At the recent U.S.–China summit, both countries revived the idea of a “G-2” partnership, signifying mutual recognition of each other as dominant global powers and indicating renewed strategic engagement.
The term “G-2” was introduced in 2005 by economist C. Fred Bergsten, former Director of the Peterson Institute for International Economics, in his book The United States and the World Economy. Bergsten proposed that the U.S. should deepen bilateral ties with key global actors—including the EU, China, Japan, and Saudi Arabia—to reinforce global governance.
The idea resurfaced during the 2008 global financial crisis when Bergsten argued that U.S.–China cooperation was essential for global economic stability and addressing challenges like climate change. By 2009, around the U.S.–China summit, the concept gained further traction as both nations discussed forming an exclusive partnership to jointly address major global issues including trade, nuclear proliferation, and climate change.
The meeting marked a symbolic revival of the G-2 arrangement, with both leaders adopting diplomatic restraint and delivering strategic messages acknowledging their shared global influence.
China remains India’s primary strategic concern due to ongoing border disputes, a widening trade deficit, and Beijing’s close partnership with Pakistan. The renewed U.S.–China G-2 equation raises concerns for India regarding global power shifts, the future of the Quad, and the stability of Indo-Pacific initiatives.
India, a supporter of a multipolar global order, perceives bilateral dominance by the U.S. and China as undermining its strategic space and the Quad’s broader Indo-Pacific vision. With the U.S. lowering tariffs on China, India now faces one of the highest tariff rates, potentially impacting its export competitiveness. The uncertain trajectory of the Quad and the U.S.’s pending trade agreement with India reflect evolving strategic priorities in the Indo-Pacific.
China’s growing influence through its industrial capacity, technological expansion, and control over rare earths—combined with changing U.S.–China dynamics—calls for a recalibration of India’s foreign and strategic policies. India’s multi-alignment strategy, articulated in the External Affairs Minister’s book The India Way (2020), must evolve for a world where New Delhi simultaneously “manages America” and “engages China,” reversing earlier strategic roles.
India must continue balancing its relations with both the U.S. and China while strengthening partnerships with other global powers and enhancing its own economic, technological, and defense capabilities. The emerging global order—shaped by renewed U.S.–China engagement and shifting power alignments—demands a more flexible and region-focused “India Way” that strengthens Asian partnerships and maintains strategic autonomy.
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