July 01 - 15, 2017

ASEAN

Indonesia

President Signs Decree Banning Radical Groups

On July 10, Indonesia’s President Joko Widodo signed a decree giving the government the power to ban radical organizations, in a move aimed at outlawing groups behind an apparent rise in the political clout of hard-line Islam. The new decree empowers the government to disband without trial any group that challenges ‘Pancasila’, a set of founding national principles which promote pluralism and tolerance. Pancasila is considered the unifying factor for a country home to significant Christian, Hindu and Buddhist minorities. The new decree amends an existing law regulating mass organizations, allowing the government to sidestep a potentially long court process to implement a ban. The measure announced on July 12 by the country’s coordinating minister for politics, security and law, Wiranto, follows months of sectarian tensions in the world’s most populous Muslim nation that shook the government and undermined its reputation for practicing a moderate form of Islam. Wiranto said the decree is aimed at protecting the unity and existence of Indonesia as a nation, and not at discrediting Islamic groups. However, neither Wiranto nor the decree named any specific organizations.

It is speculated that Hizbut Tahir, a group that campaigns for Indonesia to adopt sharia law and become a caliphate, is among the targets of the decree after the government announced in May that it planned to ban the group. Hizbut Tahir, along with groups such as the violent Islamic Defenders Front, was behind months of massive protests in Jakarta, the capital, against the city’s minority Christian governor, Basuki Tjahaja Purnama, an ally of Widodo who was accused of blaspheming Islam. He subsequently lost a bid for re-election to a Muslim candidate and was imprisoned for two years for blasphemy despite prosecutors downgrading the charge to a lesser offence. The new decree has support of Nahdlatul Ulama, Indonesia’s largest Muslim organization.

Malaysia

After 18 Years Mahathir Apologizes to Anwar

In a July 6 published interview with The Guardian, Mahathir Mohamad, 92, Malaysia’s longest serving prime minister said he had erred in not letting his deputy Anwar Ibrahim succeed him. The former leader went so far as to say that if Anwar were pardoned by the king, he would support him as the next prime minister. Anwar is currently serving a five-year prison sentence, commencing in 2015, after a second sodomy conviction was upheld. Nineteen years ago, Mahathir while prime minister had denounced Anwar as “morally unfit” for leadership following allegations of corruption and sodomy, and had him jailed in April 1999. Anwar’s prosecution at the time was criticized by human rights groups and several foreign governments, including the US, UK and Australia. The apparent apology has led the duo – formerly known for a father-and-son-like closeness –to reunite to take down current Prime Minister Najib Razak. In the interview, Mahathir further mentioned that “Najib is bad news for Malaysia. For the PM to be accused of stealing huge sums of money, I think that is something we don’t expect of any other PM. Certainly not in Malaysia. The money he is said to have taken is mind boggling. ”

Mahathir’s newly formed political party, Parti Pribumi Bersatu Malaysia (commonly referred to as “Bersatu”), has joined forces with Anwar’s People's Justice Party (PKR) and smaller parties to take on Najib’s party United Malays National Organisation (UMNO) and its ruling National Front coalition, under the banner of Pakatan Harapan. According to analysts, the Mahathir-Anwar partnership will serve to strike a nostalgic chord with voters reminiscing the earlier era of prosperity and stability. Earlier this fortnight, Pakatan Harapan announced its new leadership structure. Anwar will serve as de facto leader, PKR president Wan Azizah Wan Ismail will be president, and Mahathir will be chairman. Anwar’s daughter, Member of Parliament NurulIzzah, said the coalition’s goal was “simply to rescue Malaysia from the dire straits that it currently finds itself in.” She said “Anwar supports these goals, having spent his entire life, at great personal cost, to achieve them. Whatever their past differences have been, I believe Dr. Mahathir shares this dream.”

