Indian Prime Minister Narendra Modi will visit China later this month on Aug 31, according to a Reuters report. Modi will be participating in the SCO (Shanghai Cooperation Organisation) in Tianjin. The summit is scheduled to be held from Aug. 31 to Sept. 1. The meeting will likely address key issues in global trade right now. President Trump recently announced a 25% tariff on India for its continued purchase of Russian oil. India and China may even discuss de-dollarization plans as anti-US sentiment builds.

Will China And India Further Push For De-Dollarization?

The SCO summit will cover discussions on regional security, terrorism, and trade. The meeting will mark PM Modi’s first visit to China since 2019. Modi and his Chinese counterpart Xi Jinping last met at the BRICS summit in Kazan. The two nations will likely focus on border disputes in an effort to stabilize relations. Prior to the SCO summit, Modi will visit Japan on Aug. 30 for the India-Japan Summit with Japanese Prime Minister Shigeru Ishiba.

The SCO summit is also expected to address the looming global trade uncertainties. President Trump’s tariff spree has had significant consequences for global economics. There is a possibility that India and China will discuss further de-dollarization plans as the US takes a more dominant stance on its global hegemony.

While India has said that it does not intend to push for de-dollarization, China has made substantial inroads in using the yuan as an alternative currency for trade. Given the recent developments, it will not be surprising if India also takes a similar route.

Also Read: Goldman Sachs: De-Dollarization Forecast Spurs New Financial Trends

Not just nations, but central banks have also seen a steep pivot to non-US dollar assets. According to a BlackRock report, global central banks have seen a decline in dollar-based assets, while increasing their exposure to gold and other assets. The anti-USD sentiment could lead to further de-dollarization in light of President Trump’s recent tariff hikes.