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Reeling from Trump’s tariffs, India and China seek a business reboot

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Modi and Xi last had a bilateral meeting in 2017 [BBC]

India’s Prime Minister Narendra Modi landed in China on Sunday with the sting of Donald Trump’s US tariffs still top of his mind.

Since Wednesday, tariffs on Indian goods bound for the US, like diamonds and prawns, now stand at 50% – which the US president says is punishment for Delhi’s continued purchase of Russian oil.

Experts say the levies threaten to leave lasting bruises on India’s vibrant export sector, and its ambitious growth targets.

China’s Xi Jinping, too, is trying to revive a sluggish Chinese economy at a time when sky-high US tariffs threaten to derail his plans.

Against this backdrop, the leaders of the world’s two most populous countries may both be looking for a reset in their relationship, which has previously been marked by mistrust, a large part of it driven by border disputes.

“Put simply, what happens in this relationship matters to the rest of the world,” Chietigj Bajpaee and Yu Jie of Chatham House wrote in a recent editorial.

“India was never going to be the bulwark against China that the West (and the United States in particular) thought it was… Modi’s China visit marks a potential turning point.”

India and China are economic powerhouses – the world’s fifth and second largest, respectively.

But with India’s growth expected to remain above 6%, a $4tn (£3tn) economy, and $5tn stock market, it is on the way to moving up to third place by 2028, according to the International Monetary Fund (IMF).

“While the world has traditionally focused on the single most important bilateral relationship in the world, US and China, it is time we shift more focus on how the second and would-be third largest economies, China and India, can work together,” says Qian Liu, founder and chief executive of Wusawa Advisory, based in Beijing.

But the relationship is deeply challenging.

The two sides have an unresolved and long-standing territorial dispute – that signifies a much broader and deeper rivalry.

Violence erupted across Ladakh’s Galwan Valley in June 2020 – the worst period of hostility between the two countries in more than four decades.

The fallout was largely economic – a return of direct flights was taken off the table, visas and Chinese investments were put on hold leading to slower infrastructure projects, and India banned more than 200 Chinese apps, including TikTok.

“Dialogue will be needed to help better manage the expectations of other powers who look to India-China as a key factor of Asia’s wider stability,” Antoine Levesques, senior fellow for South and Central Asian defence, strategy and diplomacy at IISS, says.

There are other fault lines too, including Tibet, the Dalai Lama, and water disputes over China’s plans to build the world’s largest hydroelectric power project across a river shared by both nations, as well as tensions with Pakistan after the Pahalgam attack.

India also does not currently enjoy good relations with most of its neighbours in South Asia, whereas China is a key trading partner for Pakistan, Bangladesh, Sri Lanka and Afghanistan.

“I would be surprised if a BYD factory is coming to India, but there may be some soft wins,” Priyanka Kishore, founder and principal economist at research company Asia Decoded, says.

It’s already been announced that direct flights will resume, there may be more relaxations on visas, and other economic deals.

However, the relationship between Delhi and Beijing is “an uncomfortable alliance to be sure”, notes Ms Kishore.

“Remember at one point, the US and India were coming together to balance China,” she adds.

But India is completely perplexed with the US and its position: “So it’s a smart move – and feeds into the multipolar narrative that both India and China believe in.”

Modi is travelling to China for the Shanghai Cooperation Organisation (SCO) – a regional body aimed at projecting an alternative worldview to that of the West. Members include China, India, Iran, Pakistan and Russia.

In the past, India has downplayed the organisation’s significance. And critics say it hasn’t delivered on substantial outcomes over the years.

The June SCO defence ministers’ meeting failed to agree on a joint statement. India raised objections over the omission of any reference to the deadly 22 April attack on Hindu tourists in Indian-administered Kashmir, which led to the worst fighting in decades between India and Pakistan.

But experts say the downturn in Delhi’s relations with Washington has prompted India to rediscover the utility of the SCO.

China, meanwhile, will value the optics of Global South solidarity amid Trump’s tariff chaos.

The Brics grouping – of which China, India, Russia, Brazil and South Africa are the founding members – has drawn the ire of Trump, who has threatened to slap additional tariffs on group members on top of their negotiated rates.

