logo
How China, its media reacted to India-US tariff row: ‘Dragon and elephant dancing together'

How China, its media reacted to India-US tariff row: ‘Dragon and elephant dancing together'

Mint5 hours ago
The old saying "दुश्मन का दुश्मन दोस्त होता है [the enemy of my enemy is my friend]" seems to make sense when looking at India, China, and the US today. With both India and China sharing concerns about the US, they may seem closer than before.
Recently, US President Donald Trump doubled the US tariffs on imported Indian goods to 50 per cent, penalising India for buying oil from Russia. China, another big purchaser of Russian oil, faces over 50 per cent tariffs (including reciprocal tariffs, fentanyl trade-related tariffs, and other levies).
Trump's salvo, which started with China as the target, is now on course to "single" out India over Russian purchases. This has prompted speculation that New Delhi may now shift its approach towards China. Many even believe that China has softened its stance towards India.
Until now, India's ties with the US were seen through China prism.
But is this really the case? Is India finding an "unlikely ally" in China? Several opinion pieces and the tone of Chinese media can offer some insight into this aspect. Here we dissect what Chinese media is saying about the US's additional 25% tariff on India.
Apart from the tariff threats, what has grabbed attention in India, China, and the US is Indian Prime Minister Narendra Modi's expected visit to China — the "first in seven years" if reports hold true.
The news has sparked debate about whether "the US is now pushing India into the arms of China." Back in April-- when Trump had first announced reciprocal tariffs, the Washington Post had reported: 'India edges closer to China, hedging against Trump's unpredictability.'
In a March article, think tank Modern Diplomacy analysed the India-US-China ties, claiming that 'Trump is not the reason for the reconciliation between China and India, but he has become a cheerleader for their renewed friendship.'
Meanwhile, US magazine The Diplomat recently commented on the India-China ties, saying, 'The trend in the past decade has seen the two neighbours [India and China] embracing each other and then falling out... the time has come again for them to explore yet another round of engagement.'
A report in China's state media, Global Times, noted that "some Western media outlets have interpreted Modi's visit as an attempt to 'hedge against' the US." It, however, contended that "such a view is rather one-sided."
Several Chinese media articles highlighted "long-standing friendly exchanges" — and not long-standing disputes — between India and China.
One article even tried to explain the "deepening cooperation" between India and China through the upcoming Shanghai Cooperation Organisation (SCO) meeting and potential PM Modi's presence with a Hindu proverb that says, "Help your brother's boat across, and your own will reach the shore."
The author of the opinion piece welcomed PM Modi to China "with genuine intentions to improve bilateral ties and pragmatic cooperation plans, and to jointly usher in a new chapter of 'the dragon and the elephant dancing together.'
A Global Times report on August 7 cited an analyst as saying that India's illusion that the US would treat it with exceptional favour was shattered.
"Now, it seems this illusion has been shattered. India comes to realise that the two nations are not in the equal partnership India had previously imagined," Xie Chao, an assistant professor of Indian studies at Tsinghua University, was quoted as saying.
Another report by the Chinese media outlet focused on "reviving China-Russia-India trilateral cooperation [RIC]". It "must transcend symbolism," the report read.
It argued that "for all three [nations], it represents a strategic opportunity to unite against external sanctions pressure, reaffirm foreign policy autonomy and advance a multipolar order."
The report noted that the "key" to restarting RIC lies with India, presenting both the primary challenge and opportunity."
The Chinese foreign ministry criticised Trump's tariffs against India, saying, 'China's opposition to the abuse of tariffs is consistent and clear.'
Meanwhile, China's Ambassador to India Xu Feihong took potshot at the US. "Give the bully an inch, he will take a mile," he said in a post on X.
India and China have often engaged in long-standing disputes over border, and Beijing's presence in the Indian Ocean region (IOR). The India-China ties hit a low in 2020 after the standoff between Indian and Chinese troops along the Line of Actual Control (LAC) in Ladakh's Galwan Valley.
However, reports about PM Modi's visit to China for the multilateral Shanghai Cooperation Organisation (SCO) meet are seen as a sign of a diplomatic thaw with Beijing as tensions with the US rise. It also sparked hopes of reconciliation and improved bilateral ties.
However, neither Indian nor Chinese officials confirmed PM Modi's visit.
Since June this year, National Security Advisor Ajit Doval, Defence Minister Rajnath Singh and External Affairs Minister Subrahmanyam Jaishankar have visited China, exhibiting diplomatic engagement rarely seen in recent years.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Soon, Americans will be paying for Trump's tariff war
Soon, Americans will be paying for Trump's tariff war

