Chinese Embassy Spokesperson's Remarks on Boycott of Chinese Goods
2016-10-27 01:25

China-India trade cooperation has deepened over the years. Bilateral trade has grown 24 times in 15 years, from $2.9 billion in 2000 to $71.6 billion in 2015. China has become India's largest trading partner, source of imports and fourth largest export market. Moreover, India is the China's largest trading partner in South Asia and ninth largest export market in the world.

The distinct features of China-India trade are mutual benefits and growing interdependence, which contributes to the full use of factors of production and maximization of the benefits to all the people. In 2015, China has imported 2 billion dollars' worth of cotton and more than 100 million dollars' worth of black tea from India, bring benefits to 1.2 million cotton growers and 50000 tea farmers and sellers in India. Moreover, 60% to 70% of Indian APIs for its pharmaceutical industry are from China. China has played an important role in Indian pharmaceutical industry's march to EU and America market. China also exported a lot of electronic and household products which are attractive both in price and quality. Chinese products not only lowered India's inflation rate, but also fulfilled Indian ordinary people, especially the low-income people's daily needs, greatly improved their life quality.

According to media report, local sellers in Sadar Bazaar, the largest wholesale market of household items in India, has complained their Chinese goods sale drops at least 20%. The boycott effect will not limit to Diwali related products, but extended to other Chinese products that are not related to the festival. In the long run, boycott will not only hurt Chinese goods sale, but also cause negative effects to consumers in India. Without proper substitutes, the biggest losers of the boycott of Chinese goods will be Indian traders and consumers.

China is the world's largest trading nation in goods, with its exports in 2015 amounted to $2276.5 billion. The exports to India accounted for only 2% of China's total exports, India's boycott of Chinese goods will not have much impact on China's exports. China is more concerned that the boycott will negatively affect Chinese enterprises to invest in India and the bilateral cooperation, which both Chinese and Indian people are not willing to see.

Xie Liyan

Spokesperson & Counselor

Press section

Embassy of the People's Republic of China in India

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