China's Consul General Affirms Resilience of India-China Trade Relations
China's Consul General in Mumbai, Qin Jie, emphasized on Saturday that the trade relationship between India and China possesses robust structural foundations and is unlikely to be swayed by external geopolitical or economic developments. Speaking exclusively to PTI on the sidelines of the International Business Conclave at Advantage Vidarbha 2026 in Nagpur, the diplomat highlighted the enduring strength of bilateral economic engagement between the two neighboring nations.
Structural Foundations Support Bilateral Trade
When questioned about how India-China trade might evolve in light of India's recent trade agreements with other global partners, Qin Jie asserted that external factors are not expected to have a significant impact. "Because India is a very big economy and China is also a very large economy. We are countries that both support multilateralism and multilateral trade and multicultural exchange," he explained, underscoring the mutual commitment to global trade frameworks.
India's Sovereignty in External Partnerships
Addressing India's trade engagements with the United States and the European Union, Qin Jie acknowledged India's sovereign right to shape its external partnerships. However, he stressed the imperative for continued bilateral cooperation between India and China. "India is free to decide its relations with the EU or other parts of the world… But for India and China, we should continue cooperation, strengthen ties, and maintain communication in many fields," he remarked, advocating for sustained dialogue across various sectors.
Potential Review of Investment Policy
Responding to inquiries about Press Note 3, issued in 2020, which mandates prior government approval for foreign direct investment from countries sharing land borders with India, Qin Jie noted reports suggesting India may be reviewing the policy. He expressed optimism about this development, stating, "I think it is a very positive and good move because we need our investors, our (China-India) business and communities to come together, and we need a lot of cooperation in various fields like cultural, education and artistic communication."
Focus on Complementary Strengths Over Competition
On the topic of the 'China Plus One' strategy, where global firms diversify supply chains beyond China, Qin Jie advocated for a collaborative approach. He suggested that India and China should leverage their complementary strengths rather than engage in competitive positioning. "We should look at how we can work together, rather than on who replaces whom," he said, highlighting China's manufacturing prowess and India's capabilities in software and services. The 'China Plus One' strategy broadly refers to companies expanding manufacturing or sourcing beyond China to mitigate supply chain risks.
Call for Enhanced Mutual Engagement
The Chinese Consulate General also expressed anticipation for stronger mutual engagement, increased two-way exchanges, and deeper people-to-people ties with India. Qin Jie's comments reflect a broader diplomatic effort to foster closer economic and cultural relations between the two Asian giants, emphasizing the importance of sustained cooperation in an increasingly interconnected global economy.
