New Delhi [India]: External Affairs Minister S Jaishankar on Sunday, October 5 highlighted the growing influence of US-China relations on global politics and warned of intensifying competition and risk in international affairs. He made these remarks at the 4th Kautilya Economic Conclave in New Delhi. Jaishankar noted that the United States is increasingly assertive in pursuing its national interests, while China is undergoing a period of transition as many of its global initiatives are still taking shape. He highlighted shifting energy dynamics, with the US emerging as a major energy exporter and China leading in renewables, and cautioned that major powers are increasingly willing to exercise their influence aggressively. On trade, Jaishankar stressed the need for a mutually respectful understanding with the US, pointing to ongoing negotiations amid tariffs imposed over India’s crude oil imports from Russia. He also emphasized diversifying trade toward Asia, while acknowledging challenges posed by competing regional economies.
Focusing on shifting power dynamics among major nations, Jaishankar said, “Clearly, what we can see is that the US-China relationships in many ways are going to influence the direction of global politics.” He described how both the United States and China are reshaping their approaches to power and partnerships. On the US, he noted that it has become more assertive, using its national interest goals to guide international cooperation. Regarding China, Jaishankar said, "This change perhaps catches them at a time when many of the new concepts, mechanisms, and institutions that they were pushing are not yet in place."
Jaishankar highlighted the changing role of Europe, stating that what was once a “sweet spot” in US-Russia-China energy, security, and trade dynamics has now become a challenge. On energy, he observed that the US, previously concerned about external dependence, is now self-sufficient and a major exporter, while China has emerged as a leader in renewables. "Pretty much any path you take on renewables, finally all roads lead back there as well," he said.
Commenting on broader global trends, Jaishankar said, “We have also seen in a few cases, in the cases of major polities, that their belief in balance of power is probably much less... if they have margins of power, they are prepared to exercise those margins in pursuit of their policies and actions.” He cautioned that global competition is intensifying, with major powers increasingly willing to use all tools in their arsenal. Describing the global economy as paradoxical, he added: "The intensity of multiple happenings, actually converging on the global economy at the same time, is today setting into motion a paradoxical situation... At the same time, because of the consequences of this, there is a serious effort also to de-risk every facet of both politics and economics."
Jaishankar stressed the importance of reaching a trade understanding with the US, given its status as the world’s largest market. He said negotiations are ongoing and emphasized respecting India’s bottom lines. "Today, we have issues with the United States... we haven't yet arrived at a landing ground in our trade discussions. There are tariffs being levied on us, which we have publicly said are unfair," he said, referring to the 50 per cent US tariff imposed on India for crude oil imports from Russia, effective August 27.
He added: "Whatever happens at the end of the day, there has got to be a trade understanding with the United States. It has to be an understanding where our bottom lines, our red lines are respected."
The minister highlighted India’s ongoing efforts to diversify trade toward Asia. While initial free trade agreements were mostly with Asian economies such as ASEAN members, Japan, and Korea, many of these nations are now direct competitors and have facilitated greater market access for China. Jaishankar described the coming years as a test of resilience for all nations in a volatile global environment, emphasizing the need for pragmatic diplomacy and strategic engagement.
(With inputs from ANI)
