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  • Goods and Services Tax (GST)

    Goods and Services Tax as an unfinished agenda

    op-ed snap | Economics | Mains Paper 3: Indian Economy

    Context

    Seen purely from a revenue point of view and as a fiscal policy tool, India’s GST is still on a rocky road.

    Background

    • The GST was launched by India on the midnight of July 1, 2017.
    • Benefits of GST: Hailed as a landmark reform in India’s tax history, it was expected to improve tax-GDP ratio, end tax cascading, enhance efficiency, competitiveness, growth, and ensure lower prices.
    • Fiscal federalism: It was also projected as a watershed in India’s fiscal federalism.
    • the States have forgone a substantial part of their own tax revenue.
    • States were in turn guaranteed a GST compensation assuring 14% growth in their GST revenue during the initial five years.
    • India’s GST architecture: India’s GST architecture is built on the firm foundations of a GST Council and the GST Network (GSTN).
    • GST Council as due federal process: The first is the key decision-making body, chaired by the Union Finance Minister with a Minister of State in charge of Finance and the Finance Ministers of States as members.
    • This is envisaged as a due federal process to protect the interests of the States.

    Unresolved issues

    [1] Revenue neutrality not achieved

    • India’s GST paradigm stands on two key pillars: revenue neutrality and GST compensation for the States.
    • The assured revenue neutrality remains a mirage and many States have experienced a declining tax-GDP ratio.
    • Decline in tax to GDP ratio of state: In the case of major 18 States, the ratio of own tax revenue to GDP has declined.
    • While the share of the Centre in total GST increased by 6%, that of States put together lagged behind with only a 4.5% increase.
    • Stark differences between the Revenue Neutral Rates (RNR) for the producing States and consumption State have been observed. States producing exempted food grains also lost out.
    • Since the rates were lower under GST vis-à-vis the VAT regime, revenue neutrality was not adhered ab initio.
    • The problems were compounded with massive evasion following the dismantling of check posts, and later on fake invoices, that grew by leaps and bounds.
    • Experience of other countries: The South African experience illustrates how zero-rating and large exemptions have defeated revenue goals.
    • Canadian experience shows that GST could be improved by limiting zero rating, tax-exemptions and harmonising tax rates.
    • The resilience of the economy at the time of rolling out of GST is critical for its wider reception as the Australian experience shows.

    [2] Not conducive to co-operative federalism

    • While the States collectively forewent 51.8% of their total tax revenue, the Centre surrendered only 28.8%.
    • Yet, GST is shared equally between the Centre and States despite two expert committees recommended for a higher share for the States.
    • Given the revenue neutrality failure and the host of other issues, many of the States are left with no option except to depend on GST compensation.
    • This is not conducive to sustainable co-operative federalism.

    [3] Need for revenue sharing formula for IGST

    • Although IGST is a key source of revenue for many of the States, the clearing house mechanism and the process therein remains unknown territory.
    •  It was pointed out that GST is discriminatory to manufacturing States, indicating the need for a revenue sharing formula that duly incentivises exporting States by sharing IGST revenue among three parties instead of two.

    [4] Other issues

    • Swift functioning of Input tax credit: The Malaysian experience demonstrates the need for swift and transparent functioning of the input tax credit system through a flawless IT infrastructure.
    • We operate in an almost information vacuum especially with respect to IGST along with several glitches in the digital architecture.
    • GSTN is now in the doldrums.
    • Data monopoly: It neither makes effective use of the massive and invaluable data being generated nor shares them to enable others to make use of them.
    • Such practice in “data monopoly” was a fact of history in India’s statistical system and has to go sooner rather than later.
    • Australia, having several similarities with India, in terms of Centre and the subnational units, and destination-based, multi-stage tax with input credit provisions, has not been revenue-buoyant.
    • It is a matter for consideration whether widening exemptions and the replacing of income-tax by GST in the case of small and medium enterprises are advisable measures in the Indian context.

    Consider the question “What are the challenges facing the GST in India? What India can learn from the experience of other countries’ experience.”

    Conclusion

    Despite many years of efforts in evolving an Indianised GST system and over 50 months of adjustments with over a thousand notifications, with accompanying uncertainties in the first year and the novel coronavirus pandemic and the lockdown still in the saddle, GST continues to be an unfinished agenda. But how far and how long?

