China to establish panel to cut trade deficit with India

Chinese President Xi Jinping and Indian Prime Minister Shri Narendra Modi agreed at a summit on Saturday to set up a special panel to tackle India’s rising trade deficit with China. Bilateral trade between the two countries reached US$ 95.54 billion in 2018, with the trade deficit at US$ 53 billion in China’s favour, the biggest deficit that India has with any country. 

Indian generic drug makers & IT sector have long sought greater market access to China; while China urged India to take a decision on telecom equipment maker Huawei’s bid for India’s proposed 3G network, independent of USA’s influence. 

Besides these trade rows, there have been several thorns in India’s relationship with China such as border disputes, close military ties with India’s arch rival & revocation of the special status of Jammu and Kashmir.