Clubhouse a sandbox for talking ‘influencers’

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Launched nearly a year ago, Clubhouse — which has already encountered a censorship hiccup in China — is looking to establish itself as the standard-bearer for audio-only social media

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An internet spin on talk radio, the new social network Clubhouse has become a sandbox for people tinkering with ways to win fans and make money with audio.

Clubhouse, still invite-only and accessible just through apps on Apple mobile devices, lets users drop into virtual rooms to join hosted conversations on any of a gamut of topics.

Taz Zammit recounted being in a Clubhouse “room” while a beloved DJ made millions of dollars auctioning off musical creations tuned to the hot trend of authentication with “non fungible token” technology.

“It was super exciting for me to get to experience such an amazing moment with him and his family and friends,” said the 26-year-old Australian, who is also a DJ.

Also Read | Twitter to roll out its Clubhouse-like Spaces feature soon for all users

“Those are the rooms that you just cannot get out of. You’ve got to stay there because it’s just too good.”

Launched nearly a year ago, Clubhouse — which has already encountered a censorship hiccup in China — is looking to establish itself as the standard-bearer for audio-only social media.

The concept is simple: once you’re invited to join, you can start or listen to conversations in digital “rooms,” ranging from a talk by someone famous to a chat within a small group.

Clubhouse is already valued at $1 billion and boasts some 10 million users a week.

Its popularity has been boosted by the pandemic and appearances by attention-getting figures such as Tesla founder Elon Musk and Facebook chief Mark Zuckerberg.

Also Read | ByteDance developing Clubhouse-like app for China amid copycat rush

“You get a lot of different perspectives, different insights and inputs, that are so real, and timely,” said former television and radio personality Judyth Jernudd, now a leadership coach.

“While it’s still in beta, some of us are using it as a beta, too, for programs and shows we might want to launch.”

Feeling intimate

Unlike most major social media, Clubhouse lets people rest screen-weary eyes or tend to other tasks while feeling engaged in intimate conversations.

Fans are dabbling with ways to weave Clubhouse into their lives with uses like group study or work sessions that are mostly silence.

Facebook is rumored to be working on an audio offering, tentatively called Fireside.

Meanwhile, Twitter has been testing “Spaces” live audio conversations as alternatives to text tweets.

Twitter head of research Nikkia Reveillac said such a move could broaden the appeal of the platform because “some people want to engage in conversations, but have found it difficult to find these spaces, no pun intended, where you can have more nuanced empathetic conversations that are off-timeline.”

Time to tip?

Those able to draw followings or stage online events hope to make money.

Also Read | Clubhouse says reviewing data protection practices after report points to flaws

DigitalMarketing.org founder Gary Henderson advocates using “creator coins,” digital currency personalized with an influencer’s moniker.

“For example, we’re doing some private Clubhouse events,” Henderson said.

Clubhouse planned to test enabling gratuities, ticket sales, or paid memberships.

“They definitely need to start thinking about ways for us to monetize quickly,” said filmmaker Toni Thai, a founder of an Audio Collective creators’ group at Clubhouse.

“I’ve had some really amazing rooms so far and I don’t want to burn out all my great ideas.”

Thai sees Clubhouse one day adding a sophisticated content recommendation system, like Netflix does for television shows or Spotify does for music, and perhaps adding podcasts.

Clubhouse is preparing to welcome all comers, which will ramp up challenges when it comes to keeping exchanges civil in rooms.

Also Read | Clubhouse | The new network on the block

People running rooms can find themselves faced with tough decisions regarding what should or shouldn’t be allowed.

Zammit recalled a Clubhouse conversation with an LGBT theme during which a moderator cut someone off because of what was being said.

“The room had a really great discussion afterward, about how we can’t just silence people just because they have different beliefs to us,” Zammit said.

“But I also felt for the moderator who had to make that call because it was his room. And he wanted to protect that space.”

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World going through unprecedented chip shortage, China trade body says

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China is the world’s largest buyer of semiconductors, but domestic production is marginal. Sales in China grew 17.8% in 2020 from a year earlier to 891 billion yuan ($137 billion), according to CSIA.

