India and China held a fresh round of border discussions under the Working Mechanism for Consultation and Coordination (WMCC) on Thursday, with both sides engaging in what the Ministry of External Affairs (MEA) described as "frank" exchanges on the Line of Actual Control (LAC), boundary management and broader bilateral issues.

The talks come ahead of Chinese President Xi Jinping's proposed visit to India, a development being closely watched amid ongoing efforts by both countries to stabilise ties following years of military tensions along the disputed border.

Focus on Border Stability

According to the MEA, the two delegations reviewed the prevailing situation along the LAC and exchanged views on boundary delimitation, border management, institutional mechanisms and trans-border cooperation.

Both sides reiterated that maintaining peace and tranquillity in border areas remains essential for the overall development of India-China relations.

The Indian delegation was led by Sujit Ghosh, Joint Secretary (East Asia), Ministry of External Affairs, while the Chinese side was headed by Hou Yanqi, Director General of the Boundary and Oceanic Affairs Department of China's Ministry of Foreign Affairs.

India Raises River Data Sharing

During the discussions, India stressed the need for the early convening of the next meeting of the Expert Level Mechanism on trans-border rivers.

New Delhi also emphasised the importance of timely sharing of technical information related to upstream infrastructure projects, an issue that has remained sensitive due to concerns over Chinese projects on rivers flowing into India.

Existing Military Channels to Continue

The two countries agreed to continue using existing diplomatic and military communication channels to prevent misunderstandings and reduce the risk of escalation along the LAC.

These include the WMCC framework, local commander-level meetings and other established mechanisms aimed at addressing unresolved issues through dialogue.

Officials said sustained communication remains critical to maintaining stability in border areas.

Follow-up to Earlier Agreements

The latest WMCC meeting follows the 24th round of Special Representatives' (SR) talks, led by National Security Adviser Ajit Doval and Chinese Foreign Minister Wang Yi.

During those discussions, both countries agreed to establish multiple working groups to address long-pending boundary-related issues. These include an expert group for boundary delimitation, another group focusing on border management, and additional General-level mechanisms for the eastern and middle sectors of the border.

These initiatives are intended to institutionalise dialogue and reduce the possibility of future military confrontations.

Relations Improving, Challenges Remain

India-China relations deteriorated sharply after the military standoff that began in eastern Ladakh in 2020, including the deadly Galwan Valley clash, which claimed the lives of 20 Indian soldiers.

Following several rounds of diplomatic and military negotiations, both countries reached an understanding in October 2024 to partially disengage in eastern Ladakh, leading to renewed high-level political engagement.

However, several contentious issues continue to affect bilateral ties, including the unresolved boundary dispute, China's claims over parts of Ladakh and Arunachal Pradesh, its continued presence in Aksai Chin, and broader strategic concerns related to regional security.

Diplomatic observers believe the latest WMCC discussions indicate continued engagement between the two sides, although a comprehensive resolution of the decades-old boundary dispute is expected to remain a long-term process.

Chinese President Xi Jinping is expected to visit India in September to attend the 18th BRICS Leaders' Summit, marking what would be his first visit to the country since the 2019 informal summit in Mamallapuram and the first after India-China relations deteriorated following the Galwan Valley clash in 2020.

The summit is scheduled to be held in New Delhi on September 12–13, 2026, with India hosting the expanded BRICS grouping at a time of growing geopolitical and economic realignments.

If the visit goes ahead as planned, it will be Xi's first trip to India in nearly seven years and one of the most closely watched diplomatic engagements between the two Asian neighbours since tensions escalated along the Line of Actual Control (LAC).

Invitation Extended During SCO Summit

According to government officials, Prime Minister Narendra Modi extended the invitation to Xi Jinping during the Shanghai Cooperation Organisation (SCO) Summit held in Tianjin in August 2025.

Chinese officials later conveyed that Xi had accepted the invitation and expressed support for India's BRICS presidency.

The summit is expected to bring together leaders from the expanded BRICS bloc, including Russian President Vladimir Putin, Iranian President Masoud Pezeshkian, and heads of state from other member countries.

Relations Showing Signs of Recovery

The expected visit comes amid gradual efforts by New Delhi and Beijing to stabilise bilateral relations after years of diplomatic and military tensions.

Several confidence-building measures have been implemented over the past two years, including:

• A military disengagement understanding reached in October 2024 to reduce tensions along the Line of Actual Control.

• Gradual restoration of direct commercial flight services.

• Easing of visa restrictions for citizens of both countries.

• China's participation in India's AI Impact Summit earlier this year.

Despite these developments, both countries continue to maintain significant military deployments along disputed border areas.

BRICS Summit Gains Strategic Importance

The upcoming BRICS summit is expected to take place against the backdrop of heightened global geopolitical uncertainty, including trade disputes, conflicts in West Asia, supply chain disruptions and efforts by emerging economies to strengthen cooperation through multilateral platforms.

