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Tariffs

China and India Strengthen Ties Amid US-China Trade War

Strategic Insights

— 1 min read

China and India, two of the world's fastest-growing economies, are finding common ground in the face of a growing US-China trade war. The two countries have a long history of strained relations, particularly in 2020, following the Galwan Valley clash, but recent developments suggest a shift in bilateral ties. Chinese foreign ministry spokesperson Lin Jian has expressed China's readiness to work with India to promote the sound and steady development of China-India relations.

Key Takeaways:

  • China and India are major developing countries and important members of the Global South, with a "cooperative pas de deux of the dragon and the elephant as partners helping each other succeed."
  • The US President Donald Trump's threat of a 50 per cent tariff on Indian goods is pushing Prime Minister Narendra Modi closer to BRICS nations, especially China.
  • China's ambassador to India, Xu Feihong, has offered Modi moral support over the tariffs, stating "Give the bully an inch, he will take a mile."
  • The two countries are expected to work together on the global stage, with China's spokesperson Lin Jian stating that they should "act on the important common understandings reached between leaders of our two countries, consistently increase political mutual trust, expand exchanges and cooperation together, properly handle differences while bearing in mind the bigger picture, and strengthen coordination and cooperation on such multilateral platforms as the Shanghai Cooperation Organization."
  • India's PM Narendra Modi is expected to announce the resumption of direct flights with China as soon as next month, with a formal announcement planned during his visit to China in September.
  • The deal could be a significant step in strengthening bilateral ties between the two countries, which have been strained in recent years.

Statistics:

  • 50%: The tariff imposed by US President Donald Trump on Indian goods as a penalty for its purchases of Russian oil.
  • 2020: The year when the two countries saw their lowest point in bilateral relations, following the Galwan Valley clash.
  • 7 years: The amount of time since PM Narendra Modi last visited China.
  • August 31: The date when the Shanghai Cooperation Organisation summit is set to be held in Tianjin, China.

Sources:

  • Global Times
  • Hindustan Times
  • Bloomberg

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