Myanmar

Defence Forces’ Commander-in-Chief Senior General Min Aung Hlaing Visits India

Senior General Min Aung Hlaing was on an eight-day visit to India for strengthening the bilateral defence relationship with India. The visit comes closely after the Indian Army Chief had visited Myanmar in end May. India has been following the developments in Myanmar regarding the ongoing peace process and likely Chinese influence on the same. Apparently, Myanmar military does not seem to be too pleased when China asked members of a northern ethnic alliance to attend the 21st Century Panglong Peace Conference in May and requested Min Aung Hlaing accept them.

The security situation along the Indo-Myanmar border remains of concern to India as the National Socialist Council of Nagaland-Khaplang (NSCN-K) camping in Sagaing division of Myanmar continues to present a threat to India. One of the major aspects of the bilateral discussions was the aspect cooperation on counter insurgency operations and developments on Bangladesh-Myanmar border. The NSCN-K has been fighting for the “independence of Nagaland” from India and Myanmar for long. It is also widely known that China has reportedly provided the group’s leaders with shelter, aid and weapons in the past.

Myanmar defence C-in-C is in the process of modernizing the Myanmar military and has been looking for diversifying its sources for obtaining defence equipment. Gen Min Aung Hlaing had recently paid visit to Russia for boosting defence cooperation. India had recently signed a deal for providing lightweight torpedoes. It should also be noted that Myanmar has been looking to purchase JF-17 Fighter aircrafts from Pakistan with which might not be considered favourably by India. New Delhi is also concerned with some reports that Pakistani militants are providing training to Muslim insurgents in northern Rakhine areas.
The Myanmar Commander-in-Chief also met PM Modi and briefed him about bilateral defence and security cooperation. He also condemned the recent terrorist attack on pilgrims of the Amarnath Yatra and expressed condolence for the victims. On his part, Prime Minister Modi appreciated the close cooperation between the Armed forces of India and Myanmar. He said that Myanmar is a key pillar of India's "Act East" Policy and expressed his firm commitment to strengthen the bilateral relationship in all areas.

Singapore

End of Lee Family Row?

Recent developments indicate that Singapore’s prime minister, Lee Hsien Loong and his siblings have called a truce in a fresh bid to settle the matter of their father and late Singapore Prime Minister Lee Yuan Kew’s estate privately. The heirs of Lee Kuan Yew, Singapore’s long-serving first prime minister who died in 2015, are bitterly divided over whether to demolish the family home at 38 Oxley Road, or allow the government to decide whether it should become a heritage site. Lee Kuan Yew died in 2015 aged 91. The younger brother Lee Hsien Yang, who owns the property, and sister Lee Wei Ling, who still lives there, want the house to be demolished in accordance with their father’s wishes, rather than become a shrine to a political dynasty. In a joint statement on July 6, the two siblings Lee Hsien Yang and Lee Wei Ling said: “We are not politicians and do not wish to see Singapore embroiled in a never-ending public argument”. The two said they made a ceasefire offer soon after their initial public salvo against Lee Hsien Loong on June 14, but it was rebuffed. The two siblings further added on Facebook that “for now, we will cease presenting further evidence on social media, provided that we and our father’s wish are not attacked or misrepresented.” They however warned that they were holding in reserve “complex” evidence against the premier unsuited for public circulation. “We reserve this to show to a truly open and independent investigation, if there ever is one,” the two siblings said.

The family feud over the fate of the Lees’ home of seven decades erupted into a national debate last month after prime minister’s siblings went public with accusations that the prime minister had abused his official position to get his way over the house. On July 4-5, during a legislative session on the feud, the prime minister stated that the committee headed by his deputy Teo Chee Hean is merely examining future options for the property. In the concluding session, Lee Hsien Loong further mentioned that the legislative session showed “that there has been no abuse of power, by me or the government’. No vote was taken after the debate. The public row in a family that stands at the heart of Singapore’s establishment has raised uncomfortable questions in a city state that prides itself on being a rock of stability in Southeast Asia.

