China to ease out trade deficit hitch for India

Beijing: The Chinese market is open to all countries, including India, China’s new envoy to India, Xu Feihong, said, maintaining that Beijing understands New Delhi’s concerns over its burgeoning trade deficit and is willing to address this issue by facilitating more Indian companies to tap the Chinese market. The trade deficit, a major concern of India for years, stood at $99.2 billion in 2023 in the overall bilateral trade of $136.2 billion. In 2022, the trade deficit crossed the $100 billion mark by touching $101 billion for the first time.

India has been periodically flagging concerns and pressing China to open its IT and pharma sectors besides grains, its major export potential sectors. In an interaction with the PTI and China’s CGTN-TV here before he headed to New Delhi to take up his posting, Xu reiterated Beijing’s often repeated assertions that it is not China’s intention to seek a trade surplus.

“There are multiple factors behind India’s trade deficit. China understands India’s concern. It is never our intention to seek a trade surplus. The Chinese market is open to all countries, including India. We have sent many trade promotion delegations to India to buy Indian products, and we would like to see more marketable Indian products enter the Chinese market. We are ready to provide greater facilitation for India’s participation at the China International Import Expo, the China-South Asia Expo, the Canton Fair and other platforms”, he said.

“China is also willing to help Indian companies cater to China’s market demands and tap into the potential for commercial and trade cooperation. Last year, the Chinese diplomatic missions in India issued nearly 190,000 visas; over 80 per cent were business visas. Business travels in both ways is good for bilateral trade,” Xu said.