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India and China are partners, not rivals, Modi and Xi say
Xi said that China and India are each other’s development opportunities rather than threats, Chinese state news agency Xinhua reported.
India and China are development partners, not rivals, Prime Minister Narendra Modi and Chinese President Xi Jinping agreed on Sunday, as they discussed ways to improve trade ties amid global tariff uncertainty, Reuters reported.
Modi is in China for the first time in seven years to attend a two-day meeting of the Shanghai Cooperation Organisation regional security bloc, along with Russian President Vladimir Putin and leaders from Iran, Pakistan and four Central Asian states in a show of Global South solidarity.
Analysts say Xi and Modi are seeking to align against pressure from the West, days after U.S. President Donald Trump imposed a punitive total of 50% tariff on Indian goods, partly in response to New Delhi’s purchase of Russian oil.
Trump’s moves hurt decades of carefully cultivated U.S. ties with New Delhi, which Washington had hoped would act as a regional counterweight to Beijing.
Modi told Xi his country was committed to improving ties with China and discussed reducing India’s burgeoning bilateral trade deficit of nearly $99.2 billion, while emphasising the need to maintain peace and stability at their disputed border after a clash in 2020 triggered a five-year military standoff.
“We are committed to progressing our relations based on mutual respect, trust and sensitivities,” Modi said during the meeting on the sidelines of the summit, according to a video posted on his official X account.
He said an atmosphere of “peace and stability” has been created on their disputed Himalayan border and that cooperation between the two nations was linked to the interests of 2.8 billion people of the world’s two most populous countries.
The nuclear-armed Asian neighbours share a 3,800 km (2,400 miles) border that is poorly demarcated and has been disputed since the 1950s.
Xi said that China and India are each other’s development opportunities rather than threats, Chinese state news agency Xinhua reported.
“We must … not let the border issue define the overall China-India relationship,” Xinhua reported Xi as saying.
China-India ties could be “stable and far-reaching” if both sides focus on viewing each other as partners instead of rivals, Xi added.
Ties between the nations were ruptured by the 2020 clash, in which 20 Indian and four Chinese soldiers died in hand-to-hand combat, following which the Himalayan border was heavily militarised by both sides.
Indian Foreign Secretary Vikram Misri told reporters later in the day in that the border situation had evolved over the course of last year, following a patrolling agreement in October. “The situation at the border is moving towards normalisation,” he said.
To a question on the U.S. tariffs, he said that Modi and Xi discussed the international “economic situation” and the challenges it created.
“They tried to … see how to leverage that for building greater understanding between themselves and how to … take forward the economic and commercial relationship between India and China,” he said.
The leaders also discussed expanding common ground on bilateral, regional, and global issues, and challenges like terrorism and fair trade in multilateral platforms, a statement from the Indian foreign ministry said.
Both leaders had a breakthrough meeting in Russia last year after reaching a border patrol agreement, setting off a tentative thaw in ties that has accelerated in recent weeks as New Delhi seeks to hedge against renewed tariff threats from Washington, read the report.
Direct flights between both nations, which have been suspended since 2020, are being resumed, Modi added, without providing a timeframe.
China had agreed to lift export curbs on rare earths, fertilisers and tunnel boring machines this month during a key visit to India by China’s Foreign Minister Wang Yi.
China opposes Washington’s steep tariffs on India and will “firmly stand with India,” Chinese Ambassador to India Xu Feihong said this month.
In recent months, China has allowed Indian pilgrims to visit Hindu and Buddhist sites in Tibet, and both countries have lifted reciprocal tourist visa restrictions.
“I see the meeting as a step in the direction of incremental improvement. The readouts indicate a lot of mixed political signalling … But there’s also a sense of the need to stabilise the relationship in the context of broader geopolitical currents,” said Manoj Kewalramani, a Sino-Indian relations expert at the Takshashila Institution think tank in Bengaluru.
Other long-term irritants remain in the relationship, too.
China is India’s largest bilateral trade partner, but the long-running trade deficit – a persistent source of frustration for Indian officials – reached a record $99.2 billion this year.
Meanwhile, a planned Chinese mega-dam in Tibet has sparked fears of mass water diversion that could reduce water flows on the major Brahmaputra River by up to 85% in the dry season, according to Indian government estimates, Reuters reported.
India also hosts the Dalai Lama, the exiled Tibetan Buddhist spiritual leader whom Beijing views as a dangerous separatist influence. India’s arch-rival Pakistan also benefits from staunch Chinese economic, diplomatic and military support.
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US and Iran presidents sign ceasefire agreement, but Trump says he could still resume attacks
The 14-point agreement extends a ceasefire announced in April by another 60 days, including in Lebanon, to allow the two sides to negotiate a final truce.
