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Reeling from Trump’s tariffs, India and China seek a business reboot

Published

9 months ago

2025/08/31

Priyan

Modi and Xi last had a bilateral meeting in 2017 [BBC]

India’s Prime Minister Narendra Modi landed in China on Sunday with the sting of Donald Trump’s US tariffs still top of his mind.

Since Wednesday, tariffs on Indian goods bound for the US, like diamonds and prawns, now stand at 50% – which the US president says is punishment for Delhi’s continued purchase of Russian oil.

Experts say the levies threaten to leave lasting bruises on India’s vibrant export sector, and its ambitious growth targets.

China’s Xi Jinping, too, is trying to revive a sluggish Chinese economy at a time when sky-high US tariffs threaten to derail his plans.

Against this backdrop, the leaders of the world’s two most populous countries may both be looking for a reset in their relationship, which has previously been marked by mistrust, a large part of it driven by border disputes.

“Put simply, what happens in this relationship matters to the rest of the world,” Chietigj Bajpaee and Yu Jie of Chatham House wrote in a recent editorial.

“India was never going to be the bulwark against China that the West (and the United States in particular) thought it was… Modi’s China visit marks a potential turning point.”

India and China are economic powerhouses – the world’s fifth and second largest, respectively.

But with India’s growth expected to remain above 6%, a $4tn (£3tn) economy, and $5tn stock market, it is on the way to moving up to third place by 2028, according to the International Monetary Fund (IMF).

“While the world has traditionally focused on the single most important bilateral relationship in the world, US and China, it is time we shift more focus on how the second and would-be third largest economies, China and India, can work together,” says Qian Liu, founder and chief executive of Wusawa Advisory, based in Beijing.

But the relationship is deeply challenging.

The two sides have an unresolved and long-standing territorial dispute – that signifies a much broader and deeper rivalry.

Violence erupted across Ladakh’s Galwan Valley in June 2020 – the worst period of hostility between the two countries in more than four decades.

The fallout was largely economic – a return of direct flights was taken off the table, visas and Chinese investments were put on hold leading to slower infrastructure projects, and India banned more than 200 Chinese apps, including TikTok.

“Dialogue will be needed to help better manage the expectations of other powers who look to India-China as a key factor of Asia’s wider stability,” Antoine Levesques, senior fellow for South and Central Asian defence, strategy and diplomacy at IISS, says.

There are other fault lines too, including Tibet, the Dalai Lama, and water disputes over China’s plans to build the world’s largest hydroelectric power project across a river shared by both nations, as well as tensions with Pakistan after the Pahalgam attack.

India also does not currently enjoy good relations with most of its neighbours in South Asia, whereas China is a key trading partner for Pakistan, Bangladesh, Sri Lanka and Afghanistan.

“I would be surprised if a BYD factory is coming to India, but there may be some soft wins,” Priyanka Kishore, founder and principal economist at research company Asia Decoded, says.

It’s already been announced that direct flights will resume, there may be more relaxations on visas, and other economic deals.

However, the relationship between Delhi and Beijing is “an uncomfortable alliance to be sure”, notes Ms Kishore.

“Remember at one point, the US and India were coming together to balance China,” she adds.

But India is completely perplexed with the US and its position: “So it’s a smart move – and feeds into the multipolar narrative that both India and China believe in.”

Modi is travelling to China for the Shanghai Cooperation Organisation (SCO) – a regional body aimed at projecting an alternative worldview to that of the West. Members include China, India, Iran, Pakistan and Russia.

In the past, India has downplayed the organisation’s significance. And critics say it hasn’t delivered on substantial outcomes over the years.

The June SCO defence ministers’ meeting failed to agree on a joint statement. India raised objections over the omission of any reference to the deadly 22 April attack on Hindu tourists in Indian-administered Kashmir, which led to the worst fighting in decades between India and Pakistan.

But experts say the downturn in Delhi’s relations with Washington has prompted India to rediscover the utility of the SCO.

China, meanwhile, will value the optics of Global South solidarity amid Trump’s tariff chaos.

The Brics grouping – of which China, India, Russia, Brazil and South Africa are the founding members – has drawn the ire of Trump, who has threatened to slap additional tariffs on group members on top of their negotiated rates.

