China Signals Trade Expansion with India as Trump Tariffs Loom

China, stepping ahead of possible new US tariffs, has announced new trade plans from India to bring both countries closer in their trading relationship.

Chinese Ambassador Xu Feihong stated at the 75th anniversary ceremony between China and India that Beijing wants to team up with New Delhi to do more business and bring in best-selling Indian goods to China.

China’s President Xi Jinping suggested enhanced India ties through his “Dragonelephant Tango” at the same moment he requested upgraded cooperation.

The trade ministry in India reveals that commerce between China and India hit $101.7 billion during 2023-24 while India faced a major trade deficit. The main products India ships to China are:

  • Petroleum oil
  • Iron ore
  • Marine products
  • Vegetable oil

India made $16.6 billion from its exports during the last financial year yet this trade volume remains highly unbalanced.

China chose to reach out now because of the pending announcement from US President Donald Trump about his new country-based tariffs planned for Wednesday. Trump announced his new tariff policy covers all trading partners through his latest statement.

According to Trump the US would follow other nations’ tariff rates when imposing charges but make rates more favorable than foreign nations’ tariffs.

Many experts predict a global trade war will result when the US takes tariffs against major trade partners like China and the EU because those countries may need to protect their own exports. China, South Korea, and Japan joined forces to build stronger trade relationships among themselves.

A Khan

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