Thu Jan 29 05:43:09 UTC 2026: # China Courts India Amidst Global Economic Uncertainty, Cites Growing Trade Ties
The Story:
In a statement published on January 29, 2026, Chinese Ambassador to India, Xu Feihong, emphasized the resilience of the Chinese economy and its continued growth despite global economic challenges. Highlighting a 5% GDP increase in 2025, exceeding 140 trillion yuan (approximately $20 trillion), Ambassador Xu positioned China as a crucial contributor to global economic growth, estimating its contribution at around 30%. The statement sought to address Indian concerns about China’s economic practices, emphasizing the shift towards domestic consumption as a primary growth driver, coupled with export and innovation. It further underscored the burgeoning trade relationship between China and India, citing record trade figures and opportunities for Indian enterprises to leverage platforms like the China International Import Expo.
Key Points:
- China’s GDP exceeded 140 trillion yuan (approximately $20 trillion) in 2025, a year-on-year increase of 5%.
- Domestic demand contributed 52% to China’s economic growth in 2025.
- Exports contributed 32.7% to growth, driven by high-tech products with exports growing by as much as 13.2%.
- China-India trade reached a historic high of $155.6 billion in 2025.
- India’s exports to China reached $19.7 billion in 2025, a year-on-year increase of 9.7%, with particularly strong growth in the last two months.
- China welcomes Indian enterprises to leverage platforms such as the China International Import Expo.
Critical Analysis:
The timing and content of Ambassador Xu’s statement suggest a deliberate effort to strengthen economic ties with India amid broader global economic and political uncertainties. The message refutes Western criticisms of China’s economic policies, particularly the “overcapacity” narrative, framing China as a provider of high-quality goods and solutions beneficial to developing nations. The emphasis on growing trade and the invitation to Indian businesses highlight a strategic effort to deepen economic interdependence and foster a cooperative relationship with India.
Key Takeaways:
- China is actively promoting its economic strength and resilience on the global stage.
- China is attempting to reassure India regarding its economic practices and address trade imbalance concerns.
- The article highlights China’s desire to increase its trade relationship with India.
- Global geopolitical tensions are possibly shifting China’s reliance on trade to Asian countries.
Impact Analysis:
The strengthening of China-India economic ties could have significant long-term implications for regional and global trade dynamics. A deeper economic partnership could reshape supply chains, influence geopolitical alignments, and potentially create a more multipolar economic order. India’s participation in Chinese-led economic initiatives and its increasing trade with China may impact its relationships with other major economies, particularly the United States and Europe. The continued growth of trade between the two nations could also promote regional stability. The success of this burgeoning trade relationship is dependent on easing geopolitical issues between the countries.
First Piper 