Getty Images Employees work on the SMT (surface mount technology) shop floor where components are mounted on a PCB (printed circuit board) at Padget Electronics Pvt., a subsidiary of Dixon Technologies Ltd., in Noida, India. — *Chinese smartphones manufactured in India hold a significant market share too. [BBC]*

Modi last met Xi and Russia’s Vladimir Putin at the Brics summit in Russia in October 2024. Last week, Russian embassy officials said Moscow hopes trilateral talks with China and India will take place soon.

“Leveraging each of their advantages – China’s manufacturing prowess, India’s service sector strengths, and Russia’s natural resource endowment – they can work to reduce their dependence on the United States to diversify their export markets and ultimately reshape global trade flows,” Bajpaee and Yu said in their editorial.

Delhi is also leveraging other regional alliances, with Modi stopping in Japan on the way to China.

“Asean and Japan would welcome closer co-operation between China and India. It really helps in terms of supply chains and the idea of Make in Asia for Asia,” Ms Kishore says, referring to the political grouping comprising 10 Southeast Asian economies.

India continues to be reliant on China for its manufacturing, because it sources raw materials and components from there. It will likely be looking for lower import duties on goods.

India’s strict industrial policies have so far held it back from benefiting from the supply chain shift from China to South East Asian countries, according to experts.

There is a case for partnership, a strong one, says Ms Kishore, where India pitches to manufacture more electronics.

She points out that Apple makes airpods and wearables in Vietnam, and iPhones in India, and so there would be no overlap.

“Faster visa approvals would be an easy win for China as well. It wants market access in India either directly or through investments. It’s dealing with a shrinking US market, it’s already flooded Asean markets, and a lot of Chinese apps like Shein and TikTok are banned in India,” says Ms Kishore.

“Beijing would welcome the opportunity to sell to 1.45 billion people.”

Given the complexity of the relationship, one meeting is unlikely to change much. There is a long way to go on improving China-India ties.

But Modi’s visit to China could repair some animosity and send a very clear signal to Washington that India has options.

[BBC]

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BBL on track to host season opener in Chennai in December

Published

5 mins ago

2026/05/19

Priyan

A general view of the action at the MA Chidambaram Stadium [Cricinfo]

The MA Chidambaram Stadium in Chennai, the home venue of the Chennai Super Kings in the IPL, is on track to host the opening game of the 2026-27 Big Bash League (BBL) season in December.

Cricket Australia had identified the MA Chidambaram Stadium as a potential venue in February earlier this year and following months of discussions, ESPNcricinfo understands that CA has received positive feedback from both the Tamil Nadu Cricket Association (TNCA) and the BCCI to go ahead.

On Monday, a five-member delegation from CA attended CSK’s final home game of the IPL season, against Sunrisers Hderabad, for a venue recce. It’s understood that they are also working closely with the Australian government. BCCI president Mithun Manhas was also in attendance at the MA Chidambaram Stadium on Monday.

There are still some final discussions to be had at government level before the game can be locked in.

CA could potentially buy the game off the host club to take control of the fixture in India. There would also be a knock-on effect to the schedule given the distances involved, and the need to give players enough preparation time beforehand. There are no direct flights from Australia to Chennai but there are from Melbourne to Delhi and Sydney to Bangalore that take 11-12 hours. There are flight paths with one stopover to Chennai that take roughly 13 hours. Then, players also need recovery time on their return home before their next game. Chennai is also prone to flooding in December due to the wet season.

Whether the game is played during the day remains to be seen as day games are better for Australian broadcast windows with IPL day matches starting at 8pm AEST. IPL night matches start at 12am AEST.

In Australian sport, the NRL takes matches to Las Vegas to launch the rugby league season. However, that tournament is played over six months, while the BBL is completed in a seven-week window from mid-December to the end of January.

Ravichandran Ashwin, a former CSK player, was due to be the first India international to feature in the BBL this season, having signed for Sydney Thunder, but withdrew due to a knee injury.

There are a number of clubs interested in playing in the game. It is understood Thunder and the two Melbourne clubs Stars and Renegades are open to playing in Chennai among others. One club would need to play as the “home” team which would reduce their home fixtures in Australia to just four which has flow-on effects to membership and ticket revenue.

Renegades are already looking at a hybrid home venue model for the upcoming season after their agreement with Marvel Stadium (Docklands) ended earlier this year. They are considering playing at multiple venues including GMHBA Stadium in Geelong, the MCG and the Junction Oval which is the home of Victoria’s high performance centre just south of Melbourne’s CBD. Floodlights are being installed at Junction Oval during the off-season that will be ready to use next summer but the ground only holds a maximum of 6000 people.