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The world is going through an unprecedented chip shortage, Zhou Zixue, a senior official with the China Semiconductor Industry Association, said on Wednesday, after semiconductor sales grew 18% last year.

“If you are an experienced player, you will remember that in 1999 there was a similar crisis in this industry, but it was way smaller,” Zhou, chairman of Semiconductor Manufacturing International Corp (SMIC), said in remarks at SEMICON China.

“We have to deepen our cooperation, we have to give more attention to innovation. Only by doing that our industry can control the challenges facing us.”

Also Read | U.S. Senate mulls $30 bln in funding to boost chipmaking sector, source says

China is the world’s largest buyer of semiconductors, but domestic production is marginal. Sales in China grew 17.8% in 2020 from a year earlier to 891 billion yuan ($137 billion), according to CSIA.

China’s need to cut dependence on overseas chip companies became evident last year when U.S. sanctions on Shenzhen-based hardware maker Huawei Technologies Co Ltd prevented it from sourcing components, crippling a once-booming smartphone business.

Not long after that, the spread of COVID-19 disrupted supply chains and eventually caused a chip shortage. Once concentrated in the automotive industry, the crunch has now spread to a wide range of electronics and reached the uppermost parts of the chip supply chain. ($1=6.5 yuan)

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China factory output, retail sales accelerate

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China’s industrial output growth quickened in January-February, beating expectations, as the vast manufacturing sector started 2021 on a firm footing and the economy consolidated its brisk recovery.

Retail sales in the period also rose in a boost to domestic demand, giving a strong lift to business activity on top of the recent upsurge in exports growth.

Industrial output rose 35.1% in the first two months, up from a 7.3% uptick seen in December, data from the National Bureau of Statistics showed on Monday. That was stronger than a median forecast of a 30% surge in a Reuters poll.

COVID-19 containment

China’s ability to contain the COVID-19 pandemic before other major economies were able to do so has allowed it to rebound faster, with the recovery helped by robust exports, pent-up demand and government stimulus.

While the impressive numbers are in part due to distortions from last year’s massive slump in activity, other measures show the recovery is broad-based with industrial output up 16.9% compared with the first two months of 2019, before the pandemic struck.

‘Not yet solid’

An NBS official said that positive factors for China’s economy are increasing but the foundation for the recovery is not yet solid.

A rebound in foreign demand drove export growth in February to a record pace, while factory gate prices posted the biggest jump since November 2018.

China’s economic activity is normally distorted and volatile in the first two months because of the week-long Lunar New Year holiday, which fell in February this year.

Retail sales increased 33.8% in the first two months, marking a significant jump from 4.6% growth in December. Sales grew 6.4% compared with the first two months of 2019.

Fixed asset investment increased 35% year-on-year in the first two months.

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China’s market regulator to launch new rules on online deals

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Heightened scrutiny by Chinese regulators since December has included the announcement of a probe into e-commerce giant Alibaba, penalising Alibaba-backed and Tencent-backed firms for not seeking anti-trust reviews for deals, while other firms have also been fined for irregular pricing

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China’s market regulator will launch new rules this year to clarify the responsibilities of platform companies involved in online transactions, the state-owned Xinhua News Agency said. Wei Li, an official of the State Administration of Market Regulation (SAMR), told Xinhua that the regulator will “adopt more powerful supervision methods this year and deploy a series of actions” to clear up “prominent problems in the online market”.

The regulator will also accelerate the construction of a system that will collect the online transaction information in real time allowing for better monitoring and coordination, Weiwas quoted as saying on Monday which is Consumer Rights Day in China.

Also Read | China denies plan for $1 bn Alibaba fine, but tech firms take a blow

The government has flagged it will be issuing new rules for the internet sector. Heightened scrutiny by Chinese regulators since December has included the announcement of a probe into e-commerce giant Alibaba, penalising Alibaba-backed and Tencent-backed firms for not seeking anti-trust reviews for deals, while other firms have also been fined for irregular pricing.

SAMR said it will also strengthen the legal system and issue detailed rules aimed at protecting the rights of consumers.

It said administrative guidance can be expected on major promotional events and cited Singles’ Day, the annual online shopping spree created by e-commerce giant Alibaba Group.

