Filenews 13 August 2025
India and China are moving to restore their economic relations, which were disrupted after the border clash in 2020, at a time when Prime Minister Narendra Modi appears to be stepping up his contacts with BRICS countries in the wake of Donald Trump's imposition of 50 percent tariffs.
Resumption of flights and easing of trade restrictions
According to sources, India plans to resume direct flights with China from next month, a move that had been "frozen" due to the Covid-19 pandemic and tension in the Himalayas, where 20 Indian soldiers were killed. At the same time, Beijing eased restrictions on exports of urea to India, which is important for its agricultural sector.
Economic and geopolitical pressures from the White House
Trump's imposition of increased tariffs, on the occasion of purchases of Russian oil from India, and his statements about a "dead" economy, have worsened relations. The blow was considered severe, as Modi had invested politically in relations with Washington.
New partnerships with China and BRICS
The Adani Group is considering a partnership with China's BYD to produce electric vehicle batteries in India. At the same time, New Delhi is reinstating tourist visas for Chinese citizens and is preparing a possible Modi-Xi Jinping meeting on August 31 in Tianjin.
Strategic differentiation from the U.S.
Modi is strengthening ties with Russia and Brazil, inviting Vladimir Putin to India and discussing with Luis Inacio Lula da Silva the extension of the Mercosur agreement. Washington has been attempting for years to position India as a counterweight to China, but trade wars seem to be bringing Beijing and New Delhi closer.
Beijing's anti-tariff message
China's ambassador to India, Su Feihong, expressed support for Modi over the tariffs, echoing a statement by Wang Yi that called the use of tariffs "a weapon of oppression by other countries."