The U.S. and Iran released the text of an interim agreement their presidents have signed to end their war on Wednesday, with U.S. President Donald Trump threatening to resume attacks and kill Iranian officials if they failed to honour their commitments, Reuters reported.
Trump, attending the G7 with other leaders in France, also withdrew at least one of his stated rationales for attacking Iran in the first place, saying it would be “unfair” for Tehran not to have ballistic missiles, having previously vowed to obliterate them.
“We’re going to bomb the hell out of them if they violate the agreement,” Trump said of Iran at a press conference. “I don’t want them to. I want them to honor the agreement.” He also called Iranians “smart people” as U.S. and Iranian negotiators work on a permanent truce over the coming 60 days, which Trump said he hoped would usher in peace in the Middle East and lower oil prices.
Earlier, he had said: “If I don’t like it, if they don’t behave, we’ll go right back to dropping bombs right smack in the middle of their head, OK?”
Iran’s leaders did not address the new threats while celebrating the moment, releasing photographs of what is believed to be the first agreement signed by both a U.S. and Iranian president since the Islamic Republic’s founding in 1979.
“Everything we sought to achieve through military action, we obtained several times over through negotiation; it was not even comparable,” Iran’s lead negotiator Mohammad Baqer Qalibaf told state television about the agreement, which includes the unfreezing of billions of dollars in Iranian assets.
The U.S. and Israel launched the war on Iran on February 28, assassinating the 86-year-old Supreme Leader Ayatollah Ali Khamenei and military leaders on the first day. It quickly spiralled into a regional conflict that has killed more than 7,000 people, mostly in Iran and Lebanon; driven up energy prices; renewed inflationary pressures and sparked concerns about a major food supply crisis in developing countries.
The 14-point agreement extends a ceasefire announced in April by another 60 days, including in Lebanon, to allow the two sides to negotiate a final truce. Both Trump and Iranian President Masoud Pezeshkian have digitally signed the memorandum in English and Farsi, U.S. and Iran officials said, with Iran’s foreign ministry saying the agreement was already in effect as of Wednesday, read the report.
Trump signed just before a grand dinner with French President Emmanuel Macron at the Palace of Versailles, the site of the signing of the eponymous treaty that formally ended World War One.
The memorandum includes an immediate end to the war on all fronts, including Lebanon, the full resumption of maritime traffic “with no charge” in the Strait of Hormuz, the lifting of a U.S. blockade of Iranian ports, the waiving of U.S. sanctions on Iran, the unfreezing of its assets, and a $300 billion investment fund for the Islamic Republic’s post-war reconstruction.
Oil prices fell again on Wednesday on prospects for the reopening of the Hormuz, the slender, vital waterway between Iran and Oman, with Brent crude futures below $80, at their lowest level since the war’s start. They later regained more than 1% after Trump threatened renewed violence.
Iran also undertakes not to build nuclear weapons, reaffirming a vow it had made for decades. It also agreed to the on-site “down-blending” of its stockpile of enriched uranium under the supervision of the International Atomic Energy Agency, although Trump had wanted to take it out of the country, which Iran has rejected.
Despite his combative rhetoric, Trump appears to have achieved little of what he said he wanted in going to war, while Iran appears much closer to sanctions relief worth billions of dollars than before it was attacked.
Iran’s theocratic government remains in place, its stockpile of highly enriched uranium has not been surrendered, its ballistic missile capabilities have not been destroyed and it has not ended its support for anti-Israel militias like Hezbollah in Lebanon.
Trump recanted his February promise to destroy all of Iran’s missiles and “raze their missile industry to the ground.”
“I’m saying that if other countries have them, it’s a little bit unfair for them not to have some,” Trump told reporters in Paris after leaving the summit.
G7 leaders hailed the agreement at their summit, held in the French town of Evian-les-Bains, an hour’s drive along the shore of Lake Geneva from where the U.S. has said a formal signing ceremony for the U.S.-Iran agreement was due to be held across the Swiss border on Friday, Reuters reported.
But Iranian foreign ministry spokesperson Esmaeil Baghaei cast doubt on this, telling IRIB’s News Network that, because the two presidents had already signed, “No signing ceremony will be held in Switzerland.”
European leaders share U.S. concerns about Iran’s nuclear program, but never endorsed his decision to go to war without United Nations authorization, and worry Iran has gained leverage by withstanding the superpower onslaught and asserting control over the strait.
The leaders of France, Germany, Britain, Japan, Italy, Canada and the U.S. demanded in a joint statement an immediate ceasefire in Lebanon, where the memorandum calls for a halt to hostilities between Israel and the Iran-backed Hezbollah group that have killed thousands of people and displaced more than a million more.
