India, China Launch New Rail-Sea Freight Train Amid Border Clash in Tawang
© Photo : Ministry of Foreign Affairs of the People's Republic of China
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India’s trade ties with China remain mostly unaffected by tensions at the Line of Actual Control (LAC), the de-facto border between the two countries. After the Galwan clash in 2020, bilateral trade stood at $115.83 billion in 2021-22, the highest since 2014-15.
A freight train loaded with 265 tons of raw sugar from India left South China's Qinzhou, a Chinese official said, adding that the consignment will reach the destination in Lanzhou by Friday.
“The consignment will arrive in Lanzhou of North West China's Gansu by Friday, marking the launch of 1st rail-sea freight train linking Mumbai, Qinzhou and Lanzhou on New International Land-Sea Trade Corridor,” Ji Rong, counsellor, Department of Asian Affairs, said.
China’s exports to India rose more than 30 percent to $89.7 billion in 2022
© Photo : Ministry of Foreign Affairs of the People's Republic of China
In February, the two countries launched the first rail-sea freight corridor to boost bilateral trade, which crossed over $100 billion in the first nine months of this calendar.
China’s exports to India rose more than 30 percent, to $89.7 billion, while India’s exports to China fell 36 percent, to $13.97 billion, this year.
Most of the goods imported from China are capital goods, intermediate goods, and raw materials, and are used for meeting the demand of fast-expanding sectors like electronics, telecom, and power in India.
“India’s dependence on imports in these categories is largely due to the gap between domestic supply and demand,” Piyush Goyal, India’s minister of commerce, said in the parliament on December 9, when troops of the two countries engaged in a clash in Yangtse sector in Arunachal Pradesh.
Speaking in parliament on December 7, Indian Foreign Minister Subrahmanyam Jaishankar described ties with China as “not normal,” due to the ongoing border stand-off in Ladakh.
India-China trade relations remain mostly unaffected by Galwan clash in 2020
© Photo : Ministry of Foreign Affairs of the People's Republic of China
In September, the two countries completed the disengagement at Gogra-Hot Springs following a year of negotiations. However, the border issues have yet to be resolved in other outstanding areas, such as the Depsang Plains and Demchok.
