Inside India newsletter: Trump-Xi meeting could test India’s positioning as China counterweight

Inside India newsletter: Trump-Xi meeting could test India’s positioning as China counterweight

Hey, here’s Priyanka Salve, writing to you from Singapore.

Welcome to the most contemporary version of Inside India — your one-end vacation procedure for reports and traits from the enviornment’s quickest-growing mighty financial system.

For larger than two decades, consecutive U.S. administrations believe seen India as a counterbalance to China’s growing impact in the Indo-Pacific. Nonetheless the most contemporary U.S administration’s stances appear to favour Beijing while punishing India. This week, I unpack how the U.S.-China summit would possibly perhaps maybe impact Unique Delhi’s equation with Washington.

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Any strategies on as of late’s newsletter? Half them with the team.

The mountainous legend

U.S. President Donald Trump and Chinese language President Xi Jinping shake fingers as they leave following a bilateral meeting at Gimhae Air Inferior on October 30, 2025 in Busan, South Korea.

Andrew Harnik | Getty Pictures

India, whose significance to the U.S. foreign coverage has been shaped by frictions between Washington and Beijing, would possibly perhaps be maintaining a shut ogle on the meeting between President Donald Trump and his Chinese language counterpart, Xi Jinping.

When the summit between the enviornment’s top two economies begins later in the day, India would possibly perhaps be hoping that Trump’s softening stance toward China doesn’t lead to a slice worth that diminishes Unique Delhi’s feature in the Indo-Pacific, consultants stated.

If Trump prioritizes a bilateral mountainous slice worth with Beijing, India will believe “reasonable concerns that the United States will treat China as the central negotiating partner in Asia rather than as the central strategic challenge,” Ronak D. Desai, visiting fellow at the Hoover Establishment, Stanford College, told CNBC.

Ensuing from this reality, “India will need to make its strategic value harder to overlook,” Desai stated, alongside side this would mean the U.S.-India relationship must lead to more tangible outcomes in sectors admire protection, maritime safety, serious minerals, energy, and manufacturing.

Trump and Xi final met in Busan, South Korea, in November, the establish the U.S. president known as Xi “a very tough negotiator,” and stated that the 2 aspects had “always had a very good relationship.” Within the intervening time, Xi urges Beijing and Washington to be “partners and friends.” It used to be throughout this meeting that Trump also referred to China and the U.S. as G2.

“He [Trump] favors strong-armed leaders,” Nirupama Rao, worn Indian ambassador to the U.S., China, and Sri Lanka, told CNBC’s “Inside India” on Monday, hinting at Trump’s conciliatory stance toward Xi in the most contemporary previous.

Shift in U.S. foreign coverage

For larger than two decades, consecutive U.S. administrations believe deepened ties with India as a measure to counterbalance China’s impact in the Indo-Pacific. India, being the enviornment’s biggest democracy, as in opposition to China’s one-earn together government, is seen as a pure partner to the U.S., consultants stated.

“It was Trump who, in his first term, had challenged America’s China policy and even gave impetus to QUAD,” stated Harsh Pant, vice president of review and foreign coverage at the Observer Learn Foundation. QUAD is a diplomatic partnership between Australia, India, Japan, and the United States that targets for a “peaceful, stable, and prosperous Indo-Pacific.”

Exchange tensions between China and the U.S., which escalated throughout Trump’s first timeframe, also made India one amongst the a quantity of beneficiaries of the China+1 coverage, as U.S. firms started to diversify their provide chains a long way flung from Beijing.

Nonetheless throughout Trump’s 2nd timeframe, there used to be a shift in the U.S. foreign coverage, with Washington and Unique Delhi’s relatives getting frayed over change and tariffs. The U.S. president even warned Apple no longer to plan smartphones in India as he pursues his “America First” agenda.

“The narrative of India as a counterbalance to China has weakened under the Trump administration,” stated Chietigj Bajpaee, senior review fellow for South Asia at Chatham House, alongside side that Trump’s foreign coverage throughout the 2nd timeframe has been more transactional and no more payment-pushed.

India-U.S. relatives suffered a first-rate jolt final year, after Washington accused Unique Delhi of profiteering from cheap Russian oil and levied 25% in penalty tariffs, while having a ogle previous China’s Russian oil purchases.

Following the Xi-Trump meeting in Busan final year, Washington also slice lend a hand tariffs on Chinese language items to around 47%, lower than the 50% that it used to be charging on imported Indian items, sooner than reducing them earlier this year.

“The [Trump] second administration started on a very hawkish note when it came to China, only to quickly realize that it did not have suitable substitutes for Chinese components necessary for US companies and consumers,” stated Aryan D’Rozario, affiliate fellow, chair on India and emerging Asia economics at CSIS. That resulted in a softening of the stance in opposition to Beijing.

While U.S.-India ties soured as Trump pursued his transactional foreign coverage, Beijing and Unique Delhi were embroiled in border disputes for decades and relatives were fraught with tensions. In opposition to that backdrop, India would possibly perhaps be looking at the end results of the U.S.-China summit more carefully than most Asian countries.

“From New Delhi’s perspective, it will be looking at the Trump-Xi meeting with a degree of trepidation amid concerns about the revival of a so-called ‘G2’ concept, which marginalizes middle-powers like India,” Bajpaee stated.

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Coming up

Would possibly well perhaps 14-15: India to host BRICS Foreign Ministers’ meeting.

Would possibly well perhaps 15-20: PM Modi to hunt recommendation from the UAE, the Netherlands, Sweden, Norway, and Italy.

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