India China Trade: A good news is emerging amid the negative impact of American tariffs on the Indian economy. There seems to be improvement in trade relations with India’s neighboring country China. In the first seven months of this financial year, India’s exports to China have been increasing every month.

In the month of October, a jump of 42 percent was seen. This means that the path to China’s markets is becoming easier for Indian exporters. Due to which the impact of American tariffs is likely to be reduced.

Understand the entire mathematics of business from data

Talking about the figures, between April and October, India has registered a big increase in exports to China. Compared to last year, exports during this period have increased by 24.7 percent to reach 10.03 billion dollars. Petroleum products, telecom equipment and marine products have been exported the most. However, during this period, India’s total exports have registered a growth of only 0.63 percent.

According to a report published in Navbharat Times, this is one of the strongest rounds of India-China trade. He said that this increase has happened at a time when demand is weak worldwide. Also, there is pressure on exports of big economies.

China is the largest importer

Between April and October, China became one of the largest importers of India. During this period, India imported goods worth $73.99 billion from China. Due to such huge import volume, India’s trade deficit between the two countries reached 64 billion dollars. However, this increase in exports has definitely raised hopes of reducing the deficit.

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China has implemented new rules on the export of its rare earth elements and magnets. Now China wants that this material should be used only for local needs and its use abroad, especially in defense and semiconductor industries, should be limited. According to sources, China wants a guarantee from India that the heavy rare earth magnets sent by it should not go to America and should be used only in India. However, India has so far refused to accept this condition.

According to the Economic Times report, China is the world’s largest country with rare earth elements and it has more than 90% of processed magnets. These elements are used in things like electric vehicles, aircraft engines and military radar. With this step, China is ensuring that its important magnets and technology do not reach anywhere else. This is believed to be part of China’s strategy to strengthen its hold on global technology and defense.

Another expert said, “According to our information, China is considering a deal with the US on heavy rear earth magnets and is not ready to release supplies without a guarantee that they will not go elsewhere.”

What does China want?

China has tightened the rules on the export of rare earth magnets, which is being considered as a bargaining tool in its trade talks with America. This step has come at a time when Trump and Xi Jinping are meeting face to face in South Korea. China wants strict guarantees to be given on exports, like in the Wassenaar Arrangement. Indian companies have also given end-user certificates that these magnets will not be used in making any weapon.

China is not a member of this agreement, but it is applicable to 42 countries for the safe transfer of dual-use technology and goods. India is part of this agreement.

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The ruling CPN-UML of Nepal has objected to the agreement between India and China to resume border trade through Lipulekh Pass and urged both countries to withdraw from this system. India and China had agreed to resume border trade through Lipulekh Pass and two other trading points last month.

Nepal describes Lipulekh as its territory, which India has clearly rejected and said that it is neither appropriate nor based on historical facts and evidence. Party sources said that the party has urged the Nepal government to resolve the issue through high -level diplomatic initiatives and has reiterated the rights of Nepal on the east of Kali river including Kalapani, Limpiadhura and Lipulekh.

Disagreement

It was held on 5-7 September at Godavari Municipality in Lalitpur district, Prime Minister K.P. Sharma was included in the 28-point contemporary resolution passed at the second national conference of CPN-UML led by Oli. He said that the party urged both countries to withdraw the lipule trade agreement.

The proposal mentioned disagreement over the lipule line trade route agreement during the recent visit of Prime Minister and UML President Oli and said that this trend has increased the international reputation of Nepal. It also mentioned bilateral and multilateral programs during the journey, which improved the image of the country abroad.

Controversy over these parts of India

The conference also emphasized that political stability has been established by the seven -point agreement between UML and Nepali Congress under the leadership of Chairman Oli. Nepal gave rise to border dispute in 2020 by issuing a political map, showing Kalapani, Limpiadhura and Lipulekh as part of the country. India strongly refuted these claims.