Analysts believe the summit could provide an important opportunity for India and China to continue diplomatic engagement while managing unresolved issues related to border security and bilateral relations.

Apart from economic cooperation, discussions are expected to focus on global financial reforms, trade, technology, energy security, artificial intelligence, climate action and strengthening collaboration among emerging economies.

Significant Diplomatic Engagement

Xi Jinping's proposed visit is likely to attract considerable international attention because it would represent the highest-level bilateral engagement between India and China since relations were strained following the Galwan Valley clash in June 2020.

Diplomatic observers say the visit could serve as an opportunity for both governments to review progress made in restoring communication channels while exploring areas of cooperation despite continuing strategic differences.

Although officials from both sides are yet to announce the final schedule, preparations for the BRICS Summit are expected to intensify in the coming weeks as India readies to host leaders from one of the world's most influential emerging economy groupings.

The administration of US President Donald Trump is preparing a significant increase in funding for programmes aimed at countering China's growing global influence, marking a renewed strategic push after budget reductions last year slowed several anti-China initiatives.

According to reports, the US administration has informed Congress of its proposal to allocate $175.8 million for replacing ageing undersea telecommunications cables across the Caribbean and Central America, with the objective of strengthening secure communications infrastructure and limiting China's role in the region.

The proposal forms part of a broader strategy to expand American influence across Latin America, Africa and Asia while reducing Beijing's footprint in critical infrastructure and emerging technologies.

Undersea Cable Project at Centre of Strategy

The proposed funding includes a programme titled "Countering CCP Control of Caribbean and Central America Undersea Cables Project."

The initiative aims to finance the installation of secure telecommunications infrastructure while encouraging regional governments to partner with trusted private-sector companies instead of Chinese technology providers.

According to US officials, the programme seeks to modernise ageing communication networks and strengthen digital security across the region.

Countries expected to benefit include El Salvador, Guatemala, Honduras, Haiti and Nicaragua, although US officials indicated that Washington would not directly engage with Nicaragua's government despite infrastructure extending into the country.

Growing Concerns Over Chinese Investments

US officials argue that China's increasing investments in ports, telecommunications, transport infrastructure and digital connectivity across the Americas pose long-term strategic and national security challenges.

According to the proposal, while Chinese infrastructure projects may initially appear more economical, US officials claim they often involve hidden maintenance costs, implementation delays and operational concerns.

Washington has increasingly expressed concern over Beijing's expanding economic presence in developing nations through infrastructure financing and technology partnerships.

Broader Global Investment Planned

Beyond the undersea cable programme, the US State Department is reportedly considering nearly $500 million in additional funding for projects aimed at countering China's diplomatic, technological and economic influence worldwide.

According to internal documents cited in media reports, more than 50 projects valued at over $340 million are under consideration across Latin America, Africa and Asia.

Several of these initiatives had previously been approved but were delayed following budget reductions and restructuring within US foreign assistance programmes.

Cybersecurity and Critical Infrastructure Prioritised

The proposed initiatives extend beyond telecommunications.

Plans reportedly include establishing cybersecurity operations centres in Argentina and Belize to monitor cyber threats and protect critical infrastructure.

Additional projects focus on strengthening cooperation with countries including Ecuador, Jamaica, Mexico, Paraguay, Peru and Uruguay to safeguard ports, maritime activities and critical mineral supply chains from what Washington describes as growing Chinese influence.

Other proposed initiatives include expanding secure communications technology, countering surveillance technology exports and supporting strategic digital infrastructure in partner countries.

Strategic Competition Continues

The renewed funding push comes despite ongoing diplomatic engagement between Washington and Beijing.

President Donald Trump is expected to meet Chinese President Xi Jinping later this year in the United States, while senior officials from both countries have recently held high-level diplomatic discussions aimed at stabilising bilateral relations.

However, analysts note that the latest proposals demonstrate that strategic competition between the world's two largest economies continues to remain a central element of US foreign policy.

The proposed funding package is expected to be considered by the US Congress in the coming months.

US President Donald Trump has issued a strong warning to Russia and China, saying there would be "dire consequences" if either country intervenes in support of Iran amid the escalating conflict in the Middle East. Trump said he believes both Russian President Vladimir Putin and Chinese President Xi Jinping have assured him that their countries will not provide weapons to Tehran.

In a post shared on social media on Friday, Trump dismissed speculation that Moscow or Beijing were actively supporting Iran in the ongoing conflict. However, he made it clear that any change in that position would trigger a serious response from the United States.

"I don't believe China or Russia are involved in the Iran war. But if they are, it won't end well for them," Trump said.

The US President revealed that during his recent meeting with Xi Jinping in Beijing, the Chinese leader assured him that China would not send weapons to Iran "under any circumstances." Trump also claimed Xi confirmed that Chinese companies would follow the same policy.

"I believe Xi Jinping," Trump wrote, expressing confidence that Beijing would keep its commitment.

