Focus | India is set to lift trade restrictions on China, and China-India relations may witness significant changes!

According to sources, China-India relations may be on the verge of a major turning point.

India may lift trade and investment restrictions on China. It is reported that with the easing of the tense situation along the China-India border, India is currently proposing a number of measures to relax the trade and investment restrictions it previously imposed on China. Indian policymakers are now more willing to enhance bilateral economic relations. Especially when US President Trump has been continuously pressuring India on the issue of tariffs, it is considered a favorable opportunity to improve relations with China.
Sources revealed that relevant negotiations have been going on for some time, and specific measures to relax the restrictions are expected to be announced in the coming weeks.It is a good news for our company. We sell a lot of MRS CONNECTOR, PIN HEADER AND FLAT CABLE to india Market. Hope we can have more business from India market.

Return to the position of the largest trading partner
As two major emerging economies in the world, China and India have shown a complex but close situation in their bilateral trade relations in recent years.
In 2024, China's exports to India reached 120.481 billion US dollars, a year-on-year increase of 2.4%, while imports from India decreased by 3.0% to 17.997 billion US dollars. The total trade volume reached 118.4 billion US dollars, and China regained the position of India's largest trading partner after a two-year interval.
Data from the Global Trade Research Initiative (GTRI) shows that Chinese goods account for 15% of India's total imports, and the proportion is even higher in key areas such as mechanical and electrical products and chemical raw materials.
The Business Standard of India analyzed and pointed out: "Despite the implementation of a number of restrictive measures, India's trade deficit with China has continued to expand, which has prompted policymakers to re-evaluate the effectiveness of the current policies."
In addition, India, like China, is facing the aggressive tariff barriers of the United States. Close dialogue with China on the normalization of bilateral business relations can send a signal to the United States, "which may play a potential hedging role."
Venu, the founder of The Wire in India, said on the 24th that the great pressure brought by Trump's demand for tariff adjustment makes it welcome for India to improve its trade and investment relations with China.

· India plans to cut tariffs on the United States
According to government sources on Tuesday (March 25th), India is willing to cut tariffs on US$23 billion worth of US imported goods. If implemented, this will be the largest tariff cut in India in years, aiming to defuse the "reciprocal tariff" plan that the Trump administration of the United States is about to launch.
US President Trump previously announced that the global reciprocal tariff measures would take effect on April 2nd. This threat has disrupted major global markets and left policymakers in various countries in a rush, especially the allies and long-term trade partners of the United States.
Two Indian government sources revealed that in an internal analysis, the Indian side estimated that if India continues to maintain the current tariffs, then such reciprocal tariffs of the United States will affect 87% of the total value of Indian goods exported to the United States, worth about 66 billion US dollars.
According to the latest plan, India is willing to reduce tariffs on 55% of US imported goods (worth more than 23 billion US dollars), and these goods are currently subject to tariffs ranging from 5% to 30%. For this part of the goods, India may significantly reduce or even completely eliminate the import tariffs.