Preparing to Strengthen Trade Relations with China

09-Jan-2026 08:14 PM

New Delhi. Amidst growing tensions with the United States, India has now planned to strengthen trade relations with BRICS member countries such as China, Russia, Brazil, and South Africa, and has already begun preparations. If the bill imposing a 500 percent tariff is passed in the US, India will have only two options: either face this extremely high tariff or stop importing crude oil from Russia.

Both positions are quite difficult. India would not want to sour relations with Russia by stopping crude oil imports, as Russia is a true friend of India, while the US makes friends or enemies with countries solely for its own benefit and self-interest.

Meanwhile, India may consider resuming border trade with its neighbor, China. China has indicated that it is ready to increase bilateral trade with India. Currently, this bilateral trade is heavily skewed in China's favor.

The Indian government is well aware of the fact that China, like the US, cannot be a reliable friend, and if the US imposes a 500 percent tariff on Chinese goods, China will certainly make every possible effort to increase its exports to a large market like India.

It is said that China is not as strong internally as it pretends to be externally. A 500 percent tariff in the US would hit China harder than India.

Therefore, India needs to be very cautious while resuming border trade with China. Relations with China need to be tested on many parameters. India should increase its exports to China, while simultaneously trying to reduce imports from there.