Foreign Ministry spokesman Randhir Jaiswal recently said that India’s situation has been consistent and clear. He said, ‘The border trade between India and China started in 1954 through Lipulekh Pass and has been going on for decades. In recent years, trade was interrupted due to Kovid-19 epidemic and other developments and now both sides have agreed to resume it.

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Prime Minister of Nepal K.K. P. Sharma Oli on Saturday (August 30, 2025) raised strong objection to the agreement of India and China to resume border trade through Lipulekh. Oli claimed that the area comes under the jurisdiction of Nepal under the Sugardhi Treaty of 1816.

Of. P. Oli gave his message directly to Chinese President Xi Jinping in this regard. Oli said this to Xi Jinping during bilateral talks at Tianjin on Saturday (31 August). This meeting of Nepali PM and Chinese President took place just before the 25th Shanghai Cooperation Sangathan (SCO) summit and SCO Plus meeting held at Tianjin.

Nepal’s foreign secretary issued a statement and shared information

Nepal’s Foreign Secretary Amrit Bahadur Rai has issued a statement in this regard. He said, ‘Oli reminded Xi Jinping that the Mahakali river was fixed as the boundary line in the Sugauli Treaty and all areas located in the east direction of the river have been described as part of Nepal, including Lipulekh.’

Rai said, ‘Prime Minister Oli also raised the Lipulekh issue during the meeting with Chinese President Xi Jinping. In this case, he clarified that according to the Sugauli Treaty of 1816, all areas falling in the east of Mahakali river are from Nepal. In such a situation, China should not support this agreement using Lipulekh area for trade, as Nepal objected to this agreement between India and China. This clear message was conveyed to President Xi Jinping.

Nepal PMO Repeated Oli’s stance

Apart from the Foreign Secretary, the Prime Minister’s Office of Nepal (PMO) also PM K.K. Repeating this attitude of P. Sharma Oli clearly put Nepal’s side clearly. PMO said in its statement, ‘In a meeting with President Xi, PM Oli clearly objected to Nepal’s Indo-China agreement to make Nepali area a way of trade.

The bilateral discussion between the rt hon’ble, Mr. Kp Sharma Oli, Prime Minister of Nepal and His Excellency Mr. XI jinping, the president of the people’s republic of China was help at the tianjin’s guest house on August 30, 2025. pic.twitter.com/4F3Z0WQ12J

– PMO NEPAL (@PM_NEPAL_) August 30, 2025

Disputes emerged again after India and China agreement

The controversy emerged again earlier this month, when India and China agreed to reopen the trade from Lipulekh Pass in Darchula district of Nepal during a conversation in New Delhi.

At the same time, in response to this agreement of China and India, the Nepali Foreign Ministry reiterated on August 20 that the official map of Nepal has its integral parts of scripts, lipulekh and kalapani, which is mentioned in the Constitution of Nepal. However, India has retained its stance that the border trade from Lipulekh has been running since 1954 and in the last few years it was interrupted only due to Korona epidemic and some other reasons. But now India and China have agreed to resume it.

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It is said that only neighbors in trouble are useful, the same thing was clearly seen at the 25th SCO summit started in Tianjin, China, where Prime Minister of India Narendra Modi and Chinese President Xi Jinping came face to face after years. This meeting took place after 7 years and at a time when America has increased the pressure on India to impose tariff by 50%. In such a situation, when the leaders of two big countries of Asia appeared to be standing together, the world’s eyes also stood on them.

Xi Jinping said on this occasion that India and China are counted among the oldest and largest civilized countries in the world. Both Global are an important part of South, in such a situation it is best to remain neighbor and friend. He also said that it is necessary to become friends and good neighbors and to come together with dragon and elephant. But do you know why China is called Dragon and India is called elephant? Let’s know this funny anecdote.

Why India was called an elephant?

Indeed, this symbolic comparison was first introduced by foreign media for the first time. In 2015, the New York Times during the Paris Climate Summit showed India in cartoons as a large and dull elephant, stopping the train of climate change. That is, India was described as a slow and obstructed country. At the same time, China got the image of the dragon, as the dragon is considered a symbol of power and boom in their culture.