Indo-Pacific

China’s Military Base at Djibouti Takes Shape

China’s military base at Djibouti appears to have taken a concrete shape with the Global Times reporting that ships carrying Chinese military personnel departed Zhanjiang in southern China's Guangdong Province for Djibouti. Vice Admiral Shen Jinlong, Commander of the People's Liberation Army Navy (PLAN), also read out an order on constructing the base in Djibouti, and conferred military flag on the fleets.

The base at Djibouti is China’s first overseas military base, the deal for which was finalized towards the end of 2015, and whose construction started in March 2016. China was initially reluctant to confirm this development with official acknowledgment coming only in November 2015 with the spokesman for the Ministry of National Defense saying that China was negotiating with Djibouti for the construction of “military supporting facilities". The base is intended to "provide better logistics and safeguard Chinese peacekeeping forces in the Gulf of Aden, offshore Somalia and other humanitarian assistance tasks of the UN". The facility appears to be near completion, if not already completed, when considering the fact that the Commander of the PLAN read out an order on the construction of the base. The military personnel being taken on board the ships would be meant for initial manning of the base implying that civil works may have been completed though operational facilities may not be ready. In any case, the Doraleh terminal, which is in close proximity to the base, is operated by a Chinese consortium and can provide berthing facilities for Chinese naval ships, if required, till creation of such facilities at the Chinese base.

The initial hesitancy in calling the facility at Djibouti a military base seems tohave been cast aside with the Global Times terming it as a ‘base’ in its recent article. China has had a continuous naval presence in the Gulf of Aden since 2008 for anti-piracy missions. Chinese fleets, including submarines, have also been regularly deployed to the Indian Ocean Region. While the reasons for these deployments can be many, there is no denying the fact that China has a major interest in protecting its Sea Lanes of Communication (SLOC) which stretch across the IOR and in to the South China Sea and beyond. Protecting Chinese overseas interests is a legally mandated task of the Chinese Navy and its armed forces according to the National Security Law passed in 2015. While the base at Djibouti is intended to support this task in the Indian Ocean Region (IOR), it will also serve the purpose of strengthening China’s foothold in the African continent and the adjacent littoral as it goes about garnering resources and influence, much like the erstwhile colonial powers of the eighteenth and nineteenth centuries. The availability of a sovereign facility in the IOR will accelerate the increase in the footprint of the Chinese military thereby giving a concrete shape to its influence in the region. The conduciveness of such increased presence and influence to the delicate stability of an already disturbed region is questionable though the effects will have to be monitored closely in the near to medium term.

Liaoning Visits Hong Kong

China's lone aircraft carrier Liaoning visited Hong Kong from 07 – 11 Jul 17 along with two destroyers, Jinan and Yinchuan, and the frigate Yantai. The visit was part of the celebration of the 20th anniversary of the People's Liberation Army being stationed in the Hong Kong Special Administrative Region. The PLAN said that the visit was part of the trans-regional training of the aircraft carrier and its crew. Earlier President Xi Jinping had visited Hong Kong on 30 Jun 17 for the celebrations and inspected 20 squads of the People’s Liberation Army garrison in Hong Kong at the biggest military parade since the city’s handover to China.

A visit by a ship to one of its country’s ports is in itself not much of an event except for the people of that city. It is a moment of pride for the citizens of any country to visit one of the most powerful manifestations of their country’s military might when an aircraft carrier calls at their port. However, the visit of the Liaoning was much more than just a visit to a port in its home country. The extensive coverage of the event, when viewed against the backdrop of the celebrations of the previous week and the military parade, was intended to convey a message. The message was one of China’s military might and intended for an audience beyond the accepted borders of China.

The Taiwanese closely monitored the transit of the carrier group during its inward and outward transit as they are immediately affected by any belligerent Chinese impulses. The PLAN is modernizing rapidly and is simultaneously increasing its presence in areas of Chinese interest. The Liaoning and its soon-to-follow successors are intended to give China the necessary military heft to further its interests and ambitions in the region.

