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Xi Jinping rejects Brussels summit invitation

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Chinese President Xi Jinping has reportedly declined an initial invitation to visit Brussels for a summit marking the 50th anniversary of relations with the European Union.

According to two individuals with knowledge of the matter who spoke to the Financial Times, Beijing has informed EU officials that China’s second-ranked leader, Premier Li Qiang, will meet with the presidents of the European Council and Commission in Brussels in Xi’s place for the summit.

EU-China summits traditionally alternate between Brussels and Beijing. While the premier typically attends the summit in Brussels, Xi usually hosts in Beijing. However, the EU believes that the significance of this meeting, which commemorates half a century of diplomatic relations, warrants the presence of the Chinese President.

Both parties have stated that discussions are ongoing, but Xi’s rejection of the invitation has raised questions among many in Brussels.

This year’s summit coincides with a particularly sensitive period in EU-China relations.

Tensions between Brussels and Beijing have escalated since Russia’s intervention in Ukraine in 2022, with the EU accusing China of supporting the Kremlin. The EU is also imposing tariffs on electric vehicles imported from China, citing that they are subsidized.

EU officials assert that China, which recorded a trade surplus of €304.5 billion with the bloc last year, has not made sufficient efforts to rebalance trade by reducing subsidies to its industries and lowering trade barriers for foreign companies operating in the world’s second-largest economy.

A senior EU diplomat told the Financial Times that “relations are icy.”

Lu Shaye, China’s former ambassador to France and currently Beijing’s special representative for European affairs, stated that China’s policy towards Europe has always “advocated peace, friendship, cooperation, and mutual benefit.”

“This has never changed. It is only the contrast with the US’s current policy towards Europe that makes China’s policy towards Europe appear even more visionary, fair, and reasonable. I hope this will be a wake-up call [for Europe],” he said.

The diplomat added, “China has even said that they expect Europe to have a seat at the negotiating table [in Ukraine peace talks].”

EU trade chief Maroš Šefčovič is scheduled to visit China later this month. Spanish Foreign Minister José Manuel Albares told the Financial Times last month that the EU should also see potential opportunities. Albares said, “If China can be a partner, let’s take advantage of that.”

European Commission President Ursula von der Leyen stated in February that the EU would continue to “de-risk” by protecting its industry, while adding, “we may find agreements where we can further expand our trade and investment ties.”

Trump’s imposition of 25% tariffs on steel and aluminium forced the EU to retaliate, even as industry groups warned of the damage it would cause. However, a senior EU official said that a critical focus when it comes to China is defensive measures to keep out the “wave” of Chinese products diverted from the US market due to tariffs.

On Friday, the EU initiated an anti-dumping investigation into exports of adipic acid, used in the production of nylon and numerous other products, to China. This is the 11th such case since October, including those related to sweet corn, metal screws, and waxes.

An EU official stated, “Informal discussions are ongoing, both on the timing of this year’s EU-China summit and on the level of representation.”

The Chinese Foreign Ministry stated that they had “no information to provide” on the matter.

Diplomacy

Xi Jinping to miss BRICS summit in Rio for the first time

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Chinese President Xi Jinping will not attend the upcoming BRICS summit in Rio de Janeiro next week.

According to multiple sources cited by the South China Morning Post on Tuesday, this marks the first time Xi will miss the gathering of leaders from major emerging economies.

Officials familiar with the matter stated that Beijing informed the Brazilian government of a scheduling conflict. Premier Li Qiang is expected to lead the Chinese delegation in Xi’s place, a similar arrangement to the 2023 G20 summit in India.

Chinese officials involved in the preparations suggested Xi’s absence is due to his two meetings with Brazilian President Luiz Inácio Lula da Silva within the past year. The first occurred during the G20 summit and a state visit to Brasília last November, while the second took place at the China-CELAC forum in Beijing this May.

Xi has never before missed a BRICS summit. In 2023, he was scheduled to deliver a speech at the meeting in South Africa but, at the last minute, sent Commerce Minister Wang Wentao instead. Beijing provided no official explanation for the change.

During the COVID-19 pandemic, Xi participated in BRICS meetings virtually, with Russia hosting in 2020 and China in 2021.

On Tuesday, the Brazilian Foreign Ministry told the Post it “would not comment on the internal deliberations of foreign delegations.” The Chinese embassy in Brazil did not immediately respond to requests for comment.

However, Chinese Foreign Ministry spokesman Guo Jiakun told the Brazilian newspaper Folha de S.Paulo, “information regarding participation in the summit will be shared at the appropriate time.” Guo added that China supports Brazil’s BRICS presidency and aims to “promote deeper cooperation” among member nations. “In a volatile and turbulent world, the BRICS countries are maintaining their strategic resolve and working together for global peace, stability, and development,” he said.

