China Expresses Concern Over India Investigations

The Chinese Ministry of Commerce has voiced “deep concern” over the Indian government’s trade investigations into and import restrictions upon Chinese products. On February 9 Ministry spokesman Yao Jian stated that vice commerce minister Zhong Shan had expressed China’s concern to India’s Ambassador to China, Nirupama Rao, during a recent meeting held at China’s request. Mr. Zhong told Ms Rao that China hopes to bring the trade disputes to an end through government and industry level communication and exchange between the two countries.

“China and India are both large developing nations which face the task of economic development,” said Yao, “the bilateral trade – China’s imports from India in particular – achieved significant growth in recent years.” With this in mind, he noted, the two sides should realise common development and mutual benefit by strengthening two-way consultation and promoting industrial cooperation.

At the G20 Summit in Washington and the APEC Summit in Peru in November 2008 world leaders reiterated their commitments on opposition against trade protectionism. China holds the hope that India will, to quote China’s People’s Daily, adopt a ‘cautious and restrained attitude’ towards implementing trade barriers during these globally challenging economic times. “The bilateral economic and trade relations will otherwise be affected seriously,” warned Yao.

India has launched 17 investigations into Chinese products since October 2008, including 10 anti-dumping probes, one countervailing case and six cases of safeguard measures. The actions involve US$1.5 billion of Chinese exports to India, involving a range of products that includes, amongst other items, tyres and truck parts.