Trump ‘great peacemaker’? How US tariffs pushed India-China closer
New Delhi: A previously undisclosed letter from Chinese President Xi Jinping has reportedly triggered a subtle reset in India-China relations, days before Prime Minister Narendra Modi visits China, according to a Bloomberg report.
Citing Indian officials, the report states that Xi personally wrote to Indian President Droupadi Murmu in March, during a period of heightened US-China trade tensions. The letter – described as “cautious and deliberate” – voiced concern over Washington’s economic pressure and suggested a new channel for diplomatic engagement. Business Today could not independently verify the claims.
By June, India began re-engaging with China, as both nations came under increasing scrutiny from the US regarding trade. The backchannel outreach reportedly set the stage for a broader thaw: last week, New Delhi and Beijing agreed to revive stalled talks on their border disputes – the most direct progress since the deadly 2020 Galwan Valley clash, in which 20 Indian soldiers were killed.
Modi is now set to travel to China this weekend – his first visit in seven years – and will meet Xi on September 1 at the SCO summit in Tianjin.
The realignment has major implications for the Indo-Pacific, where Washington has long counted on India to balance China’s influence. However, former US President Donald Trump’s 50% tariffs on Indian goods and restrictions on Russian oil imports may have nudged New Delhi toward Beijing. “Trump is indeed the great peacemaker – he deserves all the credit,” Carnegie Endowment’s Ashley Tellis told Bloomberg, describing the rapprochement as an unintended consequence of US policy.
Meanwhile, Indian conglomerates, including Reliance, Adani, and JSW, are reportedly exploring clean energy partnerships with Chinese companies. Talks on resuming direct flights and restoring tourist visas for Chinese nationals are also underway.
Still, analysts caution against overreading the reset. Deep mistrust persists – from China’s ties with Pakistan to India’s growing engagement with Taiwan. “This is a recovery, not a breakthrough,” warned Eurasia Group’s Jeremy Chan.