4 hours ago
The Busan handshake between Donald Trump and Xi Jinping looked like diplomacy. But behind the smiles was a deal that gave China breathing space and left India sidelined in the new Asian power game.
Donald Trump-Xi Jinping meet in South Korea's Busan amid trade rift
UPDATED: Oct 30, 2025 22:14 IST
What began as a "handshake for peace" at the 2025 APEC Summit in Busan has turned into a geopolitical earthquake. Donald Trump and Xi Jinping met face to face for the first time since Trump's return to the White House, and the deal they struck has reshaped the balance of power in Asia.
Trump slashed tariffs on Chinese imports from 57% to 47%, giving Beijing vital economic relief. In return, China agreed to resume rare earth exports for one year, the critical minerals that power everything from fighter jets to smartphones. Trump called it a "12 out of 10" meeting. Xi called it "a new chapter." But for India, it looks more like a betrayal.
Whilst China secured tariff relief, Indian exports to the US still face barriers of up to 50%. The mathematics is brutal. China becomes cheaper and more competitive, whilst India remains stuck in the tariff trap. In sectors like textiles, pharmaceuticals and electronics, this gap could cost India billions in lost revenue.
The rare earth deal is equally damaging. China controls over 80% of the world's refined rare earth materials, and this agreement legitimises that monopoly for another year. India, which has been positioning itself as an alternative supplier through partnerships with Australia and Japan, now finds those plans delayed. Western investments in Indian rare earth exploration may slow because the crisis they were meant to solve just got postponed.
The message from Busan is unmistakable. When Trump needed a political win, he turned to Beijing, not Delhi. India, the so-called linchpin of the Quad and democratic counterweight to China, was not in the room, not consulted, not prioritised.
Trump's urgency with China compared to his patience with India reveals a harsh truth. The US-China trade volume dwarfs US-India trade. American industries depend on Chinese rare earths. A deal with Xi makes headlines; a deal with Modi makes policy. Trump prefers headlines.
For India, this is a wake-up call. Washington's loyalty is transactional, and when a deal with China serves American interests today, India's friendship can wait until tomorrow.
- Ends
Published By:
indiatodayglobal
Published On:
Oct 30, 2025
