Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

U.S., India partnership targets arms, AI to compete with China

Published 2023-01-31, 02:10 p/m
Updated 2023-02-01, 01:16 a/m
© Reuters. FILE PHOTO: President of the U.S. Joe Biden speaks with Prime Minister of India Narendra Modi at the G20 Summit opening session in Nusa Dua, Bali, Indonesia, Tuesday, Nov. 15, 2022. PRASETYO UTOMO/G20 Media Center/Handout via REUTERS THIS IMAGE HAS BEEN S

By Trevor Hunnicutt

WASHINGTON (Reuters) -The White House is launching a partnership with India on Tuesday that President Joe Biden hopes will help the countries compete against China on military equipment, semiconductors and artificial intelligence.

Washington wants to deploy more Western mobile phone networks in the subcontinent to counter China's Huawei Technologies, to welcome more Indian computer chip specialists to the United States and to encourage companies from both countries to collaborate on military equipment such as artillery systems.

The White House faces an uphill battle on each front, including U.S. restrictions on military technology transfer and visas for immigrant workers, along with India's longstanding dependence on Moscow for military hardware.

Biden's national security adviser, Jake Sullivan, and his Indian counterpart, Ajit Doval, are meeting with senior officials from both countries at the White House on Tuesday to launch the U.S.-India Initiative on Critical and Emerging Technologies.

"The larger challenge posed by China - its economic practices, its aggressive military moves, its efforts to dominate the industries of the future and to control the supply chains of the future - have had a profound impact on the thinking in Delhi," Sullivan said.

Doval will also meet Secretary of State Anthony Blinken during his three-day visit to Washington D.C., which ends Wednesday.

New Delhi has frustrated Washington by participating in military exercises with Russia and increasing purchases of the country's crude oil, a key source of funding for Russia's war in Ukraine. But Washington has held its tongue, nudging the country on Russia while condoning India's more hawkish stance on China.

On Monday, Sullivan and Doval participated in a Chamber of Commerce event with corporate leaders from Lockheed Martin Corp (NYSE:LMT), Adani Enterprises and Applied Materials Inc (NASDAQ:AMAT).

Although India is part of the Biden administration's signature Asian engagement project, the Indo-Pacific Economic Framework (IPEF), it has opted against joining the IPEF trade pillar negotiations.

The initiative also includes a joint effort on space and high-performance quantum computing.

General Electric (NYSE:GE) Co, meanwhile, is asking the U.S. government for permission to produce jet engines with India that would power aircraft operated and produced by India, according to the White House, which says a review is underway.

New Delhi said that the U.S. government would review General Electric’s application expeditiously and that the two countries would focus on joint production of “key items of mutual interest” in defense.

© Reuters. FILE PHOTO: President of the U.S. Joe Biden speaks with Prime Minister of India Narendra Modi at the G20 Summit opening session in Nusa Dua, Bali, Indonesia, Tuesday, Nov. 15, 2022. PRASETYO UTOMO/G20 Media Center/Handout via REUTERS THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY. MANDATORY CREDIT./File Photo

The two countries also established a quantum technology coordination mechanism and agreed to set up a task force with India’s Semiconductor Mission, the India Electronics Semiconductor Association (IESA) and the U.S. Semiconductor Industry Association (SIA) to promote the development of semiconductor ecosystems.

India’s space program will work with NASA on human space flight opportunities and other projects, the Indian statement said.

Latest comments

Isnt india involved in BRICS currency pact. China also needs jet engines for new almost half build air fleet. This of course is for war with us.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.