What led to Modi-Xi handshake and thaw in India-China ties

Special Modi and Xi met on Wednesday on the sidelines of the BRICS Summit in Kazan. It was their first formal talk since the 2020 clashes on the disputed border between India and China led to a military buildup on both sides. (Screenshot)
Modi and Xi met on Wednesday on the sidelines of the BRICS Summit in Kazan. It was their first formal talk since the 2020 clashes on the disputed border between India and China led to a military buildup on both sides. (Screenshot)
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Updated 24 October 2024
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What led to Modi-Xi handshake and thaw in India-China ties

What led to Modi-Xi handshake and thaw in India-China ties
  • Indian PM, Chinese president meet on sidelines of BRICS Summit in Kazan, Russia
  • First formal talk between parties since 2020 deadly clashes on disputed India-China border

NEW DELHI: After years of tensions, signs of a thaw are emerging in Indian-Chinese relations, experts say, following the meeting of Prime Minister Narendra Modi and President Xi Jinping in Russia.

Modi and Xi met on Wednesday on the sidelines of the BRICS Summit in Kazan. It was their first formal talk since the 2020 clashes on the disputed border between India and China led to a military buildup on both sides.

 

The 3,440 km-long Himalayan border has been a cause of tensions for decades and the two countries fought a war over it in 1962. The clash in Galwan Valley in 2020 was their worst confrontation since then, with at least 20 Indian and four Chinese soldiers killed.

The military standoff that followed affected bilateral business ties, leading to India banning several Chinese mobile apps, including TikTok, and stopping passenger flights to China.

Rounds of negotiations taking place over the past four years had not yielded any resolution but during Wednesday’s meeting, Modi and Xi agreed to “explore a fair, reasonable and mutually acceptable solution to the boundary question,” the Indian Ministry of External Affairs said in a statement.

It was widely seen as a “positive first step” signaling a thaw, Manoj Kewalramani, chairperson of the Indo-Pacific Research Program and a China studies fellow at the Takshashila Institution in Bangalore, told Arab News.

“Having this sort of abnormality in the relationship does not suit either side in the long run. So, there has been this impetus that we need to find some pathway to arriving at some sort of a new balance in the relationship,” he said.

“From an Indian point of view, of course engaging with China is important … you can’t necessarily have an abnormal high-intensity tense border area with such a neighbor for a long period of time.”

 

For China, too, trying to normalize the relationship was needed, especially in the increasingly hostile external environment.

“Whether it is in the South China Sea, East China Sea; whether it’s the issues with Russia and Ukraine; or whether it’s tensions in the Middle East, there’s an increasingly strained external environment,” Kewalramani said. “It makes sense to have some sort of a tactical understanding with a country like India, at least to begin with, and try to normalize that relationship.”

Mohan Guruswamy, chairman of the Centre for Policy Alternatives in New Delhi, said it was mutual geopolitical and economic interests that had compelled the leaders of the world’s two most populous countries to officially shake hands for the first time in nearly five years.

“India realizes that its place in the new world order — which is emerging — cannot be rated high unless China agrees. For instance, Britain, America, France, (and) Russia all agreed to India’s being in the UN Security Council. Only China disagrees. If China takes out its objections, then there is no objection to India’s membership,” he said.

“There is a realization in India also that we need China. And China has a trade surplus with India which is almost $40-50 billion a year. They would like to keep that, and they would also like to invest in India, because they realize that India is a big market.”

If the normalization proceeds and if there is enough political will for it to continue, it will have an impact on international politics and relations, especially in the Global South.

“There will be some elements of collaboration,” said Prof. Varaprasad Sekhar Dolla from the Center for East Asian Studies at Jawaharlal Nehru University in New Delhi.

“It will have an impact on the multipolar world that is unfolding.”


Ukraine-US talks in Munich end without agreement on critical minerals deal

Ukraine-US talks in Munich end without agreement on critical minerals deal
Updated 21 sec ago
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Ukraine-US talks in Munich end without agreement on critical minerals deal

Ukraine-US talks in Munich end without agreement on critical minerals deal
  • Trump has said he wants $500 billion in rare earth minerals from Kyiv and that Washington’s support needs to be “secured”
  • Zelensky said he was offering a mutually beneficial partnership to develop them jointly and not “giving them away”

