India’s Prime Minister Narendra Modi is set to visit China amidst the backdrop of recent US tariffs on Indian goods, including diamonds and shrimp, which have spiked to 50%. These tariffs were imposed by President Donald Trump as a response to India’s ongoing purchase of Russian oil. Experts suggest these levies could have long-term effects on India’s export sector and its economic growth targets.
Both Modi and Chinese President Xi Jinping face economic challenges, with Xi aiming to rejuvenate a slowing Chinese economy amid US tariffs. Modi’s visit may signal an attempt to reset relations between India and China, two countries historically marked by mistrust, particularly due to border disputes.
India and China rank as the world’s fifth and second largest economies, respectively. The International Monetary Fund (IMF) reports that India is projected to grow beyond 6%, potentially reaching a $5 trillion stock market by 2028. Experts suggest there may be benefits to closer cooperation between these two nations, which could simultaneously address shared economic interests.
However, complex issues remain, including unresolved territorial disputes and regional tensions with other countries, particularly involving Pakistan. The relationship has been further strained by incidents such as the violence in Ladakh’s Galwan Valley in 2020, hampering trade and causing India to suspend over 200 Chinese apps, including popular platforms like TikTok.
Modi’s participation in a Shanghai Cooperation Organisation (SCO) meeting could also serve to enhance ties within the regional bloc, previously viewed with skepticism by India. Despite these initiatives, many specialists believe a single meeting will not significantly alter the trajectory of India-China relations, indicating that addressing underlying tensions will require ongoing dialogue and engagement.
China continues to be a critical supplier for India, particularly in manufacturing, and there are discussions around lowering import duties and expediting visa processes to foster economic collaboration. Moving forward, the complexity of their relationship may necessitate sustained diplomatic efforts to improve ties effectively.
Source: https://www.bbc.com/news/articles/c0mlen3grx7o?at_medium=RSS&at_campaign=rss