India-China Trade Unaffected by External Factors

Nagpur, Feb 7 (PTI) Qin Jie, Consul General of the People's Republic of China in Mumbai, said on Saturday that India-China trade will not be affected by external factors, as both countries are very big economies that support multilateralism and multilateral trade.

The Chinese Consul General was speaking to PTI on the sidelines of the International Business Conclave at Advantage Vidarbha 2026 in Nagpur.

When asked how he sees the contours of trade between the two neighbours against the backdrop of the agreements India is signing, he said it is unlikely that it will be influenced much by outside factors.

"Because India is a very big economy and China is also a very large economy. We are countries that both support multilateralism and multilateral trade and multicultural exchange," he said.

To a question about his views on the deals that India has struck with the US and the European Union (EU), Qin Jie said, "India is free to decide its relations with the EU or other parts of the world… But for India and China, we should continue cooperation, strengthen ties, and maintain communication in many fields."


Asked if India should revisit Press Note 3 (2020) to allow more FDI from neighbouring countries, the diplomat said he had read reports suggesting that India was already considering some adjustments.

"I think it is a very positive and good move because we need our investors, our (China-India) business and communities to come together, and we need a lot of cooperation in various fields like cultural, education and artistic communication," he said.

According to Press Note 3, issued in April 2020, prior government approval is mandatory for all FDI from entities based in countries sharing land borders with India.

The Consulate General said China looks forward to a lot of mutual relations, two-way exchanges and friendship with India.

When asked about the 'China Plus One strategy', Qin Jie said that for any country, particularly China and India, the two neighbours have many complementarities. He said China has strong manufacturing capabilities, while India is strong in software and services. "We should look at how we can work together, rather than on who replaces whom," he added.

China Plus One refers to a strategy under which firms avoid investing only in China and instead expand their manufacturing or sourcing to alternative destinations.