China Hopes for Reset in Economic Ties with India Amid Escalating US Trade War
In the face of escalating trade tensions with the United States under President Donald Trump, business and political leaders in Beijing, Shanghai, and Shenzhen are hopeful for a reset in China's economic ties with India.
Chinese officials and top executives told The Indian Express that the current disengagement along the borders has provided an opportunity to "look into the future" and capitalize on new trade and investment opportunities. Beijing has announced two rounds of monetary and fiscal packages, with a third expected early next year, aimed at stimulating its slowing economy.
Beijing's economic imperative is to not only boost its economy but also build on its trade ties with large markets for trade and investment, particularly in light of Trump's proposed tariffs up to 60 percent on Chinese goods imports. Business leaders in China believe that India offers a significant opportunity for leverage, given the country's surplus in trade between the two nations.
"We cherish peace and stability," said Fuan Kong, Shanghai municipality's foreign affairs chief, "and we may have differences at the border, but the most important thing is that we should look into the future." He quoted former Chinese leader Deng Xiaoping, who had led to China's opening up to the world, saying, "We can set aside our differences. Let us join hands for our future plans."
Chinese officials and business executives did not give much emphasis to the border situation between India and China, opting instead to focus on bilateral ties and potential areas of cooperation. They highlighted joint opportunities in fields such as healthcare and services, citing examples of Indian pharmaceutical companies' potential interest in investing in China.
Senior Fellow at the Chongyang Institute for Financial Studies, Liu Zhiqin, noted that while international confrontation was not the target of Chinese diplomacy, India was an important partner in regional development. He advocated for closer economic cooperation, saying that "India is the global brain, and China is a global hand. We can do something together."
In Shenzhen, BYD, a carmaker known for innovative electric vehicles, is exploring expansion into the Indian market. The company's limited presence in India marks an interesting development in the push to revitalize economic ties with New Delhi.
Chinese officials have expressed hope that the recent visit of Prime Minister Narendra Modi and Chinese President Xi Jinping's "ice-breaking meeting" could pave the way for improved relations and cooperation. As the world's two largest developing nations, China and India are likely to continue exploring opportunities for mutual benefit in the face of an increasingly complex global landscape.
In the coming months, it remains to be seen how effective these efforts will be in revitalizing economic ties between Beijing and New Delhi.