Jaishankar: US-China relations will influence direction of global politics

External Affairs Minister S Jaishankar delivered an incisive speech at the Kautilya Economic Conclave (KEC 2025), offering a candid assessment of the evolving global order. Addressing a packed audience in New Delhi, he spoke about the intersection of geopolitics, technology, trade, and global power shifts, warning that the world’s transition towards multipolarity will be “messy” and that artificial intelligence (AI) is emerging as a defining force in international relations.
Jaishankar observed that the world today is witnessing the weaponisation of interdependence, the revisiting of alliances, and the weakening of established international rules. Highlighting the growing rivalry between major powers, especially the United States and China, he said that multipolarity while a reality in progress  remains a complex and uneven process that will not unfold in an orderly fashion. “Multipolarity is partly happening, but it has to be built as well. I’m afraid multipolarity is not going to be a neat sway, it will be messy,” he remarked.The minister also discussed the shifting nature of global conflicts, noting that warfare has become increasingly “contactless” with standoff weapons defining modern battlefields, as seen in conflicts such as Azerbaijan-Armenia, Ukraine-Russia, and Israel-Iran. According to him, the nature of weaponry and war has fundamentally changed, making conflicts more unpredictable and technologically driven.

VIDEO | Delhi: On Indo-US relations, External Affairs Minister Dr S Jaishankar at KEC 2025 says, "We have issues with the United States today - mainly that we haven’t yet reached a landing ground in our trade discussions. This has led to certain tariffs being levied on us, which… pic.twitter.com/px1jUEzV5x

— Press Trust of India (@PTI_News) October 5, 2025

On the economic front, Jaishankar addressed the growing use of sanctions, the seizure of sovereign assets, and competition for critical minerals and rare earths, which he said have become major factors shaping global rivalries. He emphasised that the cost of production is no longer the sole determinant in trade decisions issues like ownership, reliability, and resilience now weigh equally in strategic calculations.Touching upon India’s trade relations with the United States, Jaishankar acknowledged the ongoing friction, citing tariffs that India considers unfair. “We haven’t yet reached a landing ground in our trade discussions. Certain tariffs have been levied on us, including those related to sourcing energy from Russia, which other countries continue to do. These issues need to be resolved, and we are actively working on them,” he said. Despite the challenges, he expressed confidence that broader India–US relations remain strong and continue to operate “business as usual.”
The minister also reflected on Free Trade Agreements (FTAs), stating that many of India’s early FTAs particularly with ASEAN, Japan, and South Korea  were with highly competitive economies that indirectly benefited China due to complex supply chain linkages. He underlined that future trade agreements must be with economies that are sustainable and predictable, reaffirming India’s commitment to advancing talks with the UK, pursuing an FTA with the European Union, and strengthening understanding with the United States.Jaishankar stressed that for India, the path to resilience lies within. “The answer for a more difficult world is not outside, but inside — in deepening manufacturing, improving infrastructure and human resources, and finding new trade routes,” he said. He noted that India must not only defend what it has but also strive to expand its influence beyond the region through stronger manufacturing and balanced global partnerships.
Speaking on the future of global technology and its influence on power structures, Jaishankar announced that India will host an AI Impact Summit next year. “If there is an X factor shaping geopolitics, it will be technology  and it will centre around AI,” he said, highlighting how technology competition is fast becoming a decisive element in international relations.Concluding his remarks, Jaishankar reaffirmed India’s role in promoting stability amid global turbulence, asserting that while the QUAD remains “alive and well”, countries must navigate challenges with responsibility and realism.