For PM Modi-Xi Meet After Tension, India And China Set Aside Formalities

Agencies
April 24, 2018

Apr 24: Prime Minister Narendra Modi will travel to meet Chinese President Xi Jinping this week, as the world's two most-populous countries seek to reduce tensions after a tense border dispute last year.

The "informal summit" between Xi Jinping and PM Modiwill be held Friday and Saturday in Wuhan, the capital of the central province of Hubei, Chinese Foreign Minister Wang Yi said Sunday at a news conference with India External Affairs Minister Sushma Swaraj.

The meeting is part of an intensifying dialogue between the two leaders whose countries comprise more than one-third of the world's population and 18 percent of global gross domestic product. It comes as both powers seek to reduce risk in their regional environments as China faces down U.S. President Donald Trump's threatened trade actions and PM Modi seeks to keep India's economy on track ahead of the 2019 election.

"It is very rare for two major countries like China and India to meet together so frequently," said Qian Feng, a researcher on international relations with Tsinghua University in Beijing. "For both sides, a peaceful border and a mutually beneficial trading partnership are obviously more in line with their interests. For this reason, the two sides are tacitly recovering bilateral relations rapidly."

Xi and PM Modi met last September and are scheduled to meet again in June for the Shanghai Cooperation Organization meeting in China's eastern port city of Qingdao. Both leaders have strong domestic reasons to put tensions aside.

"For China, the ongoing trade war with the U.S. prompted Beijing to adopt a more sensible attitude towards India," Qian Feng said, adding that PM Modi's economic and social reforms have slowed. "The turbulent global economic situation has increased economic risk in India."

The countries' foreign ministers emphasised the broader strategic context behind the meeting. Xi and PM Modi would have "communications of a strategic nature concerning big changes happening in the world," Mr Wang told reporters in Beijing. "They will also exchange views on overall, long-term and strategic matters concerning the future of China-India relations."

The two sides are setting aside formalities for the meeting in the hope of a breakthrough before border tensions resurface, according to Shailesh Kumar, political risk firm Eurasia Group's Asia director.

"The informal nature and timing of the summit indicates that first, both sides want to be able to discuss all topics in a free and cordial manner without the standard formalities," Kumar said. "Second, they want to meet before the summer, when many worry tensions between both armies in the mountain areas could rise again as the weather is less hostile."

The move toward rapprochement was facilitated by a meeting between Xi and PM Modi last September, when they held their first talks since defusing a border stand-off in remote region between India, Bhutan and China's Tibet region. Ms Swaraj, the Indian foreign minister, described peace and tranquility on the countries' border areas as an "essential prerequisite for the smooth development of bilateral relations."

The summit was good news in the short-term for investors in Asia, Mr Kumar said. "Priorities will be to build deeper ties to mitigate any security related disagreements while also establishing a framework to handle any issues as they arise," he said.

Longer term, though, differences between the two powers are likely to resurface. "Distrust is high and tensions will remain, particularly given China's financial involvement in Pakistan, which India sees as a strategic rather than economic engagement that can hurt India," Mr Kumar said.

Tensions have lingered since China defeated India in a brief border war in 1962. The residence of the Tibetan religious leader, the Dalai Lama, in the mountain town of Dharamsala in Northern India has also long angered Beijing.

They've been exacerbated by Beijing's rapid expansion of its political and economic ties in India's backyard through Xi's ambitious Belt and Road infrastructure initiative. Projects include railway building in Pakistan and port projects in Sri Lanka.

Against that backdrop, former Indian foreign secretary S. Jaishankar told India's Asian News International that the summit was "certainly a very bold step."

"The fact that they have agreed on an informal summit shows that the two leaders realise the importance of this relationship," he said. "They have taken on the responsibility themselves on putting it on a better course."

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Agencies
February 25,2020

Kuala Lumpur, Feb 25: The government party led by Interim Malaysian Prime Minister Mahathir Mohamad has rejected his resignation, urging him to continue leading it and the country, now shrouded in political uncertainty.

During an extraordinary meeting held on Monday night, the Malaysian United Indigenous Party (Bersatu) unanimously rejected the 94-year-old Prime Minister's decision, reports Efe news.

Mahathir, the world's oldest head of government, presented his resignation on Monday, later accepted by King Abdullah Pahang, on condition that he continue as Interim Prime Minister until a new government is formed.

