Tensions between China-US have increased again with a recent US President Trump statement. There is also a talk between the representatives of the two countries to end the trade war, but the overall environment is not positive. In this case, the Chinese media is advising that taking advantage of this trade war, India should increase its business with China.
An article in China's official newspaper, Global Times, states that a growing distance between the US and China can lead to better economic relations between India and China. India is one of the few countries that can take advantage of the decline in import of American products in the Chinese market.
US President Trump tweeted yesterday on the prospect of a trade agreement with China that he would increase the tariff on Chinese goods, which means import duty. With this announcement, global markets started to decline and after this, a huge fluctuation was seen.
Trump wrote in this tweet – For the last 10 months, China has given 10 percent tariffs to US $ 25 billion and $ 200 billion on other items worth $ 50 billion. This payment is somewhat responsible for our tremendous economic consequences. This 10 percent will now increase from Friday to 25 percent. There is no tax on additional items of $ 325 billion sent to China, but now they will be charged 25 percent tax.
Significantly, there has been a meeting between India and China officials on Thursday, in which both the countries have been considering increasing the export of agricultural commodities and other products.
The article says, "India has not been able to exploit the full potential of export of agriculture and electronics products in China. In China and the United States, the trade war increased, China could impose counter-tariff on US imports from such a number of commodities. China is fully prepared to protect itself against any potential loss of imposing a one-way tariff by the US. If the trade war reduces the supply of agricultural products, it will be an opportunity for Make in India products.
China is one of the largest trading partners for India, but this trade is tilted towards China, which is worried about India.
