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How a no-limits Russia-China pact is reshaping the post-war world order
The efficacy of India's military partnership with the US and the West, in general, may diminish as China emerges as a peer technological power with comparable military capabilities
Shyam Saran
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Chinese President Xi Jinping paid an important visit to Moscow from May 7 to 10, his 11th since taking office in 2012. He was the chief guest at the celebrations of the 80th anniversary of Victory Day, marking the defeat of Nazi Germany and Imperial Japan by the allied forces – including the then Soviet Union and Republic of China. Mr Xi had attended similar festivities in Moscow 10 years ago. This year was special because not only was he the chief guest, but a unit of the Chinese People's Liberation Army (PLA) took part in the victory parade at
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Indian Express
an hour ago
- Indian Express
Consumers' loss, farmer optimism: In US, trade war sees key groups at odds
April was one of the most important months in the world's economic history, with the Trump administration's reciprocal tariffs coming into force on April 2 before being put on pause for 90 days a week later. The threat of the reciprocal tariffs, however, has seemingly had the opposite effect as American companies stocked up ahead of the tariffs' rollout. Data released last week showed that while the US' goods and services trade deficit in April 2025 fell a record 55 per cent from March 2025 to a 19-month low of $61.6 billion, the deficit for the first four months of 2025 was up 66 per cent compared to a year ago. The basis of Trump's reciprocal tariffs was that it would help bring down the US' trade deficit with various countries. Take India, for instance, which enjoyed a total trade surplus of $46.09 billion with the US in 2024. However, India's merchandise trade surplus with the US for the first four months of 2025 increased by 45 per cent to $23.29 billion, with imports from India up 29 per cent according to latest data from the US commerce department. In January-April 2025, the US imported $9.49 billion of advanced technology products from India, up 86 per cent from a year ago. Consumers & farmers American consumers have, for long, been considered the biggest losers in the Trump administration's pursuit of balanced trade. According to non-partisan policy research center The Budget Lab at Yale, American households, on average, are facing a consumption loss of $2,500 in 2025 when prices are measured in 2024 levels. 'The post-substitution price increase settles at 1.3%, a $2,100 loss per household,' The Budget Lab at Yale said. The Budget Lab estimates that Americans are facing an overall average effective tariff rate of 15.6 per cent at present — the highest since 1937 — with segments such as clothing and textiles being affected the most. In the short run, shoe and apparel prices for US consumers are up 31 per cent and 28 per cent, respectively. Despite the pain from tariffs, some in the US are still upbeat; in fact, more so than in several years. The Purdue University-CME Group Ag Economy Barometer index climbed to a four-year high last month, suggesting improved sentiment among farmers due to a 'much more optimistic view of US agricultural export prospects, combined with a less negative view of tariffs' impact on 2025 farm income than respondents provided in either March or April'. Exports are indeed on American farmers' minds, with Agriculture Secretary Brooke Rollins having recently visited Italy as part of her 'aggressive travel agenda to promote American agriculture worldwide'. The trip to Italy follows one to the UK in May 2025, with India, Vietnam, Japan, Peru, and Brazil on Rollins' schedule over the coming months. Shifting views on free trade Rather ironically, even as US and Chinese officials meet in London on Monday to add to the preliminary agreement that was agreed last month, American farmers have over the years grown somewhat skeptical of how beneficial free trade is. As per the Purdue University-CME Group Ag Economy Barometer, 18 per cent of producers in May 2025 either disagreed or strongly disagreed when presented with the statement that 'free trade benefits agriculture and most other American industries'. Back in December 2020, the corresponding number was just 7 per cent.
India Gazette
3 hours ago
- India Gazette
India-EFTA trade pact to come into force by September, says Piyush Goyal
Bern [Switzerland], June 9 (ANI): The landmark free trade agreement between India and the European Free Trade Association (EFTA) is set to become operational by September, Commerce and Industry Minister Piyush Goyal announced on Monday during his visit to Switzerland. EFTA is an inter-governmental organization set up in 1960 for the promotion of free trade and economic integration for the benefit of its four Member States - Switzerland, Iceland, Norway and Liechtenstein. Under the comprehensive pact, EFTA nations have committed to investing $100 billion in India over 15 years. Through reduced or eliminated tariffs, India is expected to provide preferential access to various European products, including Swiss watches, chocolates, and cut and polished diamonds. Speaking to reporters in Bern, Goyal said the agreement has secured parliamentary approval from all four EFTA member countries, 'By September, TEPA will be operationalised. It will enter into force,' the minister stated. He noted that while Switzerland maintains an objection period open until July 10, the summer holidays of July and August are not expected to delay implementation. During his Swiss visit, which focused on strengthening bilateral trade and investment ties, Goyal held meetings with over a dozen companies These companies have expressed particular enthusiasm for opportunities in a range of sectors including pharmaceuticals, cybersecurity, and machinery manufacturing sectors. 'There's tremendous excitement here for India,' Goyal observed, highlighting Switzerland's growing confidence in India as an investment destination. Beyond the EFTA agreement, India is actively pursuing trade partnerships with other countries. Goyal revealed negotiations with New Zealand, Chile, Peru, Oman, and the European Union. He said EU trade pact could be finalised 'faster than expected.' The minister also indicated progress on a bilateral investment treaty with the EU. Goyal emphasised India's manufacturing potential, particularly in machinery production, where the country allows 100% foreign direct investment. This strategy aims to reduce India's dependence on Chinese machinery for imports while positioning the country as a manufacturing hub. He cited the air conditioning sector as a success story, where government initiatives like the Production Linked Incentive (PLI) scheme have increased local manufacturing content from 20% to 65%, with targets to reach 80% within three years. Reflecting on India's economic progress under 11 years of NDA governance, Goyal said the country has emerged as a premier global business destination. He highlighted the presence of nearly 2,000 Global Capability Centres in India, underscoring the nation's emergence as a preferred location for both manufacturing and services. 'The world today recognises that the best place to do business is India,' Goyal said, attributing this transformation to sustained good governance and strategic policy implementation. The EFTA agreement represents another step in India's broader strategy to diversify trade partnerships and integrate more deeply into global value chains while attracting significant foreign investment to fuel domestic economic growth. (ANI)
NDTV
4 hours ago
- NDTV
US Seeking 'Handshake' On Rare Earths From China, White House Aide Says
Washington: The three top U.S. trade negotiators are seeking a handshake with China in London talks to seal the agreement on rare earths reached by Presidents Donald Trump and Xi Jinping, White House economic adviser Kevin Hassett said on Monday. "The purpose of the meeting today is to make sure that they're serious, but to literally get handshakes," Mr Hassett, director of the National Economic Council, told CNBC in an interview. "I expect it to be a short meeting with a big, strong handshake," Mr Hassett added. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer were set to meet with Chinese counterparts in London on Monday to defuse the trade dispute between the two superpowers that has widened in recent weeks to include export controls over goods critical to global supply chains. Chinese export controls on rare earths was a very significant sticking point, Mr Hassett said. With China controlling most of the global rare earth and magnet supply, its restrictions on sending those to the U.S. could disrupt production for American companies, including automakers, that rely on those materials, he said. Asked about the Chinese objection to U.S. curbs on semiconductor exports, Hassett said: "Our expectation is that after the handshake, then immediately after the handshake, any export controls from the U.S. will be eased, and the rare earths will be released in volume, and then we can go back to negotiating smaller matters."
