Amid Trump’s commercial war … the return of warmth between India and China

India and China have a complex relationship; They are the two largest populations in the world, and are directly competitive over regional influence. After a border war in the 1960s, relations deteriorated after bloody clashes in 2020. Nevertheless, the two countries continue their growing economic relations that have become a vital artery for both parties.

According to a report by “Bloomberg”, it is clear that each party has the need for the other since US President Donald Trump launched its trade war against the two countries, which led them to intensify efforts to reform relations. Indian Prime Minister Narendra Modi is preparing to visit China for the first time in seven years, on August 31, to attend a major summit that may constitute a new station in this volatile relationship. How does India need China?
– India imported in 2024 electronics and electrical equipment worth $ 48 billion from China, showing its great dependence on Chinese components to collect electronic devices.
Indian drug industry imports most effective components of China.
India also depends on the supply of rare metal magnets from China, which is necessary for the electric car and renewable energy sector, and Chinese restrictions have negatively affected this sector.
India needs Chinese technology in electric car batteries and storing clean energy to meet the needs of 1.4 billion people. What is China’s need for India?
China sees in the Indian consumer market an opportunity to make up for its domestic growth.
In 2024, India imported about 156 million smartphones, making the Indian market a major target for Chinese companies such as Xiaomi, Vivo and Oppo.
India is the third largest car market in the world, and Chinese companies such as BYD target acquisition of 40% of the Indian market.
– major Chinese technology companies such as Ali Baba and Tinetnet pumped huge investments in Indian startups such as by Bayteim, and Ola Electric, goals and common interests
China has technology, capital and infrastructure, while India has a huge market and a working force.
– Vision “Advanced India 2047” requires Chinese investments and technologies.
Cooperation reduces the effects of US customs duties on India and China.
– Economic integration contributes to regional stability and relieves the risks of border military conflicts. Professor of international relations Dr. Mohamed Atif considered that the economic relationship between the two countries “constitutes a vital axis amid geopolitical transformations”, stressing that this cooperation opens new horizons for regional stability in light of the slowdown in global growth and Washington pressures.