Prime Minister Narendra Modi welcomed a thaw in relations with Beijing as he prepares for his first visit to China in seven years, even as Washington ramped up criticism of India’s Russian oil purchases. While Modi hailed China ties as a path to “peace and prosperity,” U.S. Treasury Secretary Scott Bessent accused New Delhi of enriching its wealthiest families through discounted crude sales from Moscow, underscoring India’s delicate balancing act between competing global powers.

Modi met Chinese Foreign Minister Wang Yi in New Delhi on Tuesday, highlighting stability and predictability as guiding principles for the relationship. Beijing has promised India new supplies of rare earths, fertilizer, and tunnel-boring machines, while both countries agreed to restart flights and expand business exchanges. National Security Adviser Ajit Doval said the border had been “quiet” in recent months after years of tension following the 2020 Galwan Valley clash.

Speaking on CNBC, Treasury Secretary Bessent said India had made $16 billion in excess profits by reselling Russian crude, describing the practice as “profiteering.” He contrasted India’s post-2022 surge in imports with China’s more gradual increase, indirectly targeting tycoon Mukesh Ambani’s Reliance Industries, one of the largest processors of Russian oil. Reliance shares dipped briefly before stabilizing.

President Donald Trump has already imposed 25% tariffs on Indian exports and threatened to double them unless New Delhi cuts its Russian oil trade. India’s government insists its purchases are based on “the cheapest available source” and defends its right to secure affordable energy. Modi, who spoke with Vladimir Putin this week, publicly called the Russian leader a “friend.”

Despite the thaw, unresolved disputes linger. Both sides held a “candid” exchange on the disputed Himalayan frontier, agreeing to maintain “peace and tranquility.” China’s foreign ministry simultaneously announced Wang Yi would travel to Pakistan, underscoring Beijing’s careful balancing of ties between India and its rival.

As Modi prepares to visit China, India’s maneuvering reflects a larger strategy of hedging between Beijing, Moscow, and Washington. But with U.S. tariffs looming and accusations of profiteering sharpening, New Delhi faces a sharper test: whether deepening ties with China and reliance on Russian oil can offset the costs of a brewing trade confrontation with its most powerful Western partner.