China says India made 'great efforts' to help Sri Lanka; South Asia remains its priority
Beijing, Jun 8: China on Wednesday praised India for making "great efforts" to help Colombo to tide over its worst financial crisis even as it refuted Sri Lankan President Gotabaya Rajapaksa's remarks that Beijing has shifted its strategic focus from South Asia including Pakistan to South East Asia, saying the region still remained its priority.
Sri Lanka has been grappling with unprecedented economic turmoil since its independence from Britain in 1948. Sri Lanka's economic crisis has created political unrest with protesters demanding President Rajapaksa's resignation.
"We have also noted the Indian government has made great efforts in this aspect. We recognise that," Chinese Foreign Ministry spokesman Zhao Lijian told a media briefing here while replying to questions about whether China, which has made big investments in Sri Lanka, is hesitating to help it when the island nation is facing the worst economic crisis.
"We also are willing to work with India and other members of the international community to help Sri Lanka and other countries with difficulties to help these developing countries to get through this situation," he said.
India has rushed about USD 3 billion in assistance in the form of line credit and other modes to help Sri Lanka which has virtually declared insolvency and defaulted on all foreign loans including that of China totalling to USD 51 billion.
China has announced assistance of 500 million RMB (about USD 73 million) for the supply of essential goods but remained silent about President Rajapaksa's request to defer the loan repayment and as well as its earlier announcement to consider a USD 2.5 billion loan facility for Colombo.
Beijing appeared to be peeved over the remarks by Rajapaksa that China appears to be shifting its strategic focus towards South-East Asia and Africa noting that South Asian countries in financial trouble are not getting the same attention from Beijing as before.
In an interview to Bloomberg on Monday, Rajapaksa said that Sri Lanka couldn't tap a USD 1.5 billion (credit line from Beijing) and has yet to hear back on his request to President Xi Jinping for a USD one billion loan to buy essential goods.
Rajapaksa said China indicated that it would help Sri Lanka, while adding that "usually they don't like" lending out more money to cover earlier debt payments.
"My analysis is that China has shifted their strategic focus into South-east Asia," Rajapaksa said. "They see more strategic interest in the Philippines, Vietnam and Cambodia, that region, and Africa."
"They have less interest in this region," Rajapaksa said. "I don't know whether I am right or wrong, even the focus on Pakistan has gone down. That shows that their interest here is not like earlier. Their interest has shifted to two other areas," the Sri Lankan president said.
Sri Lanka and Pakistan are the biggest recipients of China's biggest investments and loans in the region. While Colombo received about USD eight to 10 billion investments and loans from China, Beijing is currently committed to build USD 60 billion China Pakistan Economic Corridor (CPEC) over which India has protested as it is being laid through the Pakistan-occupied Kashmir (PoK).
Significantly, both the countries are seeking IMF bailout packages to tide over the worst economic crisis.
Reacting to Rajapaksa's remarks, Zhao said, "as a traditional, friendly neighbour, China is always closely following the situation in Sri Lanka and we feel deeply for the current difficulties and challenges faced by the country and we have been doing our utmost to provide assistance for the socio-economic development of that country."
While highlighting RMB 500 million assistance for medicines, Zhao sought to downplay Rajapaksa's observations that China has shifted its focus from South Asia, where it competed fiercely with India to expand its influence.
"Priority for China's diplomacy lies in China's neighbouring countries, including South Asian countries. China attaches high importance to developing good neighbourliness relations with these countries," Zhao said.
"We have been dedicated to developing such friendship wholeheartedly," he said, citing Beijing's assistance in natural disasters, global financial crisis and COVID.
"China has always been standing with countries in South Asia and sticking together to rise above the difficulties. Under the current circumstances, China will continue to work with all relevant parties to build BRI and uphold the good momentum and see greater benefits to people in this region," he said.
He said China has noted with concern that South Asian countries are facing financial, fiscal difficulties and also difficulties in their balance sheet.
"This is related to challenges posed by COVID-19. These difficulties also have something to do with the conflict between Russia and Ukraine, as well as the following unilateral sanctions imposed on Russia by the US and western countries, he said.
"The relevant sanctions have further exacerbated the food crisis, facing developing countries, as well as their financial difficulties making things worse for their people," he said.
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India & Israel elevate ties to special strategic partnership, vow to soon conclude free trade deal
Jerusalem (PTI): India and Israel on Thursday elevated their "time-tested" relationship to a special strategic partnership and agreed to soon firm up a "mutually beneficial" free trade deal even as Prime Minister Narendra Modi strongly backed the Gaza peace initiative, asserting that humanity must never become a victim of conflict.
Following talks between Modi and his Israeli counterpart Benjamin Netanyahu, the two sides inked a plethora of agreements to expand cooperation in areas of trade, agriculture, energy, cyberspace and digital payment.
India and Israel also vowed to expand their already close defence partnership by working towards joint development and joint production of military hardware under the framework of the transfer of technologies.
In his media statement, Modi said India's security interest is linked to peace and stability in the Middle East, adding that New Delhi fully supports the Gaza Peace Initiative.
"India's stance is clear: humanity must never become a victim of conflict. A path to peace has been created through the Gaza Peace Plan. India has fully supported these efforts," he said.
"In the future as well, we will continue dialogue and cooperation with all countries," he said.
PM Modi landed in Israel on Wednesday on a two-day visit. It is his second visit to Israel in nine years.
In his remarks, the prime minister said India and Israel have a united view that there is no place for terrorism in the world and both sides stand shoulder-to-shoulder in countering terrorism and its supporters.
"Our relationship is founded on the strong bedrock of deep trust, shared democratic values, and human sensitivities. Our bond has stood the test of every trial of time," he said.
"Today, we have taken the historic decision to elevate our time-tested partnership to the status of a 'Special Strategic Partnership'," he said.
The prime minister also announced the establishment of an India-Israel critical and emerging technologies partnership to impart a new momentum for cooperation in areas of artificial intelligence, quantum, and critical minerals. "I am pleased that an agreement has been reached for the use of UPI in Israel," he said.
The prime minister, referring to the threat of terrorism, said India and Israel will continue to confront the menace unitedly.
"India and Israel are completely clear that there is no place for terrorism in the world. In any form, in any expression, terrorism cannot be accepted," he said.
"We have stood shoulder-to-shoulder in opposing terrorism and its supporters, and we will continue to do so," he added.
India and Israel also discussed the implementation of the India-Middle East Europe Economic Corridor (IMEC) and cooperation under the framework of I2U2 (India-Israel-UAE-USA).
