China has extended the hand of friendship towards India amid growing trading tension between the US and China. China has expressed a desire to buy more goods from India and promote trade cooperation. Chinese Ambassador to India in Beijing, Shoo Faihong, said that India and China should look for new business opportunities and Indian enterprises should make their place in the Chinese market.

What did China say?

Shoo Faihong said in a conversation with the Global Times, “We are ready to strengthen commercial and economic cooperation with India and want to import more and more Indian products for the Chinese market.” He invited Indian companies to find business opportunities in China and said that they can cross the Himalayas and become partners in China’s development.

Will India give businessmen to China?

China has also hoped from India that it will create a fair and transparent business environment for Chinese companies. There is talk of further expansion of business relations between the two countries. This statement came at a time when Chinese President Xi Jinping has sent a message to India’s President Draupadi Murmu to bring both countries closer. This message was given on the occasion of the 75th anniversary of India-China diplomatic relations.

Changes in relationship after border dispute

India and China have been trying to improve their relations since the struggle in the Galwan Valley in 2020. After that clash, India had banned many Chinese investments, which continue till now. However, recently the two countries entered into an agreement on mutual patrol and decided to resume direct flights in January 2024.

The effect of America’s tariff

US President Donald Trump is going to implement reciperook tariff soon, which may affect the global trade system. Trump says that he wants to take American industries to Golden Era and prevent trade abuse with the US.

Trump has already called India “Tariff King” and “Tariff Abuser”. However, India is one of the few countries that are trying to resolve business conflict with the US and talk on the tariff agreement.

Also read: Donald Trump Reciprocal Tariff: Donald Trump’s reciperook tariff will have the highest impact on these things, see the full list here

Donald Trump Reciprocal Tariff: US President Donald Trump’s reciperock tariff will affect many countries around the world including India. This will not only affect the economy of countries, but many things that reach the common man will also become expensive. The biggest thing is that this effect will not be on only India or those countries, on which America will apply reciperook tariff. Rather, it will also affect American citizens. Let us understand in detail which sector of India will be the most affected by Donald Trump’s reciperook tariff.

How much loss to India?

According to the new report by Motilal Oswal, the impact of reciperook tariff on India’s economy will be very limited. Actually, the tariff gap between India and the US is 9 percent, which is the highest in the world, but still the impact on GDP will be only 1.1 percent. According to the report, India’s total export of $ 42.2 billion may be affected, but it is only 1.1 percent of GDP.

Which sectors will affect?

These industries of India can be the most affected by reciperook tariff. That is, reciperoch tariffs can directly affect the profits of companies working in these sectors. Apart from this, employment related to them can also be affected. At the same time, by applying more tariffs by the US, the products of these sector companies will become expensive in the US than before, which will directly affect the pockets of American citizens.

These sectors are-

Electrical machinery

Jewelry and jewelery

Pharma product

Machinery for nuclear reactor

Iron and Steel

C-food

Indo-US trade condition

According to the TOI report, India’s export can be reduced by $ 3.6 billion due to increase in tariffs. But this is just equal to 0.1 percent of GDP. Talking about 2024, this year India-US bilateral trade reached $ 124 billion. In this, India exported $ 81 billion to the US. While imported 44 billion dollars. That is, India got a trade surplus (profit) of $ 37 billion. Interestingly, America’s trade deficit (deficit) does not come in the top 10 with India. That is, it is clear that Trump’s anger will be more on India, China, Mexico and Canada.

There will be less impact on these sectations

Tariffs on agriculture and dairy products may take more, but their exports are only 0.5 billion dollars, so they will not be affected much. Apart from this, increasing the tariff on energy, metal and auto sectors will also harm America, so they are in safe zone.

Also read: Elon Musk’s agency took the decision to shake the world! Doge said stop usaid