Fresh Tensions Erupt Along Sino-Indian Border Causing Financial Tremors  

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by Tyler Durden
Monday, Aug 31, 2020 - 11:20 AM

Fresh clashes between Indian and Chinese troops were reported along the heavily contested Himalayan border this past weekend. 

India's Defense Ministry accused Chinese troops of "provocative military movements" late on Saturday night. Here's the Indian Army's full statement of their account of what happened: 

"On the Night of 29/30 August 2020, PLA troops violated the previous consensus arrived at during military and diplomatic engagements during the ongoing standoff in Eastern Ladakh and carried out provocative military movements to change the status quo.

"Indian troops pre-empted this PLA activity on the Southern Bank of Pangong Tso Lake, undertook measures to strengthen our positions and thwart Chinese intentions to unilaterally change facts on the ground. The Indian Army is committed to maintaining peace and tranquility through dialogue but is also equally determined to protect its territorial integrity. A Brigade Commander level Flag Meeting is in progress at Chushul to resolve the issues." 

The latest skirmish between both sides took place in the Southern bank of the Pangong Tso, a glacial lake at 14,000 feet elevation along the Line of Actual Control, a 2,162-mile Sino-Indian border. Both countries have moved troops, tanks, artillery guns, helicopters, fighter jets, and other reinforcements as hostilities continue into the fifth month this week.

Readers may recall tensions are rising along the Sino-Indian border:

Pepe Escobar, a veteran Brazilian journalist, recently penned a piece titled "The India-China, Himalayan Puzzle," which made sense of the complex situation developing between both countries.

As for the actual skirmish, Asian News International (ANI), an Indian news agency in New Delhi, reported that Indian sources said Chinese troops tried to 'infringe' on Indian land using a 'sizeable number of troops' but Indian forces were able to thwart the move. The number of casualties or captured troops has yet to be reported by either country. 

Indian forces told ANI that Chinese stealth aircraft (Chengdu J-20) have been patrolling the Sino-Indian border as tensions continue to increase. 

Indian Congress chief spokesperson Randeep Surjewala tweeted: "Our armed forces are standing fearlessly to protect Mother India. But, when will Modi ji show his red eyes." 

In another tweet, Surjewala called the Narendra Modi government "nervous" as they fail to respond to "encroachment and fresh clashes by China" and an economy in turmoil. 

News of the fresh border disputes halted a six-day rally of Indian main market equity indexes. The S&P BSE Sensex slid 2.3% and the Nifty 50 Index ended 2.2% lower. 

The India VIX surged nearly 25% to 22.83 on geopolitical concerns. 

The Ruppe sinks amid the latest flare-up in border tensions. 

While world markets are overbought, geopolitical tensions are soaring between India and China, which investors, drunk on central bank liquidity, are ignoring the possibility a hot conflict could erupt between both countries at any given time.