India’s trade deficit with China has reached an unprecedented level of USD 99.2 billion, prompting Beijing to revise its approach to economic relations with New Delhi. Chinese Ambassador to India Xu Feihong described his nation as more than willing to import premium-grade, high-quality products from India. He characterized the push as part of a larger, more immediate strategy for Beijing to both balance trade figures and strengthen the hand of pro-economic engagement elements within the Indian government. China has recently been ramping up imports of Indian products it considers top-notch.
Xu urged Indian companies to take advantage of China’s enormous consumer market, which is now home to the world’s largest middle-income group. He advised them to answer China’s call for major trade events like the China International Import Expo and the China-South Asia Expo. Xu pointed out that direct access to buyers and distributors, which these platforms facilitate, is a good first step toward penetrating the otherwise hard-to-enter Chinese consumer market.
Trade with Conditions: A Call for Reciprocity
China welcomes more Indian imports and in return expects India to act in a business transparent and fair manner. Xu noted that Chinese companies in India have had to deal with all sorts of problems, including long delays in issuing visas to their professional staff, and a general climate of suspicion that has been created by regulatory scrutiny and negative media coverage.
He remarked that even after issuing many visas to Indian nationals and vigorously promoting bilateral exchanges, doing business in India remains a tall order for Chinese firms. He noted that for trade to flourish, Indian authorities must create a more open and consistent policy environment for Chinese investors.
Strengthening Economic Diplomacy
The strategic necessity of stable India-China relations was a theme the ambassador carried well past trade balances. Beyond the trade ledger, he hoisted the strategic need for stable India-China ties up the flagpole and checked to see whether it was flying at half-mast along with those of the many other ambassadorial signatories who have carried this same dead message over the years.
In this case, the deputy chief of mission largely echoed Prime Minister Narendra Modi’s viewpoint that what differs shouldn’t become a dispute. Xu asked for dialogue and cooperation to make long-term peace possible. Let’s hope this carries some weight, or should I say, gives Xi some face.
He said the attention should be on increasing collaboration areas instead of letting individual differences obscure more extensive relations. From this perspective, trade is both an economic and political means to bring the two countries closer together.
A Timely Shift Amid Global Turbulence
Due to a global shift in trade toward protectionism, particularly from the United States, both China and India have a vested interest in deepening South-South cooperation. As two of the largest developing economies, their ability to get along and work with others in the so-called South could act as a stabilizing force in an increasingly fragmented global economy.
When China offers to import more premium Indian goods, it is signaling not just a tactical recalibration of trade numbers, but a deeper, more profound shift in its approach to India. Imports of premium goods represents China’s willingness to invest in a more balanced and resilient partnership with India.