Chinese Envoy Calls for Balanced Trade Ties Amidst Ongoing Deficit and Geopolitical Tensions
In a rare and significant outreach, China’s ambassador to India, Xu Feihong, has extended an invitation for increased imports of premium Indian goods into the Chinese market, emphasizing mutual benefit and deeper economic collaboration between the two Asian giants. Amid a rising trade imbalance that saw India’s deficit with China balloon to $99.2 billion in FY24, the statement signals a shift in Beijing’s tone amidst global trade pressures and a recalibration of supply chains.
Speaking in an exclusive interview with the Times of India, Ambassador Xu stated, “The essence of China-India economic and trade relations is mutual benefit and win-win cooperation. China has never deliberately pursued a trade surplus.” He emphasized that surpluses were a byproduct of market-driven forces rather than deliberate policy, countering frequent Indian criticisms over skewed trade patterns.
Highlights:
China invites more “premium Indian goods” into its domestic market
Ambassador stresses trade surplus is market-driven, not intentional
India’s trade deficit with China reached $99.2 billion in FY24
Indian Exports Gain Momentum as China Signals Market Openness
The envoy cited encouraging growth in Indian exports to China in FY24, with notable spikes in commodities like chili peppers, iron ore, and cotton yarn — surging by over 17%, 160%, and 240% respectively. These figures are being positioned by Beijing as evidence of its market’s openness and appetite for quality Indian products.
Xu asserted that China remains ready to assist Indian businesses in navigating the Chinese consumer landscape, which includes the world’s largest middle-income group and the second-largest consumer market. “Valuing China’s super-sized market will unlock greater commercial opportunities for Indian companies,” he noted, referencing President Xi Jinping’s earlier comments to the international business community.
Highlights:
Exports of Indian chili peppers, cotton yarn, and iron ore to China surged in FY24
Chinese ambassador urges Indian firms to tap into China’s vast consumer base
President Xi has promoted China’s domestic market as ripe for global investment
Call for Non-Discriminatory Environment for Chinese Enterprises in India
While promoting Indian exports to China, Ambassador Xu also made a direct appeal to the Indian government to address concerns faced by Chinese companies operating in India. “We hope that India will take China’s concerns in the economic and trade field seriously,” he said, urging New Delhi to ensure “a fair, transparent, and non-discriminatory business environment for Chinese enterprises.”
The Chinese envoy’s remarks come against the backdrop of a freeze in several bilateral commercial initiatives following the deadly 2020 Galwan Valley border clashes. In recent years, India has tightened scrutiny on Chinese investments and tech firms, citing national security concerns, which led to bans on numerous Chinese apps and delays in project clearances.
Highlights:
China demands a “fair, transparent” business environment for its firms in India
Indian scrutiny of Chinese firms intensified after 2020 border tensions
Chinese firms seek resolution of regulatory hurdles for smoother bilateral ties
Chinese Companies Recalibrate India Strategy as US Tariffs Bite
With U.S.-China tensions escalating due to a fresh wave of American tariffs on Chinese electric vehicles, chips, and green tech, Chinese multinationals are increasingly shifting focus to the Indian market. The recent re-engagement between Shanghai Highly — one of China’s largest compressor makers — and Tata Group’s Voltas for a joint manufacturing venture reflects this pivot.
Separately, Chinese appliance giant Haier, which commands the third-largest market share in India’s electronics sector, is reportedly agreeing to relinquish majority control of its Indian operations in a bid to align with local regulatory expectations and deepen its market presence without friction.
These developments highlight a strategic shift among Chinese firms, choosing accommodation and local partnerships over unilateral expansion as a pathway to unlocking the Indian market amidst global trade headwinds.
Highlights:
Shanghai Highly reopens talks with Voltas for a compressor JV
Haier may give up majority stake in Indian arm to ease regulatory strain
US-China trade tensions drive Chinese firms to prioritize Indian market
Trade Relations Caught Between Strategic Competition and Economic Necessity
Despite deepening geopolitical distrust and competing global ambitions, the trade relationship between India and China remains one of undeniable economic weight. Bilateral trade crossed the $135 billion mark in FY24, with China still India’s largest trading partner by import value. However, the persistence of a massive trade deficit and limited Indian access to high-tech Chinese markets has fueled domestic criticism in India.
The latest overtures by Beijing signal a dual strategy — mitigating U.S. trade pressure while stabilizing key regional relationships. By inviting more Indian exports and promoting bilateral investment dialogue, China appears keen to arrest further deterioration in ties with New Delhi — particularly as both nations maneuver for influence across Asia and global multilateral platforms.
Highlights:
Bilateral trade remains high despite strategic tensions and policy distrust
China aims to recalibrate ties with India amidst global trade reshuffling
Mutual dependency exists, but trust deficit still impedes broader alignment
