The US has imposed sanctions on three Chinese companies and one from Belarus for secretly supplying missile-applicable items for Pakistan’s ballistic missile programmes, including its long-range missile programme, the State Department has announced.

The names of the companies are Xi’an Longde Technology Development, Tianjin Creative Source International Trade, and Granpect Co. Ltd from China, and Minsk Wheel Tractor Plant from Belarus.

These entities “have engaged in activities or transactions that have materially contributed to, or pose a risk of materially contributing to, the proliferation of weapons of mass destruction or their means of delivery, including any efforts to manufacture, acquire, possess, develop, transport, transfer, or use such items, by Pakistan,” State Department spokesperson Matthew Miller said on Friday.

Mr. Miller said the US is committed to strengthening the global nonproliferation regime by taking action to disrupt procurement networks supporting proliferation activities of concern.

China, an all-weather ally of Pakistan, has been the main supplier of arms and defense equipment to Islamabad’s ambitious military modernization program.

The Minsk Wheel Tractor Plant in Belarus supplied special vehicle chassis to Pakistan’s long-range ballistic missile program. Such chassis are used as launch support equipment for ballistic missiles by Pakistan’s National Development Complex (NDC), which is responsible for the development of Missile Technology Control Regime Category (MTCR) I ballistic missiles, according to a State Department Factsheet.

China’s Xi’an Longde Technology Development Company Limited supplied missile-related equipment, including a filament winding machine, to Pakistan’s long-range ballistic missile program that the US said was destined for Pakistan’s NDC. Filament winding machines can be used to produce rocket motor cases.

Tianjin Creative Source International Trade Co Ltd supplied missile-related equipment to Pakistan’s long-range ballistic missile program, including stir welding equipment (which the United States assesses can be used to manufacture propellant tanks used in space launch vehicles) and a linear accelerator system (which the United States assesses can be used in the inspection of solid rocket motors). Tianjin Creative’s procurements were likely destined for Pakistan’s Space and Upper Atmosphere Research Commission (SUPARCO), which develops and produces Pakistan’s MTCR Category I ballistic missiles, the US State Department said.

Granpect Company worked with Pakistan’s SUPARCO to supply equipment for testing large-diameter rocket motors.

India has fulfilled its commitment to deliver BrahMos supersonic cruise missiles to the Philippines as part of a USD 375 million deal signed in 2022. The Indian Air Force dispatched its C-17 Globemaster transport aircraft carrying the missiles to the Philippines’ Marine Corps, according to defense sources. The delivery of ground systems for the BrahMos missile system began last month. The Philippines aims to deploy three batteries of the BrahMos missile system along its coastal areas amid escalating tensions with China in the South China Sea. The deal received approvals from partner nations involved in the program. BrahMos, a joint venture between DRDO and Russia’s NPO Mashinostroyeniya, is recognized as one of the world’s most successful missile programs and strengthens India’s deterrence capabilities.

The BrahMos supersonic cruise missile delivery to the Philippines marks a significant development in the region’s geopolitical landscape. With tensions escalating in the South China Sea, the acquisition of these advanced missile systems by the Philippines underscores its commitment to bolstering its defense capabilities and safeguarding its territorial integrity.

The BrahMos missile, renowned for its precision-guided capabilities and unmatched speed, is a testament to India’s prowess in defense technology. Developed as a joint venture between India’s Defence Research and Development Organisation (DRDO) and Russia’s NPO Mashinostroyeniya, BrahMos has emerged as a game-changer in the realm of missile systems.

The successful integration of multiple BrahMos regiments into the Indian Army since 2007 has further solidified its reputation as a formidable deterrent against potential threats. Its versatility and effectiveness in various operational scenarios make it a prized asset for any military seeking to enhance its defensive capabilities. For the Philippines, the acquisition of BrahMos missiles comes at a critical juncture, as it grapples with increasing tensions and assertive behavior from neighboring China in the South China Sea. The deployment of these missile systems along the country’s coastal areas signifies a proactive approach to safeguarding its maritime interests and deterring potential aggressors.

Moreover, the delivery of BrahMos missiles underscores the deepening defense cooperation between India and the Philippines. The USD 375 million deal signifies not only a commercial transaction but also a strategic partnership aimed at promoting regional stability and security.

