Calling the current poor state of India-China relations “a real shame,” Rein said, “Prime Minister Modi should move India’s economy closer to China in the coming three to five years.” He cautioned that while India’s growth prospects are strong, the US might try to contain India’s rise in the future, just as it once did with Japan and is currently doing with China.
“Indians cannot trust America,” Rein warned. “If India gets too powerful, and you will get that powerful in 10 to 20 years, the Americans are going to try to destroy India and contain you.”
Rein also dismissed hopes of major supply chain shifts out of China, saying most global firms are staying put. “Aside from maybe Apple… most companies are not going to leave China,” he said, adding that businesses are reluctant to move to alternatives like Vietnam amid geopolitical uncertainty.
He pointed out that China had already reduced its export dependence on the US, with just 14% of Chinese exports now going to America compared to 18% in 2017. China now sends 16% of its exports to ASEAN and is boosting trade ties with the Global South, including Latin America.
Rein said the US decision to scale back tariffs on China to 30% would ultimately hurt American consumers and companies. “This is going to be a tax on the United States consumer,” he said. “Chinese companies are the big winners out of this.”
He criticised President Trump’s initial tariffs, saying the rollback reflected political pressure from within the US over rising prices and supply disruptions. “Even Republicans were complaining about empty shelves, high inflation,” Rein said.
“This was a huge win for China,” he added. “Not only did China not blink… Trump did. And he didn’t just blink; he actually kowtowed and fully prostrated to the Chinese for 90 days.”
Rein described the US retreat as a “huge loss of face” and called the tariffs “buffoonery” that would be remembered as one of the biggest mistakes in American business history.
Watch accompanying video for entire conversation.