India flags trade gap with China at WTO

New Delhi: India has raised concern over its large trade deficit with China and the non-transparent subsidies and mechanisms followed by the latter, which it said lead to low prices and hurt the local industry. At the World Trade Organization (WTO) Trade Policy Review of China this week, India also said it hoped China would support issues concerning the global south.

China's overall merchandise exports increased significantly to $3,594 billion in 2022 from $2,589 billion in 2020 but fell to $3,380 billion in 2023.

"India noted that its bilateral trade with China represents the biggest trade deficit with any country. India said it was concerned by the size of the deficit, the imbalance persisting year after year, and non-transparent subsidies and mechanisms," said a Geneva-based official, who did not wish to be identified.

In 2023-24, India's exports to China amounted to $16.65 billion while imports totalled $101.75 billion, leaving a trade deficit of $85.08 billion, higher than $83.19 billion in 2022. China was India's largest trade partner during the financial year.

The European Union also raised concerns over China's distortive and opaque industrial policies and practices, import substitution and a politicised business environment, among other issues. Another official said India also had concerns over China's non-trade barriers, services and intellectual property rights. "India hoped China would support issues concerning the global south and it would give real and tangible benefits to developing and less developing countries," the first official said.

While the EU asked China to give up its claim to developing country status in the future, Australia and Japan asked it to relinquish its use of special and differential treatment commensurate with its size and weight in the global trading system.