Trump also said Russian President Vladimir Putin had given him a similar assurance that Russia would not supply military equipment to Iran despite Moscow's close ties with Tehran.

Trump Says He Is Still in Contact With Putin

Despite the continuing war in Ukraine, Trump said he remains in regular contact with Putin.

He also addressed US military assistance to Ukraine, clarifying that Washington does not directly provide weapons to Kyiv. Instead, he said, the United States supplies arms to NATO allies, which purchase the equipment and decide how to use it.

"We sell weapons to NATO countries. They pay the full cost, and what they do with those weapons afterward is their decision," Trump said.

Netanyahu to Meet Trump in Washington

As tensions continue to rise in the Middle East, Israeli Prime Minister Benjamin Netanyahu is scheduled to visit Washington on Monday for talks with President Trump.

The meeting will mark the first face-to-face discussion between the two leaders since the Iran conflict intensified. The agenda is expected to focus on regional security, military coordination, and diplomatic efforts to prevent further escalation.

Oil Prices Cross $100 a Barrel

The ongoing conflict has begun affecting global energy markets.

Brent crude oil prices climbed above $100 per barrel for the first time since May as fears of supply disruptions in the Gulf intensified. Analysts say continued instability near the Strait of Hormuz could push energy prices even higher in the coming weeks.

Iran Launches Drone Strikes on US Bases in Kuwait

Iran reportedly carried out drone attacks on three American military installations in Kuwait on Friday.

The targeted bases included:

• Camp Arifjan
• Camp Doha
• Camp Adairi

The attacks underscore the widening regional dimensions of the conflict and have heightened concerns over the safety of US military personnel stationed across the Gulf.

Iran Rejects US Pressure

Iranian Foreign Minister Abbas Araghchi reiterated that Tehran would not surrender to US pressure or threats.

Speaking at the Shanghai Cooperation Organisation (SCO) Foreign Ministers' Meeting in Kyrgyzstan, Araghchi said Iran would continue defending its sovereignty despite mounting international pressure.

Indian Crew Safe After Tanker Attack

In another development, an LPG tanker sailing under the Mozambique flag came under attack in Iranian waters near the Strait of Hormuz.

The Indian Embassy confirmed that all 28 Indian crew members aboard the vessel are safe, providing relief amid growing concerns over maritime security in one of the world's busiest shipping routes.

US President Donald Trump has announced that artificial intelligence (AI) will be one of the central topics of discussion when Chinese President Xi Jinping visits the United States on September 24.

The meeting follows Trump's visit to Beijing earlier this year, where the two leaders held talks and Trump extended an invitation for Xi to visit the White House.

Speaking on Thursday, Trump said the issue of AI had already been discussed during his China visit and would remain high on the agenda.

"President Xi is coming over on September 24, and we talked about it when I was over in Beijing, and we'll be talking about it again," Trump said.

AI Expected to Be a Major Agenda Item

Artificial intelligence has emerged as one of the most strategically important areas in US-China relations, with both countries competing for global leadership in advanced technologies.

The upcoming summit is expected to cover issues related to AI development, technological cooperation, security concerns, and regulatory frameworks, although neither side has released a detailed agenda.

The announcement came a day after US Secretary of State Marco Rubio and Chinese Foreign Minister Wang Yi held discussions aimed at preparing for what officials described as a "very positive visit."

According to statements from both governments, the two diplomats emphasized the importance of identifying areas of cooperation while managing ongoing differences.

Fresh Tariffs Ahead of the Summit

Trump's announcement also came shortly after his administration imposed an additional 12.5% tariff on Chinese imports as part of a broader trade action affecting several countries.

The new tariffs, introduced over concerns related to forced labour, raise the effective US tariff burden on many Chinese goods, adding another layer of complexity to bilateral economic ties.

Despite the latest trade measures, both Washington and Beijing have continued diplomatic engagement, signaling a willingness to prevent trade disputes from escalating further.

Trade Relations Showing Signs of Improvement

The planned summit takes place amid gradual improvement in US-China relations following last year's intense tariff confrontation.

At one stage, US tariffs on Chinese products had climbed to as high as 145%, significantly disrupting trade between the world's two largest economies.

However, a one-year trade understanding, reached after a previous Trump-Xi meeting in South Korea, helped ease tensions by suspending some tariffs, relaxing restrictions on rare-earth exports, and pausing certain investigations involving Chinese industries.

That agreement is scheduled to expire in November 2026, making the September summit particularly significant for both governments.

Xi Likely to Push for Tariff Relief

Analysts believe President Xi is expected to seek further easing of US trade restrictions during his visit.

China has consistently called for greater stability in bilateral economic relations, while the United States continues to press Beijing on trade practices, technology, market access, and national security concerns.

Whether the two sides can reach new agreements remains uncertain, but the meeting is expected to shape the future direction of US-China relations.

Why the Meeting Matters

The Trump-Xi summit is likely to be one of the most closely watched diplomatic events of the year, given the importance of the US-China relationship to the global economy.

