India's Prime Minister Narendra Modi lands in China this weekend with the sting of Donald Trump's US tariffs still top of mind. Since Wednesday, tariffs on Indian goods bound for the US, like diamonds and shrimp, now stand at 50% – which the US president says is punishment for Delhi's continued purchase of Russian oil. Experts say the levies threaten to leave lasting bruises on India's vibrant export sector, and its ambitious growth targets.
China's Xi Jinping too is trying to revive a sluggish Chinese economy at a time when sky-high US tariffs threaten to derail his plans. Against this backdrop, the leaders of the world's two most populous countries may both be looking for a reset in their relationship, which has previously been marked by mistrust, much of it driven by border disputes.
What happens in this relationship matters to the rest of the world and could signal a changing dynamic in global trade. India and China, the world's fifth and second largest economies respectively, could benefit from partnership, especially as India is projected to grow significantly in the coming years. The relationship is challenging due to unresolved territorial disputes and economic fallout from prior tensions, including bans on Chinese apps.
India is currently seeking to reduce its reliance on China for manufacturing and may look for lower import duties. While the road to improved ties is long, Modi's visit to China may mark a significant step in mitigating previous animosities and showcasing India's options on the global stage.
China's Xi Jinping too is trying to revive a sluggish Chinese economy at a time when sky-high US tariffs threaten to derail his plans. Against this backdrop, the leaders of the world's two most populous countries may both be looking for a reset in their relationship, which has previously been marked by mistrust, much of it driven by border disputes.
What happens in this relationship matters to the rest of the world and could signal a changing dynamic in global trade. India and China, the world's fifth and second largest economies respectively, could benefit from partnership, especially as India is projected to grow significantly in the coming years. The relationship is challenging due to unresolved territorial disputes and economic fallout from prior tensions, including bans on Chinese apps.
India is currently seeking to reduce its reliance on China for manufacturing and may look for lower import duties. While the road to improved ties is long, Modi's visit to China may mark a significant step in mitigating previous animosities and showcasing India's options on the global stage.
