China-India bilateral trade reaches US$77.7 billion! China becomes India's largest trading partner

In 2020, the new coronavirus raged around the world, many countries suffered heavy blows, and their economies were severely damaged. However, thanks to strict epidemic prevention policies and measures, China's epidemic was effectively controlled, and it was the first to resume work and production. In 2020, it actively played the role of the world's factory and exported a large amount of materials to many countries.

Among them, the total two-way trade volume between China and India reached US$77.7 billion, and the total value of China's exports to India reached US$58.7 billion, while the total two-way trade volume between the United States and India was US$75.9 billion. China surpassed the United States and once again became India's largest trading partner.

Although India has vigorously developed its local manufacturing industry in recent years to achieve independent development, it is still highly dependent on China's heavy machinery, telecommunications equipment, household appliances and other products. Taking electronic products as an example, smartphone brands from China occupy a large share of the Indian smartphone market, and four of the top five best-selling brands are Chinese brands.

India has a strong demand for China's home appliances such as air conditioners and refrigerators. However, due to the limitations of its manufacturing technology level, India also has a strong demand for these products' semi-finished products, spare parts and important components. India is highly dependent on China's integrated circuit boards, auto parts and other essential components and spare parts for production. In addition, India is also highly dependent on various production raw materials such as steel and alloys.

In order to promote the development of domestic manufacturing and reduce imports, the Indian government implemented the PLI (Production Stimulus Program) and introduced outstanding talents from outside to help improve the level of manufacturing. However, Singaporean economist Amitendu Palit said that India still has a long way to go if it wants to get rid of its dependence on China.

“ The PLI scheme will take at least four or five years to create new capabilities in specific sectors. Hence , the dependence on China will continue. ”

In 2020, Sino-Indian relations deteriorated due to the border standoff, but recently, the two sides reached a partial agreement on the border issue, and relations between the two countries began to ease. India also reopened 45 investments by Chinese companies, and Sino-Indian trade and other exchanges are expected to resume.

As tensions between the two countries ease, the Indian government is gradually relaxing some restrictions on Chinese companies and imported products, and the overall environment is becoming more friendly to Chinese companies and cross-border e-commerce sellers.

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