In the midst of growing US-China trade tensions, the Chinese Ambassador to India, Xu Feihong, has extended a welcoming hand for more premium Indian goods to be exported to China. He emphasized China’s readiness to assist Indian businesses in tapping into the vast potential of the Chinese market. While discussing the future of trade relations between the two countries, Feihong highlighted the mutual benefits that can be achieved through cooperation, stressing the importance of a balanced and efficient trade environment.
India-China Trade Relations: A Win-Win Scenario
In an exclusive interview with the Times of India, Xu Feihong spoke about the core of India-China trade relations, which, according to him, is built on mutual benefit and cooperation. The ambassador explained that China does not intentionally pursue a trade surplus. Instead, trade surpluses naturally reflect market-driven efficiency and evolve with shifting economic landscapes.
He also pointed out that China holds immense potential for investment and consumption, given its position as the world’s second-largest consumer market with a vast middle-income group. Feihong noted that President Xi Jinping, during a meeting with international business representatives, emphasized the opportunities that China offers. By tapping into this market, Indian companies can unlock tremendous commercial potential.
Growth in Indian Exports to China
Feihong further praised the growth in exports of Indian products like chili peppers, iron ore, and cotton yarn to China, which saw significant growth in FY 2024. The exports surged by 17%, 160%, and 240%, respectively. He expressed China’s interest in further increasing the export of premium Indian goods to their market and reiterated his country’s readiness to help Indian businesses meet the demand in China.
Despite the ongoing trade imbalance between the two nations, with India’s deficit with China reaching an alarming $99.2 billion, Beijing remains focused on expanding economic collaboration. The Chinese envoy urged India to create a fair, transparent, and non-discriminatory environment for Chinese companies, emphasizing that both nations could benefit from stronger economic ties.
The ongoing US-China trade war has resulted in Chinese companies looking for alternative markets. Xu Feihong’s remarks reflect a shift in priorities as Chinese firms, like Shanghai Highly, have resumed talks with Indian companies, such as Tata-owned Voltas, for potential joint ventures. Another notable Chinese company, Haier, which holds a significant share in the Indian electronics market, has also agreed to adjust its operations in India, further signaling China’s increasing interest in the Indian market.
