China hosts Iran, Russia defence ministers against backdrop of 'turmoil'
QINGDAO: China hosted defence ministers from Iran and Russia for a meeting in its eastern seaside city of Qingdao on Thursday (Jun 26) against the backdrop of war in the Middle East and a summit of NATO countries in Europe that agreed to boost military spending.
Beijing has long sought to present the 10-member Shanghai Cooperation Organisation (SCO) as a counterweight to Western-led power blocs and has pushed to strengthen collaboration between its member countries in politics, security, trade and science.
The Qingdao meeting of the organisation's top defence officials comes as a fledgling ceasefire between Israel and Iran holds after 12 days of fighting between the arch-foes.
It is also being held the day after a summit of North Atlantic Treaty Organization (NATO) leaders in The Hague, where members agreed to ramp up their defence spending to satisfy US President Donald Trump.
Beijing's ties with Moscow are also in the spotlight.
China has portrayed itself as a neutral party in Russia's war with Ukraine, although Western governments say its close ties have given Moscow crucial economic and diplomatic support.
Russian Defence Minister Andrei Belousov painted a bleak picture of a world seeing "worsening geopolitical tensions" when he addressed his counterparts at the meeting.
"The current military and political situation in the world remains difficult and shows signs of further deterioration," he said, according to a Russian defence ministry statement.
His Chinese counterpart Dong Jun also framed Thursday's meeting in Qingdao, home to a major Chinese naval base, as a counterweight to a world "marked by intertwined turmoil and changes".
"It is all the more important for the Shanghai Cooperation Organization to play its role as an anchor of stability," he said, according to state news agency Xinhua.
BACKING FOR IRAN?
Recent fighting between Israel, Iran and the United States was also likely discussed in Qingdao.
Beijing refrained from offering anything more than diplomatic support to its close partner Tehran throughout that conflict, reflecting its limited leverage in the region and reluctance to worsen relations with the United States.
"Public backing for Iran will come in the form of words, rather than deeds," James Char, an expert on the Chinese army at Nanyang Technological University in Singapore, told AFP.
"Other than condemning the US strikes on Iran, Beijing can be expected to continue treading cautiously in the Middle East's security issues and would not want to be dragged into the region's security challenges," he said.
Iran's defence minister will likely "discuss with China the supply of weapons but I doubt China would agree", said Andrea Ghiselli, an expert in China foreign policy and a lecturer at Exeter University.
"It would be seen as provocative by both Israel ... and, even more important for China, the US, with which Beijing is trying to stabilise relations," Ghiselli said.
India's Defence Minister Rajnath Singh, also in attendance in Qingdao, said SCO members should "collectively aspire to fulfil the aspirations and expectations of our people as well as tackle today's challenges".
"The world we live in is undergoing a drastic transformation. Globalisation, which once brought us closer together, has been losing momentum," he said in comments his office posted on social media.
"As momentous changes of the century accelerate, unilateralism and protectionism are on the rise," Dong said as he welcomed defence chiefs from Russia, Iran, Pakistan, Belarus and elsewhere on Wednesday, according to state news agency Xinhua.
"Hegemonic, domineering and bullying acts severely undermine the international order," he warned.
He urged his counterparts to "take more robust actions to jointly safeguard the environment for peaceful development".
Meeting Dong on the sidelines of the summit, Belousov hailed ties between the two countries as being "at an unprecedentedly high level".