Beyond trade, discussions are expected to cover:

• Artificial intelligence and emerging technologies
• Bilateral trade and tariffs
• Supply chain resilience
• National security concerns
• Global economic stability
• Areas of future cooperation

The outcome of the meeting could influence international technology policies, global trade flows, and strategic competition between the world's two largest economies.

At least 28 people were killed after a massive fire tore through a footwear factory in Jinjiang, a major manufacturing hub in China's southeastern Fujian province, on Friday. More than 200 workers were evacuated, while hundreds of firefighters and rescue personnel battled the blaze that rapidly engulfed the factory.

According to Chinese state media, the fire broke out around noon local time at the Huiteng Footwear factory, where nearly 240 employees were present when the incident occurred.

Dramatic visuals from the scene showed thick black smoke billowing into the sky as several workers waited on the factory rooftop for rescue while emergency teams carried out evacuation operations.

28 Dead After Rescue Operation

Authorities said 213 workers were safely evacuated from the building. Two injured workers later died in hospital, while rescue teams recovered the bodies of 26 employees who had initially been reported missing, taking the death toll to 28.

Officials have not yet released the number of people injured in the incident.

More than 500 rescue personnel, along with hundreds of firefighters and emergency responders, were deployed to contain the blaze and search the damaged building.

Flammable Materials Accelerated Fire

Preliminary investigations indicate that the fire originated on the ground floor of the factory, where large quantities of highly flammable shoe-making materials, adhesives and chemicals were stored.

Authorities said the combustible materials allowed the flames to spread rapidly through the building, making rescue operations significantly more challenging.

Chinese state broadcaster CCTV reported that thick chemical fumes caused severe eye irritation for rescue workers, while goods stored in stairwells obstructed evacuation routes and slowed firefighting efforts.

Investigation Underway

Chinese authorities have detained several individuals associated with the factory's ownership as part of the investigation into the cause of the fire.

Officials have also frozen the company's bank accounts while investigators examine whether violations of industrial safety regulations contributed to the tragedy.

The exact cause of the blaze has not yet been officially confirmed.

President Xi Orders Strict Accountability

Chinese President Xi Jinping described the incident as a tragedy resulting in "major casualties" and called for those responsible to be held strictly accountable.

He urged authorities to draw "profound lessons" from the disaster and directed officials across the country to strengthen workplace safety measures, improve industrial inspections and prevent similar accidents in factories and manufacturing facilities.

China's Major Footwear Manufacturing Hub

Jinjiang is widely regarded as China's "shoe capital" and is one of the country's largest centres for footwear and apparel manufacturing.

According to official figures, thousands of footwear companies based in the city produced more than 1.2 billion pairs of shoes in 2024, accounting for nearly 20% of global sports shoe production.

The latest factory fire has renewed concerns about industrial safety standards in China's manufacturing sector, particularly in facilities handling flammable chemicals and combustible raw materials. Authorities are expected to continue rescue operations and conduct a detailed forensic examination of the site in the coming days

Bangladesh Prime Minister Tarique Rahman arrived in China on Monday, marking the second leg of his first overseas tour since taking office in February. The visit is being closely watched across South Asia as Dhaka seeks to deepen economic and strategic engagement with Beijing while reshaping its foreign policy priorities.

Rahman landed in the Chinese city of Dalian after concluding a two-day official visit to Malaysia, where he held bilateral talks with Prime Minister Anwar Ibrahim and witnessed the signing of several cooperation agreements. Upon arrival in China, he was welcomed by senior Chinese and Bangladeshi officials, including Liaoning Province Vice Governor Bai Ying, Chinese Ambassador to Bangladesh Yao Wen, and Bangladesh Ambassador to China Md. Nazmul Islam.

The Bangladeshi Prime Minister is scheduled to participate in the 17th Annual Meeting of the New Champions, commonly known as the Summer Davos Forum, organized by the World Economic Forum. During the event, Rahman is expected to address a session on climate leadership and hold meetings with global business executives, policymakers, and international organizations.

According to Bangladeshi officials, the primary focus of the visit will be strengthening bilateral cooperation in trade, investment, infrastructure, and development financing. Foreign Secretary Asad Alam Siam has indicated that the two countries are working toward signing between 15 and 17 bilateral agreements and memorandums of understanding during the visit.

Among the key issues expected to feature in discussions is the long-pending Teesta River project, which has significant implications for regional development and water management. Rahman is also scheduled to travel to Beijing, where he will meet Chinese President Xi Jinping on June 26. The meeting is expected to review the full spectrum of Bangladesh-China relations and explore opportunities for deeper strategic cooperation.

The visit comes at a time when China remains one of Bangladesh's largest trading partners and development financiers. Recently, Dhaka approved a 41.89 billion taka infrastructure project linked to the Chinese Economic and Industrial Zone in Chittagong, supported through concessional Chinese financing. Officials view such projects as critical to boosting industrial growth, exports, and employment opportunities.

