Article
This piece argues that India’s central challenge is not managing a single flashpoint but resolving the underlying tension between expansion and institutional coherency of the BRICS grouping.
Vrinda Sahai
{
"authors": [
"Yukon Huang",
"Jeremy Smith"
],
"type": "legacyinthemedia",
"centerAffiliationAll": "dc",
"centers": [
"Carnegie Endowment for International Peace"
],
"collections": [],
"englishNewsletterAll": "asia",
"nonEnglishNewsletterAll": "",
"primaryCenter": "Carnegie Endowment for International Peace",
"programAffiliation": "AP",
"programs": [
"Asia"
],
"projects": [],
"regions": [
"North America",
"United States",
"East Asia",
"China"
],
"topics": [
"Economy",
"Trade",
"Foreign Policy"
]
}
Source: Getty
In The Media
How China and the U.S. Threaten the World Trading System
China’s rise was made possible by its integration into a rules-based international system. Competitive pressures and sensitivities, however, strained relations with many of its key trading partners.
Published on Nov 4, 2020
Source: Diplomat
Over decades, trade transformed China into a major economic power with extensive commercial links throughout the world. By 2012, China had become the largest trading partner of 124 countries, well exceeding the comparable figure of 76 for the United States. But as trade remade China, in the process China also remade world trade. It began with China’s emergence as the center of global supply chains, then again with its massive infrastructure program that drove global demand for commodities like iron ore, copper and coal, and most recently by Beijing seeking new export markets outside and within Asia in response to the U.S. trade war.
China’s rise was made possible by its integration into a rules-based international system. Competitive pressures and sensitivities, however, strained relations with many of its key trading partners, especially when Beijing used its economic leverage for strategic interventions throughout Asia and selectively in Europe, Africa and Latin America. Yet China is not alone in using its economic clout for political purposes; the United States, too, has levied sanctions on countries like Iran and Venezuela and used punitive trade measures against China and other nations. Though their interventions differ in nature, the global trading system is ironically now being undermined by the coercive actions of its principal creator and its major beneficiary.
About the Authors
Yukon Huang
Senior Fellow, Asia Program
Huang is a senior fellow in the Carnegie Asia Program where his research focuses on China’s economy and its regional and global impact.
Jeremy Smith
Former James C. Gaither Junior Fellow, Asia Program
Jeremy Smith was a James C. Gaither Junior Fellow with the Asia Program.
Carnegie India does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.
More Work from Carnegie India
- Managing Divergence: India’s BRICS Presidency in 2026
- India–Africa Strategic Partnership: Challenges, Potential, and Possible PathwaysArticle
A partnership between India, a country of subcontinental size, and Africa, a continent of fifty-four countries, may seem asymmetric until one notes that both are home to nearly the same number of people—1.4 billion. This essay spells out the existing challenges to the partnership, its optimal potential, and the possible pathways to realize it over the next quarter-century.
Rajiv Bhatia
- The Unresolved Challenges in U.S.–India Semiconductor CooperationCommentary
The U.S.–India semiconductor cooperation story is well-stocked with top-level strategic intent. What remains unresolved, however, are some underlying challenges that will determine whether the cooperation actually functions. Three such friction points stand out.
Shruti Mittal
- Emerging From the “Zombie State” of Trade Agreements: The India-EU FTACommentary
The India–EU Free Trade Agreement (FTA) is shaping up to be one of the most consequential trade negotiations, both economically and strategically. But, what’s in the agreement, what’s missing, and what will determine its success in the years ahead
Vrinda Sahai, Nicolas Köhler-Suzuki
- India’s Press Note 3 Gamble: Opening the FDI Door to ChinaArticle
On March 10, 2026, India’s Union Cabinet approved amendments to Press Note 3, a regulation that mandated government approval on all foreign direct investment (FDI) from countries sharing a land border with India. This amendment raises questions primarily about whether its stated benefits will materialize and if the risks have been adequately weighed. This piece will address the same.
Konark Bhandari