Economic Times

time25 minutes ago

  • Economic Times

Soon, Americans will be paying for Trump's tariff war

NYT News Service President Donald Trump Tariffs imposed by US President Donald Trump on dozens of countries, which came into effect on August 7, are touted as some kind of economic justice. Trump has claimed other countries will pay these tarifs, presenting them as a mechanism to balance trade deficits, punish unfair trade practices and bring back American jobs. The Trump administration collected nearly $30 billion in tariff revenue last month, according to the Treasury Department. That's a 242% jump in tariff revenue compared to last July. Since April, when Trump began imposing a 10% tariff across nearly all goods, among several other steeper levies that followed, the government collected a total of $100 billion in tariff revenue, three times the amount collected during the same four months last year. Trump is now playing with the idea of distributing some of the tariff revenue among taxpayers as rebate checks. 'We're taking in so much money that we may very well make a dividend to the people of America,' Trump said a few days what Trump is hiding from Americans is that his tariff revenue is not being paid by other countries but American companies as a tax on goods they import from other countries, and soon they will be shifting this burden to American consumers. Who is paying billions in tariffs?A tariff is essentially a tax imposed by a government on imported goods. When the US imposes a tariff, the tax is not charged to a foreign government or exporter directly. Instead, it is levied on goods as they enter the country, at the point of importation. The party responsible for paying the tariff is the American company that imports the product. The foreign exporter has no legal obligation to pay this tax, nor is it charged at the point of export. This reality stands in direct contradiction to President Trump's frequent assertion that China or other foreign countries are paying the the importer is the one who pays the tariff upfront, the economic impact does not stop there. Tariffs act like a cost increase in the supply chain. American importers must decide how to absorb this new cost. In some cases, they may try to pressure foreign suppliers to lower their prices to offset the tariff, and occasionally, exporters will agree to partial discounts to maintain market access. However, this is not guaranteed and depends heavily on the competitiveness of the market and the elasticity of demand. More often, the increased costs are passed downstream. Importers may raise prices for wholesalers and distributors, who in turn pass the costs along to retailers. Ultimately, it is American consumers who feel the impact in the form of higher prices on everyday goods. Why have prices not gone up so far? So far, several short-term shock absorbers have kept consumer prices in check. Companies were reluctant to be the first to raise prices for fear of losing customers to competitors. Businesses rushed to import goods in bulk before the tariffs went into effect, building up stockpiles that delayed the financial firms temporarily absorbed the cost hikes to maintain customer loyalty and market share. However, these are short-term strategies that companies cannot sustain. As inventories dwindle and operational costs climb, businesses are bound to pass on the increased costs to consumers. "Even if they might not raise prices immediately, it's unlikely that most businesses are just going to be willing to eat the extra costs forever," Matt Schulz, chief consumer finance analyst at LendingTree, an online lending marketplace, told CBS MoneyWatch. The impact of tariffs on consumer prices was initially muted, explained Shulz, as firms can be reluctant to be the first among their competitors to institute price hikes. While some companies waited to see where tariff rates settled before adjusting retail prices, others took steps to absorb added costs to avoid turning off customers. But companies can't employ such measures forever, according to experts. "You don't want to be the first to raise prices, even if you have a perfectly legitimate reason for doing so," Schulz told CBS MoneyWatch. "So, I suspect once we see businesses start raising their prices more, that might embolden others to do so as well." The domino effect: From company costs to consumer wallets With import prices rising due to the tariffs, companies will be passing those costs onto consumers. For example, consumer electronics and appliances -- industries heavily reliant on global supply chains -- are experiencing