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The new US strategy to edge out China

President Joe Biden at Pentagon.(photoInstagram)

Strategic Competition Act of 2021′, a legislation that will allow the US to edge out China in all fields—strategic, economic, and diplomatic – is the brainchild of Robert Menendez—chairman of the Senate Foreign Relations Committee and Senator Jim Risch, reports Rahul Kumar

The Joe Biden administration is moving fast. In just 11 weeks, it has honed on China as an enemy that has to be pursued relentlessly and outmanoeuvred. America knows its enemies and how to chase them down.

Two US senators have introduced the ‘Strategic Competition Act of 2021’, a legislation that will allow the US to edge out China in all fields—strategic, economic, and diplomatic. The bulwark of this strategy will be the Indo-Pacific region, which is right now contentious with the South China Sea swarming with warships from numerous countries.

This comprehensive bipartisan legislation is the brainchild of Robert Menendez—chairman of the Senate Foreign Relations Committee and Senator Jim Risch.


A Road Map for the US

The 280-page legislation by the duo puts together US strategic, economic, and diplomatic tools for an Indo-Pacific strategy that will allow the US to square up to China and take on the challenges it poses to its national and economic security. The Strategic Competition Act of 2021 has endorsed the four-member Quad and urges the US to strengthen its relations with like-minded allies.

The Senate Foreign Relations Committee will take up the bill for discussion and voting on Wednesday, April 14. Speaking to the media, Menendez said: “The Strategic Competition Act of 2021 is a recognition that this moment demands a unified, strategic response that can rebuild American leadership, invest in our ability to out-compete China, and reground diplomacy in our core values.”


China: Opportunistic and Hostile

The legislation takes note of the fact that China has attacked countries and increased hostilities when many countries were vulnerable due to the spread of the coronavirus pandemic. It ratcheted up tensions with India by intruding into Indian-held territory where the stand-off still continues.

The document mentions the violent clash at the Pangong Tso after which India was forced to mirror Chinese deployment of men and machinery.

The document says that China has: “capitalised on the world’s focus on the Covid-19 pandemic by its brazen move in the South China Sea, Hong Kong and contributing to increased tensions with India. The China claims nearly all of the South China Sea. Vietnam, the Philippines, Malaysia, Brunei and Taiwan have counter claims over the area.”

Strength in Numbers

The legislation also says that the US values partnerships in the Indo-Pacific region, with the Association of Southeast Asian Nations (ASEAN) countries as well as the Quad. It asks the US to deepen America’s regional partnerships and also cement existing ones with India, Taiwan and New Zealand.

In their document, the two senators say that the US should reaffirm its commitment to the Quad and be prepared to meet regional challenges to promote a free, open, inclusive, resilient, and healthy Indo-Pacific that is defined by democracy, rule-of-law, and market-driven economic growth and is free from undue influence and coercion.

“The United States should reaffirm its commitment to the Comprehensive Global Strategic Partnership with India and further deepen bilateral defence consultations and collaboration with India commensurate with its status as a major defence partner,” the bill says. It also stresses upon the US administration to build Indian capabilities and capacities against “economic and security challenges posed by China.”

Seeks Scrutiny of the BRI in Pakistan

The legislation wants a detailed description from American diplomacy about the Pakistan-China financial collaboration in the China Pakistan Economic Corridor – a part of the Belt and Road Initiative (BRI) that runs through the length of Pakistan. Through the BRI, China plans to link Southeast Asia, Central Asia, the Gulf region, Africa and Europe with a network of land and sea routes.

Comprehensive and Idealistic

The bill is holistic in its range. It looks at China’s overwhelming reach across the globe, therefore, expects the US to strengthen diplomatic efforts everywhere – the Western Hemisphere, Europe, Asia, Africa, the Middle East, the Arctic, and Oceania.

The legislation lends support to a range of human rights issues like restrictions in Hong Kong as well as forced labour, forced sterilisation and other abuses in Xinjiang. It wants action against China’s IP infringements, Chinese government subsidies, its predatory international policies and track the presence of Chinese companies in US capital markets.

The legislations calls for enhanced cooperation with allies on arms control in the face of China’s military modernisation and expansion, and wants transparency on the entire range of Chinese weapons – ballistic, hypersonic glide, and cruise missiles, conventional forces, nuclear, space, cyberspace and other strategic domains.

