Former Indian High Commissioner Vikas Swarup says the current US-Pakistan bonhomie is a "strategic mistake" as Islamabad is close to China, and the relationship was tactical and short-term. The US has strengthened cooperation with Pakistan in trade and cryptocurrency, while imposing 50% tariffs on India's exports, straining relations between the two countries.
The US has shifted from multilateralism to transactional deal-making, altering the world trade order with its reciprocal tariff approach. Critics view this as a power game, where the US uses its huge consumer market as leverage, risking disruptions in markets and inflation. Pakistan must diversify exports and markets, leveraging US energy cooperation for broader partnerships, and entrench itself in regional value chains with firm rules and policies to survive and succeed. The reciprocal tariff regime has emerged as both political diplomacy and a new trade order, posing risks but also opportunities for countries like Pakistan.
The US government has announced its intention to strengthen cooperation with Pakistan in areas of critical minerals and hydrocarbons, with a focus on economic cooperation in emerging sectors. This move comes after congratulating Pakistan on its Independence Day, as stated by US Secretary of State Marco Rubio.
Bangladesh's Nobel Peace Prize laureate Dr Muhammad Yunus concluded a three-day official visit to Malaysia, where he was accorded a red carpet send-off by Prime Minister Datuk Seri Anwar Ibrahim and Home Minister Datuk Seri Saifuddin Nasution Ismail. During his visit, the two countries signed eight memoranda of understanding (MoUs) in various sectors, including defence, energy, and private sector cooperation. Total trade between Malaysia and Bangladesh reached RM13.35 billion in 2024, with Malaysia being Bangladesh's second-largest trading partner and export destination in South Asia.
China is diversifying its trade beyond the US by shifting away from importing reagents from Western companies due to rising import tariffs and costs. Companies like Shanghai Titan Scientific and Nanjing Vazyme Biotech are benefiting from the trend, with demand for locally made reagents increasing by over 90% since China raised duties on US goods to 125%. This shift is driven by government support for biotech and pharmaceutical sectors, growth in research and development activity, and a broader global footprint. As a result, shares of local firms have risen significantly, while those of Western companies have fallen. Despite concerns about US protectionism, globalization remains resilient, with China's exports to other countries increasing and trade with South-East Asia sharply rising.
Chinese Foreign Ministry Spokesperson Lin Jian emphasized Beijing's commitment to improving ties with India by viewing their relationship from a broader perspective. He highlighted the importance of cooperation through multilateral platforms like the Shanghai Cooperation Organisation (SCO) and resolving differences constructively, as China seeks to enhance political mutual trust with India after days of tension following Donald Trump's tariffs on Indian goods.
India's largest shoemaker, Farida Group, is facing a significant threat to its manufacturing ambitions after US President Donald Trump announced a 50% tariff on Indian exports. The company had already secured a 150-acre plot in southern Tamil Nadu for a new export facility but the tariffs will likely increase costs and impact its business, which relies heavily on the US market for about 60% of its sales.
The PRF report suggests that initiatives like the G7 Critical Minerals Action Plan, endorsed by Australia, India, and South Korea, should expand support for Southeast Asian processing capabilities and infrastructure development.
India and China are discussing resuming border trade five years after it was halted due to US tariffs disrupting global trade. Chinese Foreign Minister Wang Yi is expected to visit New Delhi on Monday, following a recent visit by Indian counterpart Subrahmanyam Jaishankar to Beijing. The two countries aim to rebuild relations damaged after a 2020 border clash and have agreed to resume direct flights and issue tourist visas. India's junior foreign minister Kirti Vardhan Singh has facilitated talks with China to restart border trade, but no restart date has been set. China and India have reached a consensus on cross-border exchanges and cooperation, including resuming border trade. Indian junior foreign minister Kirti Vardhan Singh facilitated this agreement with China. The US has strained ties with India due to its refusal to end purchases of Russian oil, which will be doubled from 25% to 50% by August 27 if not switched. Prime Minister Narendra Modi may visit China in late August for the Shanghai Cooperation Organisation summit, marking his first visit since 2018. China and India have reached a consensus to resume cross-border trade exchanges, with New Delhi's junior foreign minister Kirti Vardhan Singh facilitating talks with China. The move comes amid strained ties between India and the US, which has threatened to double import tariffs on Indian goods from 25% to 50% if India doesn't switch crude suppliers. Despite this, India is part of the Quad security alliance with the US, Australia, and Japan, and Prime Minister Narendra Modi may visit China in late August for the Shanghai Cooperation Organization summit, marking his first visit since 2018.