In Brasília, officials have not concealed their disappointment regarding Xi’s absence. A source informed the Post that Lula had traveled to Beijing in May as a “show of goodwill” and had hoped “the Chinese president would reciprocate the gesture by attending the Rio summit.”

There was also speculation that Lula’s invitation to Indian Prime Minister Narendra Modi for a state dinner after the BRICS summit may have influenced Beijing’s decision, as Xi might have been “perceived as a supporting actor” at the event.

Lula’s special adviser for international relations, Celso Amorim, met with Chinese Foreign Minister Wang Yi in Beijing, where he clearly expressed Brazil’s desire to host Xi. “I told them, ‘BRICS without China is not BRICS,'” Amorim stated, recalling that then-President Hu Jintao attended the first BRICS summit in Brazil despite a major earthquake in China at the time. “He only stayed for one day, but he came.”

Amorim emphasized the particular importance of Xi’s attendance in the current global context, citing the “US withdrawal from the Paris Agreement and the World Health Organization” as a “violation of international rules.”

Premier Li is expected to arrive in Brazil next weekend for the summit, which is scheduled for July 6 and 7 in Rio.

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German arms industry expands presence in India amidst geopolitical shifts

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German arms manufacturers Rheinmetall and Diehl Defence have signed agreements with India’s Reliance Defence for the production of precision-guided munitions, explosives, and propellants in India. This move is driven not only by a desire to diversify supply chains but also by Berlin’s efforts to encourage New Delhi to reduce its arms cooperation with Moscow.

Germany has recently increased military collaboration with India, including joint naval and air force maneuvers. However, German companies still lag significantly behind their Western rivals in the US and France, who are supplying or planning to supply fighter jets for large-scale arms purchases in India.

The recent military conflict between India and Pakistan has intensified competition in the growing Indian defense market, with India shifting its focus toward advanced high-tech weaponry, including combat aircraft.

Reliance Defence, the partner of Rheinmetall, continues to lead the list of Indian companies securing international defense contracts. The company has faced accusations of receiving preferential treatment from Prime Minister Narendra Modi.

Diehl and Reliance partner for 155mm precision-guided munitions

On June 10, Diehl Defence and India’s Reliance Defence announced a strategic cooperation agreement for the production of Vulcano 155mm precision-guided munitions in India. These munitions, equipped with GPS technology and laser-guided targeting, are expected to enhance the Indian army’s precision weapon capabilities.

Reports suggest that Reliance Defence anticipates sales of up to $1 billion. This agreement between Diehl and Reliance was announced just days after another strategic partnership was revealed on May 22 between Rheinmetall AG and Reliance Defence. Under this latter agreement, Reliance will take over the production of explosives and propellants for medium and large-caliber ammunition, supplying them to Rheinmetall.

This strategic partnership provides Rheinmetall with access to critical raw materials and ensures the security of its supply chains, with plans for further expansion of the collaboration. The timeframe and total value of the agreement have not yet been disclosed.

South Asia’s largest manufacturing facility to bolster Indian defense production

To support its collaborations with Diehl Defence and Rheinmetall, Reliance will establish its own manufacturing facility at Dhirubhai Ambani Defence City in India’s Maharashtra state. This facility, projected to be one of the largest in South Asia, will produce precision-guided munitions and boast an annual production capacity of 200,000 artillery shells, 10,000 tons of explosives, and 2,000 tons of propellants, which will be supplied to Rheinmetall.

These two contracts increase Reliance’s international defense partnerships to four, following existing collaborations with France’s Dassault Aviation and Thales. The agreements reflect the newly established Reliance Defence’s plans to become a leading company in India’s rapidly expanding defense sector.

Meanwhile, both Diehl and Rheinmetall aim to capitalize on the Indian government’s plan to achieve $5 billion in arms exports by 2029.

Germany’s move to reduce India’s reliance on Russian military imports

The agreements between Rheinmetall, Diehl, and Reliance Defence are part of intensified German efforts, ramped up in 2022, to reduce India’s high dependence on Russian arms imports. In February 2023, during a visit to India, then-Chancellor Olaf Scholz urged New Delhi for greater support in Western efforts to isolate Russia, including an increase in arms purchases from Germany.

In June 2023, then-Defense Minister Boris Pistorius stated during his visit to India, “It is not in Germany’s interest for India to remain dependent on Russia’s arms deliveries in the long term.” Pistorius’s discussions resulted in the signing of a memorandum of understanding between the two countries for the joint construction of six non-nuclear submarines in India, to be carried out by Germany’s ThyssenKrupp Marine Systems (TKMS) and India’s Mazagon companies.

