India and the US sign a major technology deal
The United States and India officially announced the launch of a new strategic partnership on January 31, 2023. ” High Level Initiative on Defense and Emerging Technologies will aim to promote co-production of military equipment and electronic components. At the heart of this technological agreement is the relationship of the two countries with China.
India is trying to put spokes in China’s wheels
according to Financial Times, US national security adviser Jake Sullivan recently welcomed his Indian counterpart Ajit Doval to the White House. According to a senior US official, this agreement would serve the deeper strategic interests of both countries China, where the two countries are in conflict, is at the center of this initiative.
India has had border disputes with China since independence. Disputes that led to war in 1962 and were resolved by a fragile ceasefire. In recent years, the Himalayan region has always seen occasional clashes over the unresolved issue of the position of the border between the two countries. In this context, India has decided to exclude Huawei and ZTE from its 5G network or ban many applications of Chinese companies, including TikTok.
Despite everything, China remains the main trading partner of the subcontinent. New Delhi also joined the China-led Shanghai Cooperation Organization in 2017, initiated by Russia. Nevertheless, India wants to reduce its dependence on its powerful neighbor. As Jake Sullivan says, “ The backdrop of geopolitical competition with China has been a feature of US-India relations for more than a decade. “.
The position of Moscow and India is more ambiguous. Adhering to a position inherited from the Cold War, non-aligned New Delhi maintains some affinity with Russia. For example, the invasion of Ukraine has not been officially condemned by Narendra Modi’s government. Russia has also long been the largest arms supplier to the world’s largest democracy. In 2022, the position that France enjoys.
The United States has found its Eldorado to stimulate a duel against China
In a tense global geopolitical context, Washington is trying to use this to get closer to India. The two countries already cooperate in 5G and space, but will expand their partnership in advanced sectors: semiconductors, aeronautics, quantum computing and artificial intelligence. Thus, several American companies will have the opportunity to establish themselves in Indian territory to more easily supply the Indian companies with which they are associated.
General Electric’s jet engine project is an example. The American conglomerate wants to supply the aircraft manufactured and operated by India. With the signing of this agreement between the two countries, all engines can be manufactured in India, which would give the country a huge economic boost.
The power China has gained in recent decades is a common denominator between Washington and New Delhi. Cooperation between the two countries aims to counter Beijing’s influence. India, for example, could be an alternative investment site for US giants looking to diversify their supply chain.
The most obvious example is Apple. If initially China was the company’s preferred partner for the production of its devices, the iPhone 14 was partially manufactured in India. The Apple brand says it needs to move 25% of its production there by 2025, with the Cupertino company encouraging major subcontractor Taiwan’s Foxconn to invest in India.
In the coming months, Indian and American players in the semiconductor sector will work together to identify areas of joint investment. Since last year, India has been trying to create a true semiconductor industry. By signing this agreement, the Biden Administration is calling on Congress to remove certain restrictions that currently prevent the export of high-performance technologies to India.