“Prime Minister Modi praises renewed India-China ties ahead of his first China visit in seven years, as U.S. Treasury Secretary Bessent accuses top Indian families of profiting $16 billion from Russian oil.”

Modi Praises Renewed India–China Engagement as U.S. Treasury Secretary Bessent Slams Indian Oil Profiteers

Introduction
Indian Prime Minister Narendra Modi has lauded the recent thaw in India–China relations, marking “steady progress” since his October meeting with Chinese President Xi Jinping, ahead of his first visit to China in seven years. Meanwhile, U.S. Treasury Secretary Scott Bessent escalated pressure on New Delhi, accusing India’s richest families of raking in an estimated USD 16 billion in “excess profits” through reselling discounted Russian crude.

Modi Signals Diplomatic Reset with China

Prime Minister Modi met Chinese Foreign Minister Wang Yi in New Delhi, where he highlighted how bilateral ties have benefited from mutual respect for each nation’s interests and sensitivities. In a social media post, he looked toward his upcoming visit to China—his first since 2018—at the Shanghai Cooperation Organisation (SCO) summit in Tianjin, underscoring hopes for “stable, predictable, constructive ties” to enhance regional and global peace and prosperity.

Chinese officials echoed this optimism. Foreign Minister Wang Yi described relations as trending positively, with both sides exploring steps like resuming border trade, reestablishing direct flights, and easing visa restrictions—key confidence-building measures.

Rising U.S. Pressure: Accusations of Oil Arbitrage and Wealth Profiteering

Simultaneously, U.S. Treasury Secretary Scott Bessent launched a scathing critique of India’s recent surge in Russian oil imports—boosting from under 1% to as much as 42% of its oil consumption. He labeled India’s actions as “profiteering,” stating that wealthy Indian families made roughly USD 16 billion in excess gains by reselling the oil, actions he deemed “unacceptable”.

Bessent added that, despite imposing secondary tariffs on India related to its Russian oil purchases, there have been no similar penalties slapped on China, which has increased its share of Russian oil import—from 13% pre-invasion to 16% now—suggesting a strategic divergence in Washington’s trade posture.

Strategic Balancing: Navigating Between Beijing and Washington

These developments underscore India’s delicate geopolitical balancing act: maintaining ties with both Washington and Beijing. Modi’s outreach to China follows a series of recent U.S. tariffs—totaling 50%, half of which penalizes India for its continued purchase of Russian crude—that have unsettled New Delhi’s foreign policy calculus.

Observers note that while India remains a key strategic partner to the U.S.—notably through the Quad—growing friction induced by Trump-era tariffs has nudged India toward reaffirming its engagement with China and other BRICS partners. Renewed cooperation with Beijing, Russia, and Brazil reflects India’s pursuit of strategic autonomy amidst shifting global alignments.

What to Watch Next

Modi’s attendance at the SCO summit in Tianjin later this month may further symbolize deeper Indo-China rapprochement.
U.S. policy shifts: Will Washington escalate penalties or open avenues for renewed trade dialogue with New Delhi?
India–China deliverables: Watch for any formal agreements on trade, visa policies, or border management.

At a pivotal moment for India’s foreign policy, Modi’s outreach to China signals a resetting of regional ties, while U.S. criticism over oil trade profits reveals intensifying pressure from Washington. Balancing these contrasting dynamics will define India’s diplomatic posture in the months ahead.