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
an hour ago
- Straits Times
Poland says arms race could lead to Putin's fall
Russian President Vladimir Putin is "waging a very expensive war" in Ukraine, said Poland's foreign minister. PHOTO: AFP WARSAW - Polish Foreign Minister Radoslaw Sikorski said June 26 that a new arms race could lead to the fall of Russian President Vladimir Putin's 'regime', just like it toppled the Soviet Union. The Nato member's top diplomat spoke after the Western defence alliance agreed to massively ramp up defence spending, seen as vital to counter the threat from Russia. 'Putin should understand that he is on the path of (Soviet leader Leonid) Brezhnev. He himself once said that the Soviet Union collapsed because it spent too much on armament, and now he is doing exactly the same thing,' Mr Sikorski said, in an interview with AFP, the Polish news agency PAP and German agency DPA. 'He is waging a very expensive war... scared the whole West into reinforcing its defence spending,' Mr Sikorski said, adding: 'We are doing it because Putin is threatening us'. 'This means that from an economy the size of Texas, Putin will have to squeeze out even more defence funds. Hopefully with a similar result for the regime (to that of the Soviet Union), but faster.' Nato's 32 countries agreed to US President Donald Trump's headline target of 5 per cent of GDP on defence spending following two days of talks in The Hague. The compromise hatched by Nato sees countries promise to dedicate 3.5 per cent of GDP to core military spending by 2035, and a further 1.5 per cent to broader security-related areas such as infrastructure. Underpinning the leaders' discussions on defence was Moscow's invasion of Ukraine, with the summit's final statement referring to the 'long-term threat posed by Russia to Euro-Atlantic security'. Mr Trump also signed off on a final declaration confirming an 'ironclad commitment' to Nato's collective defence pledge that an attack on one is an attack on all – a reassuring move for European countries worried about Russia. 'Trump understands' Fearing threats from neighbouring Russia, Poland has for several years rapidly modernised its military, with a string of arms contracts, mainly with the United States and South Korea. It has already earmarked 4.7 per cent of its GDP for military expenditure this year, and in 2026 it aims to raise it further. Mr Sikorski said 'Trump understands now that it is Russia that does not want an end to the war' in Ukraine, which began with Russia's invasion in February 2022. He said that at the Nato summit, 'I drew attention to the fact that this shows a lack of respect on the part of Vladimir Putin towards the peace initiatives of President Trump'. Poland's foreign affairs minister, Mr Radoslaw Sikorski, said US President Donald Trump understands that Russia does not want an end to its war in Ukraine. PHOTO: AFP Mr Sikorski also hailed Germany – Europe's biggest economy – for its efforts to boost its military. This week Germany revealed plans to reach the 3.5 per cent level for core spending six years early, in 2029, with the vast extra outlays necessary made possible after the country eased its rules on taking on debt. Chancellor Friedrich Merz has vowed to build Europe's 'strongest conventional army' to counter the growing threat from Moscow. Mr Sikorski said 'we are good allies and we need to build a kind of force that will not scare anybody but that will deter Putin'. 'And I would see the need to counter the Russian missile threat from the Kaliningrad exclave as an urgent Polish-German challenge,' he added. Poland shares a border with Russia's heavily militarised Kaliningrad exclave. AFP Join ST's Telegram channel and get the latest breaking news delivered to you.
CNA
2 hours ago
- CNA
Fintech firm Pine Labs seeks up to $6 billion valuation in India IPO, source says
Indian fintech firm Pine Labs' [ initial public offering could be worth about $1 billion and the company is seeking a valuation of up to $6 billion, a source familiar with the matter said on Thursday. Pine Labs is looking to issue fresh shares worth 26 billion rupees ($304 million) while existing investors including Peak XV, PayPal and Mastercard will sell up to 147.8 million shares, draft papers filed with the market regulator showed. The company, which competes with Paytm and Walmart's PhonePe, is seeking a valuation of between $5 billion and $6 billion, according to the source, who did not want to be identified. The company was last valued at $5 billion when it raised funds in 2022. Pine Labs offers full-stack payment solutions such as point-of-sale machines to merchants for card payments. It will use the IPO proceeds to invest in overseas units, develop technology and pare down debt. India's IPO market has had a slow start to the year, but foreign investors are now returning to local stocks after a major exodus, attracted by big-ticket block trades, often a precursor to a recovery in IPOs. IPO proceeds from Indian issues are down 4.2 per cent so far this year compared to a year earlier, while the number of issues have fallen 29 per cent, data from LSEG up to mid-June showed. Still, the stock market is gathering steam as concerns around global trade uncertainties ease. The benchmark Nifty 50 is up 8 per cent this year, but remains 3 per cent below its record highs hit last September. Six IPOs are open for bids this week, including HDB Financial's $1.5 billion offering, the biggest ever by an Indian non-bank lender. Pine Labs posted a revenue of 13.41 billion rupees in fiscal year 2024, up from 12.91 billion rupees in 2023, while its losses widened to 1.87 billion rupees from 562 million over the same period, according to its prospectus. Morgan Stanley, Citi and Jefferies are among the bookrunners for the offering.
