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Why India should rethink its US alignment and rebuild trust with China

Source: CGTN | 2025-08-04
Why India should rethink its US alignment and rebuild trust with China

By Abhishek G Bhaya

The recent escalation in U.S.-India tensions, marked by U.S. President Donald Trump's imposition of 25 percent tariffs on Indian goods – alongside penalties for purchasing Russian energy and arms – underscores a critical reality: the United States sees India as a transactional partner, not a strategic ally.

"[India has] always bought a vast majority of their military equipment from Russia… India will therefore be paying a tariff of 25 percent, plus a penalty…" Trump posted on July 30. Within hours, he announced an oil collaboration with India's rival Pakistan, mocking: "Maybe they'll be selling oil to India some day!" A day later, he sneered again: "I don't care what India does with Russia. They can take their dead economies down together, for all I care."

This flurry of posts exposes Washington's hegemonic agenda, which seeks to subordinate India's interests, particularly in its bid to contain China. India must seize this moment to re-evaluate its foreign policy and pivot toward greater cooperation with China, both bilaterally and through frameworks like BRICS, SCO, and RIC.

Reviving the "China-India Plus" model and jointly supporting the Global South could unlock significant geopolitical and economic advantages.

The U.S. trap: A transactional alliance

For years, the U.S. has positioned India as a counterweight to China in the so-called Indo-Pacific, via the Quad and other mechanisms. But Trump's recent actions show how fragile and one-sided this partnership truly is. While Washington demands market access and anti-Russia alignment, it offers little more than platitudes about "shared democratic values."

India's $45.7 billion trade deficit with the U.S. and its refusal to open sensitive sectors like agriculture point to mismatched priorities. Meanwhile, the U.S. simultaneously criticizes India's ties with Russia and cozies up to Pakistan, highlighted by Trump's oil deal announcement.

Such an alliance risks reducing India to a pawn in the U.S.-China rivalry. In contrast, cooperation with China offers a path toward real strategic autonomy, economic upliftment, and a stronger role in shaping a multipolar world order, where the Global South interests come first.

Chinese and Indian commentators alike have observed that cooperation between the world's two most populous nations is essential for realizing an "Asian Century."

A vision for collaboration

Between 2018–19, India and China explored cooperative efforts in Afghanistan, including joint diplomats training and potential collaboration on the Uzbek-Afghan railway. These stalled post-Galwan Valley military clashes in 2020 but remain a viable model to reinvigorate as geopolitical alignments shift.

By co-investing in infrastructure, India can benefit from China's capital and expertise while reducing its own infrastructure deficit. Joint projects in nations like Afghanistan, Nepal, or African countries would enhance India's regional standing while diffusing perceptions of Chinese dominance.

Economically, collaboration with China can accelerate India's rise as a manufacturing and tech hub. As China transitions to high-tech sectors, India could absorb low- and mid-tech manufacturing, tapping into its vast young workforce. Renewed Chinese investment in areas like EVs, green energy and 5G could bolster "Make in India" goals.

India appears to be quietly moving in this direction. Reports suggest that India's government premier think tank, NITI Aayog, has proposed easing rules on Chinese investments, allowing up to 24 percent stakes in Indian firms without security clearance, signaling a policy shift in favor of economic pragmatism.

Geopolitical convergence: A bulwark against Western dominance

India and China share core geopolitical interests in resisting Western dominance. Both reject unilateral sanctions and champion a multipolar order. India continues strong ties with Russia, recording nearly $70 billion in annual trade, while Beijing deepens its "no-limits" partnership with Moscow.

Through platforms like BRICS, SCO, and RIC, New Delhi and Beijing can jointly push for reforms in climate finance, trade, and technology access, amplifying the voice of the Global South.

At the 2025 BRICS Summit in Rio de Janeiro, China joined the consensus supporting India's bid for a "greater role" in a reformed UN Security Council. The consensus statement also backed Brazil and called for enhanced African representation, highlighting China's willingness to accommodate India's aspirations.

This alignment reflects a growing recognition that the combined weight of China and India – 2.8 billion people and over 20 percent of global GDP – can fundamentally reshape global governance.

BRICS and alternative institutions

BRICS offers a platform for India and China to lead the creation of alternative global institutions, challenging the Bretton Woods model dominated by the IMF and World Bank.  

The BRICS-led New Development Bank (NDB), headquartered in Shanghai, and the Asian Infrastructure Investment Bank (AIIB), where India is the second-largest shareholder, have already financed $35 billion and $60 billion in projects, respectively, so far.  

India, as the largest recipient of AIIB funding ($12 billion) and second-largest beneficiary of NDB loans ($7.5 billion), already sees tangible benefits from these institutions. The BRICS bloc, now comprising 10 full members – including Iran, Egypt, Indonesia, Nigeria and the UAE – and 10 partners, represents 56 percent of the global population and 44 percent of GDP (PPP).

By advancing initiatives like a BRICS digital currency, climate fund, or local currency trade mechanisms (e.g., rupee-yuan swaps), India and China can reduce dollar dependence and shape a more equitable global economic system.

Permanent interests over permanent enemies

In diplomacy, there are no permanent friends or enemies – only permanent interests. India and China share strategic goals: reforming global governance, defending sovereignty and uplifting vast populations.

They can collaborate on climate action – India aims for net-zero carbon emissions by 2070, and China, by 2060 – and on public health, blending India's pharma strengths with China's medical logistics to lead future global health responses.

Aligning too closely with the U.S. has delivered diminishing returns. Trump's recent tirades only reinforce the risk of such dependency. In contrast, recalibrating ties with China through platforms like BRICS and SCO offers India greater strategic autonomy, economic growth and a more dignified role as a Global South leader.

Deepening collaboration in emerging institutions positions India not as a follower of Western agendas, but as a co-architect of a truly multipolar world.

Abhishek G Bhaya is a senior journalist and international affairs commentator. 

习近平同法国总统马克龙会谈

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