September 20, 2021
3 mins read

Quad could yield up to $100bn in military sales

India with multiple needs for hardware could finalise a mega-purchase this week from the US in the $20-30 billion range, reports Robinder Sachdev and SPS Pannu

President Joe Biden will be hosting the Quad countries’ heads of governments summit this coming week, in Washington comprising of the US, Japan, Australia, and India. By end of the week, there could be announcements of military deals with Japan, Australia, and India, that may total up to $100 billion in American defence exports.

In fact, the Australian submarine deal, signed on Thursday, itself is estimated at $40 billion (and projected to reach $90 billion in long-term). In the days ahead, before September 24, when the formal Quad summit will be held, Japan could also well, and does need to, sign up for some $20-30 billion package, and the same goes for India. India too has its multiple needs for hardware, needs to ramp up fast, and thus could finalise a mega-purchase this week from the US, again in the $20-30 billion range.

The US is now leading the Quad towards a loose but muscular military alliance to prevent the planetary dominance plans of China. As part of the US plan, the Indo-Pacific nations of Japan, India, Australia will need to each boost up their defence and offence capabilities, for their own national, self-interest, with accompanying investments also made by the US in its own force projection in this theatre. Consequently, together the Quad will become a formidable firewall to the expansionism and military adventurism of China.

With the for-ever wars in Iraq and Afghanistan now over. Where is the next big market for US defence exports? Thanks to China, which through its behaviour, is ensuring that the next big market for military sales by the US is in the Indo-Pacific region.

Pact on stepping up chip production likely

The United States, Japan, India and Australia are likely to sign an agreement to take steps to build secure semiconductor chip supply chains when they meet in Washington for the Indo-Pacific Quad summit next week, according to a report Japans Nikkei newspaper.

The move is aimed at reducing the dependence for semiconductor chips on an increasingly assertive China. Prime Minister Narendra Modi will be attending the first in-person Quad summit to be hosted by President Joe Biden in Washington.

The Nikkei report is based on a draft of the joint statement that is expected to be issued at the summit. The draft says that in order to create robust supply chains, the four countries will ascertain their semiconductor supply capacities and identify vulnerability.

The statement also says the use of advanced technologies should be based on the rule of respecting human rights, the newspaper said on its website.

The chip shortage is worldwide and even Indian auto and smartphone manufacturing companies have been affected.

The Senate has already approved by an overwhelming majority the legislation to provide a staggering $190 billion package to beef up the country’s ability to compete with Chinese technology.

The bill authorises the largest ever funding in American history for technology research, semiconductor development and manufacturing, as well as subsidies for robot makers and chipmakers. The computer chip shortage has hit automobile production in major US companies such as GM at a time when global demand is reviving.

Commerce Secretary Gina Raimondo has said the funding is on a scale that could enable the setting up of as many as seven to 10 new semiconductor plants.

President Joe Biden is continuing with his predecessor Donald Trump’s hard line as far as China is concerned. He has blacklisted over 50 Chinese companies because of their links to Beijing’s “military-industrial complex.” US companies and investors are barred from entering into any deals with these companies.

These companies are suspected to be stealing US technology and using it to strengthen China’s military and fuel its belligerent foreign policy which has emerged as a worrying factor in Asia and the Indo-Pacific region.

ALSO READ: President Biden changes course after Afghan debacle, forms AUKUS

Previous Story

President Biden changes course after Afghan debacle, forms AUKUS

Next Story

US health officials back FDA decision on Covid booster shot

Latest from -Top News

Trump Warns Musk: ‘Close Shop or Go Home’

Trump’s warning on his Truth Social platform late on Tuesday (US time) came amid the feud between him and Musk over the ‘One Big Beautiful Bill’….reports Asian Lite News Former US President

India-US Trade Deal Likely This Week

The interim trade deal would be an initial step towards a comprehensive bilateral free trade agreement between Indian and the US….reports Asian Lite News India is expected to finalise an interim trade

One Year Later, Hasina’s Son Raises Red Flag

Hasina’s abrupt exit last August after violent student protests was widely seen as a blow to democracy in the Muslim-majority nation of 170 million….reports Asian Lite News Sajeeb Wazed, son of former

Global South Finds Its Campus in India

The question is no longer if India can attract global talent, but whether it can build the conditions to do so at scale—with care and vision. Done right, India could emerge as

Jaishankar Gets Real on India-US Ties

The EAM underlined the structural drivers of the bilateral relationship, saying, “The trend line over the last 25 years has actually been very strong….reports Asian Lite News External Affairs Minister S. Jaishankar
Go toTop

Don't Miss

‘India is doing its best in reducing carbon footprint’

Thabang Linus Kholumo, the High Commission of the Kingdom of

Mexican President Calls for US Foreign Policy Shift

The Mexican President noted that the US government has applied