China on Friday said it was ready to work with India to address their respective economic and trade concerns after finance minister Nirmala Sitharaman criticised Beijing’s restrictions on market access for Indian products, citing them as a major factor behind the widening trade deficit.“What I can tell you is that China never aims for trade surplus,” Chinese foreign ministry spokesperson Mao Ning said during a media briefing, responding to a question on Sitharaman’s remarks.“We stand ready to work with India to address each other’s economic and trade concerns in a balanced way and promote the steady development of bilateral relations,” Mao said, adding that questions on the issue should be directed to the relevant Chinese authorities.The response came after Sitharaman said that India’s growing trade imbalance with China and persistent restrictions on market access for Indian goods remained major concerns despite years of engagement between the two countries.
India flags non-tariff barriers
Speaking at an interactive session with the Atlantic Council on the sidelines of the IMF-World Bank annual meetings in Bangkok, Thailand, Sitharaman said non-tariff barriers remained the biggest obstacle to trade between India and China.“Non-tariff barriers are the biggest hurdle in the trade between India and China,” she said, adding that India had repeatedly raised concerns over the lack of market access for its products.Sitharaman said Indian goods faced persistent restrictions in China despite significant opportunities in sectors where India was globally competitive. These included generic medicines, bovine meat, vegetables and other perishable products.She said India had spent nearly a decade seeking better access for its products in the Chinese market, but had made little progress.The finance minister also criticised China’s use of phytosanitary measures and other non-tariff restrictions, arguing that such issues could be resolved through investigations and discussions between the two countries.Sitharaman said India had not adopted the approach of imposing punitive tariffs or countervailing duties to correct trade imbalances, preferring to pursue negotiations despite the time and effort involved.She added that the trade imbalance with China had continued to grow over several years, making it difficult for India to address the disparity through dialogue alone.
India-China trade deficit widens to $105.93 billion
The remarks came after data released by China Customs on Wednesday showed that India’s trade deficit with China widened to $105.93 billion during January-September, a 20.7 per cent increase from the corresponding period last year.Bilateral trade during the nine-month period rose 25.4 per cent to $144.45 billion, according to the data.China’s exports to India increased 23.3 per cent to $125.19 billion, while India’s exports to China rose 40.7 per cent to $19.26 billion.Despite the faster growth in Indian exports, the substantially higher value of imports from China kept the trade balance heavily tilted in Beijing’s favour.India has consistently sought greater access to the Chinese market for products in sectors such as information technology, pharmaceuticals and agricultural goods.However, Sitharaman said persistent non-tariff barriers had continued to limit opportunities for Indian exporters.
Both sides signal willingness to improve trade ties
The latest exchange comes as New Delhi has indicated efforts to rebuild its economic relationship with Beijing.Union commerce and industry minister Piyush Goyal said earlier this week that India was working to rebuild ties with China, adding that the outcome of the process remained uncertain.Commerce secretary Rajesh Agrawal also said the two countries were holding discussions on trade-related issues.“There are discussions going on on both sides on trade issues also…constant discussions will help improve the trade ties between the two countries,” Agrawal said, according to news agency PTI.While China has now expressed its willingness to address trade concerns in a balanced manner, India continues to highlight market access restrictions and the widening deficit as key issues in its economic engagement with Beijing.
