Modi's China visit 1st since 2019 amid US tariff row
What's the story
Prime Minister Narendra Modi has arrived in China, his first visit to the country in over seven years. The visit comes at a time when India-US relations have soured over Washington's decision to double tariffs on Indian exports. The tariffs, which now stand at 50%, were imposed after India's continued purchase of Russian oil. This has led India to look for new trade partners and strengthen existing ties with other countries, including China.
Diplomatic engagement
Modi to meet Xi, discuss economic ties
Modi's visit to China is primarily to attend the Shanghai Cooperation Organisation (SCO) summit in Tianjin on August 31-September 1. He is also scheduled to meet Chinese President Xi Jinping on Sunday, where they will discuss India-China economic ties and ways to normalize relations strained by the eastern Ladakh border dispute. This meeting comes after recent talks between Chinese Foreign Minister Wang Yi and Indian officials.
Recent travels
Modi's Japan visit ahead of China trip
Before arriving in China, Modi visited Japan for an India-Japan summit. During his time in Tokyo, he met Japanese Prime Minister Fumio Kishida and discussed strengthening defense, technology, and investment ties. This visit is seen as a strategic move by India to cushion the impact of the loss of US market access due to tariffs.
Trade diversification
India diversifies trade partnerships amid US tariff challenges
The US tariffs have hit India's export market hard, especially in labor-intensive sectors like textiles and jewelry. In response, India has launched an export drive across 40 countries to boost its textile trade. Despite these challenges with the US, Indian officials emphasize their desire to continue ties with Washington while diversifying partnerships globally.