India launched 12 investigations against Chinese products, says state media
Though bilateral trade has increased, India continues to have a major trade deficit with China, the world’s second largest economy with an $11 trillion valuation.world Updated: Jul 07, 2017 22:17 IST
India launched 12 investigations against Chinese products this year, second only to the US, as New Delhi became more protective of its manufacturing sector, the Chinese state media said on Friday.
The measures by India against Chinese products came amid a rise in bilateral trade, according to the latest statistics from the General Administration of Customs (GAC) .
“Bilateral trade between China and India amounted to 229 billion yuan ($33.7 billion) between January and May, up by 30.1% year-on-year,” state-controlled China Daily reported, quoting figures released by GAC.
Officials told the newspaper that India was increasingly protective of its manufacturing sector, and more so in the high-end products segment.
“We have also discovered that India's trend of launching trade remedy investigations has already shifted from lower-end products, such as garments, glass and mining products, to higher-end goods such as new materials and machinery,” said Xue Rongjiu, deputy director of the Beijing-based China Society for WTO Studies.
India’s investigations into Chinese goods included cases against aluminium foil and photovoltaic products.
“Because India's manufacturing structure is similar to China's, especially in the lighting and photovoltaic industries, both are facing the same problem to boost exports to developed markets,” said Li Gang, vice-president of the Chinese Academy of International Trade and Economic Cooperation in Beijing.
Li argued that because of the similarity of the manufacturing sectors of the two sides, India has “become more protective for its own factory business while competing with China in third-party markets”.
“It has also adopted trade-remedy measures against countries including the United States, Ukraine, Iran and Kenya on a number of agricultural and manufacturing products,” the report said.
Though bilateral trade has increased, according to latest data, India continues to have a major trade deficit with China, the world’s second largest economy with an $ 11 trillion valuation.
In 2016, the deficit was around $52 billion in trade valued at $70 billion. The deficit widened since the export of iron ore to China declined.
An increase in iron ore exports from India to China in the first four months of 2017 has contributed to a rise in bilateral trade. The iron ore exports were valued at $ 1.04 billion, an increase of almost 45% over the same period last year.
First Published: Jul 07, 2017 19:14 IST