{"id":286663,"date":"2025-04-21T08:55:09","date_gmt":"2025-04-21T08:55:09","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/04\/21\/donald-trump-tariffs-push-chinese-giants-to-bow-to-indias-terms-times-of-india\/"},"modified":"2025-04-21T08:55:09","modified_gmt":"2025-04-21T08:55:09","slug":"donald-trump-tariffs-push-chinese-giants-to-bow-to-indias-terms-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/04\/21\/donald-trump-tariffs-push-chinese-giants-to-bow-to-indias-terms-times-of-india\/","title":{"rendered":"Donald Trump tariffs push Chinese giants to bow to India\u2019s terms &#8211; Times of India"},"content":{"rendered":"<div style=\"text-align:center\"><img decoding=\"async\" src=\"https:\/\/i1.wp.com\/static.toiimg.com\/thumb\/msid-120479652,imgsize-125278,width-400,resizemode-4\/120479652.jpg?ssl=1\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"Donald Trump tariffs push Chinese giants to bow to India\u2019s terms &#8211; Times of India\" title=\"Donald Trump tariffs push Chinese giants to bow to India\u2019s terms &#8211; Times of India\" \/><\/div><p> <br \/>\n<\/p>\n<div>\n<div class=\"MwN2O\">\n<div class=\"vdo_embedd\">\n<div class=\"T22zO\">\n<section class=\"D3Wk1  clearfix id-r-component leadmedia undefined undefined  VtlfQ\" style=\"top:0px\">\n<div class=\"D3Wk1\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">\n<div class=\"zPaFh\">\n<div class=\"wJnIp\"><\/div>\n<\/div>\n<\/div>\n<div class=\"cj2hz img_cptn\"><span title=\"President Trump\u2019s tariff shock has forced China to rethink its trade ties with India.\">President Trump\u2019s tariff shock has forced China to rethink its trade ties with India.<\/span><\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n<p>Donald Trump\u2019s return to the White House has meant a return to the economic weapon he loves best: Tariffs. In his latest salvo against China, the president has raised levies on nearly all Chinese imports, in some cases up to a punishing 245%, excluding only a few politically-sensitive categories like smartphones and pharmaceuticals. <br \/>Trump\u2019s message has been blunt: \u201cWe\u2019re going to have a deal with China. And if we don\u2019t, we\u2019re going to have a deal anyway, because we will set a certain target, and that\u2019s going to be it.\u201d<br \/>China has responded with its own tariffs of up to 125% on American goods.. \u201cChina does not want to fight, but it is not afraid to fight,\u201d warned Lin Jian, a foreign ministry spokesperson. The country\u2019s deputy consul in New York, Ma Xiaoxiao, accused the US of &#8220;unreasonable demands&#8221; and insisted China &#8220;will fight to the end\u2026 for world order and justice.&#8221; <br \/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">The big picture<\/span><\/p>\n<div class=\"cdatainfo modify_cdata_list_style id-r-component \" data-pos=\"10\">\n<ul>\n<li>Meanwhile, the US is also putting pressure on allies to isolate China economically &#8211; or face higher tariffs themselves.<\/li>\n<li>China\u2019s response has been fiery in tone but flexible in practice. \u201cChina firmly opposes any party reaching a deal at the expense of China\u2019s interests,\u201d its commerce ministry warned. \u201cAppeasement will not bring peace, and compromise will not be respected.\u201d<\/li>\n<li>At home, the toll is mounting. Nomura cut China\u2019s 2025 GDP forecast to 4%, citing \u201cstrong headwinds.\u201d Exporters are under pressure. Chinese manufacturing surpluses are rising with Asian and Latin American nations &#8211; but crashing in the US.<\/li>\n<\/ul>\n<\/div>\n<p><b>Zoom in: The India pivot<\/b><\/p>\n<p>As American ports grow hostile and European partners cautious, China is discovering that its once-unshakable export machine now needs new markets. Enter India, a country with which China has shared more tensions than trade affection in last few years<br \/>The 2020 border clash in Ladakh left bilateral relations bruised and bloody. India responded with Press Note 3, a regulation that subjects any investment from countries sharing a land border to government scrutiny-read: China. Since then, Chinese tech and electronics firms have found it nearly impossible to expand in India, with many projects stalled or blocked.<br \/>And yet, something curious is happening. Chinese companies, once adamant about holding controlling stakes in joint ventures, are now bending over backwards to comply with Indian terms. <br \/>Two of China\u2019s top industrial players are leading the shift, a report in the Economic Times said. <!-- -->Haier, ranked third in India\u2019s electronics market, is in talks to sell a 51-55% stake in its Indian operations. A year ago, it was only willing to part with 26%.<br \/>Shanghai Highly, a major compressor manufacturer, has revived its joint venture with Tata-owned Voltas, now willing to settle for a minority stake &#8211; a far cry from its earlier 60% demand, rejected under India\u2019s Press Note 3 rules.