China ready to import more Indian goods amid Trump tariffs, demands “non-discriminatory” stance for cos

India-China trade relations: Amid the growing trade imbalance due to US President Donald Trump's tariff hikes worldwide—India’s deficit with China hit $99.2 billion. In the current scenario, China has reached out for economic collaboration. In a recent interview with The Times of India, Chinese Ambassador Xu Feihong said China's intent to welcome premium Indian goods and help Indian businesses tap into China’s massive consumer market.

The Chinese Ambassador's message signal a potential shift in the economic dynamics between the two nations despite heightened global trade uncertainty due to Trump tariffs. While China’s market presents commercial opportunities for Indian exporters, Xu also urged India to create a more level playing field for Chinese enterprises operating within its borders to foster deeper cooperation.

India-China trade talks renewed?

India’s trade deficit with China surged to a record level in the fiscal year ended March 31, almost touching the $100 billion-mark, latest government data showed, even as officials fear that the Indian market may see decreasing Chinese goods, with the US slapping a 245 per cent tariff on imports from China.

India exported goods worth $14.25 billion to China in 2024-25, a 14.4 per cent dip from $16.66 billion the previous financial year (2023-24), according to detailed trade data released by the commerce ministry on Wednesday.

In 2024-25, India imported Chinese merchandise worth $113.45 billion, a 11.5 per cent jump from $101.73 billion imported the previous financial year. The data showed India’s imports from China registered a robust double-digit growth while Indian exports to the country contracted, leading to huge trade deficit of $99.2 billion.

Xu told The Times of India that China has never deliberately pursued a trade surplus, arguing that such imbalances evolve naturally with market forces. “Valuing China’s super-sized market will unlock greater commercial opportunities for Indian companies,” he said, pointing to spikes in Indian exports of chili peppers, cotton yarn and iron ore—up by 17 per cent, 240 per cent, and 160 per cent respectively in FY24.

Trade surveillance

India has activated its newly-formed Import Monitoring Committee, tasking it with keeping a close watch on key Chinese exports to the US—especially electronics, machinery, textiles, toys, and solar equipment—that are now at greater risk of being dumped into the Indian market.

India has sharpened its trade surveillance tools to stave off a potential surge in imports, as the tit-for-tat tariff war between the US and China intensifies, prompting exporters in the two countries to look for alternative markets for their products. Chinese and American goods, meant for each other's markets, could be routed to India via Vietnam, Indonesia and Nepal.