Confident the Legislation will make it

Menendez is hopeful that the legislation will find favour. He says: “I am confident that this effort has the necessary support to be overwhelmingly approved by the Senate Foreign Relations Committee next week and the full Senate shortly thereafter. That is the only way we will get the China challenge right – a bipartisan commitment to mutual trust and good-faith compromise, balancing pragmatism and idealism…”

Risch, his partner in the legislation, says that this is an important step towards ensuring that the US is enabled to compete with China for future decades. He adds that the bill also cuts the Communist Party of China’s influence across the globe, particularly in American universities.

2021 bring forth a Series of American Thoughts on China

Also read:India, China agree to resolve outstanding issues

Interestingly, this is not the first attempt by the US this year to find its place in the world vis-a-vis China. The previous two documents – released in March and January – speak on similar lines.

In March, the Biden administration had revealed a piece of its mind when it released the Interim National Security Guidance paper that identified China as its main global rival. The 21-page vision document was the Biden administration’s pathway to dealing with China, building up a military presence in the Indo-Pacific as well as strengthening ties with allies like Europe and India.

The National Security Strategy document was pragmatic in cautioning that the US along would not be able to restrain China.

Just before that, it was Donald Trump, who declassified the China strategy in January barely a week before stepping down. In an unusual move, Trump laid bare the path for president-elect Biden by publishing the document – ‘United States Strategic Framework for the Indo-Pacific.’

The classified document made clear to the world, and also the incoming Biden administration, American thinking about the geo-political climate pervading the world. The Trump strategy underlined that the US needs to tackle China, accelerating India’s rise as a counterweight to Beijing and also defend Taiwan against a possible Chinese attack.

The US is Loath to see the World as Multipolar

The latest legislation, Biden’s National Security Strategy as well as Trump’s confidential documents are pointers to the American realisation that it is not the sole superpower. Power slipped away from its fingers exactly when it was courting China and China was courting itself.

It goes to the credit of Americans thinkers and policy makers that they have finally noticed the rise of China and how the communist giant is not averse to treading on neighbours’ territories, satisfied with violating international rules and almost cheerful while challenging the US. The observation is late by a few years but they have also located the answers to the confounded China challenge.

The answers lie in gathering allies, enforcing the international rule of law, flexing military muscles as well as holding China and its ruling party accountable for its misdemeanours.

(This content is being carried under an arrangement with indianarrative.com)

Also read:Vax Shortages Hit China

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Vax Shortages Hit China

Vax Shortages and ineffectiveness haunt China’s internal as well as global vaccine programme …. Writes Dr Varun Sharma

The government and state-run media in China were jubilant after the figures showed the country, which is criticised for the Covid-19 pandemic, exported over 114 million doses of vaccine. It was seen as vaccine diplomacy to build political influence with individual country. China however has hit a snag. China is witnessing a sudden shortage of vaccines to be distributed in the country as well as abroad. And to make the problem worse, many countries have reported low effectiveness of China- manufactured vaccines, showing reluctance. Now the doubts about Covid-19 vaccines could dent China’s diplomacy efforts.

A shipment of China-manufactured Covid-19 vaccine Sinovac arrived in Singapore in March 2020, which Chinese Embassy said would contribute to Singapore’s efforts to defeat the virus and restore normal order of life and economic development. However, the Chinese vaccines are still in a storage facility as Singapore government has decided not to use them owing to lack of transparency in clinical trials. Instead, it has gone ahead with Pfizer-BioNTech and Moderna vaccines.

In Kyrgyzstan too, many people including doctors have refused to use Chinese vaccines and instead expressed desire to use Russian ones.

A top Chinese official recently accepted that China- manufactured vaccines did have very high protection rates. Gao Fu, Director of the China Centers for Disease Control, said: “The protection rates of existing vaccines are not high. It’s now under formal consideration whether we should use different vaccines from different technical lines for the immunization process.”

Also read:How China lends to trap developing countries

The rare admission by top Chinese bureaucrat took social media storm. And as expected, Chinese authorities censored online discussions. Also, the state-run news outlet Global Times carried an interview of Gao Fu, who then called it “a complete misunderstanding”.

