Global Trade War: US-China Trade Rivalry Puts India in the Global Spotlight, What is the Future of Global Trade?

America Vs China: In the world of global trade, the client is paramount—whether for a little shopkeeper, major enterprises, or even nations like the United States, which sees the world as a marketplace. Under President Donald Trump’s leadership, America’s foreign policy has mostly focused on commercial interests rather than social, environmental, or humanitarian issues. Tariffs have become a strategic instrument for securing trade deals that benefit the United States. Modern geopolitics remains centred on two important elements: access to raw materials or superior technology for manufacturing and a large customer base for consumption. While this used to be limited to commodities like cotton and spices, it now encompasses semiconductors, rare earth elements, and cutting-edge technologies—all of which have enormous global impact.

Rise of China

China has developed into a strong contender by embracing and implementing the American corporate model. Previously a consumer of foreign products, it now competes with American companies in major sectors like as mobile, automobile, fashion, and technology. China’s strategic control of resources like rare earth magnets has had a tremendous impact on global sectors, particularly defence and technology. Meanwhile, India has always been a consumer market, from the British era to American domination and now Chinese penetration, with trade volumes projected to exceed $101 billion in 2023-24. As the United States and China compete for a larger portion of the Indian consumer base, India must decide whether to remain a consumption-driven economy or invest in manufacturing and technology to become a competitive global power.