China has expressed its desire to strengthen economic ties with India, welcoming more Indian investments and commodities into its market. On Thursday, Beijing’s ambassador to India, Xu Feihong, highlighted this interest while also calling for a “sound business environment” for Chinese enterprises in India.
Renewed Efforts to Strengthen Economic Relations
These comments reflect China’s willingness to improve economic cooperation with India, despite ongoing tensions following a deadly border clash in 2020. The clash, which occurred along the Himalayan frontier, led to strained diplomatic and business relations. In response, India introduced stricter scrutiny on Chinese investments and imposed additional regulations on Indian firms with Chinese stakeholders.
However, the Indian government is now reconsidering some of these restrictions. Many Indian companies are finding it challenging to scale up their manufacturing capabilities, prompting a review of the rules that have hindered Chinese involvement in the market.
Calls for Greater Cooperation in Various Sectors
During his address at an event in New Delhi, Ambassador Xu emphasized China’s readiness to advance cooperation with India in areas like science and technology. He also urged India to resume direct flights between the two countries and simplify visa procedures for Chinese citizens.
Ambassador Xu further stated that China would welcome more Indian commodities and investment from Indian businesses, while encouraging India to offer a supportive business environment for Chinese enterprises operating within the country.
India’s Trade Relations with China
Despite ongoing political tensions, China remains India’s largest supplier of goods, particularly industrial products. Although India’s trade deficit with China briefly decreased after the 2020 border incident, it later expanded to $85 billion as of March 2024. This underscores the significance of economic ties between the two countries, even amid diplomatic challenges.
(With Inputs from Reuters)
