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Modi, Narendra

Modi Seeks to Strengthen Ties with Japan and China Amid US Trade Tensions

Strategic Insights

— 2 min read

India's Prime Minister Narendra Modi is embarking on a crucial foreign tour to strengthen diplomatic ties with Japan and China, amidst escalating US trade tensions. The tour comes as India faces 50% tariffs from the US, imposed as a "penalty" for purchasing Russian oil, in addition to the existing 25% tariffs. Modi's Japan visit, his first standalone trip in nearly seven years, will see him meet with Japanese Prime Minister Shigeru Ishiba for the 15th India-Japan Annual Summit. The summit is expected to launch new initiatives to build greater resilience in the relationship and address emerging opportunities and challenges.

Key Takeaways:

  • PM Modi's Japan visit is significant, marking his first standalone trip in nearly seven years, and will see him meet with Japanese PM Ishiba for the 15th India-Japan Annual Summit.
  • The summit aims to build greater resilience in the relationship and address emerging opportunities and challenges, with both PMs set to exchange views on regional and global issues of importance.
  • PM Modi will visit China's Tianjin for the 25th meeting of the Heads of State of the Shanghai Cooperation Council (SCO), where he will meet with Chinese President Xi Jinping on August 31.
  • The SCO summit comes in the backdrop of US President Donald Trump's tariff move towards countries, including India and China, that has sparked global trade tensions.
  • India and China are discussing easing trade barriers, including reopening border trade at three Himalayan crossings, as part of efforts to thaw ties.
  • Pakistan Prime Minister Shehbaz Sharif will participate in the SCO summit, marking the first time since the India-Pakistan military conflict of May that PM Modi and Shehbaz Sharif will be at an event together.
  • Russian President Vladimir Putin will also participate in the SCO summit, with speculation surrounding a potential bilateral meeting between PM Modi and Putin on the sidelines.

Statistics:

  • US tariffs on Indian imports: 50% on certain exports, including doubling duties to 50% after India's purchase of discounted Russian oil (Trump's "penalty").
  • India-Japan trade ties: Seeking to strengthen economic ties, with India facing 25% tariffs on exports to the US, while Japan faces 25% tariffs imposed by the US.
  • SCO membership: Comprises 10 members apart from India and China, including Belarus, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan, and Uzbekistan.
  • India-Pakistan military conflict: Occurred in May, with the SCO summit marking the first time since the conflict that PM Modi and Pakistan Prime Minister Shehbaz Sharif will be at an event together.

Sources:

  • Hindustan Times, "Modi to visit China, Japan, amid US trade tensions", August 28, 2023
  • Press briefing by Vikram Misri, Foreign Secretary, August 28, 2023
  • Shanghai Cooperation Council, 25th meeting of the Heads of State, Tianjin, China, August 31-September 1

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