Trump Tariffs Pushed China's Xi To Quietly Court India, Triggering Rare Cooperation Between Asian Rivals: Report

China first reached out to India in March to improve ties, and both sides have been engaging constructively since June.

U.S. President Donald Trump's foreign and trade policies are redrawing the dynamics among countries that find themselves on the losing side of his agenda.

A new report by Bloomberg, published on Thursday, stated that China reached out to India in March, and India began responding constructively in June as India's trade negotiations with the U.S. became contentious. 

Chinese President Xi Jinping wrote a letter to Indian President Droupadi Murmu, expressing concerns about any U.S. deals that would harm China’s interests and suggesting engagement to improve India-China ties, Bloomberg reported, citing an unnamed Indian official.

Xi’s letter named a provincial official who would steer Beijing’s efforts. The message was also passed on to Indian Prime Minister Narendra Modi at the time.

By August, Indo-Chinese ties appeared to have moved past the souring triggered by a major border skirmish in 2020, with Modi scheduled to visit China for the first time in seven years this weekend.

The U.S. has been high-handed with China, setting insurmountable import duties on the country just after Trump first announced the tariff rates for all countries in April.

After multiple revisions and rollovers, the current rates are lower, with the U.S. and China engaged in talks for a permanent agreement, giving global markets some relief.

India's negotiations with its long-time friendly partner soured rather abruptly when Trump last month accused India of supporting Russia and its war in Ukraine by buying large quantities of Russian oil. The U.S. imposed a steep 50% tariff rate on Indian imports in retaliation.

In July, Indian External Affairs Minister Subrahmanyam Jaishankar met with his Chinese counterpart, Wang Yi, in Beijing, marking the first such visit in five years. China assured India of supplies of fertilizer and rare earths during the meeting, and in the coming weeks, a series of steps were taken to improve ties.

According to Bloomberg, direct flights between India and China are expected to resume next month. Beijing has eased curbs on urea shipments, while India has resumed tourist visas for Chinese nationals.

India's Adani Group is also exploring a tie-up with Chinese EV giant BYD, which would allow the conglomerate to manufacture batteries in India.

For now, the moves to normalize relations between New Delhi and Beijing remain incremental, according to the report.

In a separate development, North Korean leader Kim Jong Un has accepted Xi's invitation to attend a parade in Beijing next month, alongside Russian President Vladimir Putin. It would be the first in-person meeting between Kim and Xi since 2019.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<