The Koreas

North Korea Tests its First ICBM

On July 4, North Korea test-launched its first inter-continental ballistic missile (ICBM), a potential game-changing development in what may be the world's most dangerous nuclear standoff. North Korean state media carried gleeful descriptions of the test. The US, South Korean and Japanese officials say it flew for about 40 minutes and reached an altitude of 2,500 kilometers (1,500 miles), which would be longer and higher than any similar North Korean test previously reported. It also covered a distance of about 930 kilometers (580 miles). North Korea said the missile flew as high as 2,802 kilometers before hitting a designated target in the ocean about 933 kilometers away from the launch site in the North's northwest. It said the missile flew for about 39 minutes and was made at the highest possible angle. Russia's military, however, said the missile flew considerably shorter and lower than others reported. David Wright, a US missile scientist estimated that the highly lofted missile, if the reported time and distance are correct, could have a possible maximum range of 6,700 kilometers (4,160 miles), which could put Alaska in its range, if fired at a normal trajectory.

North Korea has a reliable arsenal of shorter-range missiles and is thought to have a small arsenal of atomic bombs, but is still trying to perfect its longer-range missiles. Some civilian experts believe the North has the technology to mount warheads on shorter-range ‘Rodong’ and ‘Scud’ missiles that can strike South Korea and Japan, two key US allies where about 80,000 American troops are stationed. But it's unclear if it has mastered the technology needed to build an atomic bomb that can fit on a long-range missile. In the wake of July 4 test, China and Russia issued a joint statement condemning North Korea and calling for what they called a “double suspension,” a plan that would see the United States and South Korea suspend joint military exercises and North Korea suspend weapons testing. However, analysts note that Trump’s annoyance with China (visible in his tweets) makes it even less likely he would consider the Beijing-Moscow plan.

South Korea: Moon Jae In’s New Peace Initiative

On July 6, President Moon Jae In laid out a five-point plan aimed at reconciliation with the North during his invitational speech at the Korber Foundation in Berlin before joining the G-20 summit in Hamburg. The reconciliatory gesture came despite the Kim Jong-un regime's launch of an ICBM on July 4. The plan included signing a peace treaty with North Korea to replace the 1953 Korean Armistice Agreement and guaranteeing the security of the Kim regime in return for its denuclearization. Moon further mentioned connecting the South and the North, where it has been disconnected by the military demarcation line, with an economic belt and establishing an economic community. He also mentioned that the severed inter-Korean railway will be connected again with a train departing from Busan and Mokpo running through Pyongyang and Beijing, and head towards Russia and Europe. Cooperation projects in Northeast Asia, such as the gas pipeline project connecting the two Koreas and Russia, will also be implemented. Lastly, South Korean government will consistently pursue nonpolitical exchange and cooperation projects such as allowing the separated families to meet. Moon further added he was ready to meet with Chairman Kim Jong-un of North Korea at any time at any place, if the conditions are met and if it provides an opportunity to transform the tension and confrontation on the Korean Peninsula.

In its first reaction to the initiative that Moon announced, the Rodong Sinmun, the North's main newspaper, made a lengthy point-by-point rebuttal rather than a terse rejection, which a Seoul official said may signal Pyongyang's interest in the proposal. The newspaper issued its statement in a commentary attributed to the pen name of a private writer, which observers say hints at the reclusive state's efforts to be cautious not to blunt the potential momentum of better inter-Korean ties." The overall content, enumerated under the name of peace, carries confrontational intentions to quash its neighbor while relying on foreign forces," the paper said. In the commentary, the paper noted that it is a "relief" that Moon included his government's vow to respect the landmark joint declarations that were signed at the inter-Korean summits in 2000 and 2007. "It is a relief that the vow to honor and enforce the June 15 joint declaration in 2000 and the October 4 declaration in 2007 were included (in the initiative) - a different stance from his (conservative) predecessors," the commentary read. The North's paper however dismissed Moon's call for bilateral dialogue and cooperation, demanding a "fundamental shift in policy and stance."