While Chinese vaccines Sinopharm and Sinovac have met the World Health Organisation’s (WHO) requirements, China has not released the data of clinical trials with public.

Health regulators dodged the question when asked by a reporter about when the data would be released. There have always been global concerns about Chinese ways of conducting research. In July 2020, questions were raised over fraudulent data in research papers by Chinese-authors since they had used have reused identical sets of images.

A YouGov survey revealed that the most of 19,000 people from across 17 countries were distrustful of the vaccines from China.

Inside China too, the vaccination programme is marred by ineffective and inadequate vaccine jabs. Although China was the first country to start vaccinating its nationals, its progress has been quite disappointing. There are just 2.9 doses per resident. 1 According to a survey conducted in February 2020, health professionals are among the most hesitant people among Chinese to take vaccine as 72 percent of them showed lack of confidence.

Also read:‘India ready to combat China’s cyber attacks’

“Initially, we know so little about the vaccine, and there’s a lack of evidence to support its safety and efficacy,” a Beijing-based doctor told Financial Times on condition of anonymity. China has ambitious plans of vaccinating 560 million people – 40 percent of its population — by the end of June 2020.2 However, sudden shortage of jabs has derailed the plans. Now, the government in Beijing has asked all local authorities in China to stop compulsory vaccination drives. Again, the Global Times has come up with rebuttal. It said the reports of vaccine shortage was wrong interpretation by the western media of measures to adjust China’s local vaccination programs.

The underperformance of Chinese vaccines could be due to manufacturing issues and vaccine export diplomacy. There have been concerns over safety and side-effects of vaccines produced in China. In the past too, average Chinese people refused to get themselves or their children vaccinated owing to safety issue. There is one more major factor—sale of fake Covid-19 vaccines.

Chinese agencies busted several fake vaccine networks, one of which was found to have produced about 58,000 of fake concoctions. It does have negative impact on the countries that are buying Chinese vaccines. Interpol came across smuggling of such fake Chinese vaccines to South Africa in March this year. These are some of the concerns people have before they tend to get Chinese vaccine jabs.

Also read:India, China agree to resolve outstanding issues

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India, China agree to resolve outstanding issues

Talks held for complete disengagement along the Line of Actual Control (LAC) in Eastern Ladakh, paving way for complete de-escalation, reports Asian Lite News

India and China have agreed to resolve the outstanding issues aimed at disengagement along the Line of Actual Control (LAC) in Eastern Ladakh, thereby paving the way for complete de-escalation, the Indian government has said.

“The two sides agreed on the need to resolve the outstanding issues in an expeditious manner in accordance with the existing agreements and protocols,” a government statement said.

Talks between Indian and Chinese military delegates were held at Chushul on Friday to discuss the next phase of disengagement in Eastern Ladakh, which lasted for 13 hours.

“The military dialogue is still on and it is important that before the onset of summer de-escalation takes place at Line of Actual Control (LAC). Both sides need retreat to original positions for things to ease,” said a senior Indian Army officer.

The build-up in Depsang was not being considered as part of the current stand-off that started in May 2020 as escalations here took place in 2013, India has insisted during recent military commander meetings to resolve all issues across the LAC.

On February 20, Indian and Chinese military held the 10th round of military dialogue to deescalate tension at the LAC.

So far, the disengagement process at both banks of the Pangong Lake has taken place.

It was on February 10 that China made an announcement that New Delhi and Beijing had agreed to disengage at Pangong Lake.

As per the agreement, Chinese troops moved back to Finger 8 and Indian troops pulled back to the Dhan Singh Thapa post between Finger 2 and 3 of the north bank of Pangong Lake.

Also read:Indian Army chief in B’desh to boost ties

A temporary moratorium on military activities, including patrolling to the traditional areas.

The mountain spur jutting into the lake is referred to as Finger in military parlance. The north bank of the lake is divided into 8 Fingers. Indian has claimed its territory till Finger 8 and China dispute it claims till Finger 4. India and China are engaged in a year long stand-off at the LAC.

The confrontations began on the north bank of Pangong Lakeas Chinese incursions increased in May last year.

