China warns India of consequences in trade probes

China is greatly concerned about recent Indian trade probes into its goods, the Commerce Ministry said on Monday.

China warns India of consequences in trade probes
China is greatly concerned about recent Indian trade probes into its goods, the Commerce Ministry said on Monday, warning New Delhi to exercise restraint or face severe damage to bilateral ties.

India last month banned imports of several types of toys from China for six months "in the public interest," without giving any further details of why.

Worries about protectionism are rising as the impact of the global financial crisis spreads, increasing the temptation for governments to bring in measures that will help their firms in the short-term but worsen the overall economic pain.

China's Commerce Ministry, in a statement citing spokesman Yao Jian carried on its website (www.mofcom.gov.cn), said India had launched 17 probes of Chinese-made products since October.

"The Chinese government is extremely concerned that India, in such a short space of time, has frequently carried out trade investigations on Chinese goods and limited imports," Yao was paraphrased as saying.

"China hopes that India, in this special period of serious challenges facing the world economy, exercises prudence and restraint in using trade relief measures, otherwise it will have a serious impact on bilateral economic and trade ties," he added.

Yao made the comments following a visit by Deputy Trade Minister Zhong Shan to the Indian ambassador in Beijing, the ministry said. Zhong said China hoped to ease the current trade friction through talks, the statement added.

China ran an $11.2 billion trade surplus with India in 2008, according to Chinese government figures, with goods flows growing strongly in both directions.

Imports from India grew faster, albeit from a lower base, than China's exports to its neighbour.

State media said earlier this month that China may ask the World Trade Organisation to investigate India's six-month import ban slapped on its toys.

Reuters
Last Mod: 09 Şubat 2009, 15:56
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