China Ready to Address Concerns as India Flags Trade Barriers

China announced on Friday, October 16, 2026, its readiness to work with India to address "each other’s" economic and trade concerns. This statement from Beijing followed Union Finance Minister Nirmala Sitharaman’s criticism regarding China’s persistent restrictions on market access for Indian products.

Speaking on the same Friday at an interaction with the Atlantic Council on the sidelines of the IMF-World Bank annual meetings in Bangkok, Thailand, Ms. Sitharaman reacted to India’s trade deficit with China crossing $100 billion in the first nine months. She emphasized that the growing trade imbalance and the ongoing restrictions on market access remained major concerns, despite years of engagement with Beijing.

Chinese Foreign Ministry spokesperson Mao Ning responded to Ms. Sitharaman’s comments by reiterating China’s stand on India’s concerns. Mao Ning stated, "What I can tell you is that China never aims for trade surplus," and added, "We stand ready to work with India to address each other’s economic and trade concerns in a balanced way and promote the steady development of bilateral relations," referring further questions to relevant Chinese authorities. Ms. Sitharaman identified "non-tariff barriers" as the "biggest hurdle" in India-China trade, citing China's use of phytosanitary measures and other non-tariff restrictions.

India has consistently sought market access in China for products such as generic medicines, bovine meat, vegetables, and other perishable goods, but has made little progress despite prolonged engagement. Ms. Sitharaman noted that India has not resorted to imposing punitive tariffs to correct large trade imbalances, preferring negotiations, even if time-consuming.

Trade data released by China Customs on Wednesday, October 14, 2026, revealed India’s trade deficit with China widened to $105.93 billion, marking a 20.7% increase compared to the previous year. Total bilateral trade grew to $144.45 billion, a 25.4% increase. China’s exports to India reached $125.19 billion, up by 23.3%, while Indian exports to China also saw growth, touching $19.26 billion, a 40.7% increase from the same period last year. Separately, China is considering new export curbs on solar, AI, and biotech, with a draft plan, "Announcement No. 48," proposing a complete export ban on 14 technologies and restrictions on 26 others, a move that could affect countries like India seeking to reduce dependence on China.

What to watch: Future bilateral discussions on market access and trade imbalance.

Editor's note: Comprehensively covers trade figures, quotes and context; stays within source material.