Harsh V. Pant
On July 30, U.S. President Donald Trump announced that he was imposing 25 percent tariffs on goods from India. This trade war escalation comes amid New Delhi’s efforts to improve its economic ties with China as well as accusations that such moves reflect India’s “submission” to Beijing. There have indeed been striking shifts in the triangular dynamic between the United States, China, and India. Trump has given some signals of moving closer to China, prompting New Delhi to find its own balance between Washington and Beijing. But it would be a mistake to see the recent Indian outreach to China as an Indian concession driven by strategic frailty.
Rather, it is a form of tactical accommodation to evolving geopolitical realities. New Delhi’s engagement with Beijing is aimed at achieving concrete economic benefits without compromising core security interests. ndia’s economic ties with China have been frozen since the 2020 border clashes in Galwan and the military standoff that ensued. At that time, India responded to Beijing’s bid to unilaterally change the status quo on the Line of Actual Control (LAC) by declaring that business as usual between the two countries was over.
More than 300 Chinese apps, including TikTok, were banned, and Chinese telecoms were restricted from the rollout of 5G services in India. Additionally, the government mandated that companies based in nations that shared a land border with India could only invest after obtaining official government permission. In October 2024, however, the two countries decided to defuse the situation, and Indian Prime Minister Narendra Modi and Chinese President Xi Jinping met for the first time in five years on the sidelines of that year’s BRICS leaders’ summit. India interpreted the resulting understanding between the two countries as a win.
The Indian Army secured the ability to patrol key points along the border, and Indian herders were able to resume grazing. By accepting renewed Indian patrol, the Chinese side stepped back from its efforts to impose new facts on ground. Furthermore, after five years, China has again allowed pilgrims from India to resume visiting Mount Kailash and the Mansarovar and Rakshastal lakes. India, in return, has resumed issuing tourist visas to Chinese nationals. Beyond this, media and civil society exchanges are taking place regularly again, and talks are underway to restore direct flights between Indian and Chinese cities.