India and China are strengthening their economic and political relations at the Shanghai Cooperation Organisation (SCO) summit in Tianjin, as both nations seek to enhance commercial ties following U.S. sanctions imposed on India for purchasing Russian oil.
This development marks a significant shift for two countries that have often been at odds. The summit, which took place this week, resulted in the establishment of the SCO"s investment bank, aimed at funding various projects across member nations, including infrastructure, resource extraction, and scientific initiatives.
Historically, the relationship between India and China has been complex, marked by territorial disputes and competition. However, recent geopolitical dynamics, particularly the U.S. actions under the previous administration led by Donald Trump, have inadvertently united BRICS nations. Trump"s attempts to isolate these countries through threats of sanctions and trade barriers have backfired, prompting stronger collaboration among them.
As India and China move forward with their partnership, the implications for regional trade and investment are substantial. The SCO investment bank is expected to facilitate growth and development across multiple sectors, potentially reshaping economic landscapes in Asia as these nations work together more closely than ever before. For more on this topic, see our recent developments.