<br \/>Haier is also exploring private equity deals, while Highly has struck a technology-only partnership with PG Electroplast, allowing production without equity involvement.<br \/>\u201cThere is a complete change in attitude,\u201d Rajesh Agarwal of Bhagwati Products told the ET. \u201cChinese companies don\u2019t want to lose business since India is a big market, and there is scope for exports under the tariff regime. The icing on the cake is the PLI scheme.\u201d<br \/>China\u2019s climbdown is happening on India\u2019s terms. But the rules have evolved &#8211; not softened.<br \/><span class=\"em\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">As per the ET report, India is now clearing joint ventures if:<\/span><\/p>\n<div class=\"cdatainfo modify_cdata_list_style id-r-component \" data-pos=\"36\">\n<ul>\n<li>The Chinese partner holds a minority stake.<\/li>\n<li>The board remains Indian-dominated.<\/li>\n<li>The deal enables technology transfer or value addition.<\/li>\n<li>Deals that meet these benchmarks are quietly moving forward. For example, Dixon Technologies\u2019 56% acquisition in Ismartu India was greenlit. So was Bhagwati\u2019s 51% JV with Huaqin Technology, and Vivo\u2019s proposed smartphone plant under Indian control.<\/li>\n<li>Even PG Electroplast, which declined to name its Chinese tech partner, confirmed it&#8217;s finalizing multiple JVs under the same template.<\/li>\n<\/ul>\n<\/div>\n<p>\u201cThis is forced flexibility,\u201d said one Indian electronics executive. <!-- -->\u201cThey want access to India\u2019s booming middle class &#8211; and more crucially, a backdoor into US markets through Indian manufacturing.\u201d<br \/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">What they\u2019re saying<\/span><br \/>Chinese ambassador Xu Feihong, <a href=\"https:\/\/timesofindia.indiatimes.com\/india\/as-trade-deficit-mounts-china-says-ready-to-import-more-premium-goods-from-india-envoy-seeks-fair-environment-for-chinese-firms\/articleshow\/120412955.cms\" styleobj=\"[object Object]\" class=\"\" commonstate=\"[object Object]\" frmappuse=\"1\">in an interview with The Times of India<\/a>, acknowledged that \u201cChina and India are partners rather than rivals,\u201d echoing the diplomatic tone struck by President <a href=\"https:\/\/timesofindia.indiatimes.com\/topic\/xi-jinping\" styleobj=\"[object Object]\" class=\"\" commonstate=\"[object Object]\" frmappuse=\"1\">Xi Jinping<\/a> and Prime Minister Modi during a meeting in Kazan last year.<br \/>&#8220;China has never imposed mandatory restrictions on the export of relevant equipment or the travel of personnel to India,&#8221; Xu said. <!-- -->Xu called for mutual respect and fair treatment, noting, \u201cWe hope India will take China\u2019s concerns in the economic and trade field seriously, provide a fair, transparent, and non-discriminatory business environment for Chinese enterprises.\u201d<br \/>Xu\u2019s olive branch comes amid a broader Chinese charm offensive across Asia. Chinese President Xi Jinping\u2019s visits to Vietnam, Malaysia and Cambodia have aimed to shore up political ties-and find new markets\u2014as the US blockade tightens. <!-- -->Even the European Union is planning a summit in Beijing this July, though with more skepticism than optimism.<br \/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">What\u2019s next<\/span><\/p>\n<div class=\"cdatainfo modify_cdata_list_style id-r-component \" data-pos=\"59\">\n<ul>\n<li>Chinese firms will likely ramp up their India presence through:<\/li>\n<li><strong>Tech-only deals:<\/strong> Like the Shanghai Highly\u2013PG Electroplast agreement to build compressors without equity involvement.<\/li>\n<li><strong>Minority JVs:<\/strong> Multiple Indian manufacturers \u2014 including Dixon, PG, and Epack \u2014 are finalizing ventures with Chinese partners where Indian firms hold the reins.<\/li>\n<li><strong>Smart exports:<\/strong> By manufacturing in India, Chinese firms can tap into US and EU markets via low-tariff or tariff-free routes, sidestepping direct import duties.<\/li>\n<\/ul>\n<\/div>\n<p>At the same time, the Indian government is preparing for high-level trade talks with Washington, hoping to carve out a bigger role for Indian exporters as US firms shift away from China. India is moving quickly to capitalize on the moment:<\/p>\n<div class=\"cdatainfo modify_cdata_list_style id-r-component \" data-pos=\"62\">\n<ul>\n<li>Engaging with US firms seeking exits from China.<\/li>\n<li>Supporting Indian companies in scaling up for American exports.<\/li>\n<li>Targeting key sectors: electronics, pharmaceuticals, chemicals, air conditioners, toys, and more.<\/li>\n<li>\u201cWe have identified 10-12 sectors where India can have a competitive advantage,\u201d said one senior official. \u201cThe government is providing support through PLI and strategic trade talks.