The Sino-Indian confrontation situation has eased! Sino-Indian trade is expected to normalize

New Delhi, India (Reuters) - Satellite images released on Wednesday showed that China has demolished dozens of buildings in the area of ​​the Sino-Indian standoff (Pangong Tso area) and is clearing camps in the disputed area (Ladakh) , and Chinese troops, tanks and other equipment have begun to withdraw in an orderly manner.

The Indian side stated that the Indian army will also withdraw its military deployment in the Pangong Lake area in an orderly manner, including buildings, equipment, and troops. Relevant Indian military officials stated that if the two countries want to completely disengage, end the confrontation and resolve border disputes, negotiations and consultations are still needed.

Although it will still take lengthy negotiations and consultations to completely resolve the border dispute, at this stage, the easing of the Sino-Indian confrontation will have a positive impact on the exchanges between the two countries, and their trade and other exchanges are expected to return to normal or even strengthen.

Since the conflict broke out in June 2020, tensions between China and India have escalated. The Indian government has adopted a series of strict restrictions and sanctions policies against China, including imposing high anti-dumping duties on products exported from China to India, banning Chinese applications such as TikTok and WeChat, and restricting Chinese companies' investment in India. Chinese companies have been hit hard in India.

As relations between the two countries ease, Chinese companies focusing on the Indian market may usher in a new era. As the confrontation situation eases, the Indian government is considering reopening Chinese companies' investment in India (limited to non-sensitive fields and industries), and other restrictive policies issued due to the confrontation are also expected to be changed. The overall environment will be conducive to the development of Chinese companies.

Due to the impact of the epidemic, India's economic growth has stagnated or even declined. At present, the Indian government is taking a series of policies and measures to promote economic recovery. After the confrontation eases, China may become India's strongest supporter and helper, and trade between China and India will be further strengthened, and China-India trade will become more prosperous.

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