The successful completion of the delivery process highlights the reliability and efficiency of India’s defense manufacturing capabilities, further enhancing its reputation as a trusted defense partner in the global arena. The meticulous planning and execution involved in transporting the missiles to the Philippines demonstrate India’s commitment to fulfilling its obligations and supporting its allies in times of need.

As tensions continue to simmer in the South China Sea, the deployment of BrahMos missiles by the Philippines sends a clear message of deterrence to any potential aggressors. By bolstering its defense capabilities with advanced weaponry, the Philippines seeks to assert its sovereignty and protect its national interests in the face of growing regional challenges.

In short, the delivery of BrahMos supersonic cruise missiles to the Philippines represents a significant milestone in the region’s security dynamics. It reflects India’s commitment to supporting its allies and promoting peace and stability in the Indo-Pacific region. As the BrahMos missile system becomes operational in the Philippines, it is poised to play a pivotal role in safeguarding the country’s territorial integrity and deterring external threats, thereby contributing to the maintenance of peace and security in the region.

The DGFT notification restricts essential commodities export to the Maldives to four designated customs stations, emphasizing India’s control over goods flow amid diplomatic tensions.

In the wake of diplomatic strains between India and the Maldives, India has implemented stringent port restrictions on the export of essential commodities to the island nation. The move comes following a notification issued by the Directorate General of Foreign Trade (DGFT), which outlines specific customs stations through which exports to the Maldives will be permitted.

As per the DGFT notification, the export of essential commodities to the Maldives will now be exclusively allowed through four designated customs stations: Mundra Sea Port, Tuticorin Sea Port, Nhava Sheva Sea Port, and ICD Tughlakabad. This decision underscores India’s efforts to regulate the flow of goods to its neighboring country amidst ongoing diplomatic tensions.

The recent development follows an unusual bilateral mechanism initiated on April 5, amidst escalating diplomatic discord between India and the Maldives. Under this mechanism, India granted approval for the export of predetermined quantities of essential commodities for the fiscal year 2024-25, in response to a request from the Maldivian government.

Significantly, the approved export quantities mark a historic high since the inception of the bilateral trade agreement between India and the Maldives in 1981. This agreement, signed over four decades ago, facilitated the export of essential commodities between the two nations.

Key highlights of the recent export approvals include a substantial increase in quotas for crucial construction materials such as river sand and stone aggregates, essential for the booming construction sector in the Maldives. The quota for these materials has been augmented by 25 percent, amounting to 1,000,000 metric tonnes.

Additionally, quotas for essential food items including eggs, potatoes, onions, sugar, rice, wheat flour, and dal (pulses) have witnessed a 5 percent increase. Despite a global ban on the export of rice, sugar, and onions from India last year, exports of these items to the Maldives have continued unabated.

In a statement reaffirming India’s commitment to supporting human-centric development in the Maldives, the Indian High Commission in Maldives emphasized the significance of India’s ‘Neighbourhood First’ policy. This policy framework underscores India’s prioritization of fostering strong ties and collaboration with its neighboring countries.

However, relations between India and the Maldives have experienced strain in recent times, particularly since President Mohamed Muizzu assumed office. Criticisms of New Delhi during and after the presidential polls have contributed to the diplomatic tensions between the two nations.

In a recent development, President Muizzu confirmed the departure of Indian military personnel from the Maldives, with the final batch expected to leave by May 10. This move comes amidst efforts to address concerns over the presence of foreign troops in the Maldives, as highlighted by President Muizzu.

The withdrawal of Indian troops from the Maldives is being conducted in accordance with diplomatic norms and principles, as reiterated by President Muizzu. The departure of Indian military personnel signifies a significant development in the ongoing efforts to de-escalate tensions and foster constructive bilateral relations between India and the Maldives.

The implementation of port restrictions on essential commodities export to the Maldives underscores India’s strategic approach in managing bilateral relations amidst diplomatic challenges. As both nations navigate through these tensions, the focus remains on fostering mutual understanding and cooperation for the collective benefit of the region.

Navigating Diplomatic Challenges: India-Maldives Relations

As India and the Maldives navigate through diplomatic challenges, the recent developments underscore the complexities and nuances inherent in bilateral relations between neighboring nations. The implementation of port restrictions on essential commodities export to the Maldives reflects India’s strategic approach in managing the delicate balance between asserting its interests and fostering constructive engagement with its neighbors.

