🚨What We’re Watching🎥

📍Spain Deepens Ties with China Amid U.S. Tariff Tensions

📚Facts: On April 11, Spanish Prime Minister Pedro Sánchez met with Chinese President Xi Jinping in Beijing as part of Sánchez’s broader Asia tour to strengthen trade and diplomatic ties. The visit came just days after the U.S. raised tariffs on Chinese imports to 145 percent - an escalation that triggered reciprocal tariffs of up to 125 percent on key American goods. Xi described the Spanish-Chinese relationship as a “strategic partnership,” though no formal treaty or legal framework establishing such a partnership was announced. During the visit, Spain and China signed new cooperation agreements in fields including science, education, entertainment, and agriculture, building a stronger trade relationship via increased market access for Spanish pork and cherry exports. 

💭Analysis: Spain’s outreach to China and Asia reflects a European strategy to assert greater autonomy in foreign policy and trade amid escalating EU-US tensions. By positioning itself as a pragmatic economic partner, Spain is diversifying its export markets to hedge against American tariffs while signaling its willingness to navigate outside of Washington’s geopolitical sphere of influence. The move also reflects the rise of economic diplomacy as a tool in navigating great power competition. Framing the relationship as a “strategic partnership” highlights China’s interest in cultivating bilateral ties with EU member states as a counterweight to U.S. hegemony, deepening the complexity of the global trade landscape.

📍Lithium Production in Chile Set to Expand 

📚Facts: Codelco and SDQ, two of Chile’s largest mining firms, and the Lickanantay indigenous communities plan to increase lithium extraction in the salt flats of Chile’s Atacama Desert. The discovery of lithium reserves 28% greater than previously believed prompted extraction negotiations between the Lickanantay and SQM and Codelco. The trio plan to increase Chile’s lithium output by as much as 33%. Codelco, Chile’s state-owned mining company, is spearheading the planned extraction in adherence to President Gabriel Boric’s proposed state-led model that includes the prioritization of indigenous rights. Lithium is crucial to battery production, of which Asia is America’s largest supplier. Australia is currently the leader in lithium exports, followed by Chile and China. 

💭Analysis: The Trump administration’s proposed tariffs on Asian nations threaten to raise the costs of American battery imports. Chile’s lower tariff rate compared to key Asian lithium exporters provides U.S. customers with a potential alternative for battery production. However, Chile’s extraction plans face barriers. In extraction, salty brine is extracted from aquifers and evaporates to leave behind a solution containing lithium. The evaporation depletes freshwater reserves, an acute issue in the dry Atacama, where hydrological models often overestimate runoff and precipitation levels. Indigenous participation is expected to contribute to conducive environmental standards for extraction, preventing long-term water overuse and scarcity. Cooperation between the Lickanatanay, Codelco, and SDQ paves the way for accessible, low-tariff lithium exports to the United States.

📍Commoners of the South Disarm in Colombia in Step Toward Peace

📚Facts: Last week, Commoners of the South, a rebel group in southwestern Colombia, officially began surrendering their weapons and signed two new agreements with President Petro’s government, advancing their ongoing peace talks. Their agreements include a humanitarian de-mining initiative in the region, government investment into local health infrastructure, and plans to transition the fighters into civilian life. Until last May, Commoners of the South were part of the National Liberation Army (ELN), a larger rebel group that has been in direct conflict with the Colombian government since 1964. Last year, Commoners of the South broke away from the ELN, opting instead to begin peace talks with Petro’s government. Gustavo Petro, Colombia’s first leftist president, entered office in 2022, promising to reach agreements with all criminal or rebel groups and achieve “Total Peace”.

💭Analysis: Colombia is currently plagued by armed conflicts over drug trafficking routes, territory, and natural resources. A conflict broke out in January between the ELN and dissident factions of the Revolutionary Armed Forces of Colombia (FARC). FARC rejected the 2016 peace agreement with the government and has since intensified the ongoing violence. Conflicts have caused a severe humanitarian crisis and the internal displacement of thousands of Colombians. The ongoing violence risks further regional instability and may intensify narcotics and migration movements toward the U.S. While President Petro’s promise of “Total Peace” appears increasingly out of reach, the agreement with the Commoners of the South stands out as a rare success amid the broader collapse of peace negotiations.

📍Strategic Energy Pact Deepens India, UAE Ties with Sri Lanka

📚Facts: India, Sri Lanka, and the United Arab Emirates signed an agreement last week to develop a joint strategic energy hub in the Sri Lankan city of Trincomalee. The energy hub will act as a regional energy logistics center and include a multi-product pipeline between Sri Lanka and India. During Indian Prime Minister Modi’s visit to Sri Lanka to formally sign the energy pact, the countries signed several additional agreements, including a defense cooperation pact and collaboration agreement on digital infrastructure and regional development. Sri Lanka is recovering from a severe financial crisis in 2022, driven by years of fiscal mismanagement and unsustainable debt. During the crisis, Sri Lanka ran out of funds for oil and coal, triggering widespread power outages. The country has relied on both foreign credit lines and foreign investments from China, India, Japan, and other multilateral partners to stabilize its economy. 

💭Analysis: Sri Lanka occupies a strategic position along the Indian Ocean’s critical global shipping routes and is a key target of India’s “Neighborhood First” foreign policy. Sri Lanka’s energy sector has become a stage for geopolitical competition, specifically between India and China. The agreement is one recent example of India’s efforts to strengthen its presence in Sri Lanka to counter China’s growing influence. Sri Lanka is a key partner in China’s Belt and Road Initiative, and the countries signed 15 new cooperation agreements in mid-January to deepen their bilateral ties. In January, Chinese firm Sinopec officially agreed to invest $3.7 billion in an oil refinery in the southern port city of Hambantota, which the Sri Lankan government agreed to fast-track. China’s expanding presence in Sri Lanka poses a challenge not only to India’s regional influence but also to U.S. strategic and maritime interests in the Indo-Pacific. The trilateral agreement also allows the UAE to expand its influence in South Asia and counter Saudi-backed Chinese influence by leveraging India’s ties with the Sri Lankan energy sector.

👀Looking Ahead👀

📍U.S. Military Incorporates Artificial Intelligence into Strategic Processes and Military Education👀

📚Facts: In early March, the Department of Defense signed a contract with Scale AI to establish the DoD’s new Thunderforge flagship program incorporating artificial intelligence into military operations. The project is centered around implementing AI algorithms, data, and long range communication to organize U.S. military planning. The project demonstrates a defense policy shift toward data driven warfare focusing on the armed forces’ efficiency and precision responding to threats.

💭Analysis: After the DoD announced its plans for artificial intelligence implementation, concerns arose regarding the use of AI in the military. However, DoD policy asserts that AI will operate under human watch as a safeguard. Additionally, the armed forces are actively preparing future military leaders to harness the benefits of AI by utilizing it in the classroom at U.S. service academies. AI represents a wave of modernization that enhances efficiency through rapid learning and problem solving. Artificial intelligence proficiency enables future combatants to address complex defense landscapes, yet concerns persist about the ethics of AI in combat.

💡The TSI Insider💡

The TSI business and marketing team hosts events in our community square during the farmers market every Wednesday. So far events have included Pie TSI, international affairs jeopardy, and name that flag. If you’re on campus this Wednesday, be sure to stop by Red Square to say hi and learn something new!

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This week’s newsletter brought to you by the Beyond Borders Brief staff. Connect with us on social media to pose questions, comments, or feedback. Click here to learn more about TSI.