In a recent address in New Delhi, Chinese Ambassador to India Xu Feihong expressed staunch opposition to the United States' imposition of steep tariffs on India, framing the US actions as a form of economic bullying. He urged for collaborative efforts between India and China to counteract these measures. Xu criticized the US for leveraging its position in global trade and utilizing tariffs as a negotiation tool, which he claimed leads to inflated demands on nations like India.
"The US has imposed tariffs of up to 50% on India and even threatened more, and China firmly opposes it. Silence only emboldens the bully," said Xu, highlighting the detrimental effects of such tariffs on international trade dynamics. The new tariffs follow a recent decision by former President Trump to impose a 25% penalty on India, coupled with an additional 25% tariff on oil and weapon imports from Russia.
The increases have raised concerns about India's ongoing trade relationships as it has ramped up its purchases of inexpensive Russian crude amidst the continuing conflict in Ukraine. This decision has strained India’s diplomatic ties with Washington. India has defended its stance, emphasizing the necessity to procure the most affordable energy sources to shield its economically disadvantaged population from rising energy prices, a view that has been supported by the Biden administration's earlier suggestions for India to stabilize energy markets.
In the wake of these tensions with the US, there has been a noticeable warming of relations between India and China, which soured following the 2020 clash in Galwan, Ladakh. Recently, Chinese Foreign Minister Wang Yi visited Delhi, advocating for a perspective of partnership rather than rivalry. Xu echoed this sentiment during his remarks, describing both countries as critical engines for economic growth in Asia, and expressing hope that unity could bring benefits on a global scale.
He encouraged increased investment opportunities for Indian businesses in China, while also seeking assurances for a fair economic environment in India for Chinese firms. Xu concluded by citing the ongoing disruptions in global trade due to tariff conflicts, which he views as exacerbating tensions and undermining established international trade norms. He urged both countries to work together to uphold the World Trade Organization's multilateral trading system.
Looking ahead, Xu said that Prime Minister Narendra Modi's scheduled visit to China for the Shanghai Cooperation Organisation summit might serve as a catalyst for enhancing China-India relations, promoting a participatory approach to resolving current economic challenges.
