So, here's the deal the U.S. is trying to make with India: We want to be friends, we want to trade, but we're not going to get burned again.
U.S. Deputy Secretary of State Christopher Landau laid it out pretty clearly in a speech in New Delhi on Thursday. He said the U.S. is keen to expand its alliance with India—calling it one of Washington's most significant future partnerships—but he stressed that any deal has to work for American interests too. "It has to be obviously based on reciprocity and mutual respect," he stated.
The good news is he thinks they're getting close. Landau conveyed hopefulness about the current trade discussions, indicating that a bilateral trade agreement was near the "finish line."
Then came the warning shot, and it was aimed directly at the ghost of trade deals past. Landau told India that the U.S. would not replicate the errors made with China two decades ago, where China was permitted to establish markets and subsequently surpassed the U.S. in several business sectors, such as manufacturing and technology.
"India should understand that we're not going to make the same mistakes with India that we made with China 20 years ago," he said. It's the diplomatic equivalent of "fool me once, shame on you; fool me twice, shame on me."
Despite the caution, Landau was bullish on India's future, anticipating the 21st century would witness the "rise of India" due to its demographic size, economic potential, and strategic relevance.
What Mistakes Is He Talking About?
Landau's remarks pointed to U.S. policy errors that aided China's emergence as an economic powerhouse. He's most probably referring to the period around China's entry to the World Trade Organization (WTO).
Here's a quick history lesson: From 1980 to 2000, China's Most Favored Nation (MFN) trade status was reviewed every single year by the U.S. Congress, and those reviews were often politically fraught. In 2000, Congress granted China permanent normal trade relations (PNTR) under former President Bill Clinton, which ended the annual reviews. A year later, China entered the WTO. The rest, as they say, is economic history—a history the U.S. now views with some regret as China became a formidable competitor.
Landau contextualized his tough talk within President Donald Trump's "America First" foreign policy strategy, asserting that U.S. diplomacy should primarily serve American national interests. The subtext is clear: the era of granting market access with few strings attached, in hopes of broader geopolitical gains, is over.
