Although trade between China and the US will not return to the original pattern, 2020 will undoubtedly be a crucial year for China to expand its export market and, at the same time, increase its import sources. We have seen that the efforts of Chinese companies have brought positive results. According to official data, the proportion of China’s imports and exports with emerging markets increased 1.7 percentage points to 59.5 percent of China’s total trade volume in the first 11 months of 2019.
This situation will help India expand its exports to China.
China-India trade has been affected by the trade war during the past year. According to Chinese statistics, from January to September 2019, China-India trade was $69.66 billion, a year-on-year decrease of 3 percent. Breaking the total down, China’s exports to India stood at $56.31 billion, a reduction of 2.7 percent, while imports from India were $13.35 billion, down 4.1 percent. India’s trade deficit with China reached $42.96 billion. India urgently needs to expand exports to China. It’s become a vital issue in bilateral relations.
In terms of Indian exports to China, mineral products, chemical products and textiles are the top three categories. In 2018, India exported $5.03 billion worth of mineral products, $3.63 billion of chemical and $1.84 billion of textiles, and these three products accounted for 63.6 percent of India’s exports to China.
China imports many raw materials, mostly for use in manufacturing, which generate a large number of export products. Since the outbreak of the trade war, China’s export to the US have been affected by increased tariffs. That in turn has forced Chinese manufacturers to reduce their imports of raw materials from India.
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