Amidst the backdrop of strained relations, both India and the Maldives are confronted with the imperative of addressing divergent interests while safeguarding mutual interests and regional stability. The departure of Indian military personnel from the Maldives signifies a significant step towards de-escalating tensions and rebuilding trust between the two nations. President Muizzu’s affirmation of the withdrawal process adhering to diplomatic norms underscores the commitment to resolving differences through dialogue and diplomacy.

However, the path towards reconciliation and normalization of relations remains fraught with challenges. The underlying factors contributing to the strained India-Maldives ties necessitate a comprehensive and nuanced approach towards addressing the root causes of discord. President Muizzu’s criticisms of New Delhi during and after the presidential polls highlight the need for proactive diplomacy and engagement to address grievances and build mutual trust.

India’s ‘Neighbourhood First’ policy serves as a guiding principle in its approach towards fostering strong ties with neighboring countries, including the Maldives. The commitment to supporting human-centric development underscores India’s broader vision of promoting regional prosperity and stability through collaborative efforts. Despite the diplomatic strains, India’s continued support for essential commodities export to the Maldives reflects its commitment to bolstering bilateral trade and economic cooperation.

Moreover, the recent increase in quotas for essential commodities signifies a tangible step towards addressing the Maldives’ developmental needs and promoting socio-economic growth. The augmentation of quotas for construction materials and food items underscores India’s responsiveness to the evolving requirements of its neighbor and willingness to facilitate their socio-economic advancement.

As both nations strive to navigate through the complexities of bilateral relations, the emphasis lies on fostering constructive dialogue and engagement to overcome existing challenges. Building trust and confidence through sustained diplomatic efforts is paramount in laying the foundation for a mutually beneficial relationship based on shared interests and cooperation.

Looking ahead, the onus lies on both India and the Maldives to harness the potential for collaboration across various sectors, including trade, security, and development. By leveraging their respective strengths and resources, both nations can unlock new opportunities for growth and prosperity while mitigating potential sources of friction.

In a nutshell, while the recent developments underscore the existing tensions and challenges in India-Maldives relations, they also present an opportunity for renewed engagement and reconciliation. By prioritizing dialogue, cooperation, and mutual respect, both nations can overcome differences and forge a path towards a more stable, prosperous, and mutually beneficial relationship. As they navigate through the complexities of bilateral ties, the shared commitment to regional stability and prosperity should guide their efforts towards building a resilient partnership rooted in trust and cooperation.

If the global economy is heading for a soft landing, there’s likely to be plenty of anxiety along the way. As the world’s financial elite gather in Washington for meetings of the International Monetary Fund, World Bank, and Group of 20, they’ll confront a mixture of slowing growth, stubborn inflation, high interest rates and debt levels, and market-rattling geopolitical risks.

Bloomberg Economics now sees global activity slowing this year to 2.9 percent — a 0.2 percentage point upgrade from December in what it terms a “great escape” — but still “way below” the pre-pandemic pace.

IMF chief Kristalina Georgieva has signaled that the fund will also slightly raise its forecast, to be released Tuesday, from the current 3.1 percent while warning that the world is heading for “a sluggish and disappointing decade.”

Against that backdrop, investors will closely watch key attendees at the meetings. Scheduled speakers include Federal Reserve Chairman Jerome Powell, US Treasury Secretary Janet Yellen, UK Chancellor of the Exchequer Jeremy Hunt, and the heads of the European Central Bank, Bank of Japan, and Bank of England.

The politics of the moment have hamstrung the G-20 at recent gatherings, and it will likely again be unable to address risks that split its members.

“We have to buckle up for more to come, because it is a more diverse world,” Georgieva said when asked about geopolitical volatility. “And it is a world in which we have seen divergence, not just in economic fortunes but also divergence in objectives.”

Also in focus in the coming week will be the deep debt distress among several emerging market nations, which gorged for nearly two decades on cheap money, mostly from China. Now poor countries are struggling to regain access to capital as creditors fight for their share of the action, a competition with profound implications for Beijing’s influence over global finance.

