Indian exports to China rose 16% in the same period, according to Chinese customs data.

China imports to india declinedImage for representation purpose only
Money Trade Tuesday, December 08, 2020 - 11:05

China's exports to India declined by 13 per cent in the first 11 months of the year, while Indian exports to China rose 16 per cent in the same period, according to Chinese customs data released on Monday. The bilateral trade in the first 11 months of 2020 touched USD 78 billion, amidst border tensions between the two countries in eastern Ladakh.

The two countries traded about USD 92.68 billion worth of goods in 2019. According to customs data released on Monday, China exported about USD 59 billion worth of products to India from January to November, down 13 per cent, a report in the state-run Global Times said.

China's imports from India stood at about USD 19 billion in the first 11 months, up 16 per cent. India's trade deficit stood at USD 40 billion from over USD 60 billion in the previous financial year.

Amidst border tensions, New Delhi has banned over 200 Chinese applications as they posed a threat to the "sovereignty and integrity of India".

India and China have been locked in a military standoff along the Line of Actual Control (LAC) in eastern Ladakh since May this year.

Multiple rounds of talks between the two sides to resolve the standoff have not yielded any concrete outcome.

Meanwhile, China's politically sensitive trade surplus with the US soared to a record USD 75.4 billion November as exports surged 21.1 per cent over a year earlier, propelled by strong demand from American consumers.

Exports to the United States rose 46 per cent despite lingering tariff hikes in a trade war with Washington, customs data showed Monday. Total exports rose to USD 268 billion, up from October's 11.4 per cent growth.

Imports gained 5 per cent to USD 192.6 billion, up from the previous month's 4.7 per cent, reflecting the growing strength of China's economic rebound from the coronavirus pandemic.

Chinese exporters are benefiting from the economy's relatively early reopening after the Communist Party declared the disease under control in March while foreign competitors still are hampered by anti-virus controls.

Exports were much stronger than expected in November, said Julian Evans-Pritchard of Capital Economics in a report.

He noted that consumers have stepped up purchases of goods, cutting back on services that may not be safe or available during the pandemic.

Chinese exporters have temporarily taken global market share from competitors.

Forecasters say that surge is unlikely to last into 2021 once coronavirus vaccines are rolled out and consumption in Western markets gradually returns to normal.

Total exports for 2020 returned to positive territory in October after the first quarter's 13.3 per cent contraction dragged down the overall figure.

Chinese import growth by volume has been bigger than the financial figures indicate due to slumping global prices for oil and other goods amid plunging demand.

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