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Morning Digest: Modi, Gotabaya speak over telephone ahead of Geneva vote; Health Minister says pollution contributes to spread and virulence of SARS-CoV-2 infections, and more

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Sri Lankan President Gotabaya Rajapaksa and Prime Minister Narendra Modi reviewed “topical developments” during a telephone call on Saturday, an official press release said, just over a week before a crucial vote on Sri Lanka at the U.N. Human Rights Council, where Colombo has sought New Delhi’s support.

There is emerging evidence to suggest that exposure to ambient air pollutants, especially PM2.5 and NO2, contribute to the spread and virulence SARS-CoV-2 infections, said Health Minister Harsh Vardhan on Saturday, while inaugurating the new green campus of Indian Council of Medical Research’s (ICMR) National Institute for Research in Environmental Health (NIREH), at Bhopal.

North Korea has not responded to behind-the-scenes diplomatic outreach since mid-February by President Joe Biden’s administration, including to Pyongyang’s mission to the United Nations, a senior Biden administration official told Reuters on March 13.

Politics seems to sit very well on Kamal Haasan. A ‘newbie’ in politics, this veteran of cinema, is comfortable with the new skin he wears. He says he hit the ground running with the launch of his party, the Makkal Needhi Maiam, in 2018, and he’s been running since. Things are hectic, possibly more than ever, but his demeanour says “relaxed” and “confident”. Here, he discusses, with The Hindu his ideology, reasons for choice of candidates, caste-politics in Tamil Nadu and missing his long-time friend Rajinikanth’s company in politics.

Sri Lanka will soon ban the burqa or face veil, a Cabinet Minister said on Saturday, as he announced the Rajapaksa administration’s latest policy decision impacting the minority Muslim community.

AIADMK leader and Chief Minister Edappadi K Palaniwami on Saturday said the Puthiya Tamilagam (PT), which was in the forefront of the agitation to classify seven Dalit sub-sects under the common title ‘Devendrakula Velalar’ and to be delisted from the Schedule, has left the ruling alliance.

Eight months after the rebellion of former Deputy Chief Minister Sachin Pilot, the discontent simmering in the ruling Congress in Rajasthan has come to the fore through three MLAs from the eastern parts of the State.

Just within six months of Srinagar being declared a militants-free zone, the J&K police on Saturday released a list of nine “wanted militants”, with seven recruits identified from the city and operating from the capital.

As Haryanvi singer Ajay Huda croons “Zindabad kisani, zindabad jawani”, his latest song on farmers’ protests, sons of farmers break into a jig at the Bhojpur panchayat called by the Rashtriya Lok Dal (RLD) against the contentious farm laws.

The BJP on Saturday joined the Valley-based Muslim religious organisation in condemnation of Shia leader Waseem Rizvi’s move to approach the Supreme Court to seek removal of 26 verses of the Quran, a holy book central to the faith of Muslims across the world.

China is no longer compliant with Hong Kong’s joint declaration after Beijing announced sweeping changes to the region’s electoral system, Britain said on Saturday. “The U.K. now considers Beijing to be in a state of ongoing non-compliance with the Sino-British Joint Declaration,” the Foreign Ministry said in a statement.

The contradictions began even before a ball was bowled. A day after India skipper Virat Kohli had stated that Rohit Sharma and K.L. Rahul would be the first-choice opening pair, the team management decided to rest Rohit for the first T20 in Ahmedabad on Friday.

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China denies plan for $1 bn Alibaba fine, but tech firms take a blow

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The ongoing squeeze on Alibaba – one of China’s most influential companies – is the latest sign that the leadership is ready to deflate the ambitions of big tech firms in a runaway internet sector

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China denied on Friday it was planning to hit e-commerce giant Alibaba with a record fine of almost $1 billion for allegedly flouting monopoly rules, as authorities turned up the pressure on the country’s vast technology sector.

Alibaba, China’s largest online shopping portal, has been in the crosshairs of authorities in recent months over concerns of its reach into the daily finances of ordinary Chinese people.

