India and China are restoring economic links strained by a deadly 2020 border clash, the latest sign Prime Minister Narendra Modi is drawing closer to the BRICS countries after US President Donald Trump hit the South Asian nation with a 50% tariff.

Modi’s economic calculus was fundamentally altered this month when Trump doubled tariffs on Indian goods to 50% as a penalty for its purchases of Russian oil.

PM Narendra Modi is likely to be in China for the Shanghai Cooperation Organisation (SCO) later this month. This will be his first trip to the Asian country in seven years and the first since the 2020 Galwan Valley clash.