two weeks after they were engaged in two separate face-offs.

Several areas along the LAC in Ladakh and North Sikkim have witnessed major military build-up by both the Indian and Chinese armies recently, in a clear signal of escalating tension and hardening of respective positions by the two sides even two weeks after they were engaged in two separate face-offs.

India has said that its troops fully abide by the alignment of the Line of Actual Control in the India-China border and it is the Chinese side that has undertaken activity hindering India’s normal patrolling patterns.”We see even today increasing forces of China moved up to the north of India on the Line of Actual Control there on the Indian border,” Pompeo told Marc Thiessen and Danielle Pletka of AEI’s ‘What The Hell Is Going On’ Podcast…Read More

Xi, Modi may discuss US' trade protectionism in Bishkek meet: China

The meeting assumes significance as this is the first meeting between the two leaders after Modi-led BJP's massive victory in the recent elections in India

Describing Prime Minister Narendra Modi and President Xi Jinping as "good friends", China on Monday hoped that the two leaders would discuss their respective trade frictions with the US and reach a consensus on opposing trade protectionism during their "very important" meeting this week on the sidelines of the SCO summit in Bishkek.

This year's summit of the Shanghai Cooperation Organisation (SCO) will be held in the Kyrgyz capital of Bishkek on June 13-14 where Modi and Xi are scheduled to meet and discuss bilateral and international issues. The meeting assumes significance as this is the first meeting between the two leaders after Modi-led BJP's massive victory in the recent elections in India. Xi had congratulated Modi on his re-election through a letter on May 23.

"Once again we congratulate Prime Minister Modi. President Xi and Prime Minister Modi are good friends. They had very successful informal summit at Wuhan last year," Chinese Vice Foreign Minister Zhang Hanhui told a media briefing here answering a question on the Modi-Xi meeting. He said the Wuhan summit has provided strategic guidance for the development of India-China ties, paving the way for stable growth of China-India relations in the long run.

The April 27-28 Wuhan summit between Modi and Xi was largely credited to have turned around the bilateral relations soured by the 73-day Doklam standoff in 2017, triggered by Chinese troops' attempt to build a road close to the Indian border in an area also claimed by Bhutan. After the Wuhan summit, both the countries stepped up efforts to improve relations in different spheres including the military-to-military ties.

When asked about the meeting between the two leaders on the sidelines of the SCO summit, Zhang said, "While the details for the meeting are under discussion, I believe every bilateral meeting between President Xi and Prime Minister Modi is very important. From the Chinese side, we will make good perpetrations for the success of bilateral meeting."

He also said the China-US trade war and the "spectre" of emerging trade frictions between the US and India could become important part of the discussions between the two leaders. "Whether they will talk about trade fictions between China and the US and the spectre of trade frictions between the US and India, such things are not surprising. I believe this could become an important topic in his bilateral meetings with the related leaders," he said. The two countries have been in an escalating conflict over trade for the past year. The scope of the battle has expanded in recent months as Washington has tightened trade restrictions on Chinese telecoms giant Huawei.

Read More: India China Relations

China deploys 1,000 troops near Sikkim; builds road at Doklam Plateau

Sources said China has been slowly increasing its troop level in the Doklam Plateau

China has maintained a sizeable presence of its troops near the site of the Sikkim border standoff with India and even started building a road on the Doklam Plateau, just 10 km from the location of the last conflict. The Doklam Plateau is claimed by both Beijing and Bhutan as their territory. India backs Bhutan’s claim.

Sources said China has been slowly increasing its troop level in the Doklam Plateau which could further escalate the current situation as India has reasons to be concerned over it.

Thwarted in its last attempt, China has now shifted its unused road construction material North and East of the face-off site. According to NDTV, the road construction workers brought into the area are accompanied by up to 500 soldiers. There is no indication that the soldiers will be permanently based in the area – the Chinese town of Yatung, said the report.

(economy policy)

The Indian Express report, however, said that 1,000 Chinese troops are still present on the plateau
An indication of tension between the two countries due to the presence of Chinese forces in the Chumbi Valley in the Doklam Plateau was also given by Chief of Air Staff Air Chief Marshal B S Dhanoa on Thursday.
“The two sides are not in a physical face-off as we speak. However, their forces in Chumbi Valley are still deployed and I expect them to withdraw as their exercise in the area gets over,” Dhanoa told reporters. | Readmore…