The “Focus on India” document, adopted by the German government in October 2024, explicitly linked the intention to “more strongly direct India toward German arms companies” with the goal of “reducing India’s arms policy orientation toward Russia.” Simultaneously, both countries have expanded practical military cooperation, including joint air and naval maneuvers in and around the Indian Ocean.

India-Pakistan tensions and the Sino-Western military technology rivalry

The recent military conflict between India and Pakistan, also viewed as a test case for the clash between Western and Chinese military technology, has further intensified competition for India’s large defense market. The armed conflict lasted four days, with both sides employing their most advanced weapons, including modern fighter jets. Reports indicate that the Pakistan Air Force, with the assistance of Chinese-made J-10C fighter jets, managed to shoot down one or more Indian Air Force Rafale fighter jets; both aircraft are classified as 4.5 generation.

Since then, the US has increased its efforts to expand arms sales to India, including the potential sale of fifth-generation F-35 fighter jets. Shortly before the conflict, India signed a billion-dollar deal with France to acquire 26 Rafale fighter jets to replace its Russian MiG-29K fighter jets.

In response, Russia offered to sell India the Su-57, another fifth-generation fighter jet, and unlike the US, Russia proposed manufacturing the jets in India, including technology transfer. This would enable India to equip the aircraft with indigenous radar and weapon systems. Compared to France and the US, Germany has not recently secured significant arms contracts from India, the world’s largest military equipment importer, apart from the submarine agreement.

Controversial Indian giant: Reliance

Reliance Defence is a subsidiary of Reliance Infrastructure, which is part of the Reliance Group. The Reliance Group is one of India’s leading conglomerates, with total assets of approximately $47 billion and a broad base of about eight million shareholders. The group also includes other affiliated companies such as Reliance Communications, Reliance Capital, Reliance Power, Reliance Defence and Engineering Limited, and Reliance Defence Technologies Private Limited.

However, the group has a controversial history. The Reliance Group is owned by Anil Ambani, who was once listed as the world’s sixth richest person in 2008. By 2019, however, he had accumulated $2 billion in debt to various investors. In 2020, Anil Ambani was forced to declare bankruptcy in a British court after being sued by three Chinese banks for unpaid loans totaling $700 million.

Another significant setback came from Swedish telecommunications company Ericsson, which sued one of his companies over unpaid bills. Anil Ambani was saved from a jail sentence in this case only by the intervention of his elder brother, Mukesh Ambani, India’s richest man, who paid the debt.

Allegations of Modi’s support for reliance defence

The crisis-ridden Reliance Group reportedly received a lifeline from Indian Prime Minister Narendra Modi in the form of an excessively expensive arms deal with French company Dassault Aviation to purchase 36 Rafale fighter jets worth a total of $8.8 billion. As part of the contract signed in April 2015, Reliance Group was designated as an offset partner: Dassault was to reinvest a very large portion of the revenues into Reliance to purchase more defense equipment and strengthen indigenous production capabilities.

This was done despite Reliance Group having no prior experience in the defense sector. In fact, Reliance Group established its subsidiary, Reliance Defence Limited, only thirteen days before the deal with Dassault was announced. A few days after the agreement was signed, Reliance Group formed Dassault Reliance Aerospace Limited, which would become Dassault’s most important offset partner. The indebted Ambani Group, with no experience in the aviation sector, suddenly became the guarantor of a multi-billion dollar aviation business.

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Erdoğan to meet Trump at NATO summit to mend relations

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President Recep Tayyip Erdoğan is set to meet with US President Donald Trump during the upcoming NATO summit in an effort to improve relations between the two countries.

According to Bloomberg, the meeting is expected to take place late Tuesday, June 24, in The Hague.

Türkiye’s decision to purchase the Russian-made S-400 missile defense system has strained relations, leading the US to remove Ankara from the F-35 program. Tensions have also been exacerbated by US support for the Syrian Democratic Forces (SDF), which Türkiye considers a threat.

The Bloomberg report suggests that Erdoğan will attempt to persuade Trump to lift the ban by offering assurances that his country will use the Russian missile defense system in a “controlled manner.”

Türkiye argues that acquiring F-35 jets would enable its military to operate seamlessly with other NATO members and strengthen the alliance’s deterrence on its southeastern flank. According to sources, Türkiye is seeking to purchase a total of 40 F-35s and 40 F-16s.

Ankara will also request permission to purchase and assemble GE Aerospace F110 and F404 engines, which are used in US-made fighter jets as well as in Türkiye’s twin-engine Kaan fighter and Hürjet trainer aircraft.

Sources indicated that Erdoğan may also raise the issue of integrating the SDF into the new Syrian army during his discussion with Trump.

Furthermore, the sources added that Erdoğan might ask the US president to restrain Israel and express opposition to its attempts to establish a permanent military presence in Syria.

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