Experts say that elephant for India began to be used more than the 1990s, when India started economic reforms, foreign magazines compared India to China. China was called a sharp and aggressive dragon, while India was sometimes said to be a dull and sometimes a lame elephant.

Canadian author David M. Malon does his book does the Elephant Dance? I wrote that India may run with slow steps, but is stable and strong like an elephant. Gradually, the word elephant became an international recognition for India.

Why did China become a dragon?

At the same time, the story of China is different. About 1800 years ago, the Han dynasty made Dragon a royal symbol. The emperor used to connect it with his strength and pride. Even today, dragon is considered a symbol of luck and prosperity in China. Whereas in the stories of Western countries, the dragon was shown as a dangerous monster.

Pandit Nehru’s animal diplomacy

India’s ties with elephants is also very old. From the seals of the Indus Valley Civilization to Lord Ganesha, the elephant has been an important part of Indian culture. After independence, Pandit Nehru also used the elephant in diplomacy. He sent elephants to the children of Canada and Japan, which was called animal diplomacy. That is, it is clear that this story of dragon and elephant is not just a symbol, but reflects the identity and thinking of both countries.

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Prime Minister Narendra Modi said on Friday (August 29, 2025) that working of India and China together is important to bring stability in the global economic system. He also said that India is ready to pursue bilateral relations from a strategic and long -term perspective, on the basis of mutual respect, interest and sensitivity.

In an interview to ‘The Yomuri Shimbuna’ during his visit to Japan, the Prime Minister said that being two neighbors and the two largest countries in the world, stable, predicted and friendly relations between India and China can have a positive impact on regional and global peace and prosperity.

Information about conversation with China

On the question on the importance of reforming relations with China, Modi said, ‘I will go to Tianjin from here on the invitation of President Xi Chinfing, where I will attend the Shanghai Cooperation Sangathan (SCO) summit. Since my meeting with President Xi in Kazan last year, there has been continuous and positive progress in our bilateral relations.

He said that stable, predicted and cordial bilateral relations between India and China as two neighbors and the world’s two largest nations could have a positive impact on regional and global peace and prosperity. He said that it is also important for a multi -polar Asia and multipolar world.

Stability objective in global economic system

Modi said, “Given the current instability in the world economy, it is necessary to work together of two big economies like India and China, so that stability can be brought in the global economic system.” He said that India is ready to extend bilateral relations from a strategic and long -term perspective on the basis of mutual respect, interest and sensitivity and to increase strategic dialogue to address the development challenges of the two countries.

On the concept of ‘uninterrupted and open Hind-Pacific’ by the Government of Japan, Prime Minister Modi said that there is a deep harmony in the thinking of India and Japan in this regard, which can also be seen in India’s ‘Vision Ocean’ and the initiative of the Indian-Pacific Oceans.

Honoring the territorial integrity and sovereignty of all countries

He said that both India and Japan are committed to such peaceful, prosperous and stable Hind-Pacific region, where all countries are respected for terrible integrity and sovereignty. The Prime Minister said, “There are strong and comprehensive relations with the countries of our two countries, the Hind-Pacific region and we both communicate with some of them in multilateral formats to give expression to our shared objectives.”

On a recent conversation with the presidents of Russia and Ukraine, Prime Minister Modi said that India has always taken the principle and human stance on this struggle, which has been appreciated by both President Vladimir Putin and President Volodimir Jailonski.

Emphasis on finding solutions through diplomacy

Modi said, ‘Both leaders talked to me and shared their views on the events related to the struggle. I reiterated India’s theoretical and sustainable attitude and insisted on finding solutions through dialogue and diplomacy. I have already indicated that India is ready to support all such efforts, whose purpose is to find a peaceful solution to the struggle.

Modi said, “I believe that on the basis of our good relations with both sides, including the main stakeholders, we can strengthen the efforts dedicated to the restoration of quick and permanent peace in Ukraine.” Emphasizing the importance of ‘Global South’, Prime Minister Modi said that the global community has committed to create a more equitable world by achieving Sustainable Development Goals (SDG) by 2030.

