Donald Trump's trade policy towards China and other nations is leading to unexpected outcomes, fostering closer ties between China and India.
Changes in China-India Relations
Tensions between the U.S. and major Asian economies like China and India are forcing these nations to explore economic cooperation opportunities despite past conflicts. Chinese Vice President Han Zheng described the need for a 'dragon-elephant tango', emphasizing the importance of rapprochement between the two countries.
Discussions on Cooperation
Indian Prime Minister Narendra Modi and Chinese President Xi Jinping are reinitiating dialogue despite long-standing disputes, including border clashes. Modi recognizes the necessity to attract Chinese investments to bolster Indian manufacturing. Concurrently, China seeks to enhance its export potential through India.
Response to Trump's Trade Policy
Trump's actions against Russia may lead to increased economic cooperation among BRICS nations, which include both China and India. If the U.S. enacts secondary tariffs on countries purchasing Russian oil, it may encourage India and China to collaborate against U.S. pressure.
Despite years of distrust, Trump's trade policy creates new opportunities for cooperation between China and India, potentially altering the economic landscape in the region.