“Relative to expectations that the price for taming runaway inflation would be a rash of recessions, a year of modestly slower global growth looks like a great escape.

The next big question – with growth surprisingly robust will central bank pivots be delayed? We’ve pushed back our call for a first Fed move to July — still earlier than many in the market expect.” —Tom Orlik, chief economist. For full analysis, click here

Elsewhere, Chinese economic data, UK inflation and wage numbers, and Canada’s budget will be among the key highlights.

US and Canada

The US data calendar kicks off Monday with retail sales, and economists project a moderate advance as the first quarter drew to a close, underscoring a resilient yet cautious consumer. The figures don’t take into account the impact of inflation and mostly reflect spending on merchandise. March data on inflation-adjusted purchases, including outlays for services, due later in the month will provide a more comprehensive view of household demand.

Among housing data in the coming week, a government report on Tuesday is seen showing that beginning home construction settled back in March after a solid February advance. Homebuilders have taken advantage of scant inventory in the resale market over the past year.

Existing-home sales figures on Thursday are projected to show a decline in March as elevated mortgage rates and prices continue to limit demand. After briefly falling below 7 percent, the average 30-year fixed mortgage rate has moved higher on expectations the Federal Reserve won’t be quick to lower borrowing costs.

The Fed’s public events calendar is chock full. Along with Powell on Tuesday, New York Fed President John Williams appears Monday on Bloomberg Television, and other appearances include Vice Chair Philip Jefferson as well as regional Fed presidents Mary Daly, Thomas Barkin, Loretta Mester, Austan Goolsbee, and Raphael Bostic.

Canadian inflation data for March, released on Tuesday, may show a slight uptick on higher gasoline prices. Core metrics will draw scrutiny, with Bank of Canada Governor Tiff Macklem looking for sustained downward momentum in underlying pressures before cutting rates.

Finance Minister Chrystia Freeland will release her budget the same day. She’s already announced multiple big-ticket items while pledging to keep the deficit at C$40 billion ($29.2 billion).

Indian airlines are altering flight paths for Europe and the Middle East due to escalating tensions between Iran and Israel.

Airlines are facing limited routes between Europe and Asia following airspace closures due to Iran’s first direct attack on Israel. Middle Eastern countries like Jordan, Iraq, and Lebanon shut their airspace as Iran launched drones and missiles. Israel and Iran have also imposed restrictions on airline traffic over their territories. A number of airlines are rerouting or avoiding trouble spots in a series of decisions that will prolong flight times and add to fuel costs.

They include Qantas Airways Ltd., Singapore Airlines Ltd. and Deutsche Lufthansa AG, while Kuwait Airways said it was diverting flights away from “tension areas.” Swiss International Air Lines said it will suspend Tel Aviv flights until further notice, and all its aircraft will avoid Iran, Iraq and Israeli airspace. Israel shut down its airspace for both domestic and international routes on Saturday, before reopening them Sunday morning. Jordan, Lebanon, and Iraq had temporarily closed their airspace for incoming, outgoing and transit flights as a precautionary measure. Amman extended the closure for several hours, citing growing risks in the region, according to state-run media.

Iran’s airspace is frequently utilized by airlines traveling between Europe and India or Southeast Asia. Airspace across the Middle East are littered with risks and complexities. Airlines are contending with a set of challenges after Russia’s invasion of Ukraine severed access for many carriers forcing lengthy diversions which exist to this day. Earlier in Israel’s war against Hamas in Gaza, airlines faced scores of disruptions primarily centered on Tel Aviv, cancelling flights into or out of the country.

The latest diversions come as Israel and its allies, led by the US, fended off Iran’s response to a suspected Israeli attack on Iran’s embassy in Syria on April 1, which killed a top military commander. Iran said on Saturday its forces seized an Israel-linked container ship near the Strait of Hormuz. Days earlier, Lufthansa, Germany’s flag carrier, suspended flights to Tehran, a move followed by its sister carrier Austrian Airlines.

Qantas also temporarily adjusted its direct Perth-London flights to stop over in Singapore to account for the extra fuel needed to re-route around the volatile region. Singapore Air said that its flights were not overflying Iranian airspace. Cathay Pacific Ltd. is watching the situation in the Middle East closely, but its operations remain normal, a spokesman said in a text message Sunday.