increased production costs. Retail and apparel sectors are especially vulnerable, as many depend on low-cost imported materials and finished products. Automobile manufacturers are being hit by both raw material tariffs (like on steel and aluminum) and finished parts, creating price pressures across new car sales and maintenance services. Companies are dealing with tariffs in various ways, AP has reported. Many automakers appear to be swallowing tariff costs for now. But the world's largest eyewear maker, EssilorLuxottica, said it raised US prices due to tariffs, as per the AP report. The maker of Ray-Bans grinds lenses and sunglasses in Mexico, Thailand and China and exports premium frames from Italy. 'Retailers have been able to hold the line on pricing so far, but the new tariffs will impact merchandise in the coming weeks,' David French, chief lobbyist for the National Retail Federation, the nation's largest retail trade group, told AP a week ago. 'We have heard directly from small retailers who are concerned about their ability to stay in business in the face of these unsustainable tariff rates.' As per a CBS News report, 76% of Texas manufacturers said they plan to pass tariff-related costs to consumers, while 50% say they will absorb costs internally, according to recent survey data from Apollo Global Management chief economist Torsten Sløk and the Federal Reserve Bank of Dallas. Large retailers have also warned that steep new levies on U.S. imports are likely to drive up prices. "The bottom line is that inflation will be rising significantly over the next six months," Sløk wrote in a recent blog post. In a recent EY survey of over 4,000 executives, two-thirds of respondents said they might have to pass tariff costs on to customers. More than 3 in 10 participants were willing to take it a step further and pass over 90% of the additional expense to shoppers, the poll found. The Center for American Progress, a nonpartisan policy institute based in Washington, D.C., notes that the economic fallout from the Trump administration's tariffs will fall largely on low- and middle-income consumers. The levies could cost households an average of $5,200 every year, according to the nonpartisan think tank. As per the Budget Lab at Yale, the price level from all 2025 tariffs rises by 1.8% in the short run, the equivalent of an average per household income loss of $2,400 in 2025. Ernie Tedeschi of The Budget Lab has told CNBC that American consumers are likely to absorb 80-90% of tariffs costs in the next few months, with foreign producers absorbing very little. Executives from companies like Adidas, Stanley Black & Decker and Procter & Gamble have told investors that they plan to or have already passed on some tariff costs to customers, NYT reported. Walmart and the toymakers Mattel and Hasbro had already issued similar warnings that tariffs were likely to lead to higher costs for consumers. Chipotle Mexican Grill and McDonald's executives have pointed to early signs of strain among lower-income US households as spending at restaurants and on travel has begun to slow. Americans could see inflation tick higher in 2025 as businesses start to pass on the cost of the Trump administration's tariffs to consumers through price hikes, Beth Hammack, president and CEO of the Federal Reserve Bank of Cleveland, told CBS News' Kelly O'Grady in a recent interview. Hammack said inflation could reach a 3% annual rate this year, representing a pace that would be 1 percentage point higher than the Fed's goal of a 2% annualized rate. 'People may increasingly rely on debt to maintain their lifestyles,' Shikha Jain, lead partner for consumer and retail in North America at the consulting firm Simon-Kucher, told NYT. 'That inflationary cycle could feed itself, creating a vicious loop of scarcity and cost increases.'Despite Trump's political rhetoric, the economic facts are stark: tariffs are mostly paid by Americans themselves -- first by companies, then by consumers. While the goal of strengthening domestic industry and correcting trade imbalances is valid, tariffs as a blunt policy instrument often backfire by raising costs at home. In the end, Trump's 'America First' trade war may hit hardest not in Beijing or Bengaluru but in Boston and Bakersfield, as American families face higher prices and fewer choices. (With inputs from agencies)

Big move by India as PM Modi speaks to Russian President Putin amid Trump's tariff war over Russian oil, discuss plan to...
Big move by India as PM Modi speaks to Russian President Putin amid Trump's tariff war over Russian oil, discuss plan to...