The news is separate from the BBL privatization debate that continues to bubble in Australia. The six states are split on a proposal to introduce private investment into the eight franchises. CA is pushing ahead to test the market with three clubs, Renegades, Perth Scorchers and Hobart Hurricanes to see what valuations might come back from prospective investors. Meanwhile, discussions are ongoing with New South Wales, Queensland and South Australia. NSW and Queensland have said no to the initial proposal while SA were keen for others to test the market first before going ahead.

NSW are continuing discussions with CA around an alternative model that they are proposing to avoid private investment. NSW are adamant that CA can raise revenue significantly to improve their profit and loss position and pay the players more money to play in the BBL by making adjustments within the current structure without introducing outside or foreign ownership into Australian cricket.

[Cricinfo]

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At least 100 dead in Ebola outbreak in DR Congo, official says

Published

7 hours ago

2026/05/19

Priyan

All visitors and patients must wash their hands and have their temperatures taken before entering Kyeshero Hospital in Goma [BBC]

At least 100 deaths have been reported in an Ebola outbreak in the Democratic Republic of Congo, with more than 390 cases suspected, the head of the Africa Centres for Disease Control and Prevention has told the BBC.

Jean Kaseya warned that with no approved drugs or vaccines people should follow public health measures, including at funerals of Ebola victims.

There are also two confirmed cases and one death in Uganda, says the US Centers for Disease Control and Prevention (CDC).

The World Health Organization (WHO) has declared the outbreak of the current strain of Ebola, which is caused by the Bundibugyo virus, an international emergency.

An American doctor in the DR Congo is among those with a confirmed case, the medical missionary group they were working with and the CDC has said. The individual, who has not been named, will now be taken to Germany for treatment, they told CBS News, the BBC’s US partner.

CBS News also quoted sources as saying that at least six Americans have been exposed to the Ebola virus during the outbreak in the DR Congo.

The CDC said it was supporting the “safe withdrawal of a small number of Americans who are directly affected”, but did not confirm how many.

The US government is reportedly looking to arrange transport for the small group of Americans in DR Congo to a safe quarantine location, a source told health news site STAT.

Quoting a source, the site adds that the group could be taken to a US military base in Germany, though this has not been confirmed.

The CDC declined to answer direct questions about the US citizens reportedly affected during a press conference on Sunday.

In an update on Monday, the public health agency said the risk to the US was relatively low, but said it would introduce a range of measures to prevent the disease from entering the country.

This includes monitoring travellers arriving from affected areas and placing entry restrictions on non-US passport holders if they have been in Uganda, DR Congo or South Sudan in the last 21 days.

The CDC said it would work with airlines and other partners to carry out contact tracing of passengers, increase testing capacity and hospital readiness to respond to the outbreak.

The US has also issued a Level Four travel advisory – its most severe level – warning against travel to the DR Congo.

The WHO has said the outbreak in DR Congo’s eastern Ituri province is a public health emergency of international concern, but did not meet the criteria of a pandemic.

The agency has also warned it could potentially be “a much larger outbreak” than what is currently being detected and reported, with significant risk of local and regional spread.

More than 28,600 people were infected by Ebola during the 2014-2016 outbreak in West Africa, the largest outbreak of the virus since its discovery in 1976.

The disease spread to a number of countries within and outside of West Africa, including Guinea, Sierra Leone, the United States, the United Kingdom and Italy, killing 11,325 people.

Kaseya, head of the Africa CDC, told the BBC that in the absence of vaccines and effective medicines people should follow public health measures, including the guidance about handling the funerals of those who have died from the disease.

“We don’t want people infected because of funerals,” he told the BBC World Service’s Newsday programme.

Community funerals, where people helped wash the bodies of their loved ones, contributed to many people becoming infected in the earlier stages of the big outbreak more than a decade ago.

The WHO has advised DR Congo and Uganda, two countries with confirmed cases, to undertake cross-border screenings to avoid the virus spreading.

It has also urged nearby countries to “enhance their preparedness and readiness”, including surveillance at health facilities and communities.

Neighbouring Rwanda said it would be tightening screening along its border with DR Congo as a “precautionary measure”, while Nigeria said it was “closely monitoring the situation”.

