As the United States-China tariff war intensifies, China’s Foreign Minister Wang Yi has called for closer India-China cooperation, urging both nations to oppose “hegemonism and power politics.” This statement comes amid escalating economic tensions between Beijing and Washington, with the US doubling tariffs on Chinese imports to 20 percent.
Speaking after the National People’s Congress meet on Friday, Wang Yi emphasized that India and China must work together, stating: “Making the dragon and elephant dance is the only right choice. Supporting, instead of wearing each other down, and strengthening cooperation, instead of guarding (against) each other, is in our fundamental interests.”
He further suggested that if the two Asian giants collaborate, it would significantly boost the Global South and promote “democratization of international relations.”
India has yet to respond to this proposal. However, a day earlier, External Affairs Minister S Jaishankar said India and China were working towards a “more predictable and positive course” in their relationship. This includes discussions on the resumption of pilgrimages, direct flights, and exchanges between journalists.
Border Tensions and Recent Diplomatic Engagements
Wang Yi also highlighted “positive strides” in India-China relations over the past year, referencing military disengagement in Ladakh’s Depsang and Demchok. He recalled the October 2024 meeting between PM Narendra Modi and Chinese President Xi Jinping in Kazan, Russia, and stressed that the border issue should not define bilateral relations.
“We should never allow bilateral relations to be defined by the boundary question or let specific differences affect overall ties.”
China’s diplomatic push towards India coincides with a renewed trade war with the US. President Donald Trump recently increased tariffs on Chinese imports from 10 percent to 20 percent, citing Beijing’s failure to curb fentanyl exports, which the US blames for its opioid crisis.
ALSO READ: Reciprocal tariffs on India, China and others from April 2, Trump confirms in 1st Joint Session of Congress since being elected US president
China responded with sharp criticism and retaliatory tariffs of up to 15 percent on key American agricultural products, including soybeans, pork, and wheat. The Chinese embassy in Washington issued a warning, stating: “If war is what the US wants… be it tariff, trade, or any other type, we’re ready to fight till the end.”
China also filed a complaint with the World Trade Organization (WTO), arguing that the US’ unilateral tariffs violate WTO rules and undermine China-US trade cooperation.
Trump’s Tariffs on India and Global Trade Impact
India has also been caught in Trump’s tariff crackdown. The US President has long labeled India a “high-tariff nation”, accusing New Delhi of unfair trade practices. On February 13, just hours before a scheduled meeting with PM Modi, Trump announced a 25 percent tariff on Indian steel and aluminum exports.
This move triggered a sharp decline in Indian markets, with the Sensex dropping over 1,000 points following the announcement. Trump reiterated his “reciprocal tariff policy,” signaling that more trade measures could be imposed on India.
Tariffs have become a signature policy tool of the Trump administration, targeting China, India, Canada, and Mexico. While similar tariffs during Trump’s first term (2017-2021) led to a brief rise in US manufacturing jobs, they later resulted in job losses and a factory sector slowdown by 2019.
ALSO READ: Fentanyl smuggling, Canada election: What Trump, Trudeau discussed in heated 50-minute call
With Trump doubling down on trade protectionism, China is seeking new diplomatic and economic partners—and India could play a crucial role in Beijing’s counterstrategy against US tariffs.
As global trade tensions mount, all eyes are now on India’s response to China’s latest diplomatic overture. Will New Delhi align with Beijing against US trade policies, or will it maintain its strategic balance between the two superpowers?
With the global economy bracing for a renewed US-China trade war, India’s next move could shape the future of international trade and geopolitics.
