India, China are Asia’s double engines; Beijing backs Delhi against Trump’s tariffs

India, China are Asia's double engines

India, China are Asia’s double engines China has extended support to India amid escalating trade tensions with the United States, following former US President Donald Trump’s renewed push for steep tariffs on Asian exports. Calling India and China the “double engines of Asia’s growth,” Beijing emphasized the need for both nations to stand united in protecting their economic interests and resisting protectionist measures from the West.


Beijing’s Strong Words on Tariffs : India, China are Asia’s double engines

Chinese Foreign Ministry spokesperson stated that Washington’s tariff-driven trade policy could have a “destabilizing effect” on global supply chains, particularly in emerging economies.

“India and China are Asia’s double engines. Both countries are vital contributors to global economic stability. It is in our common interest to oppose unilateral tariffs and maintain open trade,” the spokesperson said.

This is the first time in recent years that China has openly backed India on a trade dispute involving the United States, signaling a shift in Beijing’s diplomatic messaging.


Trump’s Tariff Push India, China are Asia’s double engines

Donald Trump, in his latest remarks during a campaign event, vowed to impose tariffs as high as 50% on imports from Asian nations, including India and China, accusing them of unfair trade practices.

The announcement rattled markets, with concerns that a new wave of tariffs could trigger another trade war, similar to the 2018–19 standoff between Washington and Beijing. India, too, has been under the radar for its growing exports of steel, pharmaceuticals, and IT services to the US.


India’s Response

New Delhi has so far maintained a cautious approach. Commerce Ministry officials said India will “closely monitor developments” while also exploring ways to diversify export markets.

Experts argue that India cannot afford a sharp escalation with the US, its largest trading partner, but may benefit from regional cooperation with China and other Asian economies to counterbalance tariff shocks. India, China are Asia’s double engines


Economic Stakes for Asia

  • India’s exports to the US touched $118 billion in FY 2024, with major contributions from gems & jewelry, textiles, IT, and pharmaceuticals.

  • China, despite sanctions, remains the largest exporter to the US, accounting for nearly 15% of total US imports.

  • Both economies combined contribute to over one-third of Asia’s GDP growth.

Economists warn that steep tariffs would increase costs for American consumers, while also disrupting Asian supply chains.


India-China Equation: Competition or Cooperation?  India, China are Asia’s double engines

While India and China have historically shared an uneasy relationship due to border disputes and strategic rivalries, the current scenario has opened a window for cooperation on trade issues.

Analysts say that Beijing’s support may be tactical, aimed at rallying Asian economies against US pressure. However, it also underscores a recognition that India’s rise is vital for Asia’s stability.

Despite their differences, India and China share common ground when it comes to resisting unilateral trade actions from the West. This cooperation could be issue-based, not long-term strategic alignment,” said an international trade analyst.


Global Reaction

The European Union and ASEAN have also voiced concerns over Trump’s tariff rhetoric, warning that protectionist policies could trigger a global economic slowdown. The World Trade Organization (WTO) has already cautioned that such unilateral measures undermine rules-based global trade systems.


Way Forward India, China are Asia’s double engines

Both India and China are expected to engage in bilateral discussions and coordinate positions in multilateral forums such as the BRICS, SCO, and G20, where tariff issues may dominate agendas.

For India, experts suggest three key strategies:

  1. Strengthening domestic manufacturing under the Atmanirbhar Bharat initiative.

  2. Diversifying export destinations to reduce dependency on the US market.

  3. Building regional trade coalitions, including cooperation with China where interests align.


Conclusion

The unexpected backing from Beijing highlights how shifting global dynamics are reshaping alliances. While deep-seated issues remain between India and China, the immediate challenge posed by Trump’s tariff threats may temporarily unite Asia’s two largest economies.

As Beijing put it:

“When Asia’s two engines run together, the world economy moves forward. It is time to prioritize cooperation over confrontation.”

The coming months will reveal whether this India–China trade alignment is a short-term tactical move or the beginning of a new chapter in Asian economic diplomacy.

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