Analysts say the visit carries significance beyond economics. Bangladesh and China are celebrating what both sides describe as the "Golden 50 Years" of diplomatic relations, and the current engagement is being presented as the beginning of a new phase in bilateral cooperation.

The diplomatic outreach has also attracted attention because Rahman chose Malaysia and China for his first official foreign visits after becoming Prime Minister, despite receiving an early invitation from Indian Prime Minister Narendra Modi. Regional observers believe the move reflects Dhaka's efforts to diversify partnerships while maintaining a balanced approach toward major powers.

Officials from both countries expect the visit to produce concrete outcomes in investment, infrastructure, climate cooperation, and trade. The agreements expected during the trip could shape the trajectory of Bangladesh-China relations for years to come and provide fresh momentum to one of South Asia's most important bilateral partnerships.

Putin Visits China for 25th Time, Holds Key Talks with Xi Jinping

Russian President Vladimir Putin began his two-day state visit to China on Tuesday night, marking his 25th trip to the country. On Wednesday, he was warmly received by President Xi Jinping at the Great Hall of the People in Beijing following a formal military inspection.

The two leaders inspected an honour guard together before heading into bilateral discussions. Notably, the meeting took place at the same prestigious venue where Xi had hosted US President Donald Trump just last week, underscoring Beijing’s balancing act amid complex global alignments.

Ceremonial Welcome and Narrow Format Talks

Putin, who arrived late on Tuesday and was greeted at the airport by Chinese Foreign Minister Wang Yi, joined Xi for what officials described as a “narrow format” meeting. Such sessions typically allow leaders to address sensitive issues away from larger delegations. The talks began slightly ahead of schedule at the Great Hall of the People.

According to initial readouts, the leaders discussed deepening bilateral relations, trade expansion, strategic cooperation, and the current global situation. Putin also held separate engagements with senior Chinese officials, with a wider format meeting involving full delegations expected later.

Relations at ‘Unprecedented Level’

In a video message released before his arrival, Putin described Russia-China relations as having reached an “unprecedented level,” built on trust, mutual understanding, and equal cooperation. He emphasised that both nations support each other on core issues of sovereignty and territorial integrity while expanding ties in politics, economy, and energy sectors.

Xi echoed similar sentiments, telling Putin that Beijing and Moscow should continue assisting each other in development and revitalisation. Chinese state media reported Xi describing the international situation as “complex and volatile, with unilateral hegemony running rampant.” He also highlighted the West Asia conflict as being at a “critical juncture,” stressing that ending hostilities was imperative.

Deepening Economic and Energy Ties

Trade between the two countries has grown substantially in recent years. Official figures show bilateral trade reached $228.1 billion last year, with Russia recording a significant surplus. Energy cooperation remains a cornerstone, with discussions likely covering the proposed Power of Siberia-2 gas pipeline. The project aims to deliver around 50 billion cubic metres of natural gas annually from Russia’s Yamal Peninsula to northern China via Mongolia.

The existing Power of Siberia-1 pipeline has been operational since late 2019. Strengthening these links has helped Russia offset some Western sanctions imposed after the Ukraine conflict, especially as recent tensions in West Asia, including risks around the Strait of Hormuz, have driven up global oil and gas prices.

Longstanding Personal and Strategic Partnership

Putin and Xi have met more than 40 times over the years, forging what many describe as one of the world’s most significant political partnerships. Xi’s first foreign visit as president in 2013 was to Russia, and Putin has frequently prioritised China in his early overseas trips.

Both leaders have publicly referred to each other as close friends and strategic partners. Sources familiar with the relationship note regular personal communication alongside formal diplomatic channels.

Broader Geopolitical Context

Experts observing the visit point to China’s efforts to maintain equilibrium in its relations with major powers. Putin’s trip, coming soon after Trump’s, is seen by some analysts as Beijing demonstrating its independent foreign policy and willingness to engage key players amid ongoing tensions over Ukraine, Iran, and global supply chains.

During the meeting, Putin invited Xi to visit Russia next year, stating that strong Beijing-Moscow ties contribute to global stability.

The visit comes as both nations navigate a challenging international environment, with continued focus on economic resilience and strategic coordination. Further outcomes from the

Putin’s Beijing visit holds more strategic weight than Trump’s ‘performative’ trip, state media claims

Russian President Vladimir Putin is scheduled to arrive in China this week for a high-stakes bilateral summit with Xi Jinping, a development Chinese state media is already characterizing as far more substantive than US President Donald Trump’s recent visit to the country.

Strategic balancing act in Beijing

The Kremlin and Beijing have both confirmed that the Russian President will be in the Chinese capital between May 19 and 20. The visit, which marks Putin’s first foreign trip of the year, comes on the heels of Trump’s departure from China, pointing to a deliberate effort by Beijing to manage its ties with the world's two largest nuclear powers simultaneously.

