
Hope U.S. can complete major pending defence sales to India: Defence Secretary Hegseth
External Affairs Minister S. Jaishankar met U.S. Defence Secretary Pete Hegseth on Tuesday (July 1, 2025) at the Pentagon and said he had a productive conversation on advancing the India-U.S. defence partnership, building on growing convergences of interests, capabilities and responsibilities.
According to the Department of Defence (DoD) news article, Mr. Hegseth said the U.S. and India are 'mutually aware of the security concerns in the region, and both nations have the ability to counter that threat together.' Mr. Hegseth also touched on U.S. efforts to provide India with the tools needed to counter threats in the Indo-Pacific region, the DoD news said.
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'The United States is very pleased with the successful integration of many US defence items into India's inventory," Mr. Hegseth said, according to the DoD news article.
'And building on this progress, we hope we can complete several major pending US defence sales to India, expand our shared defence industrial cooperation and coproduction efforts, strengthen interoperability ... between our forces, and then formally sign a new 10-year Framework for the US-India Major Defence Partnership ... which we hope to do very soon.'
Mr. Jaishankar, in his opening remarks, said, 'We believe that our defence partnership is, today, truly one of the most consequential pillars of the relationship.
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"It's not built merely on shared interest, but we believe really deepening convergence and of capabilities, of responsibilities and what we do in the Indo-Pacific, we believe, is absolutely crucial to its strategic stability," he said.
Mr. Jaishankar said that the world is a complicated place, 'perhaps growing in its complexity, and certainly our partnership and the contribution that we can make together, I think, would be of immense importance, not just for us, I think, but for the larger region, I would even argue for the world.'
Mr. Hegseth said that 'almost right at the beginning of the administration, President [Donald] Trump and Prime Minister [Narendra] Modi set a strong foundation for our relationship, which we're building on here today: productive, pragmatic and realistic.
Also Read | U.S. pushes for more defence deals, offers F-35 fighter jet
'And our nations boast a rich and growing history of cooperation driven by a shared commitment to a free and open Indo-Pacific,' Mr. Hegseth said.
According to DoD news, Mr. Hegseth and Mr. Jaishankar discussed participation in the next India-U.S. Defence Acceleration Ecosystem Summit, where the two nations will continue to build on U.S.-India defence industrial cooperation and produce new innovations in technology and manufacturing.
"We're eager to work alongside you to realise our shared goals," Mr. Hegseth said. "They're deep and ongoing."
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First Post
29 minutes ago
- First Post
After Asim Munir, Pakistan Air Force chief in US amid doubts over Chinese equipment, first visit in a decade
After Asim Munir, Pakistan's Chief of the Air Staff, Zaheer Ahmed Baber Sidhu, paid an official visit to the United States. Here's why both India and China should be concerned by the trip. read more Following Pakistan's Field Marshal Asim Munir, the country's Chief of the Air Staff, Zaheer Ahmed Baber Sidhu, paid an official visit to the United States, indicating the warming ties between the two nations. The officials noted that Sidhu's purpose of visit was to further defence cooperation between the two nations as a follow-up to Munir's visit to the country. It is pertinent to note that this is the first US trip by a serving Pakistan Air Force (PAF) chief in over a decade, reflecting the re-hyphenisation of the US's outlook towards India and Pakistan. STORY CONTINUES BELOW THIS AD 'This high-level visit is a strategic milestone in the Pak-US defence partnership. The visit will play a significant role in addressing key regional and global security issues as well as building institutional ties,' the PAF said in a statement on Wednesday. It further gave an insight into Sidhu's itinerary, mentioning several important meetings with the top military and political leadership of the US. During his visit to the Pentagon, he met US Secretary of the Air Force for International Affairs Kelly L. Seybolt and Air Force Chief of Staff General David W Allvin. As per the statement by PAF, the two sides agreed to forge avenues for bilateral military cooperation, mutual affairs, joint training and technology exchange. Is Pakistan losing trust in China? The visit comes amid Pakistani concerns about the reliability of Chinese military equipment after it received severe battering by Indian forces during Operation Sindoor. Pakistan is reportedly interested in acquiring advanced US platforms such as F-16 Block 70 fighter jets, air defence systems, and HIMARS artillery, as it looks to diversify away from Chinese suppliers. Meanwhile, China has remained tight-lipped over the performance of its weapons to Pakistan during its 4-day military escalation with India. During a presser on May 30, a Chinese Defence Ministry spokesperson, Zhang Xiaogang, refused to provide any details on the effectiveness of Pakistan's weapons in the recent military confrontation. There were reports that India recovered an unexploded PL-15E missile, a Chinese-made beyond-visual-range air-to-air missile. While speaking at the presser, Zhang Xiaogang emphasised China's hope that both sides will remain calm and restrained to avoid further complicating the situation, sidestepping questions of its defence weapon systems. STORY CONTINUES BELOW THIS AD When pressed further, the Chinese defence official simply said: 'Pakistan received support from China's air defence and satellite systems, but the performance of these systems was below average.' 