As China faces new import tariffs levied by the U.S., the country is looking to India as a potential ally.

“It’s essentially [. . .] an insurance policy,” said Song Seng Wun, an economist with the CIMB private banking unit in Singapore. As long as the U.S.-China trade relationship remains strained, China will want to improve its ties to other major trading partners as a protective measure.

On April 2, China and India met in New Delhi to discuss a number of issues. India’s commerce department has a long list of demands starting with entry of nearly 250 pharmaceutical products into China. India is suggesting easier entry norms for drugs that are cleared for use in other countries. In return, India may be more open to treating China as a “market economy,” a designation that would lead to lower anti-dumping duties on Chinese goods, thereby making them more competitive in the global market.

India is expected to be the fastest-growing economy during the next decade, so a closer trading relationship will mean more opportunities for China as time goes by.

The two commerce ministers didn’t reach any agreements at the April 2 meeting in New Delhi; however, China’s minister reported that both parties will continue working to decrease trade differences.

You can read more about China-India trade relations on

The Economic TimesThe Times of India and Forbes