The 11th round of Corps Commander-level talks at Chushul took place after a nearly two-month gap. The Indian military delegation was led by Lieutenant General P.G.K. Menon, the Commander of 14 Corps based in Leh.

The two sides had a detailed exchange of views for the resolution of the remaining issues related to disengagement along the LAC.

“It is also highlighted that completion of disengagement in other areas would pave the way for the two sides to consider de-escalation of forces and ensure full restoration of peace and tranquility and enable progress in bilateral relations,” the statement said.

As the India-China military tussle completes almost a year, tensions remain along the borders, even after the successful disengagement process in Pangong Lake. Tanks and troops from both sides have pulled back and there is no eyeball-to-eyeball confrontation, but the build up across Eastern Ladakh continues.

After the recent talks, the two sides agreed that it is important to take guidance from the consensus of their leaders, continue their communication and dialogue and work towards a mutually acceptable resolution of the remaining issues at the earliest.

They also agreed to jointly maintain stability on the ground, avoid any new incidents and jointly maintain peace in the border areas, the statement said.

India and China are engaged in a year-long standoff along the LAC. The confrontations began on the north bank of Pangong Lake, both in the waters and on the banks, as Chinese incursions increased in early May last year.

Also read:Bajwa has to step-up game to counter anti-India opportunists

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How China lends to trap developing countries

Beijing’s lending spree offers growth to developing countries only to leave them saddled with unsustainable debt while increasing their dependency on China, reports Asian Lite News

“Crisis is an opportunity riding the dangerous wind,” goes the old Chinese proverb.

China’s policy to broaden its geopolitical and economic clout comes as a package. Beijing’s Belt and Road Initiative (BRI) provides the country a perfect mix to further this move to gain more significance in world politics. The clout for economic growth risks developing countries to be saddled with unsustainable debt while increasing their dependency on China.

In many vulnerable countries, much of the burdensome debt is owed to a single source: China. According to a study by the International Monetary Fund (IMF), from 2013 to 2016, China’s contribution to the public debt of heavily indebted poor countries nearly doubled from 6.2 percent to 11.6 percent. As of January 2021, according to the IMF, about half of all low-income countries were in debt distress or faced a high risk of entering distress. In light of the high stakes, the terms and conditions of China’s debt contracts have become a matter of global public interest.

A new research analyses 100 such Chinese loan contracts to 24 countries, providing insight into how Beijing uses such agreements to gain leverage. The study, ‘How China Lends: A Rare Look into 100 Debt Contracts with Foreign Governments’ calls for attention to seek more transparency in sovereign lending. The study was carried out by researchers from AidData at William & Mary, the Center for Global Development, the Kiel Institute for the World Economy, and the Peterson Institute for International Economics.

China’s broadens its geopolitical and economic clout(IANS)

China’s lending is expanding even more through BRI. Noting a lack of economic feasibility of some BRI projects, many observers suspect that the initiative is partly motivated by China’s desire to stimulate its own economy, obtain strategic assets, and convert its economic access into political and strategic influence in recipient nations.

The study put together by 100 researchers took 36 months to comb through debt information management systems, official registers, and parliamentary websites of 200 borrower countries to compile the dataset of complete loan contracts between Chinese state-owned entities and government borrowers. They also collected a dataset of 142 loan agreements from a group of more than 20 non-Chinese creditors.

Also read:China warns US on global affairs

The 100 debt contracts in 24 countries around the world has a commitment totalling $36.6 billion, making China the world’s largest official creditor.

All of these contracts were signed between 2000 and 2020. In 84 cases, the lender is the Export-Import Bank of China (China Eximbank) or China Development Bank (CDB).

Many of the contracts contain or refer to borrowers’ promises not to disclose their terms—or, in some cases, even the fact of the contract’s existence.

“Chinese lenders behave a lot like commercial lenders: muscular, commercially savvy lenders who want to be paid on time and with interest,” and the contracts are designed accordingly, said Brad Parks, executive director of AidData, which led the data gathering process.

How China’s loans work

The loan agreements made as part of BRI are written to position China as a “preferred creditor” that could seek repayment first in the event of a problem or default.

This is done through two primary ways: by requiring borrowers to create separate escrow accounts with cash balance requirements that China can seize in case of default. Another clause requires countries to exempt Chinese loans from restructuring efforts with other lenders.

