This is a crucial week for the trade row between the US and China, during which their differences can be taken as a chance to forge closer economic ties between China and India. The South Asian nation is among a handful of countries that can fill gaps in the Chinese market left by US products.
There’s a strong willingness to cooperate on the Indian side. The Hindu Business Line reported that officials from the two countries had scheduled a meeting on Thursday in New Delhi to discuss ways to increase China’s imports of agricultural commodities and certain other goods from India.
India’s export potential in fields such as agriculture and electronic products is still far from being fully realized. Many of those goods are likely to be on the list of retaliatory tariffs that will probably be imposed by China against the US if the trade row escalates.
China is fully prepared to defend its interests and hit back against possible unilateral tariff increases by the US.
If some agricultural products are in short supply due to the trade row, this will be an opportunity for made-in-India products to increase their market share in China.
India has won market access in China in recent years for sugar, rice, grapes, and a range of other products. The opening-up of China’s domestic market to Indian products is set to continue, helping to narrow India’s trade deficit with China.
China is one of India’s biggest trading partners but the huge trade deficit has been a cause of concern for New Delhi. This is a key issue that bilateral relations face today. China will be glad to see that India further cuts its trade deficit and boosts the sound development of bilateral relations.
The trade row with the US offers a chance to stave off a chronic disease in China-India relations.
Not only India but also many other developing countries in Asia can benefit from the trade tensions between China and the US. There is an urgent need for China to find alternatives to products made in the US by granting more market access to other countries, especially those along the routes of the Belt and Road Initiative.