Short Essay on the Mutual Trade Relationship between India and China

Chinese market is a huge one and expanding at a fast rate. In 2002, Chinese imports were $ 295 billion compared with Indian imports of $56 billion. It is for this reason that even countries like USA are eager to strengthen their trade ties with China.

Studies show that there is vast scope for expansion of Indo- Chinese trade. To avail of this opportunity, however, India would have to learn the reasons for rapidly expanding Chinese foreign trade and its ability to attract huge amounts of FDI.

Currently, both India and China are actively engaged in expanding their mutual trade. Government of India and Indian business community are both participating in this venture.


FICCI has established links with China Council for Promotion of International Trade (CCPIT), and has opened an office in Beijing. Similarly, CII is opening an office in Shanghai.

Several Indian companies have opened branches or other business outlets in China. C1F has opened its East Asia HQ in Shanghai and has set up the India Club. Trade volume with China is expected to increase rapidly.

Since, China has become a member of the WTO; this makes it less difficult to deal with cases of dumping of Chinese goods in our market.


As regards the prices of Chinese goods, Indian producers have nothing to fear if they keep improving the quality of their produce and reduction in cost of production through innovation, organisation, and economies of scale. This is the best long-term solution to tackle dumping and promote exports aggressively.