Chinese ambassador to India, Xu Feihong, voiced strong opposition to the steep tariffs imposed by the United States on India and called for increased cooperation between the two Asian powers during a recent event in Delhi. He characterized the US as a "bully" that has historically benefited from free trade but is currently leveraging tariffs as a "bargaining chip" to extract "exorbitant prices" from other nations.
In his remarks, Xu noted that the US has levied tariffs as high as 50% on Indian goods, with further threats looming. "Silence only emboldens the bully," he proclaimed on Thursday, amid escalating trade tensions. This follows recent actions by former President Donald Trump, who implemented a 25% tariff on India, along with penalties for Indian purchases of Russian oil and military equipment. These tariffs are set to take effect on 27 August.
India's increased intake of affordable Russian crude oil since the onset of the Ukraine conflict has complicated its relationship with the US and hampered trade negotiations. New Delhi defends these purchases as necessary for safeguarding millions of impoverished citizens from surging energy prices, indicating that the Biden administration had previously encouraged India to acquire Russian oil to stabilize global energy markets.
As trade relations with Washington remain tenuous, there appears to be a thawing in India-China relations, which had deteriorated following violent clashes in Ladakh in 2020. Recently, Chinese Foreign Minister Wang Yi visited Delhi, advocating that India and China should perceive one another as "partners" rather than foes.
Xu reiterated this sentiment during his address, describing both nations as "double engines" driving Asia’s economic growth, asserting that their collaboration is beneficial for global welfare. He extended an invitation to Indian businesses to invest in China while urging India to establish a "fair, just, and non-discriminatory business environment" for Chinese firms operating in India.
Addressing the broader implications of tariff and trade wars, Xu lamented their disruptive influence on the international economic order. He vowed that China would support India in maintaining a multilateral trading system anchored by the World Trade Organization (WTO). He expressed hope that Indian Prime Minister Narendra Modi's forthcoming visit to China for the Shanghai Cooperation Organization summit will inject "new impetus" into bilateral relations.
