Wolfgang Munchau
We could call it the Big Beautiful Blunder — the ultimate diplomatic error of modern American history. First, the Biden administration inadvertently drove China and Russia closer together through sanctions and tariffs. Now, the Trump administration is driving India and Indonesia deeper into the China-Russia bloc.
The Indians don’t complain as much about Donald Trump as the Europeans do; instead, they’ve treated his tariffs as a wake-up call to reduce their reliance on the US. I am writing this column from New Delhi, where I have met with senior Indian politicians and economists. The big theme here is India’s deeper integration into the Bric group and with the countries of South East Asia. (Brics stands for Brazil, Russia, India, China and South Africa, but the group has recently expanded to include five other countries, including Indonesia and Saudi Arabia.) This strategy is not entirely new: India was already doing business with Russia, which provides its oil and military hardware. And it will continue to do so. But the dial has certainly shifted.
Perhaps the most extraordinary shift is regarding India’s relationship with China. The two nations have long been engaged in a dispute over their unmarked border in the Himalayas. In 2020, 20 Indian and four Chinese soldiers died in clashes along the disputed border in the Galwan Valley in the northern-most part of India. Flights between the two countries were suspended when the Covid pandemic struck and were never resumed. Since then, relations appear to have improved. Last Thursday, India’s largest budget airline, IndiGo, announced it would restart daily flights between Kolkata and Guangzhou. During the Shanghai Cooperation Organisation meeting in early September, China’s president Xi Jinping and India’s Prime Minister Narendra Modi started to patch up their relationship. They agreed to deescalate their border conflict, and to strengthen trade and investment ties. They both have more to gain from co-operation than from conflict.
For a long time, the joke among Western diplomats was that India’s role in the Brics was to keep a watchful eye on Russia and China, and make sure that the two were not getting too close. If that indeed was the plan, it has proven little more than Western wishful thinking. Together, the Brics’ economies are already larger than America’s, Europe’s and Japan’s combined, if you measure their economies in purchasing power as the World Bank does. According to that metric, China and India are the world’s largest and third-largest economies respectively. Each year, they are growing larger relative to the West. Two years ago, Modi set a target for India to achieve developed-nation status by 2047, the centenary of the country’s independence. To achieve it, India would need to grow by 8% every year. It’s not quite there yet — but it’s growing fast.