The Indian Prime Minister, Narendra Modi, will visit China for the first time in more than seven years, a government source said on Wednesday, in an additional signal of a diplomatic thaw with Beijing as the increase in tensions with the United States.
Modi will go to China for a summit of the multilateral cooperation organization of Shanghai (SCO) that begins on August 31, the source of the government, with direct knowledge of the matter, he told Tel. Reuters. The Indian Foreign Ministry did not immediately respond to a request for comments.
His trip will arrive at a time when India’s relationship with the United States faces his most serious crisis in years after President Donald Trump imposed the highest rates among Asian peers on the imported goods of India, and has threatened a penalty not specified by the purchases of New Delhi of Russian oil.
Modi’s visit to the Chinese city of Tianjin for the SCO Summit, a European political and security group that includes Russia, will be the first since June 2018. Subsequently, the Chinese ties deteriorated sharply after a military clash along its disputed border with the Himalayas in 2020.
Modi and the Chinese president, Xi Jinping, held conversations outside a BRICS summit in Russia in October that led to a thaw. Giant Asian neighbors are now slowly deactivating tensions that have hindered commercial relations and trips between the two countries.
Trump has threatened to collect an additional rate of 10 % on the imports of the members, which include India, of the BRICS group of the main emerging economies for “aligning with anti -American policies.”
Trump said Wednesday that his administration would decide on the penalty for buying Russian oil after the result of the United States efforts to seek a last minute advance that would generate fire in the war in Ukraine.
Trump’s best diplomatic envoy, Steve Witkoff, is in Moscow, two days before the expiration of a deadline that the president established for Russia to accept peace in Ukraine or face new sanctions.
Meanwhile, the National Security Advisor of India, Ajit Doval, is in Russia in a scheduled visit and is expected to discuss Russian oil purchases from India following Trump’s pressure on India to stop buying the Russian crude, according to another source of the government, which did not want to be named.
It is likely that Doval addresses the Defense Cooperation of India with Russia, including obtaining faster access to pending exports to the S400 Air Defense System of Moscow, and a possible visit from President Vladimir Putin to India.
Doval’s trip will be followed by Foreign Minister, Subrahmanyam Jaishankar, in the coming weeks.
Export impact
American and Indian officials said Reuters A combination of erroneous political judgment, lost signs and bitterness drains the negotiations of the commercial agreement between the largest and fifth economies in the world, whose bilateral trade is worth more than $ 190 billion.
India hopes that Trump’s repression can cost him a competitive advantage in approximately $ 64 billion in goods sent to the US. Which represent 80 percent of their total exports, four separate sources said. Reutersciting an evaluation of the internal government.
However, it is expected that relatively low participation of exports in the economy of $ 4 billion of India limits the direct impact on economic growth.
On Wednesday, the Bank of the India Reserve left its GDP growth forecast for the current financial year of April-March without changes to 6.5 percent and kept the stable rates despite tariff uncertainties.
The Indian government evaluation report has assumed a 10 percent penalty for buying Russian oil, which would carry the total tariff of the United States to 35 %, the sources said.
The Ministry of Commerce of India did not immediately respond to a request for comments.
The internal evaluation report is the initial estimate of the government and will change as the amount of tariffs imposed by Trump is clear, the four sources said.
India exported estimated goods in around $ 81 billion in 2024 to the US.
Exports of property of the South Asia Nation to the US.
The proposed tariffs on the high value exports of India face “erosion of the competitiveness of prices found with the intensified rivalry of the countries subject to lower tasks,” two sources said, citing the internal evaluation.
