Amid the Doklam standoff, India and China are heading towards a trade war as New Delhi imposed anti-dumping duties on 93 Chinese products, Chinese state media said.
State run daily, The Global Times which is considered as the mouth piece of country’s govt warned Chinese companies against investing in India and said New Delhi should be “prepared for the possible consequences for its ill-considered action.”
“A trade war between China and India seems to be looming after the latter moved last Wednesday to impose anti-dumping duties on 93 products from China,” an article published in The Global Times said.
“If India really starts a trade war with China, of course, China’s economic interests will be hurt, but there will also be consequences for India,” it said.
The article also said that China “could easily retaliate” with restrictions on Indian products, but added that it “doesn’t make much economic sense” for the country.
It cited figures from the Indian embassy in China to show that Indian exports fell by 12.3 per cent year-on-year to USD 11.75 billion while India’s imports from China rose by 2 per cent to USD 59 billion, resulting in a trade deficit of USD 47 billion.
According to the Indian Commerce Ministry, the trade deficit with China last year mounted to over USD 52 billion when the bilateral trade stood at USD 70 billion.
The report on trade comes as India and China have been locked in a tense military standoff in Doklam in the Sikkim sector.
India has protested the construction of a road by the Chinese military in the area claimed by its ally Bhutan, fearing it would allow Beijing to cut off India’s access to its northeastern states.