[BBC]

Latest News

Trump says he called off new Iran attack at request of Gulf states

Published

7 hours ago

2026/05/19

Priyan

[file pic]

US President Donald Trump has said he is holding off a military attack on Iran planned for Tuesday at the request of Gulf states as “serious negotiations are now taking place”.

In a post on Truth Social, he said he had been asked to do so by the leaders of Qatar, Saudi Arabia and the United Arab Emirates.

He said he had been informed a deal would be made that is “very acceptable” to the US, adding there would be “NO NUCLEAR WEAPONS FOR IRAN!”

But he warned the US would be ready to “go forward with a full, large scale assault of Iran, on a moment’s notice” if there was no acceptable deal.

A senior Iranian military commander told the US not to make “strategic mistakes and miscalculations again”.

Trump’s latest announcement on Iran comes amid a drop in his approval rating and as polls show the war is increasingly unpopular at home.

Some 64% of voters believe it was the wrong decision to go to war with Iran, according to a New York Times/Siena poll published on Monday.

The survey also found that just 37% of voters approve of Trump’s job performance as president. The polling underscores the challenge Republicans face in the midterm elections, in a moment of growing public frustration with the war and Trump’s handling of the economy and immigration, among other issues.

Israeli and US forces began massive air strikes on Iran on 28 February, while Tehran retaliated by firing drones and missiles at Israel and US targets in countries across the Gulf.

A major factor at play here is the fear Gulf Arab states have over how Iran is likely to retaliate after any further attacks by the US.

Iran is known to retain a significant number of drones and missiles with which it could resume its full-scale attacks on neighbouring states, their airports, petrochemical facilities and even the crucial desalination plants that provide drinking water as summer temperatures in the Gulf build up.

Talking to reporters later, Trump called it “a very positive development, but we’ll see whether or not it amounts to anything”.

He said: “We’ve had periods of time where we had, we thought, pretty much getting close to making a deal, and it didn’t work out. But this is a little bit different.”

Trump said there seemed to be “a very good chance” of an agreement with Iran, adding: “If we can do that without bombing the hell out of them, I would be very happy.”

A ceasefire agreed in April meant to facilitate talks has largely been observed despite occasional exchanges of fire.

Iran has also continued to control the Strait of Hormuz, effectively closing the vital waterway through which around 20% of the world’s oil and liquefied natural gas travels.

The move, which Iran has said is in retaliation for US and Israeli attacks, has sent oil prices soaring globally.

The US, for its part, has been enforcing a blockade of Iranian ports to exert pressure on Tehran to agree to its terms.

Late on Monday, Iran’s Tasnim news agency published what it said were comments by Supreme Leader Mojtaba Khamenei, warning that new fronts would be opened where the enemy had little experience and would be highly vulnerable.

Tasnim appeared to have reposted Khamenei’s quotes from 12 March. Some Iranian news outlets have taken to republishing his previous written messages.

Earlier on Monday, Iran said it had responded to the latest US proposal and that exchanges with Washington were continuing through Pakistani mediators.

Iranian media earlier reported the US had failed to make any concrete concessions to Tehran.

On Sunday, Trump had warned that “for Iran, Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them”.

Several days ago, the US president had said the truce was on “massive life support” after rejecting Tehran’s demands, labelling them “totally unacceptable”.

Esmail Baghaei, an Iranian foreign ministry spokesperson, insisted they were “responsible” and “generous”.

According to Iran’s semi-official Tasnim news agency, Iran’s demands included an immediate end to the war on all fronts – a reference to the continued Israeli attacks against Iran-supported Hezbollah in Lebanon – a halt to the US naval blockade of Iranian ports, and guarantees of no further attacks on Iran.

They also reportedly included a demand for compensation for war damage and an emphasis on Iranian sovereignty over the Strait of Hormuz.

Iran’s semi-official Fars news agency said on Sunday that Washington had set five conditions in response to Tehran’s proposal.

They reportedly included a demand that Iran keep only one nuclear site in operation and transfer its stockpile of highly enriched uranium to the US.

Trump suggested on Friday he would accept a 20-year suspension by Iran of its nuclear programme – a major sticking point between the two countries – in what appeared to be confirmation of a shift in position away from a demand for a total end to it.

The US and its European allies claim Iran is seeking to develop nuclear weapons by enriching uranium. Tehran has repeatedly said its nuclear programme is solely for peaceful purposes.

[BBC]