The market’s regulator denied it was planning to fine the company almost $1 billion for anti-competitive behaviour, as reported by the Wall Street Journal, who cited unnamed sources “familiar” with the matter.

However, on Friday it hit 12 other tech firms — including giants Tencent, Baidu and ByteDance — with symbolic fines for allegedly flouting monopoly rules.

Also Read | China issues new anti-monopoly rules targeting its tech giants

Tencent was fined $77,000 for its 2018 investment in online education app Yuanfudao without seeking prior government approval for the deal, the State Administration for Market Regulation said in a statement Friday.

Search giant Baidu has to pay the same amount for acquiring consumer electronics maker Ainemo under the radar in 2014.

Beijing has warned it will take an increasingly ruthless approach to antitrust questions.

Premier Li Keqiang last week said the government would “strengthen anti-monopoly laws” and “prevent the disorderly expansion of capital”.

Analysts said Friday’s blizzard of fines send a strong signal of the Communist Party’s dominion over the country’s tech landscape.

“These penalties send a message: the economy and everything within it must comply with the state’s directive,” Alex Capri, a senior fellow at the National University of Singapore’s business school, told AFP.

Also Read | Control over ‘troves of data’ behind Alibaba’s tussle with authorities

Capri said heavy-handed regulations will rein in the ability of tech firms to gobble up market share and influence with unchecked acquisitions. – Alibaba’s woes –

The ongoing squeeze on Alibaba – one of China’s most influential companies – is the latest sign that the leadership is ready to deflate the ambitions of big tech firms in a runaway internet sector.

The Wall Street Journal reported Thursday that officials are considering levying a hefty penalty against the company that could top the $975 million paid by US chipmaker Qualcomm in 2015 — the biggest known fine for anticompetitive practices in China.

But the regulator in charge of the case told AFP there was no truth to the story.

“If it’s not there (on our website), it’s not (true),” a spokeswoman for the State Administration for Market Regulation said.

Still, the company’s legal troubles linger. Problems began after comments in October by billionaire founder Jack Ma in which he laid into China’s convoluted regulatory system.

In November, financial regulators pulled the plug on the record $35 billion Hong Kong-Shanghai initial public offering of Alibaba’s online payment subsidiary Ant Group.

A month later, officials opened an investigation into Alibaba’s business practices, deemed anti-competitive, and Ma disappeared from public view until mid-January.

Also Read | Alibaba plans $5 bln bond this month amid regulatory scrutiny

The company, based in the eastern city of Hangzhou, last month said it was “fully cooperating” with the investigation by the State Administration for Market Regulation.

Regulators are also investigating whether the conglomerate should divest assets unrelated to its main online retail business, the Wall Street Journal reported, without offering details.

An Alibaba spokesperson declined to comment on the report when contacted by AFP.

The company has come under fire in the past for allegedly forbidding its merchants from listing on rival e-commerce platforms.

Once finalised, measures against Alibaba will need to be approved by China’s top leadership.

Regulators have already told Ant Group to change its business model and hack back its lending, insurance and wealth management services.

Alibaba saw profits jump 52 percent to $12.2 billion over the last three months of 2020, despite the official crackdown.

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India Likely to Block China’s Huawei Over Security Fears: Report

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New Delhi: India is likely to block its mobile carriers from using telecom equipment made by China’s Huawei, two government officials said, under procurement rules due to come into force in June.

New Delhi is wary about awarding new technology business to Chinese firms both because of security fears and a desire to get Indian manufacturers to produce more telecoms equipment.

A U.S. campaign to curb Huawei has triggered bans or limits on the use of its equipment around the world but the situation in India has been amplified by strained relations between New Delhi and Beijing over their shared border.

India’s telecoms department said on Wednesday that after June 15 carriers can only buy certain types of equipment from government-approved “trusted sources” and said New Delhi could also create a “no procurement” blacklist. Huawei is likely to feature on this embargoed list, the two officials, who declined to be named, told Reuters.

“We cannot prioritise economic gains if an investment poses national security risk,” one of the officials said.

The telecoms department, which did not comment on Thursday about Huawei, is yet to provide further details on the plans for trusted sources or a procurement blacklist.

