China Offers to Buy More Indian Products to Balance Trade
China’s Ambassador to India Makes Proposal
China is willing to buy more Indian products to balance trade, according to Beijing’s Ambassador to India, Xu Feihong. This announcement comes just ahead of a US tariff announcement that is expected to impact the South Asian neighbors.
Strengthening Practical Cooperation
"We are willing to work with the Indian side to strengthen practical cooperation in trade and other areas, and to import more Indian products that are well-suited to the Chinese market," the ambassador to India was quoted as saying by China’s state-run Global Times.
Current Trade Situation
Bilateral trade between India and China stood at $101.7 billion in 2023-2024, according to India’s trade ministry. India runs a significant deficit, with main exports including petroleum oil, iron ore, marine products, and vegetable oil, amounting to $16.6 billion, according to government figures.
Celebrating 75th Anniversary of Diplomatic Ties
The envoy’s remarks were made to mark the 75th anniversary of diplomatic ties between the two countries. Chinese President Xi Jinping also congratulated the president of India, calling for stronger communication and cooperation between the world’s two most populous countries.
US President Trump’s Trade Practices
US President Donald Trump, who is set to roll out reciprocal tariffs on Wednesday, has called out China and India for trade practices that he sees as unfair.
Indian Prime Minister Narendra Modi’s Response
Indian Prime Minister Narendra Modi has been making concessions to appease the US leader and has praised Trump in a podcast. Modi has also been working with Chinese President Xi Jinping to restore normalcy at the border.
History of Tensions
Relations between India and China plunged after clashes in a disputed region of the Himalayas in 2020, resulting in the first deadly clashes in four decades. India subsequently blocked investment and curtailed access to the Indian market for Chinese tech firms.
Thaw in Relations
Xi and Modi met on the sidelines of the BRICS summit last year, agreeing to restart direct flights in a sign of a thaw in relations. They had not had a formal bilateral meeting prior to that since 2019.
Conclusion
China’s offer to buy more Indian products is a significant development in the bilateral trade relationship. The proposal comes at a time when India is facing pressure from the US to open up its markets. The move is seen as a positive step towards strengthening practical cooperation between the two countries.
Frequently Asked Questions
Q: What is the current state of trade between India and China?
A: Bilateral trade between India and China stood at $101.7 billion in 2023-2024, with India running a significant deficit.
Q: What are the main exports of India to China?
A: Main exports of India to China include petroleum oil, iron ore, marine products, and vegetable oil, amounting to $16.6 billion.
Q: What is the significance of the 75th anniversary of diplomatic ties between India and China?
A: The anniversary is a significant milestone in the bilateral relationship, with both countries calling for stronger communication and cooperation.
Q: What is the current state of relations between India and the US?
A: India Prime Minister Narendra Modi has been making concessions to appease US President Donald Trump, who is set to roll out reciprocal tariffs on Wednesday.
