Beijing wants to rap India for its “Protectionism,” as it believes that there is enormous trade deficit with China. The government-controlled media say that topic on trade deficit may raise at the BRICS 2016 summit in Goa.
“It has become an unharmonious factor between two country’s bilateral ties because of huge trade deficit with China. Practical measures to narrow down the trade in-balance required by the two countries China and India. The necessary steps should discuss by the two leaders of the countries. While meeting at BRICS summit over the weekend” wrote Chinese Global Times.
India had exported goods worth $922 million to China this September. Where India had imported only goods worth of $5.4 billion from China. The major imports from China to India include Electronic Components, Chemical and Pharmaceutical products and Telecom Instruments. Major exports to China from India are Ore, Cotton, and Plastics.
The Chinese media has blamed India for its Protectionism with its trade towards their country regarding exports. And also criticized that “….sadly, it seems that India is not on the right path.”
China expressed its view for India in an article saying “encourage Chinese Smartphones makers to set up production units in India. This productions line established in India would be the most effective measure to reduce the Trade deficit, which is partly the result of a price gap between India’s imports and its exports of raw materials,”
In 2014, India and China signed a five-Year Trade and Economic Cooperation Agreement to narrow the Trade Imbalance. But the efforts had only limited effects. To decrease the trade deficit. China should not just rely on the measures rather India must also upgrade its Industrial structure.
It’s not only the fault of India for the Trade deficit. But as both the country’s Industrial development stages differ from each other. The mutual trade understanding and the equivalence of worth would decrease the Trade imbalance.