\u201d<\/li>\n<\/ul>\n<\/div>\n<p><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">Elephant Trumps Dragon- for now<\/span><br \/>India\u2019s exports to the US rose 11.6% last year to $86.5 billion, even as smartphone imports from China plunged 70%. <!-- -->At the same time, India\u2019s trade deficit with China widened to nearly $100 billion\u2014driven by its dependence on Chinese electronic components.<br \/>This interdependence is shaping a delicate detente. India cannot afford to fully decouple from Chinese inputs, and China cannot afford to lose a market as promising and geopolitically neutral as India. The dance is awkward, but it is underway.<br \/>The bigger risk is time. Vietnam, Thailand and Mexico are all vying for the same manufacturing shift, and many of them already have better infrastructure or fewer political landmines. <!-- -->If India hesitates, it may miss its window. If China overreaches, it may find even this limited welcome revoked.<br \/><span class=\"strong\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">The bottom line<\/span><br \/>Cut off from the US consumer, Chinese firms are playing by India\u2019s rules. For India, the calculus is clear: Accept Chinese tech, but not Chinese control.<br \/>As global supply chains get redrawn under Trump\u2019s tariffs, the world\u2019s two biggest neighbors &#8211; long wary and watchful &#8211; are inching toward a functional coexistence. <!-- -->Not because they trust each other. But because, right now, they need each other.<br \/>In the words of Ambassador Xu: \u201cThe key to sustainable, healthy, and stable development of China-India relations is to correctly view each other\u2019s development and strategic intentions.\u201d<br \/>For now, the Dragon is learning to dance with the Elephant &#8211; one joint venture at a time.<br \/>(With inputs from agencies)<\/div>\n<p><script>\nvar _mfq = window._mfq || [];\n_mfq.push([\"setVariable\", \"toi_titan\", window.location.href]);\n!(function(f, b, e, v, n, t, s) {\n    function loadFBEvents(isFBCampaignActive) {\n      if (!isFBCampaignActive) {\n        return;\n      }\n      (function(f, b, e, v, n, t, s) {\n        if (f.fbq) return;\n        n = f.fbq = function() {\n          n.callMethod ? n.callMethod(...arguments) : n.queue.push(arguments);\n        };\n        if (!f._fbq) f._fbq = n;\n        n.push = n;\n        n.loaded = !0;\n        n.version = '2.0';\n        n.queue = [];\n        t = b.createElement(e);\n        t.async = !0;\n        t.defer = !0;\n        t.src = v;\n        s = b.getElementsByTagName(e)[0];\n        s.parentNode.insertBefore(t, s);\n      })(f, b, e, 'https:\/\/connect.facebook.net\/en_US\/fbevents.js', n, t, s);\n      fbq('init', '593671331875494');\n      fbq('track', 'PageView');\n    };\n    function loadGtagEvents(isGoogleCampaignActive) {\n      if (!isGoogleCampaignActive) {\n        return;\n      }\n      var id = document.getElementById('toi-plus-google-campaign');\n      if (id) {\n        return;\n      }\n      (function(f, b, e, v, n, t, s) {\n        t = b.createElement(e);\n        t.async = !0;\n        t.defer = !0;\n        t.src = v;\n        t.id = 'toi-plus-google-campaign';\n        s = b.getElementsByTagName(e)[0];\n        s.parentNode.insertBefore(t, s);\n      })(f, b, e, 'https:\/\/www.googletagmanager.com\/gtag\/js?id=AW-877820074', n, t, s);\n    };\n    function loadSurvicateJs(allowedSurvicateSections = []){\n      const section =  window.location.pathname.split('\/')[1]\n      const isHomePageAllowed = window.location.pathname === '\/' && allowedSurvicateSections.includes('homepage')\n      if(allowedSurvicateSections.includes(section) || isHomePageAllowed){\n        (function(w) {\n         function setAttributes() {\n                    var prime_user_status = window.isPrime ? 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Donald Trump\u2019s return to the White House has meant a return to the economic weapon he loves best: Tariffs. In his latest salvo against China, the president has raised levies on nearly all Chinese imports, in some cases up to a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":286664,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/static.toiimg.com\/thumb\/msid-120479652,imgsize-125278,width-400,resizemode-4\/120479652.jpg","fifu_image_alt":"","footnotes":""},"categories":[604],"tags":[33221,222898,3394,222899,51,962,273,925,4759,18165,4209,272,52,146393,222897,2762],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/286663"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=286663"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/286663\/revisions"}],"predecessor-version":[{"id":286665,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/286663\/revisions\/286665"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/286664"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=286663"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=286663"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=286663"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}