In face of US tariffs, China signals AI partnership potential to India

Amid the intensifying trade war with the US, China is stepping up its outreach to India – this time in the field of AI. “China and India lead the world in cloud infrastructure services, a key driver for AI growth,” tweeted Yu Jing, spokesperson for the Chinese Embassy in India. While framed as a nod to shared digital leadership, the remark also reflects Beijing’s broader attempt to prevent isolation and deepen economic ties with New Delhi.

Jing cited data from UN Trade and Development (as of mid-2024), according to which China led with 190 cloud infrastructure services, followed by US with 145 India a distant third with 32 services.

China and India lead the world in cloud infrastructure services, a key driver for AI growth! #CloudTech#AI#ChinaIndiapic.twitter.com/LRTImDrRnL

Yu Jing (@ChinaSpox_India) April 14, 2025

The comment comes as Chinese goods face soaring tariffs under Trump’s new trade offensive. Amid fears of being cut off from Western markets, Beijing is doubling down on tech diplomacy, infrastructure collaboration, and trade realignments in the Global South. India’s rapidly expanding cloud sector, bolstered by homegrown giants and global investments, is now at the centre of this geopolitical reset.

The escalating trade war with the United States appears to be prompting a notable shift in China's diplomatic approach towards India. Facing significant economic pressure from US tariffs, Beijing has begun signaling a desire for improved ties and increased cooperation with New Delhi.

Criticising the US move, Jing earlier this month said that China’s economy was underpinned by a system that ensures steady growth and the country is a strong defender of economic globalisation and multilateralism, contributing to 30% of global growth on average.