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By Hugh Cameron, Newsweek U.S. News Reporter
Chinese Premier Xi Jinping and Indian Prime Minister Narendra Modi have pledged to strengthen strategic ties as the countries face significant tariffs on their exports to the U.S.
Why It Matters
The commitments to greater cooperation between the two economic powerhouses come despite the pair’s historical competition for dominance in the Asia-Pacific region and their contemporary disagreements over issues of sovereignty.
However, both sides are united in concern over the impact of President Donald Trump‘s tariffs on their economies. Experts believe the recent easing of tensions could be heralding a new era of cooperation between the two nations, as well as other countries across the Global South.
What To Know
Speaking on the sidelines of the ongoing Shanghai Cooperation Organisation summit in Tianjin, China, Xi said the two nations were among the world’s most “civilizational,” according to a translation by the South China Morning Post.
“It is vital to be friends, a good neighbor, and [for] the ‘dragon’ and the ‘elephant’ to come together,” Xi told Modi during the face-to-face meeting.
In footage of a meeting between the pair posted to Modi’s official YouTube account, Xi described the current global situation as “fluid and chaotic,” and urged a “steady” development of bilateral ties and an increased commitment to multilateralism.
Modi, meanwhile, said India was “committed to progressing” the relationship with China, one he said should be based on “mutual respect, trust and sensitivities,” Reuters reports.
The prime minister’s remarks come during his first visit to China in seven years, and days after Trump’s new, 50-percent tariff on Indian goods came into effect. The U.S. had originally intended to impose a 25 percent tariff on India’s exports, but doubled this in early August over the country’s continued purchase of Russian energy exports.
In a post to Truth Social before the order became official, Trump accused the country of buying “massive amounts” of Russian oil, selling this “on the Open Market for big profits” and of not caring “how many people are being killed by the Russian War Machine.”
The tariffs threaten to derail the billions of dollars’ worth of goods India ships to the U.S. each year—$87.3 billion according to the U.S. Trade Representative—and the Indian Ministry of External Affairs called the hike “unfair, unjustified and unreasonable.”
The move has sparked a groundswell of anti-U.S. sentiment across India, with grassroots campaigners and lawmakers calling on the country to boycott American products and brands. Experts told Newsweek previously that China could exploit the developing rift between the typically friendly nations by deepening its ties with India, and that there may be additional signs of cooperation between other “tariff-aggrieved nations.”
Sunday’s meeting between Modi and Xi followed an official visit to India by Chinese Foreign Minister Wang Yi. During the trip, the two sides agreed to strengthen economic cooperation, resume direct flights after a five-year hiatus, and to hold further consultations on ongoing border disputes.
What People Are Saying
Prime Minister Narendra Modi, during the meeting with Xi Jinping translated by the Indian Ministry of External Affairs, said: “Our cooperation is linked to the interests of 2.8 billion people of our two countries. This will also pave the way for the welfare of all humanity. We are committed to advancing our relations based on mutual trust, respect, and sensitivity.”
Chinese Premier Xi Jinping said: “Currently, the world is undergoing rapid transformations and international instability. China and India are the two major Eastern powers and the most populous countries in the world. They are also key members of the Global South.
“We uphold strong commitment: advancing the unity and revival of developing countries and promoting human progress are important strategies. As good friends and partners who support each other, integrating and uniting should be the right path for China and India.”
Wayne Winegarden, senior Fellow in business and economics at the Pacific Research Institute, told Newsweek: “The tariffs will cause Indian industries to be less competitive globally when exporting products to the U.S. This will harm economic growth in India as well as the profitability of the exporting industries. In response, and assuming the tariffs will be in place over the long term, exporters will likely look toward growing opportunities elsewhere and [to] implement plans to minimize/bypass the tariffs.”
“The uncertainty and unpredictability of U.S. actions are incentivizing a reordering of global alliances,” he added. “The tariffs, and the possibility that the tariffs on India, China, or any other country will erratically change at any time, is one of the incentives that is encouraging this reordering.”
What Happens Next?
The two-day meeting of the Shanghai Cooperation Organisation, a regional political and security organization founded in 2001, began on Sunday morning. Modi is one of over 20 world leaders in attendance, including Russian President Vladimir Putin.
Source: newsweek.com