China’s broadens its geopolitical and economic clout(IANS)

These clauses are referred to as “no Paris Club” clauses. Basically referring to the informal group of official creditors that coordinate solutions for debtor countries with payment difficulties.

According to Sebastian Horn, an economist at the Kiel Institute for the World Economy, another key finding of the study is that “Most Chinese loan contracts contain ‘No Paris Club’ clauses, which prohibit countries from restructuring Chinese loans on equal terms and in coordination with other creditors.” This approach to foreign lending effectively gives Beijing sole discretion to decide if, when, and how it will grant debt relief. Christoph Trebesch, also of the Kiel Institute, adds that “China’s practices complicate debt relief efforts in countries that are in financial distress due to the Covid-19 pandemic or other factors.”

Chinese contracts give lenders considerable discretion to cancel loans and/or demand full repayment ahead of schedule. Such terms give lenders an opening to project policy influence over the sovereign borrower, and effectively limit the borrower’s policy space to cancel a Chinese loan or to issue new environmental regulations.

Also read:China administers over 100mn jabs

Another point of leverage is that China often includes “cross-default” or “cross-cancellation” provisions that in essence tie various loans to one another. These clauses make it harder for a borrower to walk away from a project and give Chinese institutions bargaining power and policy influence, according to the study.

Deep implications

In such a scenario, the economic benefits of China’s debt-driven projects to recipient nations’ populations are an afterthought. And the lack of transparency in China’s lending obscures its risks to recipient countries, many of which are already vulnerable to or are suffering from financial or fiscal distress. But concealing risks does not eliminate their consequences, and when cash-strapped developing countries fail to pay back the loans for multibillion-dollar projects, it can result in a loss of strategic assets, major hurdles to economic development, and a loss of sovereignty.

For example, unable to repay China for a loan used to build a new port in the city of Hambantota, in 2017 Sri Lanka signed over to China a 99-year lease for its use, potentially as a strategic base for China’s navy.

In Djibouti, public debt has risen to roughly 80 percent of the country’s GDP (and China owns the lion’s share), placing the country at high risk of debt distress. That China’s first and only overseas military base is located in Djibouti is a consequence, not a coincidence.

Elsewhere in Africa, Burundi, Chad, Mozambique, and Zambia are all either in debt distress or at high risk of it, a situation China’s predatory lending practices are exacerbating.

In Argentina, where a $2 billion China Development Bank loan for a railway project had a cross-cancellation clause tied to a $4.7 billion loan from Chinese banks for a hydroelectric dam project. When a new presidential administration came in and tried to cancel the dam project on environmental grounds, the China Development Bank threatened to cancel the railway project loan. Argentina’s government reversed its decision.

Brad Parks, AidData’s Executive Director and a co-author of the report, says that “by shielding their contractual arrangements from public scrutiny, Chinese state-owned banks have made it difficult for other lenders to know if they are positioning themselves at the front of the repayment line.”

Hidden debts to China have also put developing countries—with insufficient foreign currency to repay all of their outstanding obligations to foreign creditors—in an equally challenging position. According to Parks, “non-Chinese creditors are increasingly reluctant to renegotiate repayment terms until they know more about China’s claims.”

The authors of How China Lends warn that restrictions on debt transparency make it difficult for citizens in borrower countries and creditor countries to hold their governments accountable, and call for public debt to be made public.

Also read:‘India ready to combat China’s cyber attacks’

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11th round of talks for border pull back

Indian military delegates were led by Lieutenant General PGK Menon, Commander of 14 Corps based in Leh…reports Asian Lite News.

India and China will hold 11th round of Corps Commander talks on Friday at Chushul to iron out differences for the next phase of disengagement in Eastern Ladakh.

After nearly a two month gap, the Corps Commander level talk is again happening between the two countries. The focus of the talk would be disengagement on other friction points. After Pangong disengagement, both the countries have planned to carry out disengagement on other friction points like Gogra, Hot Springs and Depsang.

“Important that before the onset of summer, de-escalation is discussed. Both sides need retreat to original positions for things to ease,” said a senior Indian Army officer.

On February 20, Indian and Chinese militaries held 10th round of military dialogue to de-escalate tension at the Line of Actual Control (LAC).

