India-China Relation / 'Dragon' wants to resolve the issues, will Indian companies have access to the Chinese market?

Vikrant Shekhawat : May 10, 2024, 09:20 PM
India-China Relation: China's newly appointed Ambassador to India Xu Feihong has acknowledged India's concerns over the rising trade deficit and said that China is ready to resolve the issue by facilitating entry of more Indian companies into its market. Trade deficit, which has been a matter of concern for India for years, is expected to reach USD 99.2 billion by 2023 while the total bilateral trade with China was USD 136.2 billion. In the year 2022, the trade deficit was more than $100 billion for the first time at $101 billion. India has been expressing its concerns with China from time to time in this regard. India has been putting pressure on China to open up its major export potential sectors, including grains, information technology and pharmaceutical sectors, to Indian companies.

'China understands India's concern'

Speaking to PTI and China's CGTN-TV before leaving for India to take up his duties as ambassador, Feihong reiterated China's stance that it has no intention of running a trade surplus. . He said, “There are many factors behind India's trade deficit. China understands India's concerns. It has never been our intention to maintain a trade surplus.”

'Chinese market is open'

Feihong said, “The Chinese market is open to all countries including India. We have sent many trade delegations to India to buy Indian products and we want more and more salable Indian products to come to the Chinese market. We are ready to provide more facilities for India's participation in China International Import Expo, China-South Asia Expo, Canton Fair and other forums.'' He said, ''China will help Indian companies to meet China's market demands and achieve commercial success. And is also ready to help in taking advantage of the possibilities of business cooperation.

'Travel is good for bilateral trade'

Feihong said, “Last year, Chinese diplomatic missions in India issued about 190,000 visas, of which more than 80 percent were business visas. Business trips from both sides are good for bilateral trade. We hope that India can provide more facilities to Chinese businessmen coming to India for business opportunities.

What do the statistics say?

It is noteworthy that, despite the tension between the two countries over the military standoff in eastern Ladakh, bilateral trade remains at a high level. According to data released by China's Customs Department, total trade between the two countries increased to a record $136.2 billion last year. At the beginning of this year, India's trade deficit increased to $99.2 billion, which is slightly less than last year.