China on Tuesday said it remains India’s largest trading partner, countering latest figures published by New Delhi, which said India did more trade with the US than with any other country last year.
The Chinese foreign ministry said it is ready to take measures to advance normal trade with India.
India’s commerce ministry recently published data that showed that the US had surpassed China to become India’s top trading partner in 2021-22, reflecting strengthening economic ties between the two democracies.
The Indian data showed that in 2021-22, bilateral trade between the US and India stood at $119.42 billion as against $80.51 billion in 2020-21.
The Chinese foreign ministry pointed out that at $125.66 billion it had done more trade with India during the same period.
When asked to comment on the development, given China has been India’s largest trading partner for several years, the Chinese foreign ministry said the disparity could be because of difference in calculating methods.
“According to the statistics of Chinese competent authorities, bilateral trade volume between China and India stood at $125.66 billion in 2021. On that basis, China remains India’s largest trading partner, and the total trade volume topped $100 billion for the first time (last year),” Zhao Lijian, Chinese foreign ministry spokesperson said at the regular ministry briefing on Tuesday.
“The disparity in trade figures published by China and India is a result of different statistical measurement scales,” Zhao said.
Two way trade between India and China in 2021 stood at $125.66 billion, up 43.3% from 2020 when bilateral trade was worth $87.6 billion, data from China’s General Administration of Customs (GAC) showed in January.
Trade deficit between the two countries – at $69 billion – remained much in favour of China and a worry for India in 2021.
Sino-India trade had gone up despite the worst chill in bilateral ties in decades because of the dragging border tension in eastern Ladakh.
One reason why Sino-India trade increased in 2021 was because Chinese companies saw an increase in demand from India for medical equipment in the first half of the year following a devastating second wave of the Covid-19 pandemic.
Zhao said China does not object to the development of normal trade relations between India and the US, and “is not that interested in the changes of the ranking in trade volume”.
Zhao said China cares about “whether the Indian side has the will and takes real actions to create a fair, transparent, sustainable and sound environment for bilateral trade and investment, further expand mutually-beneficial cooperation between the two sides and deliver tangible benefits to the two countries and two peoples”.
Asked about the widening trade deficit with India, Zhao said that “China never seeks a trade surplus. We stand ready to take measures to advance normal trade with India.”
Zhao was also asked whether the chill in ties was impacting trade between New Delhi and Beijing.
“At present, the border situation is stable in general. The two sides have been maintaining close communication through diplomatic and military channels,” he said.
“China always believes that the boundary question doesn’t represent the whole of China-India relations and we should put it in an appropriate position in bilateral relations and under effective control and management,” he said.
“We hope India will work with China to continuously enhance mutual trust, strengthen practical cooperation, and ensure that the bilateral relations will move forward along the right track, deliver more benefits to the two peoples and make greater contributions to the region and beyond.”
Responding to a separate question on New Delhi’s decision to probe local units of Chinese companies, ZTE Corp and Vivo Mobile for alleged financial irregularities, Zhao said China always asks its companies to follow law and regulations of the country they are operating in.
“The Chinese government is closely following the situation. The Chinese government always asks Chinese companies to abide by laws and regulations when doing business overseas,” Zhao said.
“In the meantime, we firmly support Chinese companies in safeguarding their legal rights and interests. The Indian side should act in accordance with laws and regulations and provide a fair, just and non-discriminatory business environment for Chinese companies operating in India.”
(With inputs from agencies)