While the American president's stopover was heavy on ceremony, local commentators and regional outlets like the South China Morning Post indicate that the upcoming Sino-Russian dialogue will tackle core geopolitical frictions. Local authorities have scaled up security protocols around the capital ahead of the arrival of the Russian delegation on Tuesday morning.

Heavy agenda on Ukraine and arms control

According to officials familiar with the scheduling, the primary focus of the closed-door meetings between Xi and Putin will revolve around the dragging conflict in Ukraine and the future of international nuclear arms control agreements. The timing is particularly notable given that Donald Trump recently proposed a tentative three-way arms framework involving Washington, Moscow, and Beijing.

Trump had previously noted that Russia’s expanding nuclear capabilities remain a shared concern for both Western nations and Asian powers. However, sources suggest Beijing is unlikely to commit to any US-led tripartite framework without securing major concessions first. Apart from the strategic dialogue, Putin is also slated to hold a separate briefing with Chinese Premier Li Qiang to review bilateral trade targets.

Sino-Russian Bilateral Trade Record

| Metric (Last Year)   | Value (USD)           |

| Total Trade Turnover | 228.1 Billion         |

| Russian Trade Surplus| 21.49 Billion         |

| Year-on-Year Surplus | +55% vs 2024          |

Deeper economic alignment amid sanctions

The economic partnership between the two neighbors has seen a massive surge since the outbreak of the Ukraine war, primarily driven by Western sanctions that forced Moscow to pivot its trade entirely toward Asia. Initial reports indicate that trade turnover between the two nations hit a record $228.1 billion last year, with Russia locking in a comfortable surplus.

China has steadily increased its imports of discounted Russian crude, coal, and liquefied natural gas. In return, consumer markets in Moscow and St. Petersburg have been flooded with Chinese automotives, heavy machinery, and semiconductors, effectively replacing Western brands. This economic lifeline continues to draw heavy criticism from Washington, which accuses Beijing of indirectly fueling Russia's military economy.

Power of Siberia pipeline on the table

Diplomatic sources say a crucial talking point during the May 19 session will be the long-delayed Power of Siberia-2 gas pipeline project. Russia has been pushing hard to finalize the technicalities of this massive infrastructure asset, which is designed to channel 50 billion cubic meters of natural gas annually from the Yamal Peninsula to northern China via Mongolia.

"The pipeline remains a critical long-term priority for Moscow as it seeks permanent alternatives to its lost European markets," a regional energy analyst noted. "If finalized, it could fulfill the energy needs of nearly 200 million Chinese households."

Mideast tensions provide economic cushion

The summit unfolds against the backdrop of escalating tensions in the Middle East involving the US, Israel, and Iran, which has threatened trade flows through the vital Strait of Hormuz. While the threat of a wider maritime blockade has raised fears of a global recession, the subsequent spike in international oil prices has provided a temporary fiscal cushion for the Kremlin.

The two leaders have met more than 40 times since Xi assumed office in 2013, establishing what both describe as a "no-limits" partnership aimed at pushing back against a US-dominated unipolar global structure. Following the conclusion of the Beijing meetings, the joint delegation is expected to release a statement on a "multipolar world order" before Putin departs mid-week.

Tensions in the Middle East have escalated further after former US President Donald Trump claimed that Chinese President Xi Jinping has expressed willingness to help keep the Strait of Hormuz open amid growing geopolitical instability involving Iran, the United States, and Israel. The remarks have added a new diplomatic dimension to an already fragile global energy situation.

In an interview with Fox News, Trump stated that Xi Jinping had indirectly conveyed support for efforts to ensure uninterrupted navigation through the Strait of Hormuz, one of the world’s most critical oil transit routes. According to Trump, China has a strong interest in maintaining stability in the region due to its heavy dependence on Iranian crude oil imports.

“Xi Jinping wants some kind of agreement between the United States and Iran. If I can help, I would like to help,” Trump said, quoting the Chinese leadership’s position. He further added that countries heavily reliant on Iranian oil naturally prefer that the Strait of Hormuz remains open and secure for uninterrupted trade flows.

The Strait of Hormuz, a narrow maritime passage connecting the Persian Gulf with the Arabian Sea, handles nearly a fifth of global oil shipments. Any disruption in this corridor has historically led to volatility in global crude oil prices and triggered fears of supply shortages across Asia, Europe, and other major importing regions.

Alongside Trump’s remarks, Iran has introduced new operational protocols for vessels passing through the Strait of Hormuz. According to reports from Iranian state-linked sources, all commercial ships navigating the route are now required to comply with enhanced monitoring and clearance procedures under Iranian oversight. Tehran has framed these measures as necessary for national security amid rising regional tensions.

Iran has also intensified its diplomatic outreach, urging BRICS member countries to openly condemn the United States and Israel for what it describes as violations of international law and aggressive actions in the region. Iranian Foreign Minister Abbas Araghchi made the appeal during a recent BRICS meeting, arguing that global institutions have failed to address escalating instability in West Asia.