‘Global South’ has to face challenges

He said, ‘If we have to fulfill this commitment, then Global South will have to give priority. In the highly connected world among themselves, we have seen a serious impact on the global South of disruption in epidemic, conflicts and supply chains. Global South means those countries that are either developing or emerging economies. These countries have more population, but lacks resources and technological development.

Modi said that ‘Global South’ is still facing many challenges like global rule, climate change, food and energy security, debt and financial pressure, which affect their development priorities. Being a member of ‘Global South’, we understand these concerns and their impact on the lives of common people well. We have made every effort to bring them to the center of the global agenda.

African Union joined during G20 chairmanship

Prime Minister Modi said that all global efforts like Mission Life, Anti-Anti-Disaster Infrastructure Alliance (CDRI), International Solar Alliance, Global Biofuel Alliance have been aimed at promoting the interests of ‘Global South’. The African Union was included in it during India’s G20 chairmanship, which gave a voice to the aspirations of ‘Global South’.

He said that in the same way, India is actively working for the interests of ‘Global South’ in ‘BRICS’ (BRICS). ‘BRICS’ is a group of countries with emerging economy, which were earlier Brazil, Russia, India, China and South Africa, but now it has joined more countries like Saudi Arabia, Egypt, Ethiopia, Indonesia and Iran.

Development and progress of countries of the Indian region

Prime Minister Modi said that India gives importance to its association with ‘BRICS’, which has emerged as a valuable platform for consultation and cooperation. This has promoted mutual understanding on issues related to shared interests of emerging economies.

In the context of ‘Quad’ (QUAD), Modi said that under this platform, work has been done for the development and progress of the countries of the Indo-Pacific region. ‘Quad’ is a strategic partnership group between India, America, Japan and Australia, aimed at promoting an independent, open and inclusive Indo-Pacific sector.

‘Quad’ emerged as a power of global interests

The Prime Minister said, ‘India has been continuously demanding that immediate and overall reforms be made in global multilateral institutions, so that they can better reflect the current geopolitical and economic realities. In the last two decades, since the establishment in 2004, ‘Quad’ has emerged as a power of global interests and has been successful in giving positive results for the people of the Indian region.

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Former Army Chief General MM Narwane (retired) said on Thursday (21 August 2025) that it is a good thing that the process of improvement in India-China relations has started. Many initiatives have been taken to carry forward mutual communication and cooperation at the political, diplomatic and military levels.

Retired General Narwane said in a program late in the evening, “We hope that as we move forward, China will also respond to our goodwill in the same way.” He made this comment amid recent efforts to improve China-India relations.

India and China announced several steps for “stable, collaborative and far -reaching” relations on Tuesday, including maintaining peace jointly on the border, reopening border trade, promoting investment flows and reinstating direct flight connectivity service as soon as possible.

We always wanted good relations with China- General Narwane
Retired General Narwane said, “It is not that the change between India and China and the current pace of talks has been imposed on us due to an event.” We always wanted good relations with China. “He also expressed happiness that India and China are moving forward to discuss the border dispute.”

The former army chief said, “This is a limit, not border and like the boundary, it is open to interaction.” Transactions are possible to some extent. “Narwane said,” It is a good thing that our relations with China have been getting better in the last few weeks, many initiatives have been announced at political, diplomatic and military levels so that our relations can improve as well as our relations. “

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India and China have agreed to start business again through Lipulekh Pass. The decision was taken during the India round of Chinese Foreign Minister Wang Yi on 18 and 19 August. After the arrival of Wang Yi to India, the trade will also start from Shipki La and Nathu La Pass. Nepal has objected to this. India has also given a befitting reply to Nepal’s objection. According to the PTI report, Foreign Ministry spokesman Randhir Jaiswal said that the two countries have been trading from here for decades.

