China is prepared to increase its imports from India as part of efforts to balance trade between the two countries, according to Chinese Ambassador to India, Xu Feihong. This announcement comes just ahead of anticipated US tariffs that are expected to impact both India and China.
China and India Strengthen Trade Relations
Ambassador Xu emphasized China’s willingness to enhance trade ties with India and import more products well-suited for the Chinese market. His comments, reported by China’s state-run Global Times, highlight China’s commitment to furthering practical cooperation in trade and beyond.
Bilateral Trade Snapshot
In 2023-24, bilateral trade between China and India reached $101.7 billion, with India running a significant trade deficit. India’s key exports to China include petroleum oil, iron ore, marine products, and vegetable oil, totaling $16.6 billion according to Indian government data.
Anniversary of Diplomatic Ties
The ambassador’s remarks were made to commemorate the 75th anniversary of diplomatic relations between China and India. Chinese President Xi Jinping also reinforced the importance of stronger communication and cooperation between the two countries. In a message marking the occasion, Xi expressed his desire to deepen coordination on major international issues and enhance peace in the border regions.
US Tariffs and Trade Tensions
US President Donald Trump is set to announce reciprocal tariffs targeting countries worldwide, including China and India, in a move aimed at addressing trade practices he deems unfair. Indian Prime Minister Narendra Modi has been working to mitigate tensions with the US, even offering praise for Trump in a March podcast. Modi has also been engaged in discussions with President Xi to restore stability along the border after tensions escalated following clashes in 2020.
Thaw in China-India Relations
Relations between China and India deteriorated after violent clashes in the Himalayas in 2020, which marked the first deadly encounters between the two countries in four decades. India responded by limiting Chinese investments and restricting access to its vast market, particularly for Chinese tech companies.
However, in a sign of thawing relations, Xi and Modi met at the BRICS summit last year, agreeing to restart direct flights between the two nations. This marked the first formal meeting between the leaders since 2019.
