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India's trade deficit with China in 2015-16 swelled Reacting to India's move to launch an anti-
to $52.68 billion, which Indian officials say has dumping investigation over photovoltaic cells and
become unsustainable. Besides pressing for units imported from China, Taiwan and Malaysia,
access to IT and pharma products, the main stay Wang Hejun, head of the commerce ministry's
of India's global exports, India has been insisting trade remedy and investigation bureau said China
that China should compensate by stepping up was paying close attention to the probe and hopes
investments. India will conduct it in a prudent manner and as
per relevant rules.
"The two ministers exchanged views, in a candid
manner, on further development of a strong, Wang said adopting restrictive measures for
balanced and sustainable trade and investment the trade of photovoltaic products would not
partnership between India and China," Indian only harm photovoltaic sector development in
Consulate in Shanghai said in a statement on India, but also dampen the sector's long-term
Tuesday. development worldwide as well as economic and
trade cooperation between China and India.
"In particular, Minister Sitharaman sought the
assistance of Chinese ministry of commerce in Meanwhile, coinciding with Sitharamans's visit,
reducing the trade deficit, facilitating greater an article in today's state-run 'Global Times' said
market access and for providing a level playing protectionism against Chinese manufactured
field for Indian IT, pharmaceuticals and agro products will only boomerang on the Indian
products in China," it said. industry.
The meeting between the minister of state for The list of Chinese products covered by India's
commerce and industry and Zhong was the trade remedy investigations is getting ever longer,
second after their meeting on the sidelines of the expanding from garments, glass, minerals and
Regional Comprehensive Economic Partnership other low-end items to advanced products such
(RCEP) Ministerial meeting in Hanoi, Vietnam in as new materials and machinery, it said.
May 2017.
It seems that the Indian government is trying
The ministers also agreed to further intensify India- to protect domestic industries from overseas
China cooperation in the multilateral frameworks competition through trade remedy measures, but
such as WTO, BRICS and Shanghai Cooperation although this strategy offers certain short-term
Organisation (SCO), the statement said. benefits, it will eventually hinder India's industrial
development, the article said.
They decided to hold the 11th Joint Economic
Group (JEG) in New Delhi at the earliest. India has initiated 12 investigations against
Chinese products in the first half of this year,
A host of BRICS ministerial and officials meeting becoming the country with the most trade remedy
on various fields were being held in China ahead probes against China, it said.
of the five-nation grouping's summit to be held in
September this year in the Chinese city of Xiamen. During the period, 11 investigations were launched
by the US, it said, quoting China's ministry of
The meetings were taking place as per schedule commerce (MOFCOM).
despite the India-China tensions over the standoff
at Doklam in the Sikkim section. "There are other explanations behind the
intensified trade conflicts between India and China.
Ahead of Sitharaman's visit, China's commerce After years of development, India's industries
ministry said India should avoid abusing trade have made progress, and many companies in
remedy measures and called for settling trade India now produce items that could compete with
disputes through consultation. those from China," it said.
25 August-September-2017
