Tianjin [China], August 31 (ANI): Prime Minister Narendra Modi and Chinese President Xi Jinping, during the bilateral meeting in Tianjin, recognised the role of India and China's economies in stabilising the world trade, the Ministry of External Affairs said in a statement on Sunday.

The statement comes as the world is grappling with US President Donald Trump's tariffs, which the US Appeals Court has itself ruled as 'illegal.'

On April 2, President Donald Trump announced tariffs targeting around 60 countries or trade blocs with significant trade deficits with the United States, marking the largest US tariff hike in almost 100 years. He called the occasion 'Liberation Day'.

The US imposed a 50 per cent tariff on New Delhi, including the additional 25 per cent for purchasing oil from Russia.

The US had impsed a levy of 30 per cent on China but later paused it for 90 days as the both nation are negotiating a trade deal, earlier Washington and Beijing jumped into a tariff war, reaching as high as 245 per cent.

The bilateral meeting between PM Modi and Xi Jinping comes ahead of the Shanghai Cooperation Organisation (SCO) Summit.

According to MEA, both leaders also focused on strengthening 'people-to-people' ties through direct flights, visa facilitation and resumption of Kailash Manasarovar Yatra, during the bilateral meeting, the Ministry of External Affairs said in a statement on Sunday.

'The two leaders noted the need to strengthen people-to-people ties through direct flights and visa facilitation, building on the resumption of Kailash Manasarovar Yatra and tourist visa. On economic and trade relations, they recognised the role of their two economies in stabilising world trade. They underlined the need to proceed from a political and strategic direction to expand bilateral trade and investment ties and reduce trade deficit,' MEA said in the statement.

During the Chinese Foreign Minister Wang Yi visit on August 18-19, both sides had agreed to resume direct flight connectivity between the Chinese mainland and India at the earliest, and finalise an updated Air Services Agreement. They also agreed on the facilitation of visas to tourists, businesses, media and other visitors in both directions.

India and China have also resumed the Kailash Manasarovar Yatra this year, a decision which EAM Jaishankar appreciated during his meeting with Chinese Vice President Han Zheng in Beijing.

Additionally, during the bilateral meeting, PM Modi noted that India and China both pursue strategic autonomy, and their relations should not be seen through a third country lens. The two leaders deemed it necessary to expand common ground on bilateral, regional, and global issues and challenges, like terrorism and fair trade in multilateral platforms, MEA said.

PM Modi will also hold a bilateral meeting with Russian President Vladimir Putin on the sidelines of the SCO Summit.

The SCO comprises 10 members. In addition to India, they include Belarus, China, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan, and Uzbekistan. There are also several dialogue partners and observers. India has been a member of the SCO since 2017, having been an observer since 2005. During its membership period, India has held the chair of the SCO Council of Heads of Government in 2020 and of the SCO Council of Heads of State from 2022 to 2023. (ANI)