India–China SCO Tensions: S. Jaishankar–Xi Jinping Meet Sparks 5 Shocking Rifts Over Rare Earth Trade Friction

✅ India-China SCO tensions are rising as rare earth trade frictions give rise to economic and diplomatic differences. Find out how the Jaishankar-Xi Jinping meeting shapes India’s foreign policy in a changing world order.

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🔍 India-China SCO Tensions: A Diplomatic Dance in a Divided World

The recent interaction between Jaishankar and Xi Jinping during the Shanghai Cooperation Organisation (SCO) summit has once again highlighted the India-China SCO tensions dominating Asia’s strategic discourse.

A photo from this meeting, showing a handshake between the two top Asian powers, has fuelled global speculation over the future of their bilateral relationship.

Despite rumours of President Xi Jinping’s absence, his active presence at the SCO meeting confirmed China’s continued involvement in global diplomacy.

However, a more complex story lurks behind these featured photos—a volatile mix of economic frictions, strategic rivalry, and a multipolar world where alliances are constantly shifting.

💥 Tough Road Ahead: Economic friction is fuelling India-China SCO tensions

China’s recent ban on exports of rare earth minerals to India has sparked intense economic concern. In response, India has allocated ₹1345 crore to accelerate domestic exploration and production.

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This export ban has been described by Indian analysts as a deliberate pressure tactic and underlines how economic tools are being used as weapons in geopolitical competitions.

During the summit, S. Jaishankar expressed India’s displeasure and urged China to refrain from “restrictive trade measures and barriers” and instead pursue mutually beneficial cooperation.

Furthermore, China has also barred its engineers from joining Indian-led tech manufacturing projects such as Foxconn. These moves indicate a deeper strategic intent to curb India’s industrial growth, leading many to believe that a “miracle” may now be needed for normalisation of relations.

✳️ Online propaganda: Social media wars

Pro-China accounts on X.com (formerly Twitter) have launched coordinated campaigns to refute Indian narratives, and often question India’s ban on Chinese apps such as TikTok. This highlights the broader information warfare strategy at play in this bilateral rivalry.

🧭 Shanghai Cooperation Organisation (SCO) under scrutiny: Is India’s membership worth it?

India-China SCO Tensions: Despite sharp ideological differences with other members, India’s continued participation in the Shanghai Cooperation Organisation (SCO) is becoming a topic of debate.

Geopolitical experts have been increasingly arguing that the Shanghai Cooperation Organisation (SCO) offers little benefit to India, especially after its refusal to condemn the Palagam massacre, widely seen as appeasement of Pakistan.

In the past, tensions were evident when Defence Minister Rajnath Singh refused to sign the Shanghai Cooperation Organisation (SCO) declaration. Given this precedent, many feel Jaishankar’s participation this year was questionable, and some suggest the presence of a lower-level official could have sufficed.

❓ Should India exit the Shanghai Cooperation Organisation (SCO)?

India–China SCO Tensions: S. Jaishankar–Xi Jinping Meet Sparks 5 Shocking Rifts Over Rare Earth Trade Friction

While leaving the SCO may signal to the West that India is moving away from the Russia-China alliance, remaining in it risks lending legitimacy to a bloc that increasingly marginalises Indian interests.

Without India, the Shanghai Cooperation Organisation (SCO) could turn into a Russia-China club, weakening its multilateral identity.

🇺🇸 The unpredictable US factor: Adding fuel to the global fire

Complicating India’s strategic calculations is America’s erratic foreign policy, especially under the influence of Donald Trump. Proposals such as 500% tariffs on Indian and Chinese goods, as punishment for ties with Russia, have worried New Delhi.

Trump’s aggressive stance, including calls to bomb Russian cities such as Moscow and St Petersburg, has not only raised concerns internationally but has also drawn criticism within the US Congress as “unsustainable” and “unreliable”.

⚖️ Is it a lucky break for the US?

Ironically, the India-China rift is beneficial to the US, as a unified Asian voice can dent Western hegemony. Analysts agree that if India and China unite, they can “fundamentally alter the global balance of power.” But the existing differences give the US room to manoeuvre.

🌐 Multipolar Manoeuvring: India’s path to strategic autonomy

Despite the challenges of the SCO, India sees potential in other multilateral formats such as the BRICS, which has openly denounced Trump’s tariff threats.

President Vladimir Putin’s upcoming visit to India is seen as crucial in maintaining strong Indo-Russian ties in this turbulent environment.

🔎 Strategic takeaway: India-China SCO Tensions

India must balance its response to China’s coercive strategies without becoming too restrictive.
At the same time, it will have to deal with US uncertainties while strengthening ties with other allies.
Forums like BRICS and Quad provide better options to advance India’s regional agenda.

✅ India-China SCO Tensions Summary Table

Key Area	Summary
India–China SCO Tensions	Heightened due to rare earth export bans and diplomatic divergence
Trade Friction	China blocks rare earth exports; India invests ₹1345 Cr in domestic mining
SCO Membership Debate	India’s continued participation questioned amid political compromise
US Factor	Tariff threats and military posturing complicate India’s strategic alignment
India’s Strategy	Focus on BRICS, diversification, and maintaining strategic autonomy

❓ FAQs About India-China SCO Tensions

Q1: Why did China ban rare earth mineral exports to India?
A: It appears to be a strategic move to pressure India economically amid rising bilateral tensions.

Q2: What is India’s response to the rare earth crisis?
A: India has allocated ₹1345 crore to develop its own rare earth mineral resources.

Q3: What are India’s concerns with the SCO?
A: India believes the SCO fails to address terrorism and acts as a platform for China–Pakistan influence.

Q4: Why is the US relevant in India–China relations?
A: US actions, like proposed tariffs and erratic foreign policy, influence how India positions itself globally.

Q5: Could India and China ever align geopolitically?
A: Theoretically, yes. But deep mistrust and strategic competition make it unlikely in the near term.

Q6: What alternatives does India have to the SCO?
A: BRICS, Quad, and bilateral partnerships offer more aligned strategic benefits.

Q7: Will PM Modi attend the SCO Leaders Summit in China?
A: His participation is still undecided and may signal India’s stance on SCO’s future relevance.

Q8: How does BRICS help India in this context?
A: BRICS openly supports India’s positions on trade and opposes protectionist Western policies.

Q9: Why does the US prefer India and China not to align?
A: A united India–China front could challenge US dominance in global policymaking.

Q10: Is India drifting toward strategic autonomy or Western alignment?
A: India aims for strategic autonomy, balancing relations with both Western and Eastern powers.

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📚 References

Ministry of External Affairs, Government of India – Statements on SCO meetings and bilateral talks
South China Morning Post – China halts rare earth exports amid India tensions
The Hindu – India allocates ₹1345 crore for domestic rare earth exploration
Global Times (China) – China’s perspective on SCO and India’s participation
ORF (Observer Research Foundation) – Strategic analysis of India-China trade relations
Brookings Institution – U.S. foreign policy unpredictability and impact on Asia
Reuters – Trump’s trade war plans, 500% tariff threat
CNBC – Trump’s comments on bombing Moscow, U.S. internal political reactions
Carnegie India – India’s multilateral engagement strategy and SCO membership analysis
Quartz India – Why India banned Chinese apps like TikTok and the response from Beijing