Latest news with #DiplomaticTensions
Forbes
2 days ago
- Business
- Forbes
European Trade Tensions Rise Ahead Of The July Summit In China
EU High Representative and Vice-President for Foreign Affairs and Security Policy Kaja Kallas (R) ... More shakes hands with China's Foreign Minister Wang Yi during a meeting as part of the 13th EU-China Strategic Dialogue, in Brussels, on July 2, 2025. EU foreign affairs chief Kaja Kallas on Wednesday urged Beijing to stop undermining Europe's security, as China's top diplomat held talks in Brussels ahead of a leaders' summit later this month. (Photo by François WALSCHAERTS / AFP) (Photo by FRANCOIS WALSCHAERTS/AFP via Getty Images) Strained relations between the European Union and China have put their upcoming summit in late July at risk. During their discussions in mid-June, EU delegates opted not to hold an economic meeting with Chinese officials to discuss trade. The Financial Times reported that a 'lack of progress on numerous trade disputes' was why the meeting was not held. Then, during a meeting between EU and Chinese officials on July 2, China opted to dramatically increase tariffs on several EU products. Chinese Foreign Minister Wang Yi even hinted that China may cancel part of the upcoming two-day summit between EU and Chinese officials due to the growing and ongoing tensions between both parties. As the trade disputes worsen, it is unclear how European and Chinese officials will proceed with the July 24-25 summit. But if European leaders want China's help in convincing Russia not to continue aggressive invasions past Ukrainian borders, diplomats must first quell trade disputes and smooth the flow of commerce. The trade tensions between the EU and China emerged in October 2024, after the Europeans 'raised tariffs on Chinese electric vehicles to as high as 45.3%,' Newsweek reported, while the Chinese imposed duties on imported brandy from the EU. Since then, the trade battle between the EU and China has increased. In April 2025, China announced that it would restrict exports of rare earth minerals to Europe. The statement was met with outrage from the EU. These minerals from China are vital as they are used in the production of electric vehicles, medical equipment, military hardware, and much more. Following the restriction on these rare earth minerals, many European companies were forced to shut down their production lines. While the EU and China impose tariffs on a variety of goods, the United States also recently implemented duties on numerous countries around the world. This includes tariffs on the EU and China. For example, the U.S. has imposed a 10% baseline rate on EU tariffs, but rates for steel (50%) and cars (25%) are significantly higher. Meanwhile, U.S. duties on Chinese goods remain as high as 55%, Reuters reported. As a result, this has put a strain on trade relations between the U.S. and the EU, as well as the U.S. and China. The trade tensions have also led to higher production costs for defense contractors within the United States and Europe. Politico also reported that this could lead to 'crucial supply chain disruptions.' Both the EU and China have been negotiating with the U.S. to reduce these rates. Rather than seeking reconciliation, however, the EU and China have further played into these disagreements. In June, the EU banned Chinese medical devices from many public procurement contracts. Additionally, senior EU officials accused the Chinese government of attempting to 'blackmail' Europe after it imposed restrictions on the export of rare earth minerals. In response, European Commission President Ursula von der Leyen called on the EU to stand together as the organization fights against China's economic policies. This upset Chinese officials. In early July, China announced a ban on European medical device companies, which can no longer sell products to the Chinese government. Additionally, China imposed higher duties on European brandy. This resulted in European officials confronting their Chinese counterparts. The European Parliament has also recently condemned China for the restrictions on rare earth minerals. Despite this tension, the July summit may still proceed. In a recent statement made by the Chinese Foreign Ministry, the announcement read that China was committed to 'deepening [its] dialogue and cooperation' with the Europeans. Continued discussions could result in the easing of tariffs, and improve trade relations between the EU and China. This would grant the EU access to China's rare earth minerals, some of which are used for European military hardware. In preparing for the July summit, the European Council held a meeting on June 26-27. One of the significant discussion topics during the two-day event was the current 'geoeconomic challenges' for the EU, namely wars raging in Ukraine and the Middle East. The EU has served as an intermediary in both conflicts, but negotiation attempts have not ended either war. Adding China as an intermediary during negotiations, however, might sway the outcome of current and ongoing diplomatic discussions. China has