KYIV/MUNICH: Talks between Ukrainian President Volodymyr Zelensky and US Vice President JD Vance ended in Munich on Friday without an announcement of a critical minerals deal that is central to Kyiv’s push to win the backing of President Donald Trump.
Kyiv came back to the US earlier with a revised draft agreement of the deal that could open up its vast resources of key minerals to US investment, amid concerns in Kyiv over a US version that was presented to Ukraine on Wednesday.
“Our teams will continue to work on the document,” Zelensky wrote on X, adding that he had had a “good meeting” with Vance and that Kyiv was “ready to move toward as quickly as possible toward a real and guaranteed peace.”
Two members of the Ukrainian delegation told Reuters that “some details” still needed to be worked out.
It was not immediately clear what the sticking point was, but Ukraine is pressing for robust security guarantees from Europe and the United States that would protect it from Russia in the future if a peace deal is reached.
Zelensky set out the contours of the deal in a Reuters interview last week, unfurling a map showing numerous mineral deposits and saying he was offering a mutually beneficial partnership to develop them jointly and not “giving them away.”
The minerals in question would include rare earth varieties, as well as titanium, uranium and lithium among others.
Trump, who has not committed to continuing vital military assistance to Ukraine, has said he wants $500 billion in rare earth minerals from Kyiv and that Washington’s support needs to be “secured.”
Asked earlier if there would be a deal agreed on Friday, Vance had said: “Let’s see.”
Ukraine was presented with a draft accord drawn up by the United States on Wednesday when Treasury Secretary Scott Bessent traveled to Kyiv. Zelensky said Ukraine would study it with a view to reaching an agreement in Munich.

Bessent told Fox Business Network on Friday that the Trump administration’s plan to end the war would intertwine Kyiv’s economy with the United States, with the US bringing its “best practices” of privatization.
He said: “Part of it starts with intertwining the ... Ukrainian economy more with the US, and making sure that US taxpayers receive the return for the money they put in.”

‘One-sided offer?
Meeting for 90 minutes with a bipartisan group of US senators behind closed doors in Munich, Zelensky voiced concern about the US proposal presented on Wednesday, three sources familiar with his presentation said.
He “felt he was being asked unreasonably to sign something he hadn’t had a chance to read,” one of them said on condition of anonymity. “I don’t think he appreciated being given a take-it-or-leave-it thing.”
Zelensky discussed his own proposal for a mineral deal with the United States, the source said, saying it was drafted to comply with the Ukrainian constitution.
Two other sources characterized the proposal delivered by Bessent as “one-sided,” but declined to elaborate.
Democratic Senator Brian Schatz, asked after the meeting if Zelensky considered the US proposal one-sided, responded, “I think that’s fair to say.”
Schatz said that the Trump proposal “needs massaging,” but declined to go into detail.


Russian forces take control of two settlements in eastern Ukraine, TASS says

Russian forces take control of two settlements in eastern Ukraine, TASS says
Updated 27 min 24 sec ago
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Russian forces take control of two settlements in eastern Ukraine, TASS says

Russian forces take control of two settlements in eastern Ukraine, TASS says
  • Ukraine’s DeepState military blog, which tracks frontline positions based on open source reports, said this week that Russian forces had made advances near Zelene Pole and Dachne

MOSCOW: Russian forces have taken control of two frontline settlements in eastern Donetsk region, the Russian Defense Ministry said on Friday.
A ministry report said Russian forces had captured the village of Zelene Pole located between Pokrovsk, the focal point of Russian attacks in the region, and Velyuka Novosilka, a settlement that Russia’s military said it captured late last month.
Also captured, according to the Russian report, was the village of Dachne, west of the town of Kurakhove, which Russia’s military said it also captured last month. The town had been subjected to weeks of heavy fighting.
The General Staff of Ukraine’s military, in a late evening report, said both villages were among 11 settlements that had come under Russian attack in the Pokrovsk sector. But it made no mention of them coming under Russian control.
Reuters could not independently confirm battlefield reports from either side.
Ukraine’s DeepState military blog, which tracks frontline positions based on open source reports, said this week that Russian forces had made advances near Zelene Pole and Dachne.
Russian forces failed in their initial bid to advance on Kyiv, the Ukrainian capital, after the February 2022 invasion and have since concentrated on capturing Donbas, made up of the eastern regions of Donetsk and Luhansk.
They have been making steady progress across Donetsk region for months, capturing a long string of villages.
But Ukrainian President Volodymyr Zelensky on Thursday praised the “good success” of a regiment based near Pokrovsk, without identifying where the operation had taken place.
At least one foreign blogger has noted Ukrainian counterattacks in the area.

