How Narendra Modi’s economic reforms have made China ‘closely look’ at first Modi-Trump meet

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New Delhi | Published: June 23, 2017 4:09:29 PM

First Narendra Modi-Donald Trump meet: Prime Minister Narendra Modi is all set for his first meeting with the US President Donald Trump on June 26.

modi trump meet, first modi trump meet, modi trump summit, first modi trump summit, modi trump, narendra modi donald trump, trump modi, trump modi meet, trump modi summit, h1b vis, paris climate dealFirst Modi-Trump meet on June 26: US President Donald Trump and India Prime Minister Narendra Modi.

First Narendra Modi-Donald Trump meet: Prime Minister Narendra Modi is all set for his first meeting with the US President Donald Trump on June 26. While both countries are expecting to gain from the meeting, China is also having a “close look” on the summit as Beijing is expecting to gain from it. Days before the important meeting, an article in Chinese state daily Global Times says India’s sustained economic growth after Modi came to power in 2014 has boosted New Delhi’s “confidence and strength as it strives to become a major power”.

“Compared with his predecessor, Modi has adopted a more open mind in reform and opening-up. Since he became India’s prime minister in 2014, the country has rolled out a series of reform measures, such as the Goods and Services Tax, to improve the investment climate,” Qian Feng, a researcher at National Strategy Institute at Tsinghua University, writes in the daily.

If Trump presses, the article expects, Modi may announce further measures to improve investment climate in the country. “An improved investment climate will contribute not just to US firms doing business in India, but also to companies from other countries, China including,” it says.

China is also having a close watch on Modi-Trump meet because of some of the issues, which Modi is expected to take up with Trump, also concern China. Most important among them are: a) H1B Visa issue and b) The Paris Climate Accord.

After India, China is the second biggest beneficiary of the H1B Visa programme in the US. However, there are apprehension that Trump’s focus on reforming immigration policies, including H1B, would negatively affect not just India but China as well. It is expected that PM Modi will take up this issue with the US President. “China will most likely be willing to express support for India’s stance over the H1B visa, and hopefully the problem can get solved during Modi’s summit with Trump,” writes Qian.

On Paris Climate Accord, Trump had recently accused India of receiving “billions of dollars” for signing the accord on climate change. India rejected Trump’s claim while the US walked out of the deal. It is expected that Modi will take up this issue with Trump as well. For China, “India’s stance is worth paying attention to,” says the article.

Noting that India-US economic relation is relatively small as compared to Sino-US relations, the article says Modi-Trump “may have more motivation to solve” issues like H1B Visa and Paris deal. “If the Modi-Trump meeting can make achievements in this regard, other countries like China are also expected to benefit from it,” it says.

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