What We’re Watching: India eyes Taliban opportunity, China seeks mediator role in Thai-Cambodian conflict, US to hand Taiwan its largest-ever military package

Pakistani-Afghan rift gives India an opening

Indian Prime Minister Narendra Modi isn’t necessarily known as the greatest friend of Muslim people, yet his own government is now seeking to build bridges with Afghanistan’s Islamist leaders, the Taliban. New Delhi is seeking to capitalize on the rift between Pakistan and Afghanistan, two former allies, by offering the Taliban trade routes out of its landlocked country without having to go through Pakistani territory, specifically through Chabahar, a free port located in Iran. India has invested heavily in this port, and has been helped by the US waiving sanctions on it in October. India still doesn’t formally recognize the Taliban regime, but recent bilateral engagement suggests that business could trump politics.

China tries to patch up the Cambodia-Thailand ceasefire

Amid fresh border clashes between the two Southeast Asian nations, China is making a new push for peace, holding talks with both sides on Thursday. The dispute dates back more than a century, but July saw the deadliest clashes in at least a decade with dozens killed, and more than 150,000 displaced. A botched response to the crisis even ended up costing the Thai PM her job. The Trump Administration in October brokered a ceasefire, but that’s collapsed in recent days, despitehis claims to have reached a fresh agreement. Will China — now the largest trade partner andarms supplier to both countries — have better luck?

US gives Taiwan a $11 billion Christmas present

The Trump administration announced a record $11.1 billion arms package for Taiwan, the largest ever US weapons sale to the island, amid rising military pressure from China. The deal includes HIMARS rocket systems, drones, artillery weapons, and anti-tank missiles, backing Taiwan’s shift toward asymmetric warfare in the case of a Chinese attack. It comes as the Trump administration pushes its allies to up their military capabilities so they can defend themselves, but it's also a boon to the US defense industry, which will supply the arms.