India's exports to China surge in December while shipments to U.S. decline as Trump tariffs bite

Core Insights - India's exports to China increased significantly by 67% in December, reaching $2 billion, while exports to the U.S. decreased by 1.8% to $6.8 billion [1] - The U.S. imposed 50% tariffs on India, affecting trade relations and prompting India to seek alternative markets [2] - India's exports to mainland China rose nearly 37% in the first nine months of the fiscal year ending March 2026, with Hong Kong shipments increasing over 25% [2] Trade Relations - China has become India's largest goods trading partner, with trade worth $110.20 billion from April to December 2025, surpassing the U.S. at $105.31 billion [4] - India has a trade surplus with the U.S. of over $26 billion, while the trade deficit with China has reached $81.7 billion during the same period [5] - In fiscal year 2025, India traded goods worth $131.84 billion with the U.S. and $127.71 billion with China, excluding Hong Kong [5] Diplomatic Engagements - India's Foreign Secretary met with a Chinese official to discuss improving bilateral ties, focusing on business and people-centric engagements [3] - Relations between India and China have been improving since a meeting between Prime Minister Modi and President Xi Jinping in September [3]