India, China resume bilateral trade talks after 5 years

According to sources in the know, India and China are holding bilateral trade talks after a gap of 5 years. The countries are also holding bilateral talks regarding taking steps like easing the current restrictions they have imposed on tourist travel between the two countries, resuming direct flights between the two. As a result, China will ease the restrictions it had laid on the export of urea by India, while India will lift the visa restrictions for Chinese visitors. These moves signal that things are warming up between the two countries. Amid the gradually improving bilateral relations, there is potential for a meeting between Prime Minister Narendra Modi and President Xi Jinping at the upcoming SCO summit.

The US Tariff Effect

The high tariffs imposed by Trump led US government has caused an uproar in the international market. Several economies have suffered from high tariffs on exports to the US, which nudged the countries to develop bilateral relations with others. Both India and China were facing trade challenges from the US along with shifting geopolitical alignments, which renewed their interest in restoring limited economic links, particularly in sectors like agriculture and border community livelihoods.

Key Benefits For India

The key benefit of the renewed trade talks for India is that it can now import up to 300,000 tonnes of urea from China. India has relied heavily on imports for its urea needs. In the year 2023, India imported nearly half of China’s total urea exports. However, China stopped exporting urea in 2024. The export was resumed in June this year for other countries, but India was left out. Now, China has lifted that restriction for India too.

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Source : Reports