However, a third official, who also declined to be named, told Reuters that ZTE Corp, another Chinese firm which has a smaller presence in India, could also be excluded.

Huawei and ZTE are under scrutiny for allegedly installing “backdoor” vulnerabilities to spy for the Chinese government.

Both have denied the allegations and Huawei has previously told Reuters it is ready to enter into a “no backdoor” deal with India to allay security concerns. (https://reut.rs/3bCS9V8)

Huawei and ZTE did not immediately respond to requests for comment.

Two of India’s three big telecoms carriers, Bharti Airtel and Vodafone Idea, use Huawei gear. Any restriction on Huawei gear is likely to push up costs, industry analysts say.

The Chinese firm’s equipment and network maintenance contracts are typically cheaper than European competitors such as Ericsson and Nokia and there is limited availability of such gear in India.

India has begun to fast-track approvals of some of the more than 150 Chinese investment proposals worth over $2 billion it had put on hold after a June standoff between the two neighbours on the disputed Himalayan border.

“We have started giving some approvals to investment proposals even from China, but we will not give any approvals in sectors like telecom infrastructure and financials,” a senior government official told Reuters.

The officials also said that India is unlikely to overturn last year’s ban on more than 100 Chinese mobile apps or allow Chinese companies to bid for stakes in state-run firms such as Air India and refiner Bharat Petroleum Corp Ltd.

India plans to raise $23.57 billion in the 12 months from April 1 by selling state-run companies.

India’s finance ministry did not respond to a request for comment.

The India-China border clash, the worst in nearly four decades, had soured already fragile relations and “regaining trust would be a long road from here”, one of the sources said.

India’s technology ministry did not respond to a request for comment on app bans.

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How is Social Media Fuelling Stock Market Volatility That Has Led to Chinese Censorship

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Social media-led market volatility has resulted in China banning the term “stock media” on its online platforms.

According to a report by Bloomberg, on Weibo, the Twitter-like platform with about half a billion active users, a search for Chinese equivalent of “stock market” generated no posts on its web version on Wednesday, suggesting the phrase had been censored.

The Chinese government’s limits on search results came during the annual session of the National People’s Congress, the biggest political event of the year.

The move is a clear indication of the level of impact social media is starting to have on the movement of price points in the markets.

With the number of investors rising significantly after the global lockdown, social media platforms have become virtual trading clubs for garnering trade ideas, swapping tips and hyping stocks.

For example, earlier this year, a struggling video gaming company based in Texas, GameStop, set off the fireworks, leaving mighty Wall Street hedge funds counting their losses.

The Reddit-fuelled trading frenzy in GameStop saw its shares surge from USD 20 to USD 483 in about two weeks in January, the Wall Street Journal said, squeezing hedge funds that had bet against the video-game retailer and other companies that were out of favour on Wall Street.

Not just GameStop, some other companies, too, were caught in the surge.

Ever since, GamesStop has fallen to around USD 50 even as the frenzy created wealth for some and destroyed for many.

The WSJ last month reported, U.S. regulators are investigating whether there was any market manipulation or other types of criminal misconduct that fueled the rapid rise in GameStop’s and other stocks.

What are the fears arising out of this?

– The price volatility arising due to’ meme stocks’ has brought in higher risks in the market. Brokers and clearinghouses face unprecedented trading volume spikes

– These frantic fluctuations have reportedly made novice traders feel confused and left out. Lack of training but urge to make quick bucks is forcing these traders to take help from social media stock forum postings.

– In trading, it can also cause massive gyrations as it can shape opinions and narratives, laeading to a retail bubble that can potentially cause huge losses.

– Available for free and to everyone, social media platforms are dominated by amateurs and could also fuel herd mentality.

What lies ahead?

Dan Kim, Georgetown University, accounting and computer science, wrote for the WSJ that the antidote, however, is the educated individual, not the hammer of the state.

The way there are influencers for food, fashion, beauty, parenting etc on social media now there are finance and stock market experts on Instagram and Youtube who are spreading financial literacy to people eager to earn a quick buck at the markets. Locked away behind screens, with more time and, sometimes, tight money, investor interest has led to a two-times growth in traffic for these channels and pages over the past 10 months.

