Chinese ambassador to India, Xu Feihong, issued a strong denunciation against the United States for imposing high tariffs on India, labeling the US as a "bully" in a speech delivered at an event in New Delhi on Thursday. Xu urged for a stronger collaboration between India and China, asserting that the US has manipulated free trade to impose "exorbitant prices" on other countries.
In a pointed remark, he noted that the US has levied tariffs as high as 50% against India, even threatening further increases. "The US puts tariffs up to 50% on India and we firmly oppose it; silence on such matters only emboldens the bully," Xu stated.
This week also marked the enforcement of a 25% tariff on India by the Trump administration, in addition to an existing 25% tariff on Indian purchases of oil and military supplies from Russia. This latest measure is set to take effect on August 27. The rapid acquisition of cheaper Russian oil by India in light of the Ukraine war has resulted in escalating tensions between New Delhi and Washington and has complicated ongoing trade negotiations.
India has defended its decision to purchase Russian oil, stating that as a significant energy importer, it is essential to procure the most affordable crude to shield its impoverished population from soaring prices. Moreover, it has been suggested that the Biden administration had previously encouraged India to source Russian oil to help stabilize global energy markets.
Amidst its fractious trade relations with the US, a notable thawing is observed in India-China ties, which had soured significantly following violent border clashes in Galwan in Ladakh in 2020. Recently, Chinese Foreign Minister Wang Yi visited New Delhi for two days, during which he advocated for both nations to see each other as "partners" over adversaries.
Echoing these sentiments, Xu remarked that India and China should act as "double engines" powering Asia’s economy, adding that unity between the two nations could have beneficial implications for the global community. He also extended an invitation for Indian companies to invest in China and highlighted the need for India to provide a "fair and just business environment" for Chinese businesses to thrive in India.
Xu further underscored the current turmoil wrought by tariff and trade wars, which he asserted are undermining the global economic framework. He reaffirmed China’s commitment to standing alongside India in supporting a multilateral trading system anchored by the World Trade Organization (WTO). Looking ahead, he expressed optimism that Prime Minister Narendra Modi's forthcoming visit to China for the Shanghai Cooperation Organisation summit would inject fresh momentum into India-China relations.
