India China Tariff Dispute: Yu Jing Statement

The India-China tariff dispute refers to ongoing and historical trade tensions between the two Asian giants, particularly regarding import/export duties, non-tariff barriers, and trade imbalances. While they are major trading partners, their economic relationship has often been strained by political, strategic, and economic differences.

Here's a breakdown of the situation:

???? Key Background

• Bilateral Trade Volume: India and China are major trading partners. China is India’s largest import source, while India has a trade deficit with China exceeding $80 billion (as of 2023).

• Trade Imbalance: India imports a large volume of electronics, chemicals, and machinery from China, but exports mainly raw materials like iron ore and cotton.

⚔️ Core Issues in the Dispute

1. High Tariffs & Non-Tariff Barriers:

   • India accuses China of imposing non-tariff barriers (like sanitary measures, licensing restrictions) that restrict Indian exports (like pharmaceuticals, IT services, agricultural products).

   • China claims India uses anti-dumping duties and local preference schemes (e.g., Make in India) to restrict Chinese goods.

2. Digital and Tech Restrictions:

   • After border tensions (e.g., Galwan clash in 2020), India banned over 300 Chinese apps, including TikTok and WeChat, citing data and security concerns.

   • India has also tightened rules for Chinese investments in Indian companies and infrastructure.

3. World Trade Organization (WTO) Engagement:

   • Both countries have filed complaints and defended their actions at the WTO over dumping, subsidies, and tariff issues.

   • For example, India has imposed anti-dumping duties on Chinese products like steel, solar panels, and chemicals, which China disputes.

4. Strategic Concerns:

   • India is wary of China’s Belt and Road Initiative (BRI) and has pushed back against Chinese investments in strategic sectors like telecom, ports, and critical infrastructure.

????️ Recent Developments (as of 2023-2024)

• India has expanded Production-Linked Incentive (PLI) schemes to promote domestic manufacturing and reduce reliance on Chinese imports.

• India is signing or negotiating trade agreements with other countries (like Australia, UAE, EU) to diversify trade and reduce dependency on China.

• Talks between the two countries have taken place in multilateral platforms like BRICS, SCO, and the WTO, but tensions remain.