'We would like to stress that India and Pakistan are neighbours that cannot be moved. We hope both sides will remain calm and restrained to avoid further complicating the situation,' he added. Why India should be concerned Meanwhile, Pakistan's air force chief's visit to the US can be a matter of concern for India as well. During the hunt for Al-Qaeda terrorist Osama Bin Laden following 9/11, there was de-hyphenisation of the American outlook towards India and Pakistan, i.e, the US stopped putting New Delhi and Islamabad on the same level. The discovery of Osama near a military training headquarters in Abbottabad further pushed the US towards India. With the second stint of US President Donald Trump in the office and following the military confrontation between India and Pakistan, a new pattern of re-hyphenation is emerging. When asked about the changing dynamic, former US National Security Adviser John Bolton reiterated the American outlook, emphasising that the US is concerned by China's influence on Pakistan. 'Well, I think much of the de-hyponization came after 9/11 and and I think Secretary Powell and President Bush worked hard to try and do that. And I think right now the common threat that we see, particularly in the Indo-Pacific region, but really on a global basis, is the China-Russia axis. And so there's a lot to talk about there,' he told Firstpost's Bhagyasree Sengupta in May. STORY CONTINUES BELOW THIS AD 'It's distressing to me that Pakistan is so much under the influence of China now. Ultimately, that's not going to be to their benefit. Ultimately, I think peace on the subcontinent is going to have to require an understanding between India and Pakistan. They're the two biggest powers. That's the reality,' he added. Trump has been adamant about taking credit for the ceasefire, which India has made it clear was a bilateral decision. Meanwhile, Pakistan is serving the credit to America on a platter with Islamabad nominating Trump for the Nobel Peace Prize, earning more brownie points. Another factor which can be concerning for India is Pakistan's warm ties with both China and the US. Beijing have been a long-time ally of Islamabad and its feathers are less likely to be ruffled with Pak-US collaborations. Meanwhile, Turkey, another key power in Asia, have expressed its solidarity with Pakistan during India's Operation Sindoor. Hence, New Delhi will be looking for new allies in the region and reconsolidating its ties with the old ones. STORY CONTINUES BELOW THIS AD
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Business Standard
30 minutes ago
- Business Standard
China shows signs of tackling price wars taking toll on its EV industry
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BYD came under thinly veiled criticism in late May when it launched a new round of price cuts, and several competitors followed suit. The chairman of Great Wall Motors warned the industry could come under threat if it continues on the same trajectory. When volumes get bigger, it's just much harder to manage and you become the bullseye, said Lei Xing, an independent analyst who follows the industry. The government is trying to rein in what is called involution a term initially applied to the rat race for young people in China and now to companies and industries engaged in meaningless competition that leads nowhere. BYD has come under criticism for using its dominant position in ways that some consider unfair, sparking price wars that have caused losses across the industry, said Murthy Grandhi, an India-based financial risk analyst at GlobalData. With the price war in its fourth year, Chinese automakers are looking abroad for profits. BYD's overseas sales more than doubled to 464,000 units in the first half of this year. Worried governments in the US and EU have imposed tariffs on made-in-China electric vehicles, saying that subsidies have given them an unfair advantage. Market leader BYD comes under attack The latest bout of handwringing started when BYD cut the price of more than 20 models on May 23. The same day, the chairman of Great Wall Motors, Wei Jianjun, said he was pessimistic about what he called the "healthy development of the EV market. He drew a comparison to Evergrande, the Chinese real estate giant whose collapse sent the entire industry into a downturn from which it has yet to recover. "The Evergrande in the automobile industry already exists, but it is just yet to explode, he said in a video message posted on social media. Two days later, a BYD executive rejected any comparison to Evergrande and posted data-filled charts to buttress his case. 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A promise to pay suppliers within 60 days signals possible shift The following month, 17 automakers including BYD made a pledge: They would pay their suppliers within 60 days. One way China's automakers have been surviving the bruising price wars is by delaying the payments for months. The agreement, if adhered to, would reduce financial pressure on suppliers and could rein in some of the fierce competition. The introduction of the 60-day payment pledge is the call of the government to oppose involution-style competition," said Cui Dongshu, the secretary-general of the China Passenger Car Association. It also reduces the risk of an Evergrande-like scenario. Many automakers had stretched out payments by paying suppliers with short-term debt promises to repay them in a certain period of time instead of cash. Real estate developers used the same system. It worked until it didn't. When Evergrande defaulted on its debts, suppliers were left holding worthless promises to pay. This practice is seen as a potential cause of a larger crisis, similar to what happened with Evergrande, Grandhi said. The vows to speed up payments and the government calls to rein in the price wars, along with a rollback of some financing offers, point to an effort to reverse downward price expectations, said Jing Yang, a director at Fitch Ratings who focuses on the auto industry. We may watch how effectively these measures are in reversing the price trend and how would that affect EV demand in the coming quarters, she said. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Business Standard
30 minutes ago
- Business Standard
Trump's Vietnam deal signals China tariffs unlikely to ease further
