Relationships among nations are often tangled economically and politically. For example, many countries seeking superior power and dominion over others, from the facet of economics, have conflicts with trades. China and India have been each other’s greatest trade partners, and though their trade quality is undoubtedly improving, problems like the barrier and deficits arose.
To begin with, it is undoubtful that the trades between China and India are growing, having more and more volume; “Bilateral trade between India and China during the first nine months of 2021 grew 49 percent on year to $90 billion” (Nandi). However, there seems to be a widening in trading deficits. While this accelerating bilateral trade between two countries stands out, the unprecedented trade deficit of $47 billion overpowers the good news (Nandi).
A year ago, India announced its plan to increase trade barriers and tariffs on products from China and others to reduce the continuous trade deficit mentioned in the previous paragraph. As India has precedents of raising tariffs on electronic goods and textiles, drawing protection of the nation from foreign businesses (Ahmed et al.), its action is notable.
Furthermore, the trade outlook of India and China may be more severe and damaged. On top of the trade deficits and increased trade barriers and tariffs, diplomatic relations of those nations don’t seem to be great. Over the issue of constructing infrastructure in the Line of Actual Control, their border, two countries are accusing each other of raising troops and triggering the battles. It is uncertain how and if two grand nations, China and India, will resolve the diplomatic conflict. However, it seems vital for both countries to alleviate the tension for economic gains through their reciprocal trades. (India-china dispute: The border row explained in 400 words)