Indian military delegates were led by Lieutenant General PGK Menon, Commander of 14 Corps based in Leh.

They had met to discuss disengagement at friction areas like Hot Springs, Gogra and 900 square km Depsang plains.

The build-up in Depsang was not being considered part of the current standoff that started in May last year as escalations here took place in 2013, India has insisted during recent military commander meetings to resolve all issues across the Line of Actual Control.

Disengagement-process-in-progress-in-south-of-Pangong-Lake

“The initial attempt will be to resolve Gogra and Hot Springs. Finding a solution to Depsang might be tricky and take longer,” said the officer.

So far disengagement process at both banks of the Pangong Lake has taken place. It was on February 10 that China made an announcement that New Delhi and Beijing had agreed to disengage at Pangong Lake.

Indian Army team along with Chinese People’s Liberation Army (PLA) team physically verified and re-verified disengagement at Pangong Lake.

As per the agreement, Chinese troops moved back to Finger 8 and Indian troops pulled back to the Dhan Singh Thapa post between Finger 2 and 3 of the north bank of Pangong Lake.

Disengagement-process-in-progress-in-south-of-Pangong-Lake

A temporary moratorium on military activities, including patrolling to the traditional areas was placed.

The mountain spur jutting into the lake is referred to as Finger in military parlance. The north bank of the lake is divided into 8 Fingers. India has claimed its territory till Finger 8 and China disputes it and claims its own territory till Finger 4.

India and China are engaged in a year long standoff at the Line of Actual Control. The confrontations began on the north bank of Pangong Lake, both in the waters and the bank as Chinese incursions increased in early May last year.

Also Read-China cries foul against India at WTO

Read More-‘India ready to combat China’s cyber attacks’

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‘India ready to combat China’s cyber attacks’

According to the official data, India witnessed a nearly 300 per cent spike in cyber attacks last year in comparison to 2019…reports Asian Lite News

China can disrupt systems by launching cyber attacks on India and a mechanism is being readied to combat any such move, Chief of Defence Staff(CDS), General Bipin Rawat, said at an event here on Wednesday.

Speaking at the Vivekananda International Foundation on shaping the armed forces to meet the likely current and future challenges, General Rawat said, “We may not be able to fully catch up with China. So we are trying to develop some kind of a relationship with the western nations and see how better we can get some support from them, during peace time at least, which will help us overcome this deficiency.”
Rawat said that China has the first movers advantage as India was slow to adopt cyber warfare capabilities, which has led to the gaps.

“The biggest differential lies in the cyber field. We know that China is capable of launching cyber attacks on us and it can disrupt a large number of systems,” he said.

According to the official data presented in the Parliament, India witnessed a nearly 300 per cent spike in cyber attacks last year in comparison to 2019, from 3,94,499 cases in 2019 to 11,58,208 in 2020, which is alarming for the government.

“What we are trying to do is create a system which will ensure cyber defence. We have been able to create a cyber agency within the armed forces and each service also has its own cyber agency, so that even if we come under a cyber attack, the downtime of the attack doesn’t last long,” Rawat said.

Also read:China cries foul against India at WTO

The CDS said while China has a lead in this respect, India is evolving its technologies to match up.

“While we are trying to create firewalls for cyber attacks, someone may break through them. We are trying see how long your systems will be down and how will you be able to operate through the phase of cyber attack that we have been put through. That is what we are seriously looking at.”

The CDS said the key for combating such attacks is to integrate the resources of the three services. “The Navy is far ahead of the Army and the Air Force in the way it has imbibed technology,” he said.

On other security challenges, Rawat said that India faces multiple and varied security threats and challenges across the full spectrum of conflict – from proxy war to hybrid to non-contact, conventional and collusive wars under a nuclear overhang.

“There is an emergent need to develop a vision for the region. However, one must be careful to not ‘bite more than one can chew’. The vision for the region or even our global vision must be intrinsically linked to our national interests, which are directly linked to national security,” the CDS said.