Chinese goods face 55% tariffs, likely through August. Under the Vietnam deal, the US will impose 20% tariffs on Vietnamese exports and 40% on transshipped goods to curb Chinese tariff evasion Bloomberg President Donald Trump's new trade deal with Vietnam sends a clear signal about where US tariffs on Chinese goods might ultimately land, as talks between Washington and Beijing continue following their recent truce. Chinese goods currently face tariffs of around 55 per cent, a level expected to remain through August. But under the latest Vietnam agreement, the US will slap a 20 per cent tariff on Vietnamese exports to the US and a steeper 40 per cent levy on goods deemed to be transshipped — the latter targeting a well-worn backdoor used by Chinese exporters since the first China-US trade war to dodge American tariffs. By closing the loopholes, the Trump administration is signaling what any future deal with China might look like. The 40 per cent tariff on transshipped goods suggests that even if tariffs on China are eventually reduced, they're unlikely to fall significantly below that threshold. 'The 40 per cent figure in the Vietnam deal might reflect a broader conviction in the Trump administration about the appropriate tariff level on China, which would be similarly reflected in other bilateral deals,' said Gabriel Wildau, a managing director at Teneo focused on political risk analysis in China. 'However, I am skeptical that Trump has a specific red line for minimum tariffs on China.' Beijing and Washington reached a trade framework last month following talks in London, which remains in effect through mid-August. As part of the deal, China agreed to resume shipments of rare earths — key inputs for wind turbines, electric vehicles and military hardware. In return, the US offered to ease some export restrictions on ethane, chip-design software and jet engine components. US tariffs on Chinese goods have been cut back to around 55 per cent, down from as high as 145 per cent in early April. But 20 per cent tariffs tied to fentanyl remain in place. Beijing has since tightened controls on two precursor chemicals used to make the drug — one of the few obvious avenues it has to win further tariff relief. 'The 20 per cent is really the focal point where all the attention is centered right now,' said Christopher Beddor, deputy China research director at Gavekal Research. 'The thinking is that the Chinese government is very willing to do a deal on something related to fentanyl. They've been telegraphing that for months.'' Still, those efforts are unlikely to bring Chinese tariffs below the 40 per cent rate now applied to Vietnam. If China's duties were to fall to 35 per cent, for instance, it would restore a competitive edge to China and encourage firms to shift operations back, running counter to the Trump administration's broader objectives. 'If China ends up with a lower tariff level than Vietnam that would certainly shift the competitiveness calculations somewhat, but keep in mind that moving production facilities is not as easy as flipping a light switch on and off,' said Stephen Olson, a former US trade negotiator now with the ISEAS-Yusof Ishak Institute. 'From the perspective of Chinese companies, there is zero confidence that once Trump sets a tariff level that it will remain at that level.' For now, there are signs both sides are following through on the terms of the London agreement and displaying signs of goodwill. The Trump administration has lifted recent export license requirements for chip design software sales in China, and approved US ethane exports to China without additional approvals. Treasury Secretary Scott Bessent said Chinese rare earth magnets are flowing, although they haven't yet bounced back to the levels seen before China imposed export curbs in early April. The US remains hopeful that China will further ease restrictions on those exports after their London deal, he said in an interview Tuesday on Fox News. Meanwhile, a senior Chinese official on Thursday delivered one of Beijing's most positive messages about his nation's ties with the US in weeks. Liu Jianchao, head of the Communist Party's International Department, said at the World Peace Forum that he was 'optimistic' about future relations. China is keenly aware of what it's gained from China-US cooperation,' Liu said 'Our cooperation is mutually beneficial. The act of putting up barriers will hurt the other and ourselves as well.' Other negotiations Apart from Vietnam, Beijing is growing increasingly cautious about US efforts to strike trade deals that could isolate China. With a July 9 deadline approaching, when Trump's higher 'reciprocal' tariffs are set to take effect, American officials are ramping up negotiations with key partners in Asia and Europe. What Bloomberg Economics says... 'The looming question now is how China will respond. Beijing has made clear that it would respond to deals that came at the expense of Chinese interests and the decision to agree to a higher tariff on goods deemed to be 'transshipped' through Vietnam may fall in that category. Given China's position as Vietnam's largest trading partner and key source of inputs for domestic production, any retaliatory steps could have an outsized impact on Vietnam's economy.' — Rana Sajedi and Adam Farrar. Click here to read the full report. Beijing on Thursday said it's taken note of the US-Vietnam trade deal and is currently assessing the situation. 'We're happy to see all parties resolve trade conflicts with the US through equal negotiations, but firmly oppose any party striking a deal at the expense of China's interests,' He Yongqian, a spokesperson for the Ministry of Commerce, said at a briefing. 'If such a situation arises, China will firmly strike back to protect its own legitimate rights and interests,' she added, repeating a familiar warning. Olson cautioned against relying too much on the US-Vietnam trade agreement as a blueprint for assessing Washington's approach to China. The stakes in US-China negotiations are significantly higher, shaped by strategic rivalry and a wider set of geopolitical considerations. There is also much less of a power discrepancy in the US-China discussions. 'One important takeaway for China from both the Vietnam deal and the previous deal with the UK is that the US intends to use these negotiations to apply pressure on China,' Olson said. 'This could lead China to a much more sober assessment of what it might be possible to achieve with the US in these negotiations.'