Getty Images Employees work on the SMT (surface mount technology) shop floor where components are mounted on a PCB (printed circuit board) at Padget Electronics Pvt., a subsidiary of Dixon Technologies Ltd., in Noida, India.
Chinese smartphones manufactured in India hold a significant market share too. [BBC]

Modi last met Xi and Russia’s Vladimir Putin at the Brics summit in Russia in October 2024. Last week, Russian embassy officials said Moscow hopes trilateral talks with China and India will take place soon.

“Leveraging each of their advantages – China’s manufacturing prowess, India’s service sector strengths, and Russia’s natural resource endowment – they can work to reduce their dependence on the United States to diversify their export markets and ultimately reshape global trade flows,” Bajpaee and Yu said in their editorial.

Delhi is also leveraging other regional alliances, with Modi stopping in Japan on the way to China.

“Asean and Japan would welcome closer co-operation between China and India. It really helps in terms of supply chains and the idea of Make in Asia for Asia,” Ms Kishore says, referring to the political grouping comprising 10 Southeast Asian economies.

India continues to be reliant on China for its manufacturing, because it sources raw materials and components from there. It will likely be looking for lower import duties on goods.

India’s strict industrial policies have so far held it back from benefiting from the supply chain shift from China to South East Asian countries, according to experts.

There is a case for partnership, a strong one, says Ms Kishore, where India pitches to manufacture more electronics.

She points out that Apple makes airpods and wearables in Vietnam, and iPhones in India, and so there would be no overlap.

“Faster visa approvals would be an easy win for China as well. It wants market access in India either directly or through investments. It’s dealing with a shrinking US market, it’s already flooded Asean markets, and a lot of Chinese apps like Shein and TikTok are banned in India,” says Ms Kishore.

“Beijing would welcome the opportunity to sell to 1.45 billion people.”

Given the complexity of the relationship, one meeting is unlikely to change much. There is a long way to go on improving China-India ties.

But Modi’s visit to China could repair some animosity and send a very clear signal to Washington that India has options.

[BBC]



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Rana and Mosaddek star as Bangladesh end 21-year wait with crushing win

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Nahid Rana caused plenty of problems with his pace [Cricinfo]

Nahid Rana and Mosaddek Hossain combined brilliantly to secure Bangladesh a huge win against Australia in the first ODI in Dhaka. The 86-run victory, which eventually came via DLS due to a thunderstorm, was only the second time that Bangladesh have defeated Australia in this format; their previous win was in June 2005, known as the Cardiff Miracle. However, this win 21 years later was far from an upset as Bangladesh continued their impressive home form by completely dominating proceedings.

Mosaddek celebrated his return to the team after four years with an all-round showing that included an unbeaten career-best 86 and two wickets. Rana, who had taken three five-wicket hauls in the last three months, claimed 4 for 41 in a fiery performance where he was clocked at over 150kph.

Australia had a forgettable day at the Shere Bangla National Stadium. They dropped four catches and looked unlike themselves in the field. Then they couldn’t withstand Rana’s speed on a pitch that produced mostly even bounce and a bit of pace. Cameron Green ended unbeaten with 52 but the game had long since gone.

Taskin Ahmed’s peach of a delivery that moved slightly off the wicket castled Matt Short off the first ball of the Australia chase. Short became only the fifth opener to get out first ball in an ODI innings against Bangladesh, and the first in 17 years. It meant Australia had registered three consecutive scoreless opening stands.

Mustafizur Rahman trapped the struggling Marnus Labuschagne lbw with the second ball of the next over. Left-armer Mustafizur pitched it up to Labuschagne who played around the delivery. There was initial doubt about the review before captain Mehidy Hasan Miraz gave the signal and it was the right call.

Rana then bowled a perfect length to Australia captain Josh Inglis who edged to wicketkeeper Litton Das. Rana, who usually doesn’t react to his wickets too loudly, really went into a celebratory run, appearing to say something Inglis. He reacted to Rana’s outburst, before Mehidy escorted away his Australian counterpart. In the rest of the over, Rana bowled deliveries in excess of 146kph.

