New Delhi, January 15
An increase in China-India trade in 2021, which hit an all-time high exceeding $125 billion amid bilateral tensions, is just further evidence that New Delhi is unable to reduce its dependence on the market. Chinese, Beijing state media said.
The total amount of trade between China and India in 2021 was $125.66 billion, up 43.3% from 2020, according to the Global Times report citing statistics released by the General Administration of Customs (GAC).
Of which, China’s exports to India amounted to $97.52 billion, up 46.2%, while China imported $28.14 billion worth of goods from India, up 34.2%.
Analysts attributed the trade boom to complementary aspects of the two countries’ industrial chains.
For example, around 50-60% of the chemicals and other materials used by India’s pharmaceutical industry, which is a pillar industry, are imported from China.
India was China’s 15th largest trading partner in 2021, according to the Global Times citing the GAC.
“Analysts have said that boycotting products made in China will not rebalance the trade deficit and that boosting India’s exports to China is the right choice. Meanwhile, India should not exclude China when seeking free trade deals as China is already involved in international free trade mechanisms,” the Global Times said.
The total trade between China and countries that have signed the Regional Comprehensive Economic Partnership (RCEP) – 10 members of the Association of Southeast Asian Nations (ASEAN), Japan, South Korea, l Australia and New Zealand – increased significantly in 2021.