Japan

Tokyo Metropolitan Elections: LDP Records Worst Defeat

The Liberal Democratic Party (LDP) recorded its worst result ever in the election for Tokyo’s regional assembly, winning just 23 of 127 seats, down from 57 last time. The Tokyo assembly is now dominated by Tomin First No Kai (Tokyoites First), a fledgling party barely six months old established by Yuriko Koike, Tokyo’s earlier LDP governor. The ballot was widely seen as a referendum on the policies of Yuriko Koike but it was also a measure of the prime minister’s sinking popularity. Abe has had an aura of invincibility having won third major election since assuming office in 2014 despite pursuing controversial policies. However, the recent influence-peddling scandals seem to have finally taken a toll and been the deciding factor with public. Abe has been dogged by claims that he helped one friend to win government approval to open a new veterinary institute and another to secure favorable treatment for a nationalist kindergarten. Critics further complain that his economic reforms have not lived up to the hype, and that the stagnation and deflation that have afflicted the country for the past 25 years have not been banished.
Abe’s plan to amend Japan’s pacifist constitution to clarify the status of its armed forces now seems a tall order as he would have to secure a third term as leader of the LDP next year, maintain a two-thirds majority of amendment-minded parties in both houses of the Diet (Japan’s parliament) and then win a national referendum. His re-election as leader of the LDP also no longer looks assured. Komeito, the LDP’s coalition partner at the national level formed an alliance with Tomin First in the Tokyo election. Abe is expected to reshuffle his cabinet in August.

Abe-Modi 9^th Summit at G-20

Prime Ministers Abe and Modi met on July 7 in Hamburg, Germany during the G-20 Summit. The bilateral meeting was the ninth meeting between the two leaders. Modi stated that he was pleased to be able to meet at each opportunity in international conferences, that the Japan-India partnership has blossomed greatly since 2014, and that he was eagerly anticipating the visit of Abe to India. In response, Abe stated that together with Modi he wanted to dramatically enhance the "new era in Japan-India relations" and lead the peace and prosperity of the Indo-Pacific region and the world, and that on the coming visit to India he would materialize the cooperation regarding the "Free and Open India and Pacific Strategy" and "Act East" policy. Abe also mentioned that the Malabar joint maritime exercise by Japan, India, and the United States next week is a symbol of Japan-India defense cooperation and Japan-India-United States cooperation. He also expressed his expectations for the prompt entry into force of the Japan-India nuclear energy agreement and its implementation.

Both leaders sought Japan and India to play large roles in building an order of democracy and the rule of law, while further strengthening Japan-India cooperation. They also confirmed that they would exchange further information regarding the issues surrounding North Korea etc. and that they would cooperate closely to make the sanctions by the international community effective. The two prime ministers also held a candid exchange of views regarding the major issues between Japan and India, including politics and security, high-speed rail, the economy and economic cooperation, etc., and about the regional situation.

24^th Japan-EU Summit Meeting: Confirming EPA and SPA

On July 6, Abe met Donald Tusk, President of the European Council, and Jean-Claude Juncker, President of the European Commission in Brussels for the 24th Japan-European Union (EU) Summit. The leaders met for the third time this year, following meetings in March and May. They confirmed that agreements in principle on the Japan-EU Economic Partnership Agreement (EPA) and the Strategic Partnership Agreement (SPA) had been reached. Abe expressed that the EPA is a comprehensive, high-level and balanced agreement that will serve as a model for economic order of the 21st Century on the basis of free and fair rules. Tusk and Juncker also expressed the view that the agreement will not only benefit companies and citizens of both sides, but will also intensify the relationship between the citizens of both sides, as indicated by the fact that the agreement in principle was reached not as a Free Trade Agreement (FTA) but as an EPA, reflecting a broader partnership. Furthermore, the leaders thanked the negotiators on both sides for their efforts and praised the outcome.

