New Delhi
Prime Minister Narendra Modi’s visit to China after seven years has gained significance as both countries attempt to reset ties under the shadow of steep US tariffs. The meeting with Chinese President Xi Jinping took place during the Shanghai Cooperation Organisation (SCO) summit in Tianjin, where the two leaders signalled a willingness to move past years of strained relations and engage in deeper economic cooperation.
Tariffs push India to rethink trade strategy
The trigger for this recalibration has been US President Donald Trump’s decision to impose 50% tariffs on Indian exports, including gems, seafood and other goods. The punitive measures, introduced in response to India’s continued purchase of Russian oil, have placed heavy pressure on India’s export sectors.
With markets disrupted and jobs threatened, New Delhi has sought new ways to balance its economic needs without being overly dependent on the US. The visit to Beijing was therefore as much a political gesture as an economic necessity.
Symbolism of dragon-elephant unity
Xi Jinping underscored that China and India must be “development partners, not rivals”, invoking the symbolism of the “dragon and elephant” moving together. Modi echoed the sentiment by stressing that the partnership should be built on “mutual respect and strategic autonomy”, a clear signal to Washington that India intends to retain its independent course in foreign policy.
The thaw comes after years of hostility, particularly following the 2020 border clashes. While unresolved issues remain, both leaders appeared eager to focus on cooperation in trade, technology and regional stability.
SCO summit highlights multipolar vision
The SCO summit became a platform for Xi to promote a multipolar world order. He proposed new initiatives, including a development bank for the SCO, an artificial intelligence hub, and alternative financial mechanisms to reduce reliance on Western systems.
For India, participation in such forums offers the opportunity to diversify economic and strategic partnerships. Analysts believe that New Delhi, while cautious, is prepared to engage more closely with Beijing if it helps ease economic vulnerabilities exposed by American trade policies.
Measures to boost bilateral cooperation
During the talks, both sides agreed to reduce trade barriers, restart direct flights and strengthen people-to-people exchanges. Modi emphasised the importance of narrowing India’s trade deficit with China, while Xi assured cooperation in creating a more balanced trade environment.
Although contentious border issues were not resolved, the resumption of dialogue was viewed as a positive step. Officials described the atmosphere as “pragmatic and forward-looking”.
US reaction and global implications
The United States reacted with scepticism. Treasury Secretary Scott Bessent dismissed the SCO summit as “largely performative” and accused India, China and Russia of indirectly aiding Moscow’s war efforts.
Western commentators also warned that Trump’s tariff strategy may have backfired, pushing India closer to China and strengthening Beijing’s leadership in alternative global forums. Editorials in international media noted that instead of isolating rivals, Washington’s actions may have accelerated the rise of a non-Western bloc.