The situation has already begun affecting maritime movement. Reports suggest that several vessels have altered their routes due to security concerns. The US Central Command (CENTCOM) stated that increased tensions in the Strait have led to at least 70 commercial ships adjusting their planned passages, reflecting growing uncertainty among global shipping operators.

In a separate incident that highlights the fragility of the region, a cargo vessel reportedly linked to Gujarat was damaged near Oman under unclear circumstances involving a suspected drone or missile strike. All 14 crew members were safely rescued, but the incident has further heightened fears about the safety of commercial shipping in the area.

China’s role in the evolving situation is being closely watched by global analysts. As one of the largest importers of Iranian oil, Beijing has a strategic interest in ensuring stability in the Strait of Hormuz. Any disruption could significantly impact its energy supply chain and manufacturing sector. While China has not officially confirmed Trump’s claim, its diplomatic engagements in the region have consistently emphasized de-escalation and dialogue.

Experts believe that if major powers like China actively engage in mediation, it could reduce tensions between the United States and Iran. However, they also warn that competing geopolitical interests may complicate any coordinated solution. The Strait of Hormuz remains a sensitive geopolitical chokepoint where even minor incidents can escalate into broader conflicts affecting global markets.

Oil prices have already shown volatility in response to recent developments. Traders are closely monitoring supply risks, with concerns that prolonged instability could push crude prices higher and contribute to inflationary pressures worldwide. Energy-importing countries, particularly in Asia, are expected to be the most affected if disruptions continue.

Iran’s new regulatory stance, combined with increased naval presence and diplomatic pressure campaigns, signals a more assertive phase in its regional policy. At the same time, US and allied forces continue to emphasize freedom of navigation in international waters, maintaining a delicate balance to avoid direct confrontation.

The coming weeks are likely to be critical in determining whether diplomatic intervention can stabilize the situation or whether tensions in the Strait of Hormuz will further escalate into a wider geopolitical crisis. For now, global markets, shipping companies, and governments remain on high alert as developments unfold.

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Trump and Xi reset ties in Beijing; White House visit set for September

In a move that signals a significant cooling of long-standing trade and diplomatic frictions, US President Donald Trump and Chinese President Xi Jinping have agreed to a fresh roadmap for bilateral ties, anchored by a high-profile invitation for the Chinese leader to visit Washington this autumn.

The development came during a packed day of diplomacy in the Chinese capital on Thursday, where both leaders moved past previous "trade war" rhetoric to frame the relationship as the world’s most consequential. Speaking at a lavish state banquet in the Great Hall of the People, President Trump extended a formal invitation to President Xi and Madam Peng Liyuan to visit the White House on September 24.

A constructive new path

The summit, which included a pivotal two-hour bilateral meeting, resulted in both nations agreeing to frame their relationship as “constructive, strategic, and stable.” According to a readout from the Chinese Foreign Ministry, this new positioning is intended to guide the superpower's interactions for the next three years and beyond.

The shift in tone was palpable. President Xi, addressing the delegation, noted that while the world is undergoing rapid change, the US-China relationship remains the bedrock of global stability. “We must make it work and never mess it up,” Xi said, emphasizing that the two giants should be “partners, not rivals.”

Massive trade deal looms

While the diplomatic optics were strong, the underlying economic stakes remained the primary focus for the markets. Reports from the ground indicate that a massive US-China trade deal worth approximately ₹9 lakh crore ($100 billion+) is currently being finalized.

Central to this agreement is a significant purchase of American aircraft by Beijing. Sources familiar with the matter suggest that China is prepared to commit to a large-scale acquisition of Boeing aircraft, a move seen as a major win for the US manufacturing sector and a primary objective of the Trump administration’s “Make America Great Again” economic policy.

Corporate giants join delegation

The importance of the commercial aspect was underscored by the presence of a "who’s who" of American industry. President Trump was accompanied by a high-powered delegation of executives, including Apple’s Tim Cook, Nvidia’s Jensen Huang, and Tesla’s Elon Musk.

Musk, who was seen interacting with guests at the state banquet, expressed his desire to accomplish "many good things" during the visit. The inclusion of semiconductor and AI leaders like Huang and Cristiano Amon of Qualcomm suggests that despite recent export restrictions, both sides are looking for a path forward on technological cooperation.

Navigating the Taiwan issue

Despite the outward cordiality, the sensitive issue of Taiwan remained a critical point of deliberation. President Xi reportedly delivered a stern warning during the private sessions, describing the Taiwan issue as the "most important" in the bilateral relationship. He cautioned that mishandling the matter could push both nations toward "clashes and even conflict."

US Treasury Secretary Scott Bessent, however, sought to downplay immediate fears of escalation. In an interview with CNBC, Bessent stated that Trump "understands the sensitivities" surrounding the democratically governed island and cautioned that the President’s negotiating style should not be mistaken for a lack of awareness regarding regional geopolitical red lines.