Fighting there has abated but not ceased since the agreement was reached on Sunday, and Israel, which was not part of the negotiations and whose military is occupying southern Lebanon, says it retains the right to use force.
Trump on Wednesday gently rebuked Israeli Prime Minister Benjamin Netanyahu, who has distanced Israel from the U.S.-Iran agreement, over his tactics in Lebanon against Hezbollah. The two men have repeatedly clashed over Israel’s refusal to constrain its pursuit of Hezbollah in Lebanon, where a cessation of hostilities is a key Iranian demand, read the report.
“Netanyahu happens to be a good man, gets a little excited sometimes,” Trump told reporters. “We have a little dispute over Lebanon. I say you can do a little softer touch, Bibi,” he said, using Netanyahu’s nickname. “You don’t have to knock down a building every time somebody walks into it that’s from Hezbollah.”
Lebanese state media reported fresh Israeli air strikes and artillery fire in several southern towns throughout Wednesday. Lebanese security sources said Hezbollah had also launched two drone attacks on Israeli forces in the south. The group did not publicly claim the attacks.
Israel later said five of its soldiers had been injured in two Hezbollah drone attacks in southern Lebanon.
Regional
Global leaders react to announcement of US-Iran peace agreement
British Prime Minister Keir Starmer: “We are clear that toll-free freedom of navigation must now be restored in the Strait of Hormuz… Iran must never have a nuclear weapon.”
U.S. and Iranian officials said on Sunday they have agreed on a deal to end their war, halt the U.S. blockade of Iran and reopen the Strait of Hormuz, possibly leading to lower energy prices once oil shipments resume through the critical waterway, Reuters reported.
Below is international reaction to the agreement:
A spokesperson for U.N. Secretary-General Antonio Guterres:
“The Secretary-General welcomes the announcement that the United States and Iran have agreed on a peace deal that provides for an immediate and permanent ceasefire, the reopening of the Strait of Hormuz, as well as a framework for further negotiations. This represents a critical step towards the peaceful settlement of the conflict.”
Joint statement from E4 leaders Britain, France, Germany and Italy:
“Iran must never acquire a nuclear weapon. We stand ready to work with the U.S., Iran and the IAEA to this end.”
Australian Prime Minister Anthony Albanese:
“The Australian Government welcomes the agreement by the United States and Iran. Australia has long called for de-escalation and an end to the conflict, including in Lebanon. As we have said, the longer this war goes on, the greater the impact will be. Continued restraint and constructive engagement will be essential to prevent further escalation and secure a lasting agreement.”
British Prime Minister Keir Starmer:
“We are clear that toll-free freedom of navigation must now be restored in the Strait of Hormuz… Iran must never have a nuclear weapon.”
French President Emmanuel Macron:
“I welcome the agreement reached between the United States and Iran, the result of a diplomatic effort to which several partners contributed. I call for its swift and full implementation by all belligerents. This agreement must allow for the urgent and unconditional reopening of the Strait of Hormuz, which the international mission established with the United Kingdom is ready to support.”
German Chancellor Friedrich Merz:
“I welcome the agreement between the U.S. and Iran and congratulate President Trump and the Iranian side on this diplomatic breakthrough. This can pave the way towards a reinvigorated global economy and a more secure Middle East. It is crucial to implement it with determination.”
Japanese Prime Minister Sanae Takaichi:
Japan “strongly hopes” that “free and safe navigation through the Strait of Hormuz will be ensured in practice, and that a final agreement on Iran’s nuclear issue and other matters will be reached as soon as possible.”
New Zealand Foreign Minister Winston Peters:
“This pivotal, constructive deal is a step towards reducing tensions and promoting stability in a region that is critical to global economic security… Dialogue and diplomacy remain the most effective means of resolving longstanding issues.”
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Iran banks hit by major cyber attack
Officials said a technical investigation confirmed that the disruptions were the result of a cyberattack.
Several major Iranian banks experienced service disruptions on Saturday following a cyberattack, according to the Coordinating Committee of Iran’s state-owned banks.
The outage affected four major financial institutions, including Bank Melli Iran, Bank Saderat Iran, and Bank Tejarat, causing interruptions to mobile and online banking services, automated teller machines (ATMs), point-of-sale (POS) terminals, and some card transactions.
Officials said a technical investigation confirmed that the disruptions were the result of a cyberattack.
The affected banks stated that their technical teams immediately implemented precautionary measures after detecting the incident in an effort to safeguard customer information and protect banking infrastructure.
Qatasi, secretary of the Coordinating Committee of Iran’s state-owned banks, said necessary recovery and repair measures had been carried out.
Authorities said there is currently no evidence that customer data was accessed without authorization, and no data breach has been reported.
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