With regard to the agreement in principle on the Japan-EU SPA, both sides confirmed that the SPA will further strengthen the strategic relationship and collaboration between Japan and the EU. With regard to the process of the United Kingdom’s withdrawal from the EU and the future EU-UK relations, Abe requested continued consideration for not only transparency but also for predictability since they will have impacts on various areas including peace and stability of the international community, global economy and business activities. He further requested that the EU's restrictions on imports of food from Japan, including those from Fukushima Prefecture, be lifted further. The two sides also held a broad-ranging discussion on challenges facing the international community including security, counterterrorism, public order, global economy, climate change and migrants and refugees, and confirmed they will cooperate and collaborate closely towards the G-20 Hamburg Summit. With regard to development, they shared the view that an expert-level discussion process will be established in order to pursue concrete cooperation including creating global standards for quality infrastructure development.

China & Taiwan

Modi - Jinping Conversation on the Sidelines of G-20 Summit

Amid the heightening tension between the two countries over the Doklam standoff, Prime Minister Narendra Modi had a conversation with Chinese President Xi Jinping on the sidelines of the G-20 summit in Hamburg. According to a tweet by the Ministry of External Affairs (MEA) spokesperson, Gopal Baglay, both leaders “had a conversation on a range of issue”. However, it is not clear whether the two leaders discussed the ongoing Doklam area dispute involving China, India, and Bhutan. On the issue whether the leaders had a meeting or not, the spokesperson of the Chinese Foreign Ministry, Geng Shuang said, “As far as I know, President Xi Jinping and Prime Minister Modi did not hold a bilateral meeting”. The MEA spokespersons, had also referred that there was no bilateral meeting but a conversation.

On the sidelines of G-20 summit, the leaders of the five BRICS countries held an informal meeting. This was in run up to the forthcoming 9th BRICS Summit in September in Xiamen, China. Prime Minister Narendra Modi mentioned that “BRICS has been a strong voice and needs to show leadership on terrorism and global economy. He stressed that G-20 should collectively oppose terrorism financing, franchises, safe havens, support and sponsors.” He appreciated the work done by China towards the BRICS. Xi Jinping spoke immediately after PM Modi, he appreciated India's strong resolve against terrorism and the momentum in BRICS introduced under India's Chairmanship and through the outcomes of the Goa Summit in 2016. He also appreciated India's success in economic and social development and wished India even bigger success.

Xi Jinping visits Hong Kong for Anniversary of Handover

Xi Jinping visited Hong Kong to celebrate the 20th anniversary of its return from Britain and swear Carrie Lam as the city’s new chief executive. On 1 July, Xi Jinping inaugurated the new Hong Kong administration led by Carrie Lam. She is the first female leader and the fourth person to hold the top government post since China regained control of the former British colony in 1997. After the swearing in, Xi Jinping made a speech; he said, the “one country, two systems” model, under which the city maintains autonomy in local governance and its legal system, economic and financial system, is confronting “new situations” and “new problems.” He pledged the central government’s continuing support to Hong Kong.

Xi Jinping also visited a People’s Liberation Army (PLA) base in the New Territories of Hong Kong. He inspected the Hong Kong garrison of the PLA. He rode in the back of a military jeep, highlighting the most potent symbol of Chinese sovereignty in the territory. It was the largest such military display by Chinese soldiers in Hong Kong since they arrived 20 years ago. The Hong Kong Garrison had previously held four public military parades: In 1998 to celebrate the first anniversary of the handover; in 2004 to celebrate the 77th anniversary of the military; in 2007 to celebrate the 10th anniversary of the handover and in 2012. China has also dispatched its aircraft carrier, the Liaoning, to Hong Kong as part of anniversary celebrations. This was the first visit by Xi Jinping as the Chinese President and comes at a time when Hong Kong is grappling with its sense of identity. Evidently, the visit was to reiterate the “one country, two systems” and reaffirm the Chinese influence over HongKong.
Xi Jinping’s Visit to Russia

