ASIATODAY.ID, NEW DELHI – India’s exports to China jumped sharply in December, underscoring a dramatic shift in New Delhi’s trade orientation as punitive US tariffs squeeze access to its largest traditional market.
Official data released by India’s Commerce Ministry on Friday, show shipments to China surged 67.35% year-on-year, reaching $2.04 billion, driven mainly by electronics, marine products, and agricultural goods.
The export spike comes as India faces a 50% tariff imposed by the United States, which has significantly dampened shipments to the US.
India’s exports to the American market fell 1.8% to $6.8 billion in December as the tariff impact took hold.
Meanwhile, imports from China also climbed, rising 20% to $11.7 billion during the same month, reinforcing Beijing’s position as India’s most significant trading partner.
Between April and December 2025, total trade between the two Asian giants reached $110.20 billion, overtaking the US, which recorded $105.31 billion over the same period. The figures mark a notable realignment in global trade flows amid intensifying economic nationalism in Washington.
Warming Ties After Years of Tension
The rebound in trade follows a steady thaw in India–China relations after the deadly 2020 border clash, which had frozen diplomatic and economic engagement.
Momentum picked up in September 2025, when Indian Prime Minister Narendra Modi met Chinese President Xi Jinping on the sidelines of the Shanghai Cooperation Organization summit. Both leaders agreed to deepen cooperation and stabilize bilateral ties.
Since then, New Delhi has signaled plans to ease restrictions on Chinese firms bidding for government contracts—rules imposed after the border standoff. Direct flights between the two countries resumed in October 2025 after a five-year suspension, while Beijing relaxed visa requirements for Indian nationals in December.
US Pressure Reshapes India’s Trade Strategy
Washington’s aggressive tariff policy has played a central role in reshaping India’s export landscape. Half of the US tariff imposed in August 2025 was explicitly punitive, tied to India’s continued purchases of Russian oil—a move New Delhi insists is guided by national interest.
Despite multiple rounds of negotiations, a comprehensive India–US trade deal remains elusive, amid repeated threats by President Donald Trump to escalate tariffs further.
Trump has also backed legislation targeting countries that trade with Russia and warned of blanket tariffs on nations doing business with Iran, another key Indian trading partner.
As geopolitical fault lines harden, December’s data suggest India is hedging against US trade pressure by deepening economic engagement with China, even as strategic mistrust between the two Asian powers lingers beneath the surface. (RT)
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