Nepal said on Wednesday (August 20) that this region is its inseparable part and its Official Map has also been included. The Nepali Foreign Ministry said, “The Nepal government is clear that Limpiadhura, Lipulekh and Kalapani, located east of the Mahakali river, are inseparable parts of Nepal. They have also been officially recorded in the Nepali map and also included in the Constitution.

India gave a befitting reply after Nepal’s objection

Reacting to the statement of the Government of Nepal, India’s Foreign Ministry said that such claims are neither appropriate nor based on historical facts and evidence. Indian Foreign Ministry spokesman Randhir Jaiswal said, “The border trade between India and China started in 1954 through Lipulekh Pass and continued for decades. In recent years, there was a hindrance in business due to Corona and other incidents. Now both sides have agreed to resume it. ”

Chinese Foreign Minister’s visit to India

Foreign Minister S.K. along with Chinese Foreign Minister Wang Yi A joint document released on Tuesday (August 19), after a comprehensive talks between Jaishankar, National Security Advisor Ajit Doval and Prime Minister Narendra Modi, said that the two sides agreed to resume the border trade through three business points – Lipulekh Pass, Shipki La Pass and Nathu La Pass.

Input – PTI

Despite the long -standing border disputes and political tensions between India and China, the two countries are making new efforts to carry forward their relations. Chinese Foreign Minister Wang Yi said during a visit to New Delhi that both countries should establish the right strategic partnership and should be considered as partners. This statement clarified that both Beijing and New Delhi are keen to stabilize bilateral relations and find new avenues of cooperation. Wang Yi told Dr. Jaishankar about the American tariff that the world is going towards rapid change. Referring to America, he said that one-sided is facing bullying. Apart from this, the world is facing free trade business and international challenges.

History is witness that India and China have seen difficult times. The clash of the Galwan Valley of June 2020 had brought relationships to the lowest level in decades, but in the present time the leadership ability of the two countries focus on the fact that tension is reduced and found opportunities for cooperation at regional and globally.

Importance of border peace and dialogue
Seema Shanti was a major issue in the meeting of Wang Yi and Indian Foreign Minister Subrahmanyam Jaishankar. Jaishankar clearly stated that the basis of any positive motion in India-China relations has the ability to maintain peace and harmony in the border areas. Wang Yi also admitted that dialogue and exchange at all levels are gradually being restored. It is an indication that the two countries now want to look towards the future, rather than only stuck on border disputes. In addition, the border talks between Ajit Doval and Wang Yi have raised hope that long -stuck negotiations can lead to progress.

Business and bilateral cooperation opportunities
During the meeting, the two leaders also discussed business and economic relations. China is one of the largest trading partners in India, but the business balance has long been tilted in favor of Beijing. Jaishankar also interacted on issues like river data sharing, border trade, contact and cultural exchange. Such steps will not only improve business relations but will also strengthen mutual trust. Wang Yi’s statement is also important that India and China can set examples for developing countries. This simply means that both countries can leave their differences behind and play a leading role for the global South.

SCO summit and future direction
Wang Yi’s visit took place a few days before Prime Minister Narendra Modi’s visit to China. Modi will go to Beijing for the first time in seven years to participate in the Shanghai Cooperation Organization (SCO) summit. Both China and India are important members of the SCO and this platform gives both countries an opportunity to share their views on regional security, opposition terrorism and economic cooperation. In this context, Wang Yi’s visit and his conversation with Jaishankar is not limited to bilateral relations only, but it is also associated with the collective security and stability of Asia.

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The Trump government of America is constantly showing fear of tariffs to countries around the world. He is putting pressure on them by applying heavy tariffs. This move of Trump administration is seeing uncertainty in the international market. Business in India has also been affected by his move. However, the Government of India is going to take some special steps to increase business here.

To promote direct foreign investment, now the NITI Aayog has proposed to relax the rules, so far Chinese companies needed additional tough investigation to invest in India. NITI Aayog believes that this move will benefit some big deal companies in the country, because earlier due to strict rules, there was a lot of delay in filing some big deal.

According to the news of Business Standard, Chinese companies require security approval from Ministries and Ministry of Home Affairs to do business in India.

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