At a recent event in the Indian capital, the Chinese envoy voiced his country’s welcome of all Indian commodities into the Chinese market. Addressing the audience, he alluded to the Trump administration’s imposition of tariffs, stating that tariff wars and trade wars are currently disrupting the global economic and trade system. He emphasized the prevalence of power politics and a ‘law of the jungle’ mentality, which have severely impacted international rules and order. The envoy highlighted the Global South’s concern about China and India collaborating to assist developing nations, and to uphold international fairness and justice. He asserted that the essence of trade is mutual benefit and win-win outcomes, and should not be used for selfish gains. The envoy stated that the U.S., which has benefited greatly from free trade, is now leveraging tariffs to demand exorbitant prices, including tariffs of up to 50% on India. He emphasized China’s firm opposition to such actions, suggesting that silence or compromise would only embolden the U.S.’s behavior.
Trump had previously announced a 25% tariff on Indian goods, followed by an additional 25% tariff increase due to India’s continued imports of Russian oil. The Chinese envoy affirmed China’s commitment to stand with India in supporting the multilateral trading system, with the World Trade Organization (WTO) at its core. He also discussed ongoing discussions between India and China regarding the resolution of direct flights. He highlighted China’s willingness to enhance friendly exchanges and welcome Indian commodities into the Chinese market. He further stated the intent to strengthen development strategies and expand cooperation. The envoy mentioned the ongoing talks between India and the U.S. for a Bilateral Trade Agreement (BTA), with the U.S. seeking greater access to India’s agriculture and dairy sectors. The article also mentioned the U.S. imposing reciprocal tariffs on various trade partners, which were later kept in abeyance. The Chinese Foreign Minister and India’s NSA held discussions about the border issue and agreed to establish two groups.
The Chinese envoy also mentioned that the Prime Minister of India will be visiting China for the SCO Summit. He stated that this visit is an important event for both the SCO and the bilateral relationship between the two countries. He also noted the ten points of consensus from the 24th Round of Talks between the Special Representatives of China and India on the boundary question. He said that both sides agreed to set up an Expert Group to explore Early Harvest of boundary delimitation on appropriate sectors. Furthermore, they agreed to set up a Working Group to advance effective border management. They decided to create General-Level Mechanisms in the Eastern and Middle Sectors. Finally, they agreed to re-open three traditional border trading markets.