December 30, 2021
2 mins read

Will India-China relations take a different turn in the coming year?

The Chinese state-owned news organization also said that the challenge for both sides “is not who will replace whom but how to work together to strengthen their positions in the global supply chain.”…writes Mahua Venkatesh

Will the new year bring in new dimensions to India-China relations? The two neighbours have not had the best of relations since the Galwan clash in 2020. But despite that bilateral trade between the two have grown in the last one year. “Boosting China’s imports from India is the right way to go, and there is room for coordination between the two sides in this regard, and it should be a joint effort,” Global Times in its editorial.

The Chinese state-owned news organization also said that the challenge for both sides “is not who will replace whom but how to work together to strengthen their positions in the global supply chain.”

“Like it or not, India is already tightly connected to China and embedded in the international supply chain,” it said adding that deepening economic ties will go a long way in resolving the current impasse.

Bilateral trade between the two Asian giants crossed $100 billion in the first 11 months of this year to clock a total of $114.26 billion. This is a whopping 46.4 per cent increase over the same period in the previous year. In 2001, trade between the two countries stood at $1.83 billion.

While India’s exports to China touched $26.358 billion — an increase of 38.5 per cent year-on-year imports from Beijing stood at $87.905 billion, a rise of 49 per cent.

Consider this. China which earlier did not import rice from India, has now started sourcing the grain from New Delhi. Its dependence on India for supply of rice has steadily increased in the last two years.

According to S&P Global, “Indian rice has come from representing less than 1 per cent of Chinese rice imports in 2020 to representing 23 per cent so far in 2021, making it the largest supplier of rice to China.”

In fact China is likely to shift gears in terms of its overall economic policies in the coming year. As several projections have indicated that China’s economic growth rate is set to be slower amid stringent regulatory crackdown and a near crisis like situation in its real estate sector, Beijing is set to alter its strategy and focus more on stability to ensure that the economy is allowed to take off once again.

China’s economic growth in the third quarter of this year slowed to 4.9 per cent, much below expectations.

In the January to March quarter Beijing had stunned the world with an 18.3 per cent economic growth. However, economic growth has been slowing since then. In the second quarter, China, the first country to come out of the Covid 19 pandemic, clocked a GDP growth of 7.9 per cent.

ALSO READ: Tibet is China’s dumping ground for toxic waste

Previous Story

Turkey ramps up crackdown on bootleg alcohol ahead of New Year celebrations

Next Story

Russia offers India its cutting-edge Armata tank tech

Latest from -Top News

Canadians Vote Amid Trump’s Shadow

The ruling Liberal Party, which unseated former Prime Minister Justin Trudeau, has surged after Trump’s threats and now leads the Conservatives by nearly 3% in poll averages….reports Asian Lite News Canadians began

Lavrov and Rubio discuss Ukraine peace talks

Kremlin Spokesman Dmitry Peskov said earlier that President Putin was ready to resume negotiations with Ukraine without preconditions….reports Asian Lite News Russian Foreign Minister Sergei Lavrov spoke by phone with U.S. Secretary

No Deal: EU Holds Line on China Sanctions

EU stated the sanctions were a response to involvement in “serious human rights violations in China…reports Asian Lite News The European Union has decided not to lift sanctions imposed on Chinese officials

India Slams BBC Over Pahalgam Coverage

Several social media users pointed out that the BBC’s headline appeared misleading, giving the impression as if “India killed the tourists.”…reports Asian Lite News India has written to a leading British public
Go toTop

Don't Miss

Election commission cautions against deep fake narratives

CEC emphasised that engagement of technology has become vital in

Opposition divided while seeking discussion on China issue

Leader of the Congress in Lok Sabha, Adhir Ranjan Chowdhury,