 


Taiwan pledges chip talks and investment to mollify Trump

Taiwan pledges chip talks and investment to mollify Trump
Updated 36 min 56 sec ago
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Taiwan pledges chip talks and investment to mollify Trump

Taiwan pledges chip talks and investment to mollify Trump
  • TSMC is investing $65 billion in new factories in the US state of Arizona, a project begun in 2020 under Trump’s first administration.
  • Taiwan is home to the world’s largest contract chipmaker, TSMC, a major supplier to companies including Apple and Nvidia

TAIPEI: Taiwan President Lai Ching-te pledged on Friday to talk with the United States about President Donald Trump’s concerns over the chip industry and to increase US investment and buy more from the country, while also spending more on defense.
Trump spoke critically about Taiwan on Thursday, saying he aimed to restore US manufacturing of semiconductor chips and repeating claims about Taiwan having taken away the industry he wanted back in the United States.
Speaking to reporters after holding a meeting of the National Security Council at the presidential office, Lai said that the global semiconductor supply chain is an ecosystem in which the division of work among various countries is important.
“We of course are aware of President Trump’s concerns,” Lai said.
“Taiwan’s government will communicate and discuss with the semiconductor industry and come up with good strategies. Then we will come up with good proposals and engage in further discussions with the United States,” he added.
Democratic countries including the United States should come together to build a global alliance for AI chips and a “democratic supply chain” for advanced chips, Lai said.
“While admittedly we have the advantage in semiconductors, we also see it as Taiwan’s responsibility to contribute to the prosperity of the international community.”
Taiwan is home to the world’s largest contract chipmaker, TSMC, a major supplier to companies including Apple and Nvidia, and a crucial part of the developing AI industry.
TSMC is investing $65 billion in new factories in the US state of Arizona, a project begun in 2020 under Trump’s first administration.
TSMC’s Taipei-listed shares closed down 2.8 percent on Friday, underperforming the broader market, which ended off 1.1 percent.
A senior Taiwan security official, speaking to reporters on condition of anonymity in order to speak more freely, said if TSMC judged it was feasible to increase its US investment, Taiwan’s government would help in talks with the United States.
TSMC declined to comment.
The official added that communications between Taiwan and US economic, security and defense officials at present was “quite good” and “strong support from the United States can be felt.”

US support
The United States, like most countries, has no formal diplomatic ties with Chinese-claimed Taiwan, but is the democratically governed island’s most important international backer and arms supplier.
Trump cheered Taiwan last week after a joint US-Japan statement following Japanese Prime Minister Shigeru Ishiba’s visit to Washington called for “maintaining peace and stability across the Taiwan Strait,” and voiced support for “Taiwan’s meaningful participation in international organizations.”
But Taiwan also runs a large trade surplus with the United States, which surged 83 percent last year, with the island’s exports to the US hitting a record $111.4 billion, driven by demand for high-tech products such as semiconductors.
Lai said that the United States is Taiwan’s largest foreign investment destination and that Taiwan is the United States’ most reliable trade partner.
Trump has also previously criticized Taiwan, which faces a growing military threat from China, for not spending enough on defense, a criticism he has made of many US allies.
“Taiwan must demonstrate our determination to defend ourselves,” Lai said, adding his government is working to propose a special budget this year to boost defense spending from 2.5 percent of its GDP to 3 percent.
His government is involved in a standoff with parliament, where opposition parties hold a majority, over cuts to the budget, including defense spending.
“Certainly, more and more friends and allies have expressed concern to us, worried whether Taiwan’s determination for its self-defense has weakened,” Lai said.


Vance attack on Europe overshadows Ukraine talks at security conference

Vance attack on Europe overshadows Ukraine talks at security conference
Updated 45 min 34 sec ago
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Vance attack on Europe overshadows Ukraine talks at security conference

Vance attack on Europe overshadows Ukraine talks at security conference
  • Vance criticizes Europe on free speech and migration
  • Germany’s Pistorius calls Vance’s comments ‘unacceptable’

MUNICH: US Vice President JD Vance accused European leaders on Friday of censoring free speech and failing to control immigration, drawing a sharp rebuke from Germany’s defense minister and overshadowing discussions on the war in Ukraine.
The prospect of peace talks had been expected to dominate the annual Munich Security Conference after a call between US President Donald Trump and Russian leader Vladimir Putin this week but Vance barely mentioned Russia or Ukraine in his speech to the gathering.
He said the threat to Europe that worried him most was not Russia or China but what he called a retreat from fundamental values of protecting free speech — as well as immigration, which he said was “out of control” in Europe.
German Defense Minister Boris Pistorius hit back in his speech to the conference later in the day, calling Vance’s remarks “unacceptable.”
He said Vance had called into question democracy not only in Germany but in Europe as a whole.
The clash underlined the divergent worldviews of Trump’s new administration and European leaders, making it hard for longtime allies the United States and Europe to find common ground on issues including Ukraine.

Many conference delegates watched Vance’s speech in stunned silence. There was little applause as he delivered his remarks.
After his speech, Vance met with Alice Weidel, the leader of the far-right Alternative for Germany (AfD) party, a move likely to draw criticism as unwelcome interference ahead of German federal elections next week.
Trump’s call with Putin alarmed European governments, which have tried to isolate the Russian president since Moscow’s 2022 invasion of Ukraine and fear they could be cut out of peace talks that would have repercussions for their own security.
Vance, who met Ukrainian President Volodymyr Zelensky in Munich on Friday, told the Wall Street Journal in an interview before the conference that Trump could use several tools — economic and military — for leverage with Putin.
Vance’s spokesman, William Martin, later took issue with the newspaper’s interpretation that the vice president had been threatening Russia.

