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News India Live, Digital Desk: The recent agreement between Prime Minister Narendra Modi and US President Donald Trump has changed the equations of global trade. Trump reduced tariffs for India 18% Has announced to do so, whereas for China these rates have been kept quite high. After this deal, China has given its first official response, in which ‘displeasure’ and ‘concern’ are clearly visible. China believes that this agreement is not just a trade but also a big conspiracy to corner it economically.
China’s response: “America’s selfish diplomacy”
China’s Foreign Ministry and its government media ‘Global Times’ have shown sharp stance regarding this deal. China has alleged that America is playing a ‘zero-sum game’. Beijing argues that the concessions given to India are actually meant to hurt China’s global exports. Chinese experts say Washington is creating a rift among Asian powers as part of its policy of “divide and rule”.
Dragon enraged by Trump’s claim on Russian oil
Trump had claimed that after this agreement, India will no longer buy oil from Russia. China responded to India on this ‘Strategic Autonomy’ But questions have been raised. China says that America is imposing its policies on India. According to Beijing, any sovereign nation should have the right to decide with whom it will trade, and US interference is ‘coercive diplomacy’.
Tariff math: India ‘in’, China ‘out’
What worries Chinese economists most is the trade deficit. According to the data of 2026, the situation is like this:
| Country | Effective Tariff (by US) | economic impact |
|---|---|---|
| India | 18% | Indian products get a big boost in the American market |
| China | 35%+ | Chinese goods become expensive and less competitive due to trade war |
Is this a ‘masterstroke’ for India?
While China is calling it an ‘untenable deal’, global markets are considering it a big victory for India. In return for India’s promise to open its markets to American products, it has got the world’s largest market (USA) for ‘Made in India’ products at cheap prices. China fears that now Apple, Tesla and other big tech companies may shift their entire base from China to India.
