China-India trade hits record high of $126 billion, up 43.3% y-o-y despite tension

Beijing, January 14 (Global Times): An increase in China-India trade in 2021, which reached a record high, surpassing $125 billion, amid bilateral tensions, is just another piece of proof that New Delhi is unable to reduce its dependence on the Chinese market.

The total amount of trade between China and India in 2021 stood at $125.66 billion, up 43.3 percent from 2020. Of which, China’s exports to India were $97.52 billion, up 46.2 percent, while China imported $28.14 billion worth of goods from India, up 34.2 percent, according to statistics released by the General Administration of Customs (GAC) on Friday.

Analysts attributed the surge in trade to the complementary aspects of the industrial chains of the two countries. For example, about 50-60 percent of chemicals and other materials used by the Indian pharmaceutical industry, which is a pillar industry, are imported from China.

India was China’s 15th largest trade partner in 2021, according to GAC.

Analysts said that the boycott of Made-in-China products will not balance the trade deficit and that boosting India’s exports to China is the right choice. Meanwhile, India should not exclude China when it seeks free trade agreements as China is already involved in international free trade mechanisms.

As a result, total trade between China and countries that have signed the Regional Comprehensive Economic Partnership (RCEP) – 10 members of the Association of Southeast Asian Nations (ASEAN), Japan, South Korea, Australia and New Zealand – expanded significantly in 2021.

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Source: NewsAsia