Also read:China warns US on global affairs

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TRADE: Afghanistan Puts Pakistan On Back Burner

Pakistan’s trade with Afghanistan continues to shrink despite big claims by the PTP government. It’s trade with Afghanistan fell by 22 percent to reach $1.18 billion during 2019-2020. This is in contrast to the claims of reaching five billion over the next three years …. Writes Dr Sakariya Kareem

Helping Afghanistan prosper economically and supplying essentials to the landlocked Afghanistan was reiterated by Pakistan at the recent Heart of Asia Conference in Dushanbe. However, facts of its trade performance tell a different story of a shrinking trade.

Also Read – Pakistan Struggles to Stem Covid Surge

Pakistan’s trade with Afghanistan fell by 22 percent to reach $1.18 billion during 2019-2020. This is in contrast to the claims of reaching five billion over the next three years. Official sources in Islamabad as well as Kabul admit that the target is rather ambitious and does not take into account the ground reality, especially, of Pakistan’s own capacity to deliver.
Notably, Pakistan’s exports to Afghanistan declined 13.6 percent to $629.3 million from $728.3 million. A few years ago, Afghanistan was the second largest export destination after the US.

Pakistani Foreign Minister Shah Mahmood Qureshi speaks at a press conference in Kuwait. (Xinhua/Asad/IANS)

Trade Ministry sources in Islamabad explain that low trade performance has much to do with the unsettled conditions on both sides of the border and the Covid-19 pandemic. But the fact is that Pakistan has for long lost the Afghan market to its rivals – China, India and some of the Central Asian countries. The Trade Development Authority of Pakistan (TDAP) explains that the loss of the Afghan market is because Iran, India and China offer value-added products, relatively attractive transit tariffs, and better consignment handling facilities. China, being the supplier of value-added goods is becoming the leading competitor and taking over the lion’s share in Afghan market. Similarly, Iran offers competitive rates, better consignment handling facilities and cost-effective transportation. In Pakistan, costs for all these facilities have increased substantially over the years.

Chief of Afghanistan High Council for National Reconciliation Abdullah Abdullah meets Indian Prime Minister Narendra Modi in New Delhi

Meanwhile, the data of State Bank of Pakistan (SBP) indicates that Pakistan’s trade deficit with the other regional countries narrowed only slightly during the period as imports from these countries also decreased. That, again, points to low capacity and poor performance.
A conflict-hit Afghanistan has, actually, performed better. Pakistan’s imports from Afghanistan have surged, especially of essential kitchen items like tomatoes, potatoes, onions and fresh and dried fruits, as per SBP data.

Also Read – India calls for peace ‘within and around’ Afghanistan

As for land-based trade, Afghan trade transit resumed after Pakistani authorities decided to open up Torkham border on a 24/7 basis. However, every time there is a skirmish along the border due to movement of militant that Pakistan is pursuing, the border post gets closed to trade. As bilateral relations suffer, goods lie stranded and get pilfered. Perishable goods like fruit and vegetables get destroyed.

Afghanistan is compelled to explore other trade routes. Chabahar has come to its aid. Behrouz Aqaei, the Director General of Ports and Maritime Department of Iran’s Sistan-Baluchestan Province explained that Chabahar is believed to be the best and economical transit route into Afghanistan and Central Asian countries.

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India has stepped in to help Afghanistan by sending goods via Iran’s Chabahar, or Shahid Behesti, port. In mid-April 2020, a 75,000-metric-ton consignment of Indian wheat heading for Afghanistan arrived at Chabahar to be delivered to the destination country through land borders. According to Aqaei, the Indian government sent the mentioned cargo aiming to support its trade partner during the coronavirus pandemic. The consignment consisted of 203 20-metric-feet containers that had been shipped from Kandla Port in eastern India.

Afghanistan is also acknowledging the prospect of long term change in its trade with Pakistan. Afghanistan Chamber of Commerce and Industries (ACCI) say that Afghanistan’s economic dependency on Pakistan has decreased following the establishment of new alternative trade and transit routes with a number of countries.

The deputy head of the ACCI, Tawfiq Dawari, aid trade and transit volume between Afghanistan and Pakistan has been decreasing. “While we use Karachi port and have bilateral trade ties with Pakistan, our trade relations have been maintained with other countries as well and the reason is that we use other countries and international markets as well,” said Dawari.