Peace talks
Zelensky said at the Munich conference that he would talk to Putin only once Ukraine had agreed on a common plan with Trump and European leaders.
Vance and Zelensky declined to give details of what they discussed in Munich but the Ukrainian president reiterated that his country needs “real security guarantees.”
German Foreign Minister Annalena Baerbock warned against any attempt to impose a peace deal on Ukraine.
“A sham peace — over the heads of Ukrainians and Europeans — would gain nothing,” she said. “A sham peace would not bring lasting security, neither for the people in Ukraine nor for us in Europe or the United States.”
Russia now holds about 20 percent of Ukraine nearly three years after launching a full-scale invasion, saying Kyiv’s pursuit of NATO membership posed an existential threat. Ukraine and the West call Russia’s action an imperialist land grab.
Vance also repeated Trump’s demand that Europe do more to safeguard its own defense so Washington can focus on other regions, particularly the Indo-Pacific.
“In the future, we think Europe is going to have to take a bigger role in its own security,” he said in a meeting with German President Frank-Walter Steinmeier.
NATO Secretary General Mark Rutte said Vance was “absolutely right” about the need for Europe “stepping up” and doing more for its own defense. “We have to grow up in that sense and spend much more,” Rutte said.
At the conference, several European leaders echoed his comments, saying Europe would step up its defense spending but also needed to discuss with Washington on a gradual phasing-out of its support.
Prior to meeting with the AfD leader, Vance suggested in his speech that the group is an eligible political partner, appearing to denounce a policy not to work with the AfD held by Germany’s major political parties.
The anti-immigration AfD is monitored by German security services on suspicion of being right-wing extremist. It is currently polling at around 20 percent ahead of the February 23 general election.
Billionaire US businessman Elon Musk, the biggest donor to Trump’s 2024 election effort and now head of Trump’s task force to slash US government spending, has also publicly backed the AfD.


OpenAI board unanimously rejects Elon Musk’s $97.4 billion proposal

OpenAI board unanimously rejects Elon Musk’s $97.4 billion proposal
Updated 15 February 2025
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OpenAI board unanimously rejects Elon Musk’s $97.4 billion proposal

OpenAI board unanimously rejects Elon Musk’s $97.4 billion proposal
  • Musk, an early OpenAI investor, began a legal offensive against the ChatGPT maker nearly a year ago, suing for breach of contract over what he said was the betrayal of its founding aims as a nonprofit

 

SAN FRANCISCO: OpenAI says its board of directors has unanimously rejected a $97.4 billion takeover bid by Elon Musk.
“OpenAI is not for sale, and the board has unanimously rejected Mr. Musk’s latest attempt to disrupt his competition,” said a statement Friday from Bret Taylor, chair of OpenAI’s board.
OpenAI attorney William Savitt in a letter to Musk’s attorney Friday said the proposal “is not in the best interests of OAI’s mission and is rejected.”
Musk, an early OpenAI investor, began a legal offensive against the ChatGPT maker nearly a year ago, suing for breach of contract over what he said was the betrayal of its founding aims as a nonprofit.
OpenAI has increasingly sought to capitalize on the commercial success of generative AI. But the for-profit company is a subsidiary of a nonprofit entity that’s bound to a mission — which Musk helped set — to safely build better-than-human AI for humanity’s benefit. OpenAI is now seeking to more fully convert itself to a for-profit company, but would first have to buy out the nonprofit’s assets.
Throwing a wrench in those plans, Musk and his own AI startup, xAI, and a group of investment firms announced a bid Monday to buy the nonprofit that controls OpenAI. Musk in a court filing Wednesday further detailed the proposal to acquire the nonprofit’s controlling stake.
Savitt’s letter Friday said that court filing added “new material conditions to the proposal. As a result of that filing, it is now apparent that your clients’ much-publicized ‘bid’ is in fact not a bid at all.” In any event, “even as first presented,” the board has unanimously rejected it, Savitt said.
Musk has alleged in the lawsuit that OpenAI is violating the terms of his foundational contributions to the charity. Musk had invested about $45 million in the startup from its founding until 2018, his lawyer has said.
He escalated the legal dispute late last year, adding new claims and defendants, including OpenAI’s business partner Microsoft, and asking for a court order that would halt OpenAI’s for-profit conversion. Musk also added xAI as a plaintiff, claiming that OpenAI was also unfairly stifling business competition. A judge is still considering Musk’s request but expressed skepticism about some of his claims in a court hearing last week.