New beginning against Trump; world is eagerly awaiting Modi-Xi Jinping meeting
NEW DELHI: India and China are putting aside their animosity to confront the huge tariffs imposed by Trump on the pretext of being a world leader. The world is looking seriously at the meeting between Prime Minister Narendra Modi and Chinese President Xi Jinping. The meeting, which is likely to take place in China today on the sidelines of the Shanghai Summit, may lead to the idea of a new economic alliance against the US.
Modi arrived in China yesterday and will be there today and tomorrow. He will also hold talks with Russian President Vladimir Putin. Trump imposed a 50% import duty on India in the name of India buying Russian oil. Prime Minister Narendra Modi on Friday said in Japan that India is ready to unite with China.
It is expected that the Modi-Xi meeting will lead to an agreement to reduce border tensions and strengthen trade and people-to-people ties. This is a continuation of the two meeting in Kazan, Russia in October 2024. Modi is visiting China after seven years. At the same time, there is no possibility of major announcements. Long-term agreements are expected. The discussion is unlikely to go into defence and border disputes.
Issues that can be agreed upon
- Indian electric vehicles in the Chinese market
- More Chinese products in the Indian market
- Bringing the supply chain to the pre-2020 state
- Raw materials for pharmaceutical manufacturing from China
- Complete removal of visa barriers, direct flight services
- Agreement on sharing water in border rivers
- Lifting the ban on TikTok and other things in India
- Investment, export; decision not imminent
Investment, Exports; decision not soon
There is a demand to lift the ban on Chinese investments imposed as the border conflict worsened. India will not accept the Chinese demand of 51% investment. There are indications that 25% investment may be allowed in sectors such as construction, energy, and auto components. While imports from China to India have increased, exports have fallen. India will demand that this gap be reduced. China may not accept it soon.
India's Demand
China has 80% of the rare earths needed to manufacture vehicles, mobile phones, and solar panels. India will seek relaxation in the restrictions imposed by China on its exports.