economic interests in both Eastern Europe and the Middle East. If China serves as a balanced mediator during diplomatic discussions in both conflicts, this could bolster China's trade relationships with the countries in both regions. Lastly, EU representatives met with their Chinese counterparts for the 13th Strategic Dialogue in Brussels on July 2. During the discussion, delegates addressed EU-China relations and current trade issues between both parties. They stressed the need for 'fairer economic and trade cooperation.' They also concluded that it was 'important to find concrete solutions to rebalance the economic relationship,' according to a Chinese government press release. How this will be addressed, however, is unclear. No one is certain if and how the trade dispute between the EU and China will be resolved. But officials from both entities will work tirelessly to address their trade disputes during the July 24-25 summit. For both parties, it will be essential to move past these issues. For example, the European Commission's trade profile on China states that in 2024, 'EU imports of manufactured goods accounted for 97% of total imports from China.' Similarly, the profile noted that 'EU exports of manufactured goods consisted of 88% of total exports to China.' In other words, the EU and China have a significant trade relationship. Resolving their trade differences will ease burdens on supply chains and global trade, and easing tariffs will make things more affordable for EU and Chinese consumers. It would also reduce the burden on defense manufacturers and contractors, as well as their production lines. Otherwise, if the trade disputes between the EU and China continue, this will bring further burdens on the economy of EU member states as well as China, thus harming global stability.
Bloomberg
01-07-2025
- Politics
- Bloomberg
China Sanctions Former Philippine Senator as Tensions Swell
China has sanctioned former Philippine Senator Francis Tolentino, prohibiting him from entering mainland China, Hong Kong and Macau, in a rare move as tensions with Manila rise. The move was announced by China's Foreign Ministry on Tuesday, who accused Tolentino of improper behavior on issues related to China.
Times of Oman
26-06-2025
- Politics
- Times of Oman
India, Canada working on reinstatement of High Commissioners: MEA
New Delhi: The Ministry of External Affairs (MEA) on Wednesday stated that India and Canada are working to reinstate the High Commissioners to each other's capitals. The move follows efforts to normalise relations that had deteriorated sharply last year. At a press briefing, MEA Spokesperson Randhir Jaiswal said Prime Minister Narendra Modi and his Canadian counterpart Mark Carney had reaffirmed the importance of India-Canada ties during a meeting on the sidelines of the G7 Summit in Kananaskis, Canada. He added that both sides agreed to take constructive steps to "restore stability" in the relationship. "We had issued a press release when we had the last meeting of PM Modi with Prime Minister Carney, on the sidelines of G7 in Kananaskis in Alberta. Both leaders then reaffirmed the importance of India-Canada ties based on shared democratic values, respect for the rule of law, and commitment to upholding the principles of sovereignty and territorial integrity. Both sides agreed to take calibrated and constructive steps to restore stability in the relationship, beginning with the early return of high commissioners to each other's capitals," Randhir Jaiswal said. "That was what was agreed between the prime ministers. Both countries are now working on this particular matter," he added. Diplomatic tensions between the two nations flared up last year after then Canadian Prime Minister Justin Trudeau alleged that his government had "credible allegations" of India's involvement in the killing of Khalistani terrorist Hardeep Singh Nijjar in Canada in 2023. India had strongly denied the charges, calling them "absurd" and "motivated." In response, India recalled six diplomats, including its High Commissioner to Canada, after they were labelled "persons of interest" by Canadian authorities investigating the killing. India also expelled six Canadian diplomats, including Canada's High Commissioner to India. Nijjar was shot dead outside a gurdwara in Surrey, British Columbia, on June 18, 2023. With Mark Carney now serving as the Canadian Prime Minister after Trudeau's resignation, both countries appear to be taking steps to improve ties. According to MEA, PM Modi and PM Carney had a "key meeting" at the G7 Summit where they discussed ways to restore and strengthen the bilateral relationship. India and Canada also agreed to resume senior and working-level mechanisms and discussions in various areas, including: trade, people-to-people contact, connectivity and collaboration in key areas like, cooperating on clean energy and technology initiatives, collaborating on digital infrastructure projects, exploring opportunities for cooperation in artificial intelligence and discussing potential collaboration on food security and critical minerals.