Mosaddek’s fine day continued when he removed Cooper Connolly in the 20th over with a delivery from around the wicket which slid into leg stump. Connolly, opening for just the second time in his ODI career, made 35 off 50 balls. Alex Carey was the next to go, nicking Rana to the keeper for 47 when he looked beaten for pace. In the 29th over, Rana bowled one delivery that reached 150kph.

Rana also removed debutant Liam Scott and Xavier Bartlett in the space of two overs. Scott fended a rising delivery to Tawhid Hridoy, who took a diving catch in front of him at gully, and Bartlett avoided getting hit when he gave a simple catch to Tanzid at square-leg off a 148kph delivery.

Meanwhile, Mosaddek had added his second when he trapped Matt Renshaw lbw for 2 with one which turned sharply to hit the back leg. Mosaddek capped off his brilliant day with a terrific catch running back from mid-off when Nathan Ellis top-edged Mustafizur.

After Bangladesh were sent in to bat, Mosaddek led the way in the latter part of the innings as he struck seven fours and three sixes in his unbeaten 86 off 70 balls. Mosaddek added 75 for the fifth wicket with Hridoy who contributed a sedate 31. The partnership revived the Bangladesh innings after they had slipped to 140 for 4.

Tanzid Hasan and Najmul Hossain Shanto had laid the platform with a 96-run stand for the second wicket after Bangladesh lost Saif Hassan in the second over. The left-handed duo kept the home side in the driver’s seat with regular boundaries throughout their stay. Shanto was initially the more aggressive of the pair, regularly coming down the track against the Australia seamers.

Tanzid played mostly from his crease, as he crashed the ball down the ground whenever it was pitched up. However, they were unable to push on, falling shortly after reaching their first milestones. Tanzid holed out to Bartlett at mid-on followed by Shanto chipping to long-off nine overs later. In between, Renshaw had taken a superb caught-and-bowled to remove Litton for 7.

Mosaddek and Hridoy batted positively while rotating the strike during their fifth-wicket stand, continuing their impressive form from the DPL. Mosaddek’s first boundary was a straight six off Adam Zampa although he was lucky, too, surviving dropped catches on 21, 38 and 73.

In between, he struck the ball hard down the ground. When he lost Hridoy and Mehidy in quick succession, Mosaddek didn’t panic, adding 65 with the lower order. Taskin supported him with a six and two fours while Mosaddek raced between the wickets whenever there was an opportunity to take a second run.

Brief scores:
Bangladesh 284 for 8 in 50 overs  (Tanzid Hasan 54, Najmul Hosain Shanto 67, Mosaddek Hossain 86*; Nathan Ellis 3-38, Liam Scott 2-57, Matt Renshaw 2-35) beat Australia 191 for 9 in 42.2 overs (Alex  Carey 47, Cameron Green 52*; Mustafizur Rahman 2-24,  Nahid Rana 4-41, Mosaddek Hossain 2-37) by 86 runs (DLS method)

[Cricinfo]

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Cabinet approval for Sri Lanka Community and Health Survey – 2026/2027

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The Sri Lanka Community and Health Survey is the main data source for obtaining necessary information for reviewing progress toward achieving the national health development goals, as well as the expected sustainable development goals by 2030.

The last survey was conducted in the year 2016, and the Sri Lanka Community and Health Survey should be conducted to obtain updated data to enable the collection of related data and indicators concerning the health and well-being targets of the Global Sustainable Development Objectives.

Accordingly, the Cabinet of Ministers has approved the resolution furnished by the President in his capacity as the Minister of Finance, Planning, and Economic Development to take necessary steps to conduct the aforementioned survey.

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Mrs. Chandanie Sagarika Boogahawatthe appointed as Additional Secretary at the Prime Minister’s office

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Approval of the Cabinet of Ministers was granted at their meeting held on 02.12.2024 to appoint Mrs. Chandanie Sagarika Boogahawatthe, an officer in Grade I of Sri Lanka Planning Service to a post of Additional Secretary at the Prime Minister’s office on full time acting basis.

She has been promoted to the Special Grade of  the Sri Lanka Planning Service with effect from 01.01.2026 by the Public Service Commission.

Accordingly, the Cabinet of Ministers approved the resolution furnished by the Prime Minister to appoint Mrs. Chandanie Sagarika Boogahawatthe to a post of Additional Secretary at the Prime Minister’s office on permanent basis.

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