In a recent political development on Tuesday, China said that it has been India’s biggest trading partner, which refutes from the recent data set forth by New Delhi, reiterating that said traded more with the United States in 2020 than any other country across the globe. Soon after, China’s Foreign Ministry reported that it is ready to take measures to promote normal trade with India.
The United States of America overtook China as India’s largest trading partner in 2021-22, according to recent figures released by India’s Ministry of Commerce, reflecting growing economic ties between the two democracies. In 2021-22, bilateral trade between the US and India was worth $119.42 billion, compared to $80.51 billion in 2020-21, according to Indian data.
China’s Foreign Ministry noted that trade with India during the same period reported a value of $125.66 billion. When asked by the media to comment on the development, as China has been India’s largest trading partner for many years, the Chinese Foreign Ministry said the discrepancy may be due to different calculation methods.
“According to statistics from relevant Chinese authorities, the bilateral trade volume between China and India in 2021 will be USD 125.66 billion. On this basis, China remains India’s largest trading partner, and the total trade volume exceeded 100 billion USD for the first time (last year),” China’s Foreign Ministry Zhao Lijian said on Tuesday, at a regular Foreign Ministry briefing.
Two-way trade between India and China will be worth $125.66 billion in 2021, up 43.3 percent from the $87.6 billion in 2020, according to data from the China General Administration of Customs (GAC). ) in January. The trade deficit between the two countries ($69 billion) remains very favorable for China in 2021, while India’s record remains a concern.
Trade between China and India has grown despite the worst cooling in bilateral relations in decades, dragged down by border tensions in eastern Ladakh. A crucial reason behind the hike of trading values between China and India is that the Chinese companies saw increased demand for medical equipment in India during the first half of the year, following a devastating second wave of the Covid-19 pandemic.
Zhao Lijian said that China is not opposed to the development of normal trade relations between India and the United States and “is not interested in changes in trade classifications.”
Zhao Lijian said that China is concerned about whether India has the will and takes concrete actions to create a fair, transparent, sustainable and favorable environment for bilateral trade and investment, further expand win-win cooperation and bring tangible benefits to both the countries.”
When asked about the growing trade deficit with India, Zhao said: “China never seeks a trade surplus. We are ready to take measures to promote normal trade with India.” Zhao was also asked if the icy relationship had affected trade between New Delhi and Beijing. On that, he commented, “Currently, the situation on the border is generally stable. The two sides have maintained close communication through diplomatic and military channels.”
“The Chinese side has always believed that the border issue does not represent the whole of China-India relations, and we should put it in a proper position in the bilateral relationship and control and manage it effectively,” he further added.
Responding to another question about New Delhi’s decision to investigate Chinese companies ZTE and local subsidiaries of Vivo Mobile for alleged financial irregularities, Zhao said that China has always required its companies to comply with the laws and regulations of the countries in which they operate.
“The Chinese government is closely monitoring developments. The Chinese government has always required Chinese companies to abide by laws and regulations when doing business abroad,” Zhao said.