India.com

time27 minutes ago

  • India.com

Big move by India as PM Modi speaks to Russian President Putin amid Trump's tariff war over Russian oil, discuss plan to...

PM Modi and Putin- File image New Delhi: Prime Minister Narendra Modi on Friday spoke to Russian President Vladimir Putin over phone and the two leaders reaffirmed their commitment to further deepening the India-Russia Special and Privileged Strategic Partnership. Putin briefed Modi on his country's ongoing conflict with Ukraine, with the prime minister reiterating India's consistent position for the peaceful resolution of the issue. The conversation between the two leaders came amid US President Donald Trump ratcheting up pressure on India over its purchase of Russian oil. Trump on Wednesday signed an executive order, slapping an additional 25 per cent levy on India for New Delhi's purchases of Russian oil, bringing the total duties to 50 per cent — among the highest imposed by the US on any country in the world. The additional 25 per cent duty will come into effect on August 27. In a post on X, Modi said, 'Had a very good and detailed conversation with my friend President Putin. I thanked him for sharing the latest developments on Ukraine. We also reviewed the progress in our bilateral agenda, and reaffirmed our commitment to further deepen the India-Russia Special and Privileged Strategic Partnership. I look forward to hosting President Putin in India later this year.' It will be the 23rd India-Russia Annual Summit. Modi on Thursday received a phone call from Brazilian President Luiz Inácio Lula da Silva, whose country has also been at the receiving end of Trump's tariffs, and the two leaders agreed to enhance cooperation in trade, technology, energy, defence, agriculture, health, and people-to-people ties.

Angad Cheema Clinches PGTI's Coal India Open 2025 with Commanding Finish in Ahmedabad
Angad Cheema Clinches PGTI's Coal India Open 2025 with Commanding Finish in Ahmedabad

Business Standard

time27 minutes ago

  • Business Standard

Angad Cheema Clinches PGTI's Coal India Open 2025 with Commanding Finish in Ahmedabad

PNN New Delhi [India], August 8: Angad Cheema has emerged victorious at the Coal India Open Our 2025, closing out a dramatic final round with a solid 2-under 70, taking his aggregate score to 13-under 275. His composed performance across four rounds earned him a well-deserved win at the season-opening event of the Professional Golf Tour of India (PGTI), hosted in Ahmedabad. Cheema led from the front, maintaining his calm under mounting pressure from top contenders. Despite a charge from Amardeep Malik, who had set the pace earlier in the tournament, Cheema held his ground. Malik carded a 73 in the final round, finishing second at 9-under 279, four shots behind the champion. The battle for third was a tight one, with Shaurya Bhattacharya and Udayan Mane both finishing at 7-under 281, following identical final rounds of 70 and 71, respectively. Yuvraj Sandhu continued his consistent play and took fifth place at -6, just one stroke back. Notable leaderboard movements saw Karandeep Kochhar and Arjun Prasad slip down after challenging rounds, while Ravi Kumar surged nine spots upward with the day's joint-best 69, finishing tied for 8th with Om Prakash Chouhan at -2. The tournament, backed by Coal India in celebration of its 50 years of unearthing energy, kicked off the 2025 PGTI season in grand style. With President Kapil Dev and CEO Amandeep Singh Johl at the helm, PGTI continues to provide a thriving platform for India's finest golfing talents. The event also enjoyed strong corporate support from brands like Amul, Campa, IndusInd Bank, Rolex, Electro+, Victorious Choice, and more -- underlining the commercial momentum behind Indian golf.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store