China-US Truce

China-US Truce

China and the United States have paused their ongoing trade standoff, at least for now.

Illustration by Ajay Thakuri
Joe C Mathew
  • New Delhi,
  • Dec 10, 2018,
  • Updated Dec 12, 2018, 8:55 PM IST

After several months of tough posturing, China and the United States have paused their ongoing trade standoff, at least for now. Neither Washington DC nor Beijing will announce any new tariff measures against the other for 90 days.

Both sides hope to utilise this window to resolve their pending trade issues. New Delhi has been keenly watching the development and has even looked at the tariff lines impacted by the US-China trade war to see if there is an opportunity to fill the gaps left by America in the Chinese market. The conclusion has been that India's advantage will be limited, and the collateral damage higher if both countries turn more protectionist.

The ceasefire between China and the US should hence be more of a situation for India to examine market access opportunities in a business-as-usual scenario, rather than waiting to benefit from a crisis.

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