Economic Security and Resilience Review
In this issue, the author reviews the outcomes of the Trump-Xi summit held in Beijing on May 14-15, 2026 and the extent to which the two sides were able to address issues relating to trade, investment, technology controls, and other economic security concerns, including the supply of critical minerals. He observes that while regular high meetings are helping the two sides manage immediate challenges, there appears little prospect of resolution of the deeper structural issues that continue to underlie bilateral tensions. Of particular concern to third countries is the possibility that managed trade between the world's two largest economies could become an accepted norm, leaving less powerful countries increasingly vulnerable to coercive pressures to accept asymmetric arrangements.
This month's report also covers Prime Minister Narendra Modi's visits to the UAE and to four West European countries - Netherlands, Sweden, Norway and Italy – from May 15-20, 2026. The outcomes of these visits encompassed energy security, trade and technology cooperation, and defence-industrial collaboration, while also generating indications of substantial investments, estimated at around USD 40 billion. Particularly noteworthy was the UAE's commitment to expand participation in India's strategic petroleum and gas reserves.
Economic security, energy security and critical minerals also featured prominently at the Quad Foreign Ministers' Meeting held in New Delhi on 26 May 2026. The ministers announced a Quad Critical Minerals Framework, launched an Indo-Pacific Energy Security Initiative, and projected the mobilisation of up to USD 20 billion from public and private sources to advance critical minerals cooperation.
US Secretary of State Marco Rubio, during his four day visit to India, sought to address brewing concerns within the country regarding a range of recent American measures, including those relating to tariffs and immigration. The visit also resulted in the signing of a framework agreement on critical minerals cooperation. A high-level delegation comprising executives from major US nuclear energy companies visited India to explore opportunities in the nuclear energy sector. NASSCOM responded to proposals by the US Federal Communications Commission to restrict the outsourcing of call-centre services.
This issue further covers emerging concerns regarding India's foreign investment position during 2025-26, marked by significant portfolio outflows and a sharp increase in overseas investments by Indian firms at a time when domestic private-sector investment remains subdued. These trends warrant close examination and timely corrective measures.
Finally, the report highlights two other international developments of relevance to economic security: the European Commission's proposal to broaden the use of tariffs and other trade tools to protect sectors such as chemicals, metals and clean technologies from unfair competition from China, and an agreement concluded between New Zealand and Singapore under which both countries have committed not to impose export restrictions on specified essential supplies.
To read this issue please click ESRR, Vol. IV, Issue 5.
