Chinese Ambassador to India, Xu Feihong, has voiced strong opposition to the United States' imposition of tariffs on India, labeling Washington's actions as "bullying." Speaking at an event in Delhi on Thursday, Xu urged both countries to enhance their cooperation amidst rising trade tensions globally.
Xu emphasized that the US, which has long enjoyed free trade advantages, is now leveraging tariffs as a "bargaining chip" to extract "exorbitant prices" from other nations, specifically pointing to the steep tariffs that have reached up to 50% on Indian products. "Silence only emboldens the bully," he asserted, strongly condemning Washington's approach.
Earlier this month, the US government announced a 25% penalty on Indian imports while simultaneously imposing a 25% tariff on India's purchases of oil and weapons from Russia. This new rate is slated to take effect on August 27. India's increased acquisition of affordable Russian crude oil since the onset of the Ukraine conflict has strained its partnership with the US, complicating ongoing trade negotiations.
In retaliation, India has maintained that its energy needs mandate sourcing the least expensive oil to shield its low-income population from rising prices. Moreover, Indian leaders have noted that the Biden administration had previously encouraged India to procure Russian oil to stabilize global energy markets.
While relations between India and the US appear to be cooling, recent developments indicate a warming trend between India and China. The bilateral relationship deteriorated following the clashes in Galwan, Ladakh, in 2020. However, recent diplomatic gestures suggest both nations are striving to normalize ties; for instance, Chinese Foreign Minister Wang Yi's visit to Delhi earlier this week, during which he encouraged India and China to approach each other as "partners."
Xu echoed this sentiment during his recent remarks, highlighting that India and China serve as "double engines" for economic growth in Asia, expressing hope that their unity would yield benefits for the global community. He called upon Indian businesses to engage in investment opportunities in China, advocating for a "fair, just, and non-discriminatory" environment for Chinese enterprises operating within India.
Highlighting the broader implications of tariff disputes, Xu remarked that the turbulence caused by trade wars and power politics disrupts international markets, stressing the importance of upholding the multilateral trading system centered around the World Trade Organisation (WTO). He further indicated that Indian Prime Minister Narendra Modi's forthcoming visit to China for the Shanghai Cooperation Organisation summit could serve as a catalyst for revitalizing China-India relations moving forward.
