Why the US Plays Fast and Loose with India but Never with China

It is about relative clout and Beijing's domination of key inputs and products has given it leverage

- DEVINA MEHRA

See plenty of commentary in the Indian media about how the US tariff proposals are unfair. Some even point out that China imports more Russian crude than India. And of course, China's trade surplus with the US is several times that of India.

Why then is the US turning the screws on India?

This is only the latest symptom of the relative bargaining power of countries. International bargaining, especially with someone like Trump, is only about relative strength, not 'fairness.' And China has worked over the years with a long-term focus on strengthening itself as a rival to the biggest economies in the world, while simultaneously making itself indispensable to their working.

Let us look at why China hates to be even spoken of in the same breath as India—and rightly so.

The stark difference between China and India is clear from this statistic: Even if China stops growing and India's GDP compounds at 7% per annum (this has historically happened only once for seven years out of eight in 2003-10), it'll take about 25 years for India to catch up. And this is a make-believe calculation, as China's economy won't stop growing anytime soon.

But the point is not about just the size of the Chinese economy, but also its strategic positioning. In every area where China has operations, it may have started with low-end assembly, but has focused on moving up the value chain bit-by-bit to reach a position where it controls both the technology as well as strategic materials needed.