China has signaled its intention to address India’s concerns about a growing trade deficit, estimated at a record $100 billion in FY25. Beijing plans to increase imports of Indian goods by removing tariff and non-tariff barriers.
India has not taken a formal position on the matter, fearing that easing trade barriers could lead to the dumping of Chinese goods in India. China’s ambassador to India, Xu Feihong, has spoken about the possibility of China buying more Indian goods and attracting investments from Indian firms.