CNA
2 hours ago
- CNA
After NATO deal, how far will EU go for trade peace with Trump?
BRUSSELS: After satisfying Donald Trump's calls for Europe to ramp up defence spending in NATO, European Union leaders were meeting in Brussels on Thursday (Jun 26) on the next big challenge ahead: how to seal a trade deal with the United States leader. Time is running out. The EU has until Jul 9 to reach a deal or see swingeing tariffs kick in on a majority of goods, unleashing economic pain. The European Commission, in charge of EU trade policy, has been in talks with Washington for weeks, and will update leaders on the state of play at Thursday's summit. The leader of the bloc's biggest economy, German Chancellor Friedrich Merz, set the tone upon arrival. "I support the commission in all its efforts to reach a trade agreement quickly," said Merz, signalling he wants negotiators to close a deal as soon as possible - even if it means an unbalanced outcome with the Europeans agreeing to some level of US tariffs. The EU has put a 0 per cent tariff proposal on the table - but it's widely seen as a non-starter in talks with Washington. According to several diplomats, the goal at this point is rather to let Trump claim victory without agreeing to a deal that would significantly hurt Europe. One diplomat suggested leaders would be happy with a "Swiss cheese" agreement - with a general US levy on European imports, but enough loopholes to shield key sectors such as steel, automobiles, pharmaceuticals and aeronautics. This would be less painful than the status quo, with European companies currently facing 25 per cent tariffs on steel, aluminium and auto goods exported to the US, and 10 per cent on a majority of EU products. Merz on Monday hit out at the EU's approach to talks with Washington as "too complicated", urging "rapid, joint decisions for four or five major industries now". The issue will be discussed over a summit dinner on Thursday, with European Commission President Ursula von der Leyen planning to test leaders' red lines in negotiations. If no agreement is reached, the default tariff on EU imports is expected to double to 20 per cent or even higher - Trump having at one point threatened 50 per cent. KEEPING CALM Unlike Canada or China, which hit back swiftly at Trump's tariff hikes, the EU has consistently sought to negotiate with the US leader - threatening retaliation only if no agreement is reached. "We will not allow ourselves to be provoked, we will remain calm," said Belgian Prime Minister Bart De Wever, urging the EU to avert an all-out trade war with Washington. "We are negotiating and we hope to reach an agreement", but "if this is not the case, we will obviously adopt countermeasures", he warned. Speaking at NATO's summit in The Hague on Wednesday, French President Emmanuel Macron said a trade war among alliance partners "makes no sense" at a time when they are pledging to spend more on their common defence. "We can't say to each other, among allies, we need to spend more ... and wage trade war against one another," Macron said. Talks between EU and US negotiators have intensified in recent weeks. "The problem is that on behalf of the US, we have a heavyweight dealmaker - on our side, EU, have light capacity and capability leaders to negotiate," said Hungarian Prime Minister Viktor Orban. Trump divides the Europeans. Orban and Italian Prime Minister Giorgia Meloni are both vocally supportive of Trump - while others are more wary. Meloni on Wednesday declared herself "quite optimistic" about reaching a deal and echoed Macron, albeit in a softer manner, saying spending more on defence among NATO allies went hand in hand with avoiding trade spats. Pro-trade countries in Europe's north are especially keen to avoid an escalation. The EU has threatened to slap tariffs on US goods worth around €100 billion, including cars and planes, if talks fail to yield an agreement - but has not made any mention of those threats since May. The US is also using the negotiations to try to extract concessions on EU rules, particularly digital competition, content and AI regulations, which Washington claims unfairly target American champions such as Apple, Google and Meta. Europeans are ready to discuss common transatlantic standards, but the EU's digital rules are a red line for Brussels.
