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Finance

PM Modi is invited by Beijing to strengthen regional cooperation as the US-China tariff battle intensifies.

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Last updated: April 20, 2025 6:29 am
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Prime Minister Narendra Modi has received an official invitation from China to attend the Shanghai Cooperation Organization (SCO) meeting later this year. “Warmly welcome PM Modi to visit China for the SCO summit this fall,” said Xu Feihong, the Chinese ambassador to India, in confirming the offer. China is ready to collaborate with India and other SCO members to jointly convene a cordial, cohesive, and productive summit with the goal of guiding the SCO into a phase of superior development, Xu stated in a written statement to the Times of India.

The invitation coincides with escalating international trade issues, especially those involving the United States and China. Recently, some Chinese goods have been subject to tariffs imposed by President Donald Trump of up to 145%, with some levies reportedly reaching 245%. China has imposed 125% tariffs on US goods in retaliation. Although a 90-day hiatus has subsequently offered some respite, India was also caught in the crossfire when the US imposed a 27% duty on a few Indian products earlier this year.

In an effort to reduce tensions, Delhi is allegedly exploring more tariff reductions as trade talks between the US and India continue. With $190 billion in bilateral trade, the US was recently India’s biggest commercial partner. Together with Japan and Australia, these countries are members of the Quad, a strategic alliance designed to offset China’s expanding influence in the Indo-Pacific.

As tensions with Washington increase, Chinese President Xi Jinping has concluded a diplomatic trip to Southeast Asia, establishing Beijing as a trustworthy trading partner. Chinese President Xi Jinping promoted the idea of a “Asian family” to foster regional harmony earlier this week while on a tour of Southeast Asia. Xi called for unity against geopolitical tensions in a covert reaction to US pressure, saying, “Together we will safeguard the bright prospects of our Asian family,” according to Bloomberg.

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