That decision caused a domino effect that broke the Patakan Harapan (Alliance of Hope) alliance, formed in 2018 by four political parties that prevailed in that year's general elections.

Bersatu and 11 Popular Justice Party deputies announced their departure from the coalition, although they reaffirmed their confidence in Mahathir as Malaysia's political leader.

"We remain intact and prepared to build a party to face the difficulties," Marzuki Yahya, Bersatu Secretary-General, said after the meeting.

Confusion reigns in the country, with some local media claiming Bersatu and the 11 deputies Justice Party deputies intended to form a new government with opposition parties, including the historic Barisan Nasional coalition, under Mahathir's leadership.

Lim Guan Eng, Finance Minister and coalition member, said in a statement that the chief executive himself had informed him he had no intention of forming a coalition with Barisan, which suffered a historic defeat in the last elections.

A future government will need at least 112 of 222 parliament votes.

Mahathir returned to politics in 2018 heading the Patakan Harapan coalition to defeat his predecessor Najib Razak, marred by the corruption suspicions offenses.

To that end, Mahathir joined Anwar Ibrahim, a former political ally who fell out of favour in 1999 and was imprisoned five years on charges of corruption and sodomy, whom he promised to be his successor in power.

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News Network
February 1,2020

Washington, Feb 1: The Indian economy experienced some abrupt slowdown in 2019 due to turbulence in non-banking financial institutions and major reform measures such as GST and demonetisation, but it is not in a recession, IMF Managing Director Kristalina Georgieva has said.

"The Indian economy indeed has experienced an abrupt slowdown in 2019. We had to revise our growth projections, downwards to four percent for last year. We are expecting 5.8 per cent (growth rate) in 2020 and then an upward trajectory to 6.5 percent in 2021," Georgieva told a group of foreign journalists here on Friday.

"It appears that the main reason for this slowdown was the non-banking financial institutions experiencing a turbulence," she said on the eve of Union Finance Minister Nirmala Sitharaman presenting the annual budget in Parliament on Saturday.

She said India had undertaken some important reforms that over the longer term would be beneficial for the country, but they do have some short-term impact.

"For example, coming with the unified tax system, and the demonetisation that took place. These are steps that over time are beneficial, but of course they might, might be somewhat disruptive over short term," Georgieva said in response to a question.

The International Monetary Fund (IMF) Managing Director said that there is not a lot of fiscal space in India. “But we also recognise that the policies of the government on that side, on the fiscal side have been prudent. We will see how the reading of the budget, the submission of the budget goes, tomorrow,” she said.

In the medium-term, she said, the IMF remains optimistic about India. “This is why we see that upswing potential for the growth in the country,” she said.

Georgieva said that the current economic slowdown cannot be described as a recession. "No.... You're far from that. But it is a significant slowdown, not the recession," she said.

The IMF managing Director noted that the consumption in India also slowed down and that contributed to the overall slowdown in the economy. The IMF would be keen to see what India does to get relatively sound macroeconomic fundamentals to pay off in terms of better growth trajectory, she said ahead of the budget.

One thing that is important for India is that budgetary revenue have been below target. "The country knows that. The finance minister knows it. They need to increase budgetary revenue collection so they can improve their fiscal position. I said it's tight on the spending side, but I also want to stress that there is room to improve collection on the revenue side," she said.

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News Network
June 18,2020

New Delhi, Jun 18: With the highest single-day increase of 12,881 COVID-19 cases reported in the last 24 hours, India's coronavirus count has reached 3,66,946 on Thursday.

This includes 1,60,384 active cases and 1,94,325 cured, discharged and migrated patients, according to the Union Health and Family Welfare Ministry.

Meanwhile, with 334 deaths being reported due to the infection, the toll due to the virus stands at 12,237 in the country.

There is a big increase in the number of confirmed cases in the country today as compared to the recent days when the spike had been limited to under 11,000 cases.

Maharashtra with 1,16,752 cases continues to be the worst-affected state in the country with 51,935 active cases while 59,166 patients have been cured and discharged in the state so far. The toll due to COVID-19 stands at 5,651 in the state.

The number of confirmed cases in Tamil Nadu also crossed the 50 thousand mark on Thursday and reached 50,193. The national capital is the third-worst affected by the infection in the country with the count reaching 47,102 today.

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