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As per the data released by Chinese Customs on Monday, China's exports to India declined by 13 percent in the first 11 months of the year, while Indian exports to China rose 16 percent in the same period.
Well, this is big news at the time of the border tension going on between India and China since May 2020. Also, you must remember that the Indian Government recently has banned over 200 Chinese applications with the allegation that they posed a threat to the "sovereignty and integrity of India".
What Does The Chinese Custom Data Say?
As per the data released by Chinese customs on Monday, China’s exports to India decreased by 13%. The total worth of Chinese products imported to India was $59 billion that means China exported its products to India from January to November 2020, worth 59 billion in US dollar terms. While on the other hand, China’s imports from India surged by 16% during this period.
What CHINA Has To Say About This Ratio Decline In Trade?
Chinese Media quickly pointed out that the Chinese exports to India continued to rise because Beijing decided not to politicize and affect the trade relations due to the ongoing border friction along the Line of Actual Control (LAC) in eastern Ladakh. They also said that has put curbs on Chinese exports, due to the ongoing border tensions.
They also said that the decline in the import ratio of Chinese products in India is due to the “prejudicial attitude” of the Indian Government towards China, and the crackdown steps taken by them like increasing tariff barriers, to restrict the inflow of made-in-China products into India.
What Indian Embassy In India Has To Present Over This?
Indian Embassy In China also compiled data that represents the trade relation and ratio between India and China. As per their data, India was the largest export destination for Chinese organic chemicals, fertilizers, antibiotics, and aluminum foil in 2019. India’s top exports to China included organic chemicals, iron ores, unfinished diamonds, fish and crustaceans, cotton, granite stone, etc.
In the year 2019, it was the first time in the decade when India’s trade deficit with China reduced slightly by 2% and stood at $56.95 billion.
In 2019, India was the 12th largest trade partner of China, following the US, Japan, Hong Kong, South Korea, Taiwan, Germany, Australia, Vietnam, Malaysia, Brazil, and Russia.
What Was New In The Trade With China?
For the first time in decades, China started importing Indian rice largely because of an offer at discounted prices. This started in the last week.
As per the Reuters report from New Delhi, Indian traders contracted to export 100,000 tons of broken rice for December-February shipments at about $300 per ton on a free-on-board basis.
However, Jiao Shanwei, editor-in-chief of cngrain.com, on this trade said that “ The purchase was a purely commercial move, as the price of the Indian rice - $300 per ton - is far cheaper than that of its domestic counterparts, and the rice will mainly serve as animal feed rather than for humans,”.
What Is The Reason Behind This Fall?
As per the reports of the tabloid Global Times, the India-China bilateral trade in the year 2019 was US$ 92.89 billion. In the year 2020, the reason behind the 13% fall in imports of Chinese products in India is due to the falling internal demand for Chinese products in India because of the pandemic.
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