New Delhi: India is a big potential market for Beijing and that his government will encourage companies to invest in the vast market here, an official of Chinese Embassy in New Delhi said on Monday.
Second Secretary of Chinese Embassy in India, Li Rong Rong, also said that both the neighbours were eager to bolster bilateral ties.
China became India’s biggest trading partner in 2013 and fuelled growth, mentioned Rong.
The high-profile talks between the two premiers also helped to beef up trade between the two nations, Rong said.
Speaking at the Cangzhou and India Economic and Trade Cooperation Promotion Conference, Rong further said, Cangzhou’s effort to expand trade with India would mutually benefit both the nations.
Speaking on ways to further the bilateral trade relation, Shang Liguang, Cangzhou Party Secretary and Cangzhou Municipal Party Committee said that the emphasis would be on open policy, advocating ventures to invest abroad and attract business into China aided by funds, technologies, patents and management.
The main areas of concentration between the two countries would be petrochemical and pipe equipment. Cangzhou’s steel pipes hold 60 per cent of the market in China and are exported to as many as 90 countries.
In the case of petrochemical, Cangzhou has 1,100 companies of petrochemical, oil and gas exploration, chemical materials, pharmacy, chemical fiber, rubber and plastic.
In 2014, the imports and exports between India and China amounted to USD 130 million in relation to petrochemical, pipe equipment, machinery parts, etc.
Recently, Chinese officials also visited West Bengal to expand trade the state.
Sampad Yadav, who sells electrical goods in a shop in the business hub of Gurugram on the outskirts of New Delhi, says Chinese goods such as LED lamps are popular with customers. “When people make a price comparison and want to move towards the cheapest goods, those are usually Chinese products.”
As in many other countries, Chinese products such as lamps, electronics, smartphones and engineering goods from the manufacturing giant have flooded Indian markets.
However, India has long fretted that areas in which it is strong such as generic drugs and Information Technology services, which make up some of its main exports to Western markets, remain shut out of China. That has made it difficult to bridge a ballooning trade deficit of about $50 billion between the two countries.
But there is optimism this could change following a meeting this week between the commerce ministers of the two countries in New Delhi.
“The Chinese side have agreed to work on the issue, prepare a roadmap to bring the trade to balanced level over a period of time,” Indian Commerce Minister Suresh Prabhu said after discussions with his Chinese counterpart, Zhong Shan.
Trade experts hope the growing tensions on trade issues between the United States and China will prompt Beijing to open up its markets more to Indian exports. “I think China is definitely under pressure now, looking into the kind of initiation which has happened against China,” says Ajay Sahai, who heads the Federation of Indian Exports Organization.
The meeting between the Indian and Chinese commerce ministers this week came amid efforts to de-escalate tensions between the Asian neighbors following a period of rocky ties and a tense 70-day face-off between their troops in the Himalayas last year.
Despite a long-lingering boundary dispute and an often-fraught diplomatic relationship, trade ties between the Asian giants have gained significant momentum and China is now India’s largest trading partner. Bilateral trade in 2017 topped $80 billion rising by more than 20 percent over the previous year.
But worryingly for New Delhi, the trade deficit remains high despite a marginal growth in Indian exports – they add up to about $16 billion versus Chinese imports into India of about $68 billion.
India exports mainly raw materials like iron ore, copper and cotton yarn to China. “In whatever value-added exports where we are competitive, unfortunately, the market is not open for us,” says Sahai.
However, China has promised to give greater market access to Indian goods, particularly pharmaceuticals and agricultural goods such as rice, as well as service exports, according to the Indian commerce minister. “They have decided to work in a way that will address security issues from their side as well as introduce Indian companies to those who can buy these products in China,” says Prabhu.
New Delhi, which is trying to ramp up domestic manufacturing, is also urging China to manufacture more goods exported to India within the country.
Whether the promised actions translate into concrete outcomes remains to be seen. But exporters are hopeful. Sahai points out that China has invited Indian traders to what is being billed as the country’s first importers fair to be held in Shanghai later this year – it is being showcased as a measure to further open up China’s market.
The positive tenor of talks between the two countries comes days after U.S. President Donald Trump announced plans to impose tariffs on Chinese imports valued at $60 billion.
New Delhi could also face U.S. ire on trade issues – although its exports to the United States are comparatively small, it has a high trade deficit in its favor and Washington has often complained of protectionist barriers in India. In February, Trump called out India for imposing higher duties on Harley-Davidson motorcycles than the U.S. does on Indian motorbikes.
Amid growing fears that global trade faces uncertain times, analysts have called on countries like India to focus on increasing trade within the region.
India and China also said they will strengthen cooperation in the World Trade Organization and other multilateral and regional frameworks to maintain their common interests. VOA