India Plans to Adjust Trade Policies with China, Promoting New Opportunities for Bilateral Cooperation

1. Restoration of Transport Connectivity: India plans to resume direct flights between New Delhi and Shanghai and pilot a fast-track electronic visa system for Chinese citizens traveling to India.

2. Relaxation of Trade Restrictions: India intends to remove port clearance restrictions on 61 categories of Chinese goods and reduce additional tariffs by 15%-20% on certain mechanical and electrical products.

3. Opening of Digital Platforms: Over 20 Chinese apps, including TikTok and Shein, are set to return to the Indian market under conditions that require data to be stored locally in India.

4. Optimization of Foreign Investment Policies: India plans to ease foreign investment entry requirements in the renewable energy and electronics manufacturing sectors, with a local procurement requirement of 30%.

5. Strengthening Communication Mechanisms: India proposes the establishment of a bilateral trade consultation platform at the ministerial level and the promotion of direct settlement in Indian rupees and Chinese yuan.

The background of this policy shift stems from deeper structural challenges in the bilateral trade relationship between China and India. According to statistics, the total bilateral trade between China and India reached $138.47 billion in 2024, with China exporting $120.48 billion to India, a 2.4% increase from the previous year. However, India's exports to China amounted to only $17.99 billion, a 3.0% decline, resulting in a trade deficit of over $100 billion. India's reliance on Chinese products continues to grow in critical sectors such as mechanical and electrical equipment, photovoltaic modules, and raw pharmaceuticals.

Past trade restrictions have failed to effectively promote India's "decoupling" from China, instead contributing to a 12% increase in costs and bottlenecks in the relocation of the smartphone supply chain. In parallel, India is considering reducing tariffs on U.S. goods to encourage local manufacturing investment and expediting approval for Chinese projects in sectors such as electric vehicles and semiconductors.

Chinese companies have also worked with local Indian partners to re-enter the market. For instance, Shein's partnership with Reliance Industries, which includes a model of "75% local sourcing + technology transfer," has allowed the company to successfully re-establish a presence in India, demonstrating the challenges India faces in implementing its "Manufacturing 2.0" strategy.

Moreover, both countries are engaging in discussions regarding border economic cooperation, including the upgrade of the Nathu La Pass and power grid connectivity projects, which are expected to further boost bilateral border trade, with a target of $5 billion annually.

Wankai New Materials Co., Ltd. Strengthens Cooperation with the Indian Market

Wankai New Materials Co., Ltd. has maintained a long-term and stable trade relationship with Indian clients. Even in the face of anti-dumping duties, communication and cooperation between the two parties have remained uninterrupted, reflecting deep mutual trust and a strong market connection.

Leveraging its robust production capacity and technological capabilities, Wankai continues to expand its supply chain upstream, enhancing its self-sufficiency in raw materials to ensure a stable and cost-effective supply of Polyethylene Terephthalate (PET) resin for global customers. Additionally, Wankai has been increasing its presence in overseas markets, particularly through optimizing digital marketing and customer response mechanisms to further enhance customer service and experience.

With its comprehensive advantages in product quality, cost control, and full-service support, Wankai has maintained a strong competitive position in the international PET bottle-grade market, particularly in the Indian market. Moving forward, Wankai looks forward to further strengthening its collaboration with Indian partners, driving bilateral trade and long-term sustainable development.

As India adjusts its trade policies with China, the two countries'economic cooperation is poised to encounter new opportunities. As a key player in the industry, Wankai will continue to deepen its cooperation with the Indian market, promoting long-term stable economic ties and fostering innovation and development in bilateral trade across broader sectors.