Chongqing—B. R. Deepak, professor of the Centre of Chinese and Southeast Asian Studies at Jawaharlal Nehru University, discussed the potential for stronger economic ties between India and China, especially in the context of ongoing global trade disputes and the escalating U.S.-China trade tensions, in a recent exclusive interview with Bridging News.

Last month, U.S. President Donald Trump raised the minimum tariffs on Chinese imports to 145%, aiming to force China into trade negotiations. In response, Chinese officials retaliated by imposing higher tariffs on U.S. goods and restricting exports of key minerals and magnets, crucial to numerous industries.

The economic toll of these measures is already becoming apparent. Last month, the International Monetary Fund (IMF) downgraded its growth forecasts for China and the U.S., warning that the increased tariffs have heightened the risk of an economic downturn.

"India and China should come together to address tariffs and trade barriers, which could benefit both nations," said Deepak. "Such cooperation could help mitigate the negative effects of the ongoing trade war, particularly between China and the United States, which has unfairly blamed China for global trade imbalances."

Deepak underscored the intricate dynamics of the U.S.-China economic relationship, pointing out, "In fact, when you factor in the total value of services and profits generated by American companies in China, it totals nearly $491 billion. This indicates that China may be running a deficit with the U.S., rather than the other way around," he explained.

In addition, Deepak sees great potential for India and China to further their cooperation, especially given the complementary nature of their economies. "India is a massive consumer market driven by domestic demand, while China's economy thrives on both domestic and international markets. By addressing the existing trust deficit, the two countries can unlock new opportunities for innovation, trade, and investment."

"China has made breakthroughs in sectors such as technology and agriculture, which can be highly beneficial to India, a country that needs advancements in these areas," he noted.

Regarding trade access, Deepak pointed out that China's market share in India is already significant. "Chinese products dominate India's telecom market, with brands like Xiaomi and Oppo holding over 75% of the market share. Similarly, Indian pharmaceutical products could find a broader market in China."

 "China has the manufacturing capacity, and India remains one of the largest markets. Together, they can create a new model for global trade that fosters long-term prosperity," he added.

Looking ahead, Deepak stressed the importance of South-South cooperation, recognizing the diversity of cultures, political systems, and developmental stages within the Global South. "China has been advocating for a more inclusive form of globalization, one that is not imposed unilaterally but embraced multilaterally, benefiting all nations involved."