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China Eyes Improved India Ties In Case Of Sino-US Trade War
China is currently facing down a list of import tariffs levied by the Trump administration, agitated by the country's $375 billion trade surplus with the United States. In response, it has hinted at relaxing rules on some American imports and suggested dialogue rather than escalating a potential trade war.
That's not all, however. China is now taking steps to protect itself if a trade war does come to pass, and is looking to India as a potential ally, although Prime Minister Narendra Modi's government isn't all too happy with its own China trade deficit.
Former Indian Commerce and Industry Minister Nirmala Sitharaman has expressed concern over the deficit in the past. Chinese Commerce Minister Zhong Shan “promised” last week to address the issue, India’s own commerce ministry claims.
Insurance policy
China wants to treat other countries, especially major partners, well in case U.S. tariffs force Chinese exporters to depend more on markets outside the United States, analysts say. India is a prime target.
“It’s essentially having an insurance policy,” says Song Seng Wun, an economist with the CIMB private banking unit in Singapore. China is probably thinking, he says, that “we don’t know how things will pan out with the U.S., but in the meantime, China should see what’s best for ourselves.”
Beijing knows India finds the trade relationship uneven, experts say, increasing the urgency to please it. China would explore better relations in “new large markets such as India's as the Trump administration gets tough on China's unfair, predatory trade practices,” says Mohan Malik, a professor at the Asia-Pacific Center for Security Studies in Honolulu, Hawaii.
“Indian officials see China pursuing a ‘beggar thy neighbor’ policy and undermining India's manufacturing sector by dumping cheap, subsidized goods in the Indian market while importing raw materials from India," he says. India has filed the largest number of anti-dumping cases in the World Trade Organization (WTO) against China, he notes.
China Eyes Improved India Ties In Case Of Sino-US Trade War
China is currently facing down a list of import tariffs levied by the Trump administration, agitated by the country's $375 billion trade surplus with the United States. In response, it has hinted at relaxing rules on some American imports and suggested dialogue rather than escalating a potential trade war.
That's not all, however. China is now taking steps to protect itself if a trade war does come to pass, and is looking to India as a potential ally, although Prime Minister Narendra Modi's government isn't all too happy with its own China trade deficit.
Former Indian Commerce and Industry Minister Nirmala Sitharaman has expressed concern over the deficit in the past. Chinese Commerce Minister Zhong Shan “promised” last week to address the issue, India’s own commerce ministry claims.
Insurance policy
China wants to treat other countries, especially major partners, well in case U.S. tariffs force Chinese exporters to depend more on markets outside the United States, analysts say. India is a prime target.
“It’s essentially having an insurance policy,” says Song Seng Wun, an economist with the CIMB private banking unit in Singapore. China is probably thinking, he says, that “we don’t know how things will pan out with the U.S., but in the meantime, China should see what’s best for ourselves.”
Beijing knows India finds the trade relationship uneven, experts say, increasing the urgency to please it. China would explore better relations in “new large markets such as India's as the Trump administration gets tough on China's unfair, predatory trade practices,” says Mohan Malik, a professor at the Asia-Pacific Center for Security Studies in Honolulu, Hawaii.
“Indian officials see China pursuing a ‘beggar thy neighbor’ policy and undermining India's manufacturing sector by dumping cheap, subsidized goods in the Indian market while importing raw materials from India," he says. India has filed the largest number of anti-dumping cases in the World Trade Organization (WTO) against China, he notes.
