Modi's China visit signals shift amid US trade tensions

Saturday 30 August 2025 - 07:50

By: Dakir Madiha

Modi's China visit signals shift amid US trade tensions

Indian Prime Minister Narendra Modi is preparing for a pivotal visit to China this weekend, marking his first trip to the country in seven years. The visit comes during heightened trade tensions with the United States, as New Delhi seeks to recalibrate its foreign relations and economic strategy.

Strategic timing amid souring US ties

The visit, timed for the Shanghai Cooperation Organization (SCO) summit in Tianjin, follows Washington's decision to double tariffs on $60 billion worth of Indian exports, raising duties to 50%. The move has disrupted India’s growing strategic partnership with the US, which had been cemented by shared concerns over China’s expanding influence.

“Indian trust in the US is shattered,” said Michael Kugelman, a South Asia analyst, emphasizing that Washington may have underestimated the consequences of its tariff hike.

The fallout has provided Beijing an opportunity to strengthen ties with its regional rival. Analysts suggest the summit aligns with China’s efforts to stabilize relations with India while New Delhi reassesses its ties with Washington.

Energy and defense ties with Russia

The summit also features Russian President Vladimir Putin, underscoring Moscow’s continued importance to India’s defense and energy sectors. Despite US criticism of India’s purchase of Russian oil, New Delhi has defended the imports as critical to maintaining domestic fuel stability.

The Biden administration has framed India’s energy ties with Russia as aiding Moscow’s war efforts in Ukraine. US trade adviser Peter Navarro recently labeled India “an oil laundromat for the Kremlin,” a comment that has further strained bilateral relations.

India, however, has tread a careful diplomatic path, resisting direct criticism of Russia while advocating for peace in Ukraine.

Economic pressure and diversification

The impact of US tariffs is expected to be significant, particularly for labor-intensive sectors like textiles and jewelry. The US remains India’s largest export market, accounting for $86.5 billion annually, though two-thirds of these exports remain unaffected by the new duties.

Modi’s visit to China and Tokyo signals a strategic pivot toward diversifying economic partnerships. By engaging Beijing and Japan, India aims to mitigate the economic fallout of reduced US market access and strengthen its geopolitical standing in Asia.

For Russia and China, the summit offers an opportunity to reinforce ties with India at a time when Washington’s influence in New Delhi appears to be waning.