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  • Solar Energy – JNNSM, Solar Cities, Solar Pumps, etc.

    UN confers Observer Status on International Solar Alliance (ISA)

    IOCR | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    The UN General Assembly has conferred Observer Status to the International Solar Alliance (ISA).

    Significance of  ‘Observer’ Status

    • Observer status is a privilege granted by some organizations to non-members to give them the ability to participate in the organization’s activities.
    • It is often granted by intergovernmental organizations (IGO) to non-member parties and international nongovernmental organizations (INGO) that have an interest in the IGO’s activities.
    • Observers generally have a limited ability to participate in the IGO, lacking the ability to vote or propose resolutions.

    About International Solar Alliance (ISA)

    Hq: Gurugram, India

    • The ISA is an alliance of more than 121 countries, most of them being sunshine countries, which lie either completely or partly between the Tropic of Cancer and the Tropic of Capricorn.
    • The primary objective of the alliance is to work for efficient exploitation of solar energy to reduce dependence on fossil fuels.
    • The alliance is a treaty-based inter-governmental organization.
    • The initiative was launched by PM Modi at the India Africa Summit and a meeting of member countries ahead of the 2015 United Nations Climate Change Conference in Paris in November 2015.
    • A total of 80 countries have signed and ratified the ISA Framework Agreement and 101 countries have only signed the agreement.

    Objectives of the ISA

    • To mobilize investments of more than USD 1000 billion by 2030
    • To take coordinated action for better harmonization, aggregation of demand, risk and resources, for promoting solar finance, solar technologies, innovation, R&D, capacity building etc.
    • Reduce the cost of finance to increase investments in solar energy in member countries
    • Scale up applications of solar technologies in member countries
    • Facilitate collaborative research and development (R&D) activities in solar energy technologies among member countries
    • Promote a common cyber platform for networking, cooperation and exchange of ideas among member countries

    What does ISA formation signify?

    • Climate action commitment: It symbolizes about the sincerity of the developing nations towards their concern about climate change and to switch to a low-carbon growth path.
    • Clean energy: India’s pledge to the Paris summit offered to bring 40% of its electricity generation capacity from non-fossil sources (renewable, large hydro, and nuclear) by 2030.
    • Global electrification: India has pledged to let solar energy reach to the most unconnected villages and communities and also towards creating a clean planet.
    • Global cooperation: It is based on world cooperation irrespective of global boundaries.
    • India’s Soft power: For India, possible additional benefits from the alliance can be a strengthening of ties with the major African countries and increasing goodwill for India among them.

     

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  • Air Pollution

    [pib] Global Methane Initiative (GMI)

    IOCR | Enviro & Biodiversity | Mains Paper 1: Important Geophysical Phenomena

    India has co-chaired along with Canada the Global Methane Initiative leadership meet held virtually.

    About Methane

    • Methane is a greenhouse gas, which is also a component of natural gas.
    • There are various sources of methane including human and natural sources.
    • The anthropogenic sources are responsible for 60 per cent of global methane emissions.
    • It includes landfills, oil and natural gas systems, agricultural activities, coal mining, wastewater treatment, and certain industrial processes.
    • The oil and gas sectors are among the largest contributors to human sources of methane.
    • These emissions come primarily from the burning of fossil fuels, decomposition in landfills and the agriculture sector.

    Global Methane Initiative (GMI)

    • GMI is a voluntary Government and an informal international partnership having members from 45 countries including the United States and Canada.
    • The forum has been created to achieve global reduction in anthropogenic methane emission through partnership among developed and developing countries having economies in transition.
    • The forum was created in 2004 and India is one of the members since its inception and has taken up Vice-Chairmanship for the first time in the Steering Leadership along with USA.
    • National governments are encouraged to join GMI as Partner Countries, while other non-State organizations may join GMI’s extensive Project Network.

    Focus areas

    The initiative currently focuses on five sectors, which are known sources of anthropogenic methane emissions:

    1. Agriculture
    2. Coal mining
    3. Municipal solid waste
    4. Municipal wastewater
    5. Oil and gas systems

    Why focus on Methane?