Yahoo
20-05-2025
- Politics
- Yahoo
‘India can starve us': farmers in Pakistan decry suspension of crucial water treaty
In July 2023, Ali Haider Dogar was one of tens of thousands of farmers in central-eastern Pakistan whose crops were submerged after India released water from the Sutlej River into Pakistan in an attempt to mitigate flash floods in its own northern regions. Dogar, whose family's losses in 2023 ran to tens of thousands of pounds, said every farmer in his village in Punjab was fearing the worst in the comings months after India suspended the Indus waters treaty, following a deadly attack on tourists in India-administered Kashmir that India has pinned on Pakistan. Related: How has India reacted to attack in Kashmir and why are tensions in region so high? Islamabad denies any involvement in the attack, in which 26 people were killed. As well as suspending the treaty, Delhi has suspended trade with Pakistan, summoned and expelled its diplomats, and suspended visas for Pakistanis. Pakistan has also suspended all trade with India and closed its airspace to Indian airlines. The Indus treaty governs the distribution and use of waters from the Indus River and its tributaries, which feed 80% of Pakistan's irrigated agriculture and its hydropower. Dogar said its suspension had 'sent shivers down our spines'. 'We fear India can cause flash floods or stop water destined for our crops,' he said. 'India can starve us. Because now India won't be responsible to share any data about flash floods or dam projects with Pakistan.' For decades, India has accused Pakistan of backing the violent separatist insurgency in Indian-administered Kashmir. Islamabad condemned the recent attack and called allegations of its involvement 'baseless'. Authorities in Islamabad have described the suspension of the water treaty as 'an act of war'. When both countries came into being as a result of partition in 1947, the source rivers of the Indus basin were all in India. Years of negotiation followed, before the treaty was brokered by the World Bank in 1960, giving control of the eastern tributaries to India and the western tributaries to Pakistan. The treaty has survived three wars between the nuclear rivals and is considered one of the world's most successful water-sharing endeavours. Pakistan has an agrarian economy and a breadbasket that is dependent on the treaty. 'Water is our life. We can't compromise on it,' said Khalid Khokhar, president of the Farmers' Association. 'If they do it, this is a war. My ancestors were farmers as well. In times of crises the farmers sell the family's jewellery, borrow money and do anything possible for farming. The water level is already low because of less rain and we are already very worried. There should be no politics on water. It is our lifeline.' Government officials and experts on both sides say India cannot stop water flows immediately, because the treaty has allowed it to build only hydropower plants without significant storage or dams on the three rivers allocated to Pakistan. 'In the short term, there may not be any direct practical implication,' Himanshu Thakkar, coordinator of the India-based South Asia Network on Dams, Rivers and People, told Agence France-Presse at the weekend. 'Any safe infrastructure to divert water, beyond what is happening now, takes years, mostly more than a decade'. India's existing dams do not have the capacity to block or divert water. 'India cannot immediately stop the flow of these rivers, as it is technically unfeasible and economically not viable,' said Naseer Memon, a Pakistani water expert. But Memon warned of 'disastrous' consequences if Delhi started to ignore its obligations to inform authorities in Pakistan about development on the rivers in the future. 'This would be a humanitarian crisis. Millions of lives would be at stake.' India's suspension letter sent to Pakistan said there had been 'fundamental changes to the circumstances' since the deal was signed, including 'population dynamics' as well as a 'need to accelerate the development of clean energy'. The precious resource is being sucked up by increasing populations and surging agricultural requirements, as well as hydropower projects fuelled by rising energy needs. A senior Pakistani security official, requesting anonymity, claimed that India had been planning for some time to withdraw from the treaty and was using the Kashmir attack as an excuse. 'We can't sit and allow India to do it,' the official said. 'The international community must play its role.'
