Modi, Trump and Xi Jinping
America is still the most powerful country in the world. The power of the head of the state is so much that he can shake the economy of the whole world. At the moment, President Donald is currently doing something similar. He has been made such a whip of tariffs on the rest of the world including India that in the coming time, the economy may feel strong dent. Due to the tariff of Trump, India also seems to be failing the China Plus One strategy. Because in this hour, India cannot break ties with China even after wishing. It is necessary for India to maintain a relationship with China after trade losses from America.
India tried hard to show the world that it could be the best option of Chinese factories. It was adopted under the ‘China Plus One’ strategy, in which companies invest in countries other than China. But now this effort seems to be weakening. Recently, the US imposed new tariffs, after which the officials and traders of New Delhi are still trying to understand this changed environment.
PM Modi’s meeting amid stress
Prime Minister Narendra Modi and Xi Jinping have also met recently. Both leaders met each other after 7 years. Due to this, the relations between India and China have already been stressful are expected to bring some softness. India’s ‘China Plus One’ approach is important for its ambition to become its factory power. Especially in areas like technology, increasing manufacturing is necessary for India, so that problems like unemployment of young workers can be resolved. But now, due to the low support of America, it seems difficult to distance from China.
PM Modi and Chinese President Xi Jinping meet
Is there compulsion to trade from China?
China always wants to increase its trade in India. India’s market is a major source of income for him. In such a situation, this business seems to be as important for India as it is for China. Because to compensate for the damage caused by American tariffs, the country will have to find a trade option in another place. Out of that, China is being presented as the main option of China. India also needs foreign currency at this time.
American tariff caused earthquake
America’s new tariff has created upheaval in supply chains. India is no longer attractive for American importers. Companies can move to countries with low tariffs such as Vietnam or Mexico. Recently an American court invalid the tariff, but it has been kept in force till Trump’s appeal. This did not reduce the gap between India and America.