    • The emission of methane is a big concern as it is a greenhouse gas having 25-28 times harmful effect than carbon dioxide
    • According to the UN, 25 % of the warming that the world is experiencing today is because of methane.
    • Methane is the second-most abundant greenhouse gas in the atmosphere, after carbon dioxide.
    • According to IPCC, methane accounts for about half of the 1.0 degrees Celsius net rise in global average temperature since the pre-industrial era.

    Back2Basics: CO2 Equivalents

    • Each greenhouse gas (GHG) has a different global warming potential (GWP) and persists for a different length of time in the atmosphere.
    • The three main greenhouse gases (along with water vapour) and their 100-year global warming potential (GWP) compared to carbon dioxide are:

    1 x – carbon dioxide (CO2)

    25 x – methane (CH4) – I.e. Releasing 1 kg of CH4into the atmosphere is about equivalent to releasing 25 kg of CO2

    298 x – nitrous oxide (N2O)

    • Water vapour is not considered to be a cause of man-made global warming because it does not persist in the atmosphere for more than a few days.
    • There are other greenhouse gases which have far greater global warming potential (GWP) but are much less prevalent. These are sulphur hexafluoride (SF6), hydrofluorocarbons (HFCs), and perfluorocarbons (PFCs).
    • There are a wide variety of uses for SF6, HFCs, and PFCs but they have been most commonly used as refrigerants and for fire suppression.
    • Many of these compounds also have a depleting effect on ozone in the upper atmosphere.

     

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  • Water Management – Institutional Reforms, Conservation Efforts, etc.

    Radioactive Pollution in Water

    Prelims Only | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Radioactive pollution of water is newly emerging but is of grave concern for water pollution and human health.

    Quick recap: Radioactivity

    • Radioactivity is the phenomenon of spontaneous emission of particles or waves from the unstable nuclei of some elements.
    • There are three types of radioactive emissions: Alpha, Beta and Gamma.
    • Alpha particles are positively charged He atoms, beta particles are negatively charged electrons and gamma rays are neutral electromagnetic radiations.
    • Radioactive elements are naturally found in the earth’s crust.

    Radioactive contamination of Water

    • Natural: Percolation of naturally occurring radioactive materials (NORM) from the soil sediments to the aquifer causes groundwater contamination.
    • Man-made: Anthropogenic sources of such pollution include- nuclear weapon investigation, nuclear calamities, nuclear powerhouses and dumping of radioactive waste.

    Various contaminant elements

    • Uranium, thorium and actinium are three NORM series that contaminate water resources.
    • A number of radionuclides are found in surface and subsurface waters, among which 3H, 14C, 40K, 210Pb, 210Po, 222Rn, 226Ra, 228Ra, 232Th and 234,235,238U are common.
    • Strontium-90, Caesium-137, etc are also formed by nuclear reactors, along with numerous unnecessary radioisotopes wastes.
    • 40K and 7Be are the most commonly found radioactive elements in the sludge generated in sewage treatment plants.
    • Nuclear reactors produce radioisotopes (Cobalt-60, Iridium-192, etc) that hand out as sources of gamma radiation in radiotherapy and numerous industrial appliances.

    Oceanic sources

    • Oceans and seas are the natural repositories of naturally occurring uranium. It is found in the form of uranyl carbonate ion.
    • A significant concentration of uranium is supposed to be found in the greater salinity of the marine water.
    • 40K (Radioactive Potassium) is also found in considerable concentration in the marine environment.

    Measuring radioactive pollution

    • Radioactivity is measured in Becquerel (SI unit) or in Curie.
    • Energy absorbed per unit mass is measured by Gray, while the unit Sievert measures the quantity of radiation absorbed by human tissues.
    • A small amount of radiation is found in all types of water but the extended amount of radiation is harmful to human health.
    • Radioactivity in drinking water can be determined by a gross alpha test.

    Hazards of such pollution

    • Radioactive elements have an effect on the environment and can cause a risk to human healthiness if inhaled, injected or exposed.
    • Human tissues absorb radiation through polluted water and foodstuff, which can cause serious health risks.
    • High doses of radiation can cause acute radiation syndrome or cutaneous radiation injury.
    • Exposure to radiation causes various disorders in human physiology, including cancer, leukaemia, genetic mutations, osteonecrosis, cataracts and chromosomal disruption.