Progress on global security

The leaders also found rare common ground on Middle Eastern security. Both the White House and Beijing confirmed an agreement on the necessity of keeping the Strait of Hormuz open for the free flow of energy.

Energy Security: China expressed interest in purchasing more American oil to reduce its reliance on the volatile strait.

Nuclear Non-proliferation: Both leaders reaffirmed their stance that Iran must never be allowed to possess a nuclear weapon.

Regional Conflicts: Discussions also touched upon the ongoing Ukraine crisis and the situation on the Korean Peninsula.

Looking toward September

The day’s events concluded with a visit to the historic Temple of Heaven, a site symbolic of harmony. As the motorcade departed the Great Hall of the People late in the evening, the focus shifted toward the upcoming September 24 visit to Washington.

With the US-China trade deal serving as the economic backdrop, the next few months will likely see intensive negotiations between trade teams to formalize the aircraft purchases and address lingering tariff concerns before the two leaders meet again on American soil.

US Accuses China of Funding Iran Amid Hormuz Tensions

US-China tensions rise as Washington links Beijing’s Iran oil imports to terrorism financing, urges support to reopen Strait of Hormuz ahead of Trump visit

Sharp remarks from US

In a pointed escalation of rhetoric, US Treasury Secretary Scott Bessent has accused China of effectively financing Iran by continuing to import large volumes of its oil, describing Tehran as the “largest state sponsor of terrorism”. The comments come at a sensitive moment, just days before US President Donald Trump is scheduled to visit Beijing for high-level talks with Chinese President Xi Jinping.

According to officials familiar with the matter, the remarks were made during a media interaction on Monday and reflect growing unease within Washington over Beijing’s energy ties with Tehran.

Oil trade under scrutiny

Bessent alleged that China has been purchasing nearly 90 per cent of Iran’s energy exports, a claim that underscores longstanding US concerns over sanctions enforcement. “Iran is the largest state sponsor of terrorism, and China has been buying most of their energy,” he said, suggesting that such transactions were helping sustain the Iranian regime despite Western pressure.

The US has, since 2018, attempted to restrict Iran’s oil revenues under its “maximum pressure” campaign, following its exit from the nuclear agreement known as the Joint Comprehensive Plan of Action (JCPOA).

Hormuz crisis deepens

The criticism comes amid rising tensions in the Strait of Hormuz, a critical maritime corridor through which a significant portion of the world’s oil supply passes. Recent disruptions, which Washington attributes to Iranian actions, have affected shipping movement in the region.

Bessent said the US was working to reopen the waterway through an initiative dubbed “Project Freedom”, aimed at ensuring safe passage for vessels currently stranded or rerouted due to the situation.

Call for China’s support

Despite the sharp tone, the US has urged Beijing to play a constructive role. Bessent called on China to back international efforts to secure the Strait of Hormuz and to use its diplomatic leverage with Iran.

“I would urge the Chinese to join us in supporting this international operation,” he said, adding that Beijing’s influence could prove critical in persuading Tehran to ease tensions and restore normalcy in the shipping lane.

Sources indicated that Washington sees China’s involvement as key, given its deep economic engagement with Iran, particularly in the energy sector.

Diplomatic pressure on Tehran

Alongside operational support, the US is also pushing for diplomatic intervention. Officials suggested that China could help de-escalate the crisis by encouraging Iran to reopen the strait and avoid further confrontation.

Bessent reiterated that the US had made it clear Iran does not have unilateral control over the strategic passage and that international cooperation would be necessary to maintain maritime security.

UN stalemate continues

Efforts to build a global consensus, however, have faced hurdles. At the United Nations, a proposed resolution condemning Iran’s alleged blockade of the Strait of Hormuz was recently vetoed by China and Russia, leading to a diplomatic impasse.

Defending Beijing’s position, Chinese envoy Fu Cong said the draft lacked balance and did not adequately reflect the broader geopolitical context, including actions by the US and its allies.

Beijing pushes back

China has also pushed back against US sanctions targeting its firms engaged in Iranian trade. Responding to recent measures, Chinese Foreign Ministry spokesperson Lin Jian criticised what he described as “illicit unilateral sanctions” and cautioned Washington against overreach.

Analysts note that China’s continued engagement with Iran reflects both strategic and economic considerations, including energy security and regional influence.

Focus on upcoming summit

The developments come ahead of the anticipated Trump–Xi meeting, which is expected to cover a wide range of issues including trade, security, and regional stability. While tensions remain high, there are indications that both sides may seek to stabilise ties through dialogue.

Bessent suggested that leader-level engagement could help ease friction, noting that mutual respect between the two countries’ leadership has previously contributed to stability.

As the situation unfolds, the US-China-Iran dynamic is likely to remain a focal point in global diplomacy, particularly with the Strait of Hormuz tensions continuing to impact energy markets and international shipping.