By Iain Marlow
The prospect of a trade war between China and the U.S. elicits frequent warnings of the risk to the global economy. India sees it somewhat differently.
Senior officials in Prime Minister Narendra Modi’s party say India stands to benefit from the tensions. President Xi Jinping will need India’s huge market as President Donald Trump threatens punitive measures against Chinese manufacturers and U.S. firms that produce goods offshore, according to Seshadri Chari, a national executive member of the Bharatiya Janata Party.
The requirement for Beijing to maintain economic growth and domestic political stability also gives New Delhi geopolitical leverage as it seeks to counteract China’s inroads in South Asia, including in Pakistan, he said.
"China’s production strength requires a market, and the U.S. is no longer a Chinese market," Chari said in an interview. "China at this stage cannot risk a meltdown in its economy. It’s too politically risky for Xi Jinping. They need a big market. And in Asia, we are the largest market."
China and the U.S. have both indicated they are keen to avoid a full-blown trade war, and Trump is yet to follow through on campaign pledges to take action against Beijing. But with Trump meeting Xi on Friday after a renewed bout of Twitter criticism and a pledge to review U.S. trade deficits, the future of the trade relationship is unclear.
The prospect of a trade war between China and the U.S. elicits frequent warnings of the risk to the global economy. India sees it somewhat differently.
Senior officials in Prime Minister Narendra Modi’s party say India stands to benefit from the tensions. President Xi Jinping will need India’s huge market as President Donald Trump threatens punitive measures against Chinese manufacturers and U.S. firms that produce goods offshore, according to Seshadri Chari, a national executive member of the Bharatiya Janata Party.
The requirement for Beijing to maintain economic growth and domestic political stability also gives New Delhi geopolitical leverage as it seeks to counteract China’s inroads in South Asia, including in Pakistan, he said.
"China’s production strength requires a market, and the U.S. is no longer a Chinese market," Chari said in an interview. "China at this stage cannot risk a meltdown in its economy. It’s too politically risky for Xi Jinping. They need a big market. And in Asia, we are the largest market."
China and the U.S. have both indicated they are keen to avoid a full-blown trade war, and Trump is yet to follow through on campaign pledges to take action against Beijing. But with Trump meeting Xi on Friday after a renewed bout of Twitter criticism and a pledge to review U.S. trade deficits, the future of the trade relationship is unclear.
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