Xi Jinping visited Russia from 3-4 July 2017. He met his counterpart Vladimir Putin and was awarded the Order of St. Andrew the Apostle in recognition of his personal contribution to the consolidation of friendship between the peoples of Russia and China. Prior to the formal meeting, both the leaders had informal dinner at Kremlin where they discussed issues including Syria and the North Korea. They agreed to jointly push for a proper settlement of the peninsula issue via dialogue and negotiation.

During the visit, a Joint Statement of the People's Republic of China and the Russian Federation on the Further Expansion of Comprehensive Partnership and Strategic Cooperation, as well as a Joint Statement on the Current Status of Global Affairs and Important International Issues was signed. The Action Plan to Implement the Provisions of the Treaty on Good-Neighbourliness, Friendship and Cooperation for 2017–2020 was also approved. Both the leaders agreed to boost alignment of the Belt and Road Initiative with Russia led the Eurasian Economic Union. They agreed on expanding cooperation and jointly building an ‘Ice Silk Road’. Additionally, the two sides agreed to deepen pragmatic cooperation in the fields of economy and trade, investment, energy, aerospace, inter-connectivity, regional development and agriculture, and carry out a number of major cooperation projects. Trade agreements worth USD 10 billion were signed. In a significant remark given to the Russian media, Xi Jinping said, that relations between the two countries are currently at their “best time in history”.

Xi Jinping’s Visit to Germany

Xi Jinping visited Germany from 4-6 July 2017. Prior to the visit, he published an article, ‘To make the World a Better Place’ in the German daily, Die Welt. During the visit he met German President Frank-Walter Steinmeier and German Chancellor Angela Merkel to review bilateral ties and discuss guidelines for the promotion of China-Germany comprehensive strategic partnership.

During the visit, the two sides set targets for the development of bilateral ties in the next five years and reached a new consensus on promoting political mutual trust, deepening pragmatic cooperation, enriching cultural exchange and strengthening international cooperation. They also agreed to make a good use of bilateral communication mechanisms including government consultation, diplomacy, security, finance and economy, and culture, attend to each other's concerns and properly handle their differences, to further lift China-Germany relations to a higher level. Xi Jinping proposed to synergize "Made in China 2025" and Germany's "Industry 4.0". Agreements were reached to set up bilateral cooperation within the framework of Belt and Road Initiative. The two leaders attended the opening ceremony of the Berlin Zoo’s Panda Garden and watched a football match between Chinese and German youth teams.

The United States Arms Deal to Taiwan

The United State (US) State Department announced the arms sales package worth USD 1.4 billion to Taiwan. The deal comprises of seven items, including technical support for early warning radar, anti-radiation missiles, torpedoes and components for SM-2 missiles. This is the first such sale under Trump administration. Every US president has approved arms sales to Taiwan since the Taiwan Relations Act became law, starting with Jimmy Carter. The last round of the US arms sales worth USD 1.8 billion to Taiwan was approved by Trump’s predecessor Barack Obama in 2015. Notably, The United States is the only arms supplier to Taiwan and the deal is under the Taiwan Relations Act signed in 1979.

Taiwan's Ministry of Defence said it is "sincerely grateful" for the deal, "which will boost our combat capabilities in air and sea." Additionally, Taiwan’s defence department said the sale would enhance the island's self-defence capability. Meanwhile, China has reacted sharply to the arms deal. China urged the United States to revoke immediately its "wrong decision" as it contradicts a ‘consensus’ between Xi Jinping and Donald Trump, in talks held in April in Florida. Notably, the arms deal is a signal that the Trump administration will be far more confrontational with China.