A Study of India's Trade Relations with China in WTO Era

Abstract

China's joining of WTO in 2001 has completely changed its economic structure and its entry in WTO proved to be a landmark event in the global economy. As a result, China's trade relations with the world have improved significantly particularly with India. Both, India and China are the fastest growing economies in the world since they have grown at rate of 8% and 10% GDP respectively. The total trade between India and China was reached to $60 billion in 2010. However, the major change in the trade relations between India and China has come after China's joining of WTO in 2001. In the above background, this paper is divided into three parts. The first part of the paper examines the direction of foreign trade of China after becoming a member of WTO and, the second part analyzes India's trade relations with China (Pre and Post China's joining of WTO). The final section of the paper delineates the major constraints between India and China for improving trade relations.

A Research on the Influencing Factors of Goods Trade Between China and India

“…Foreign scholars have conducted research on China's trade with India from different perspectives. The empirical analysis shows that India's potential gain is high when the influence of India's existing "behind the border" constraints are eliminated [1].Using highly dis-aggregated trade data and firm-level field interviews ,a paper finds that despite the low trade volume between India and ASEAN, vertical specialized trade has continued to grow [2].The major change in the trade relations between India and China has come after China's joining of WTO in 2001.So we has studied the trade situation and trade dependence between China and India after China's accession to the WTO [3]. Using the market share model, through empirical analysis to study the factors affecting the trade between China and India, the conclusion shows that scale effect is always a major factor; the scale effect of the exports growth from China to India is manifested in the industrial finished or semi-finished products, and the competitive effect of primary products is even more significant [4].The scale and depth of the study are restricted by authors' knowledge, hence may not be adequate in addressing those important issues.…”