     

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  • International Space Agencies – Missions and Discoveries

    NASA’s Imaging X-Ray Polarimetry Explorer (IXPE) Mission

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    NASA has launched a new mission named Imaging X-ray Polarimetry Explorer or IXPE.

    About IXPE

    • IXPE observatory is a joint effort of NASA and the Italian Space Agency.
    • The mission will study “the most extreme and mysterious objects in the universe – supernova remnants, supermassive black holes, and dozens of other high-energy objects.”
    • The mission’s primary length is two years and the observatory will be at 600 kilometers altitude, orbiting around Earth’s equator.
    • IXPE is expected to study about 40 celestial objects in its first year in space.

    What are the instruments onboard?

    • IXPE carries three state-of-the-art space telescopes.
    • Each of the three identical telescopes hosts one light-weight X-ray mirror and one detector unit.
    • These will help observe polarized X-rays from neutron stars and supermassive black holes.
    • By measuring the polarization of these X-rays, we can study where the light came from and understand the geometry and inner workings of the light source.
    • This new mission will complement other X-ray telescopes such as the Chandra X-ray Observatory and the European Space Agency’s X-ray observatory, XMM-Newton.

    Why is it important?

    The mission will help scientists answer questions such as:

    • How do black holes spin?
    • Was the black hole at the center of the Milky Way actively feeding on surrounding material in the past?
    • How do pulsars shine so brightly in X-rays?
    • What powers the jets of energetic particles that are ejected from the region around the supermassive black holes at the centers of galaxies?

     

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  • River Interlinking

    [pib] Saryu Nahar National Project

    Prelims Only | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

     

    PM will inaugurate the Saryu Nahar National Project.

    Saryu Nahar National Project

    • The Project involves the interlinking of five rivers – Ghaghara, Saryu, Rapti, Banganga and Rohini to ensure optimum usage of water resources of the region.
    • It will benefit nine districts of Eastern Uttar Pradesh namely – Bahraich, Shravasti, Balrampur, Gonda, Siddharthnagar, Basti, Sant Kabir Nagar, Gorakhpur and Maharajganj.
    • The sub canals with a length of 6,600km have been linked to the 318km main canal.
    • The work on the project started in 1978 but due to lack of continuity, it got delayed and was not completed even after nearly four decades.

    Benefits offered

    • The project will provide assured water for irrigation of over 14 lakh hectares of land and benefit about 29 lakh farmers of over 6200 villages.
    • The farmers of the region, who were the worst sufferers of the inordinate delay in the project, will now immensely benefit from the upgraded irrigation potential.
    • They will now be able to grow crops on a larger scale and maximize the agri-potential of the region.

    Back2Basics: Sarayu River

    • The Sarayu is a river that originates at a ridge south of Nanda Kot mountain in Bageshwar district in Uttarakhand.
    • It flows through Kapkot, Bageshwar, and Seraghat towns before discharging into the Sharda River at Pancheshwar at the India—Nepal border.
    • Lower Ghaghara is also popularly known as Sarayu in India.
    • Especially while it flows through the city of Ayodhya, the birthplace of legendary Rama.

     

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  • North-East India – Security and Developmental Issues

    AFSPA and the challenges ahead

    op-ed snap | Governance | Mains Paper 2: Federalism,Governance, Transparency & Accountability, Citizens Charters

    Context

    The death of civilians in Nagaland in a security operation has revived the debate about AFSPA.

    Demand for repeal of AFSPA

    • Some years ago, all the northeastern states had come together to demand the annulment of this Act.
    • That remained in the realm of yet another “demand”.
    • In 1997, after Nagaland’s most enduring insurgent outfit, the National Socialist Council of Nagalim (NSCN), led by Isak Swu and T H Muivah, first decided to talk peace with the Indian government, the Naga Peoples’ Movement for Human Rights (NPMHR) had approached the Supreme Court for revocation of the Act.
    • Enabling legislation: The apex court had then upheld its constitutionality and said it was an enabling legislation that confers minimum powers on the army to operate in situations of widespread internal disorder.

