China and India trade relationships soar despite a frosty relationship
China and India have been at loggerheads for a while. But despite the animosity, China has great trade deals with India during the last few months.
China surpasses the US as India trading partner
The Chinese have maintained its position as the best trading partner with India even with the sour relationship between both nations. Both nations were involved in a border conundrum in 2021 which saw India suspend about 230 Chinese applications.
But this hasn't had any effect on business relationships as Chinese firms displaced the US to become India's largest trading partner. Positive trading situations between both Asian countries stood at $78 billion last year. Although this was smaller than 2019, it is still enough to topple the US.
According to Indians, commercial ministry trade between both countries has improved a lot in recent months. There are fewer trade inflows during the coronavirus pandemic, but an increase in health supplies and equipment is still visible. India has in recent times tried to be more self-sustainable and reduce trade with the Chinese government, it still buys heavy machines and equipment from Beijing.
India depends on China for raw materials
Total trade from China is stated at $58.9 billion which is greater than Indian's business with America and UAE. '' India has continued to depend on China because of a lack of materials, '' a Singaporean economist Palit Amitendu said. '' Also, you have to consider that materials from China are cheating and can be quickly delivered.
However, this isn't the case in other countries. America may have superior products, but they are not cost-effective. ''. Both nations were involved in the Himalayan border scuffle where 18 Indian soldiers were shot by the Chinese army. Also, last week, the Chinese revealed that 5 of its men also died during the shoot-out.
This remains the deadliest casualties between both nations in 50 years. In retaliation, Indian suspended some Chinese technological Apps like TikTok and WeChat.