China says it's ready to open market to import more Indian goods, urges 'non-discriminatory' stance for its firms

As global trade tensions simmer, a new chapter may unfold in the India-China relationship. Despite the growing trade imbalance—India’s deficit with China hitting a staggering $99.2 billion—Beijing is reaching out for greater economic collaboration. In an exclusive interview with The Times of India, Chinese Ambassador Xu Feihong shared Beijing’s intent to welcome more premium Indian goods and help Indian businesses tap into China’s massive consumer market.This is Xu’s first interview with Indian media since he took office, and his words signal a potential shift in the economic dynamics between the two nations. While China’s huge market presents commercial opportunities for Indian exporters, Xu also urged India to create a more level playing field for Chinese enterprises operating within its borders. He emphasized the importance of fair, transparent, and non-discriminatory treatment to foster deeper cooperation.Trade imbalance and market accessXu asserted that China has never deliberately pursued a trade surplus, arguing that such imbalances evolve naturally with market forces. “Valuing China’s super-sized market will unlock greater commercial opportunities for Indian companies,” he said, pointing to recent spikes in Indian exports of chili peppers, cotton yarn and iron ore—up by 17%, 240%, and 160% respectively in FY24. Beijing is ready, Xu said, to support a broader inflow of premium Indian goods and urged Indian companies to actively use Chinese trade platforms such as the China International Import Expo and the China-South Asia Expo to connect with Chinese consumers. However, while signalling openness, Xu also nudged India to address Beijing’s concerns, especially around what China views as unfair treatment of its businesses. “We hope India will provide a fair, transparent, and non-discriminatory business environment for Chinese enterprises,” he said. The ambassador also pushed back on the perception that China imposes curbs on exports of equipment or manpower—issues flagged by Indian industry as barriers to manufacturing growth. “There are no mandatory restrictions from the Chinese side,” he said. Instead, he blamed the hurdles on visa delays for Chinese personnel and what he described as a hostile environment for Chinese firms operating in India. “Chinese citizens face significant difficulties obtaining Indian visas. Chinese enterprises encounter unfriendly and unfair treatment, and voices opposing Chinese investment are often heard in the media,” Xu said, adding that these issues have triggered a backlash in China. Calling for a reset, he added: “Both sides need to meet each other halfway and work together to improve the situation.”Referring to Prime Minister Narendra Modi’s recent remarks on avoiding conflict through dialogue, Xu said that stable and cooperative ties require engagement and mutual understanding. He added that China is ready to “warmly welcome” PM Modi to the upcoming Shanghai Cooperation Organisation (SCO) summit this year.US tariffs and global uncertaintiesSlamming Washington’s tariff actions as “unilateral protectionism,” Xu said such measures undermine global economic stability. He argued that China and India—as leading voices of the Global South—must jointly oppose unilateralism and defend multilateralism.He pointed out that the so-called "reciprocal tariffs" imposed by the US were, in his view, unilateral and designed more to protect US interests rather than foster a fair trade environment. "These actions blatantly infringe upon the legitimate rights of other countries, undermine the rules-based multilateral trading system, and pose a serious threat to global stability," Xu said, emphasizing that China's rise was a product of self-reliance and hard work—not tariff wars.China, Xu explained, doesn’t seek a trade conflict but is ready to defend its interests if provoked. "If a trade war is forced upon us, we will fight back, defend our interests, and uphold multilateralism," he asserted, while also criticizing the US for its heavy-handed approach. “Some countries made concessions, but the US took advantage, asking for more and more," he said, reflecting China’s frustration with what it views as US bullying and hegemony in global trade.Turning to the broader global trade landscape, Xu reminded that the US is just one player among many. With only 13% of global trade, the US represents a fraction of the total market, while over 190 countries together account for the remaining 87%. "There are vast opportunities for cooperation outside of the US," he noted. "China and India, as the two most populous developing powers, have a unique responsibility to oppose protectionism and unilateralism. Together, we must uphold multilateralism and contribute to global stability," Xu said.Border issues and managing trustSpeaking about the need to rebuild trust post the 2020 standoff, Xu said both sides must not allow the boundary issue to define the entire relationship. He highlighted the “positive progress” following Xi Jinping and Modi’s meeting in Kazan and said both countries should view each other’s development as an opportunity, not a threat.Xu added that existing mechanisms like the Corps Commander talks and the Working Mechanism for Consultation and Coordination have helped stabilise the situation, and called for stronger confidence-building measures.Brahmaputra, Chinese tech, and manufacturing barriersAddressing Indian concerns over China's hydropower project on the Brahmaputra (Yarlung Zangbo) river, Xu assured that the project uses water only for energy generation and will not harm downstream countries.He also denied any deliberate Chinese restrictions on exporting technology or manpower to India, instead blaming “unfair treatment” of Chinese companies and challenges in getting Indian visas for a backlash in Chinese society.Media, visa barriers and people-to-people tiesHighlighting the trust deficit between the two countries, Xu called for restoring media exchanges and resuming the exchange of resident journalists. He noted that Chinese missions issued over 85,000 visas this year, but said obtaining Indian visas remained a hurdle for Chinese citizens.He urged Indian media to go beyond “third-party filters” and present a balanced view of China, stressing that media has a role in bridging information and perception gaps.