Also, with sizeable increase in the number of retail investors, it is only fair to assume that social media-led purchasing and newer meme stocks coming up is what lies ahead.

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Pfizer Wants to Make Vaccine in India if Faster Clearance, Export Freedom Assured: Report

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Pfizer Inc has told the Indian government it wants to produce its coronavirus vaccine locally if assured of faster regulatory clearance and freedom on pricing and exports, two sources with direct knowledge of the matter told Reuters.

The U.S. company pulled an application last month seeking emergency approval for its product in India after the drug regulator declined its request to skip a small local safety trial. That has kept its vaccine, developed with Germany’s BioNTech SE, out of one of the world’s biggest drug markets.

Pfizer was the first company to apply for emergency use authorisation in India, proposing to import doses from its U.S. and European facilities instead of producing locally.

“U.S. companies want to produce vaccines in India under joint ventures,” said one of the sources, citing Pfizer and fellow U.S. drugmaker Moderna Inc.

“They want faster approvals for clinical trials and emergency authorisation use. They fear the government will introduce price control policies.”

Another source confirmed Pfizer was interested in manufacturing in India but Reuters could not find a second confirmation on Moderna.

The companies did not immediately respond to requests for comment. India’s health ministry directed Reuters to the foreign ministry, which did not immediately respond to emailed queries.

While withdrawing its application in early February, Pfizer said it would again seek emergency use approval to launch its COVID-19 vaccine in India, potentially a market of 1.35 billion people, and would provide more data as it becomes available.

On the government’s demand to manufacture in India, the company earlier told Reuters: “Once the pandemic supply phase is over and we enter a phase of regular supplies, Pfizer will evaluate all additional opportunities available.”

A Indian official told Reuters in January the government had held discussions with Pfizer and Moderna – both of which have reported more than 90% efficacy for their vaccines – to make the shots in India given its large pharmaceuticals capacity.

The Serum Institute of India, the world’s largest vaccine maker, is already bulk-manufacturing the Oxford University/AstraZeneca product and plans to start producing the Novavax Inc shot from next month.

India’s government has not allowed it to sell on the higher-priced private market, however, and is also controlling exports. Pfizer and Moderna, whose shots are more expensive than the AstraZeneca one being used in India’s immunisation campaign, are not comfortable with strict price and export restrictions, one of the sources said.

This week, Reuters reported that leaders of the Quad alliance  Australia, Japan, India, and the United States plan to announce financing agreements to increase India’s vaccine manufacturing capacity at their first meeting on Friday.

The initiative will mainly involve the production of the Novavax and Johnson & Johnson shots for supplying to regions including Southeast Asia, where their common rival China is making gains.

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Parliament proceedings | Talks with China will continue, says Minister

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Beijing made several attempts since spring of 2020 to “unilaterally alter” the LAC, says V. Muraleedharan.

India will continue dialogue with China till disengagement is achieved from ‘all’ sectors, said Minister of State for External Affairs V. Muraleedharan in Parliament on Wednesday. To a question, he said China had made several attempts since the spring of 2020 to “unilaterally alter” the Line of Actual Control in eastern Ladakh.

“The government will continue discussions with the Chinese side to achieve the objective of disengagement from all friction points and restoration of peace and tranquillity in the border areas at an early date,” said Mr. Muraleedharan. He elaborated the diplomatic initiatives by India to solve the confrontation over the past one year.

Following the face-off, External Affairs Minister Jaishankar first had a telephone conversation with his Chinese counterpart Wang Yi on June 17. This was followed by a physical meeting on September 10 in Moscow.

“The two Foreign Ministers agreed that the situation in the border areas is not in the interest of either side. They agreed therefore that the border troops of both sides should continue their dialogue, quickly disengage, maintain proper distance and ease tensions,” said Mr. Muraleedharan. He said the two sides have held six meetings of the Working Mechanism for Consultation and Coordination on India-China border affairs (WMCC) and nine meetings of the senior commanders.

The statement said India has conveyed to the Chinese side that unilateral moves to change the LAC are ‘unacceptable’ to New Delhi.

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