    Way forward

    • Talk to the other groups: Many are wondering if the peace talks between the NSCN (IM) and the government of India now lie in tatters.
    • The media has focussed exclusively on the NSCN (IM) and ignored the other Naga National Political Groups (NNPGs), who have been brought on board because they are Nagaland-based and speak exclusively for Nagaland.
    • The NNPGs and the Gaon Bura Association of Nagaland doubt NSCN(IM)’s ability to bring lasting peace in Nagaland.
    • Since 2015, the Nagaland Gaon Bura Association, the apex body of Nagas which includes all the 16 recognised tribes and the NNPGs barring the NSCN (IM), have sent several memorandums to the government.
    • These representatives of the Naga people do not demand a separate flag or constitution because they understand these are tenuous demands.
    • These groups have also never raised the sovereignty issue.
    • The working committee of the seven NNPGs, roped in to join the peace talks, are also opposed to the idea of changing interlocutors as and when the NSCN (IM) decides.
    • Reconsider use of AFSPA: There is a need to reconsider the use of the army and AFSPA when killings have reduced considerably.
    • The apex body has specifically mentioned that they want to be delivered from the gun culture.
    • Check the misuse of FMR: Countering insurgency in the Northeast is fraught also because of the Free Movement Regime (FMR) between India and Myanmar.

    Conclusion

    The government need to reconsider the use of AFSPA and also focus on other measures to ensure peace and stability in these regions.

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  • Parliament – Sessions, Procedures, Motions, Committees etc

    Suspension of MPs for entire Winter Session is worrying

    op-ed snap | Polity | Mains Paper 2: Parliament & State Legislatures

    Context

    Twelve members of the Rajya Sabha were suspended for their alleged involvement in the grave disorder in the House on the last day of the previous session.

    What do Rajya Sabha’s rules of procedure say about the suspension of a member?

    • Rule 256 of Rajya Sabha’s rules of procedure provides for the suspension of a member who disregards the authority of the chair or abuses the rules of the council by persistently and willfully obstructing the business of the House.
    • Persistent and willful obstruction of the business of the House is the crux of the offence.
    • What is the maximum period of suspension? Suspension can be for a period not exceeding the remainder of the session.
    • This would mean that if the member is suspended on the last day of the session, the period of suspension will be only a day.
    • So, even if a government would like to suspend such a member for a longer period. it would not be possible under the present rule.
    • Unless the House itself revokes the suspension nothing can be done about it.
    • The decision of the House is final.
    • Every legislature has the power to suspend its members if they cause disorder and obstruct the business of the House.
    • But the rule of suspension is rarely invoked in parliaments in mature democracies.

    Whether the existing rules permit such a course of action?

    • Rule 256 says that the chairman may, if he deems it necessary, name a member who either disregards the authority of the chair or abuses the rules of the House by persistently and willfully obstructing the business of the House.
    • Sub Rule 2 of this rule is of very great importance in the context of the main question, namely, whether a member can be suspended in the next session for creating disorder in the previous session.
    • No adjournment is allowed: It clearly says no adjournment is allowed, which means the matter of suspension cannot be adjourned to a later period.
    • It needs to be decided then and there.
    • A member who abuses the rules of the House by persistently and willfully obstructing its business needs to be punished swiftly.
    • No adjournment is allowed at all.

    The powers of the House to regulate its internal matters

    • It can be said that the rule under which the members were suspended does not actually permit it.
    • Absolute power to interpret rule: The House is supreme in these matters and the chair has absolute powers to interpret the rules.
    • The judiciary has time and again clarified that the House has absolute powers to regulate its internal matters.
    • Suspension of a member is such a matter.
    • The judiciary will intervene only when a patently unconstitutional act is done by the House.

    Conclusion

    The solution to disruptions does not lie in suspension. That is the lesson we should learn from past experience.

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  • Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

    Tobacco Consumption in India

    | Governance | Mains Paper 2: Health & Education

    Tobacco use is known to be a major risk factor for several non-communicable diseases in India.

    Tobacco abuse in India

    • In India, 28.6% of adults above 15 years and 8.5% of students aged 13-15 years use tobacco in some form or the other.
    • This makes the country the second-largest consumer of tobacco in the world.

    Concern: No action against Tobacco

    • India bears an annual economic burden of over ₹1, 77,340 crores on account of tobacco use.
    • There has been no major increase in taxation of tobacco products to discourage the consumption of tobacco in the past four years since the introduction of GST.
    • Only in 2020-21, the Union Budget had the effect of increasing the average price of cigarettes by about 5%.
    • Yet, the excise duty on tobacco in India continues to remain extremely low.