Also Read – Targeted killings soar in Afghanistan

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China warns US on global affairs

Chinese Foreign Minister Wang Yi

Chinese foreign minister Wang Yi said China would not accept a list from Washington of unilateral demands for negotiations with Beijing…reports Asian Lite News

Amid rising tensions between the US and China over a slew of issues, Beijing has warned Washington not to take a superior position and presume it has a final say on global affairs.

Chinese foreign minister Wang Yi said China would not accept a list from Washington of unilateral demands for negotiations with Beijing. “The door for dialogue with China is open. But the dialogue should be done on an equal basis and with mutual respect,” he said.

“China will not accept that there is any nation in the world that [can] put itself superior to the others, and that any nation will have a final say on world affairs. If the US continues to confront, China will take it calmly without fear.”

Wang said, while China-US cooperation was possible, both sides should respect each other’s core concerns, and China would not accept unilateral demands and conditions from Washington, South China Morning Post reported.

“We resolutely resist gross interference in China’s internal affairs, and even more resolutely oppose unlawful unilateral sanctions imposed on the basis of lies and false information,” he said.

President Joe Biden (www.instagram.comwhitehouse)
Also read:China, UAE deepen ties

Diplomatic observers said Beijing was looking to improve ties with the US that had been badly damaged under former US President Donald Trump, but was facing a dilemma overdrawing a line between cooperation and resisting US pressure.

Following the Alaska summit, the relations between China and the US have deteriorated and tensions have escalated.

Washington slapped additional sanctions on Chinese officials and entities over alleged human rights violations in Xinjiang, following a similar move by the European Union. Both countries have also stepped up their military presence in the disputed East and South China Seas.

Wang said China and the US should hold more dialogues on regional affairs and cooperate on the pandemic but added that the rise of China could not be overturned.

“It is inevitable for China to continue development and becoming strong. This is in line with the long-term interest and common aspiration of regional countries, and this trend cannot be resisted,” he said.

Also read:China administers over 100mn jabs

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Nepal to begin inoculations with Chinese vax

A health worker analyses samples of COVID-19 vaccines, developed by Chinese company Sinovac

A shipment of the Chinese Covid-19 vaccines developed by Chinese bio bio pharmaceutical Sinopharm was delivered to Nepal on March 29…reports Asian Lite News

The Nepal government has decided to administer the Chinese Covid-19 vaccine don Wednesday amid resurging cases of the novel coronavirus in the Himalayan country, an official of the Ministry of Health and Population said.

On March 29, a batch of the Chinese Covid-19 vaccines developed by Sinopharm was delivered to Nepal, reports Xinhua news agency.

“The Chinese vaccine will be administered to people starting from Wednesday,” Jageshwor Gautam, spokesperson at the Health Ministry, told a press conference.

“Those involved in essential services, students studying in China under the Chinese government scholarship but are currently stuck in Nepal due to pandemic, Nepali students preparing to leave for China for the higher study and people involved in cross-border trade between Nepal and China will be inoculated with the Chinese vaccine.”

Nepal receives 800K doses of Covid vax from China(Twitter)
Also read:800K Chinese vaccine doses reach Nepal

According to the Ministry, essential workers include the people who are working in postal and telephone services, water supply and distribution, hotels and restaurant, public transportation services, electricity supply, storage and transportation of consumer goods, sales and distribution of medicines and the health workers who had missed out in the first phase of the vaccination drive that began on January 27.

Gautam said the Chinese vaccines would be administered from designated hospitals in Kathmandu Valley.

Nepal reported 176 new Covid cases on Monday. In early March, the cases went down below 50 per day.

Nepal has so far inoculated over 1.7 million people in two phases, according to the Ministry of Health and Population.

Also read:Nepal to inoculate refugees

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China administers over 100mn jabs

Reports revealed that the total number of Covid-19 vaccine jabs administered nationwide had reached 102.42 million…reports Asian Lite News

More than 100 million doses of Covid-19 vaccines has been administered across China so far, according to health authorities.

The announcement was made on Sunday by the State Council joint prevention and control mechanism against Covid-19, reports Xinhua news agency.

Data released by the National Health Commission on Sunday showed that the total number of Covid-19 vaccine jabs administered nationwide had reached 102.42 million.

China saw a daily increase of more than 3 million doses ever since the country has initiated its daily vaccination report on March 24.

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