According to the statement given by China, the country values India’s concern over the bilateral trade imbalance. And that it is willing to discuss new agendas and approaches to address the issue. Further, China has asked the urban district of India New Delhi to join Beijing in the fight against the unilateralism and protectionism, a reference to Trump policy, amidst a trade war with the United States.
India was forcing China to open its pharmaceutical market for Indian pharma exports in order to address the trade deficit that crossed US dollar 57 billion in a US dollar 95.5 billion trade.
Donald Trump had kicked off a trade war with China by slapping 25 % duties on more than US dollar 57 billion of Chinese imports last year, demanding Beijing to reduce the massive trade deficit that climbed up to US dollar 539 billion.
There was trade friction going on between India and the United States on several issues as follows:
- India wanted foreign companies to store data locally and had announced a review of the rules around e-commerce that had alarmed United States tech and financial giants.
- Then Trump had announced that he will cancel preferential trade status for India that had allowed US dollar 5.6 billion to Indian imports in order to enter duty-free in the US.
- Further, India had announced a tariff hike on 28 American products that includes apples, lentils, and almonds.
Following are some highlights from the statement given by China’s new ambassador to India, Sun Weidong:
- China values India’s concern on the trade imbalance. However, he has to point out that deliberately they had never pursued any trade surplus against India.
- China has taken measures to increase the import of rice and sugar. Also, it has accelerated the process of review and approvals of Indian agricultural and pharmaceutical goods.
- China’s import from Indian goods has grown by 15 %. Further, more Indian goods are finding their way to the Chinese market.
- Since last year China’s import of Indian agricultural goods has doubled.
- India’s trade deficit against China is down by 5 %. He is convinced that the issue of the trade imbalance between China and India will be addressed gradually.
- By doing so both the countries can ensure international order will become just and rational. And it will uphold the shared interests of the developing countries.
- China is facing an unprecedented challenge which is unseen in a century. Both India and China are facing the challenges of unilateralism and protectionism.
- We need to build the India- China Plus mechanism to promote better regional infrastructure connectivity in order to ensure better synergy of policies and strategies between both the countries.