India China Trade Trump Push Export Restrictions Lifted
China has removed export restrictions on many important things for India. Such as fertilizer, rare economies, magnets and tunnel burning machines will no longer be banned. This is expected to get a new speed to trade between the two countries. This change is India’s Foreign Minister S.K. Jaishankar and Chinese Foreign Minister Wang Yi have come after the recent meeting. Wang Yi has said that China has started work on India’s demands and goods are being sent.
This step is being considered a new beginning in the relationship between the two countries. Now both understand that working together can reduce the problems of the supply chain and can bring stability between instability in the world. Experts believe that China-India relations are also getting stronger because Trump is constantly pressurizing both countries to increase tariff i.e. import duty.
US President Donald Trump
Trump’s tariff policy changed the game
For the past few months, the relations between India and America have become a bit cold. The reason for this is that the US has increased the tariff i.e. import duty on many things coming from India by 50%. First Trump had applied 25% tariff, then for buying oil from Russia and 25% tariff was imposed. India also responded to this and also made it clear that America itself asks for a lot of goods from Russia, so it is just a useless step to increase the tariff. At the same time, China also buys too much oil from Russia, but Trump did not take any such action on China. Still China is afraid because no one knows when and what the trump can decide.
This was a chance for China after 50% tariff on India. He wanted to take advantage of increasing the distance between India and America. According to an Economics report, China was happy with India and the US relations and changed its attitude towards India. China knows that if India is supported, then the impact of Trump’s tariff policy can be less. China can easily sell its goods in the Indian market. At the same time, India needs a strong country than America, so India is also showing interest in this relationship.
PM Modi will go to China
Keeping all these things in mind, China and India have taken many small steps to improve mutual relations. Visa rules have been made easier, religious trips have resumed, and negotiations are underway to open trading avenues on the border. In June, China allowed Indian pilgrims to visit Kailash Mansarovar. In response, India resumed tourist visas for China after about five years in July. The Chinese ambassador also invited Indians to come with an open heart.
Recently, during Wang Yi’s visit to India, there was talk of opening three new business routes on the border. Apart from this, Prime Minister Narendra Modi is also going to go to China to attend the Summit of Shanghai Cooperation (SCO) soon. Modi will visit China after about seven years. He will take part in the SCO Summit to be held in Tianjin city, which will run from 31 August to 1 September. This will be his first visit to China after his 2020 Galwan struggle, so this tour is considered very important.
PM Modi, Donald Trump and Xi Jinping
Trump’s difficulty may increase from India-China close
If the relations between India and China are deeper, then it can increase the difficulties for America, especially Trump. The Trump government has imposed heavy tariffs on Indian goods, which has soured the relationship between India and America. Now China is taking advantage of this and is trying to strengthen its relations with India.
Experts say that due to Trump’s “America First” policy and his unilateral decisions, India is now trying to become self -sufficient and is looking towards other options. If India goes closer to China, it can weaken America’s hold in Asia. Apart from this, if India and China together retaliate against the US, then it can become even more difficult for Trump.