    A worrying trend

    • No increase in tax: The absence of an increase in tax means more profits for the tobacco industry and more tax revenue foregone for the government.
    • Revenue losses: This revenue could have easily been utilized during the COVID-19 pandemic.
    • Losses due to GST: There has been a 3% real decline in GST revenues from tobacco products in each of the past two financial years.

    Present governance of Tobacco

    • GST slab: Tobacco at present is a highly taxed commodity. It is kept in the 28% GST slab (other than for tobacco leaves which is taxed at 5%).
    • Heavy cess: Tobacco and its various forms are also subject to a heavy burden of cess, given that the commodity is seen as a sin good.
    • Statutory warning: The government also uses pictures of cancer patients on the packages of cigarettes to discourage its use.

    Federal issues

    • Excise taxes on many tobacco products used to be regularly raised in the annual Union Budgets before the GST.
    • Similarly, several State governments used to regularly raise value-added tax (VAT) on tobacco products.
    • During the five years before the introduction of the GST, most State governments had moved from having a low VAT regime on tobacco products to having a high VAT regime.

    Implication of such policies

    • Increased consumption: The lack of tax increases in post-GST years might mean that some current smokers smoke more now and some non-smokers have started smoking.
    • Reverse trend in decline: This could potentially lead to a reversal of the declining trend in prevalence.
    • Affordability: Tobacco products are more affordable post-GST as shown in recent literature from India.
    • Missing up national target: This might jeopardise India’s commitment to achieving 30% tobacco use prevalence reduction by 2025 as envisaged in the National Health Policy of 2017.

    Way forward

    • Several countries in the world have high excise taxes along with GST or sales tax and they are continuously being revised.
    • We must adhere to the WHO recommendation for a uniform tax burden of at least 75% for each tobacco product.
    • The Union government should take a considerate view of public health and significantly increase excise taxes — either basic excise duty or NCCD — on all tobacco products.
    • Taxation should achieve a significant reduction in the affordability of tobacco products to reduce tobacco use prevalence and facilitate India’s march towards sustainable development goals.

     

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  • Foreign Policy Watch: India-China

    The ‘diplomatic’ Olympic boycott

    | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    The US Government has decided not send any official representation to the Winter Olympic Games in Beijing announcing what is being called a “diplomatic boycott” of the games.

    What is a ‘diplomatic boycott’?

    • A “diplomatic boycott” means no US official will be present at the Winter Olympics in Beijing.
    • This stops short of a complete boycott, which would have meant the non-participation by US athletes.
    • As such, the absence of official representation will not impact the games as much as an athletic boycott would have.

    What led to the US boycott?

    Ans. Uyghurs Genocide

    • The decision was taken because of China’s gross human rights abuses and atrocities in Xinjiang.
    • This is the latest clash adding to a long list of differences on trade, Taiwan, human rights and the South China Sea.
    • Xinjiang Uyghurs have been sent by Chinese authorities to “re-education” camps, a network of which were constructed beginning in 2016 to house thousands of detainees.
    • Beijing initially denied the existence of the camps, but subsequently claimed the centres were for “vocational training”.

    Who else is ‘diplomatically boycotting’ the games?

    • So far, Australia, Canada, and New Zealand have also announced that their officials will not be present at the games.
    • None, however, has said their athletes will not attend, which means the games themselves are unlikely to be impacted.
    • It remains to be seen if the boycott will gain traction beyond US allies and partners.
    • Russian President Vladimir Putin will travel to Beijing for the opening of the Winter Olympics.
    • China has been garnering support from countries in Asia, Africa and Latin America.

    How is China reacting to the boycott?

    • Beyond the statements decrying the “politicization” of sports, there is certainly a domestic political undercurrent to the games.
    • China’s media, meanwhile, has been largely playing down the reports of the boycotts, underlining how the authorities are going all-out to ensure the games are conducted without a hurdle.

    What will be the impact on US-China relations?

    • Much recently, the US and Chinese Presidents committed to “responsibly” managing their growing competition amid increasing conflicts.
    • Both nations called common-sense guardrails to ensure that competition does not veer into conflict.
    • China emphasized the “need to treat each other as equals” and warned against “drawing ideological lines”, calling on the US “to meet its word of not seeking a ‘new Cold War’”.

     

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