Factbox: Indo-China trade relations in focus as border face-off intensifies

Ipca Laboratories

03/09/2020 15:23

BENGALURU, Sept 3 (Reuters) - India banned 118 more mostly
Chinese apps on Wednesday, a move that could intensify simmering
tensions between the two countries following a recent deadly
skirmish at a disputed Himalayan border site, and raising
concerns about the longer-term impact of $82 billion of trade. 
    The latest apps include Tencent Holdings Ltd's  0700.HK 
popular videogame PUBG.  urn:newsml:reuters.com:*:nL4N2FZ2WW
    India imported $65.3 billion worth of goods from China in
the fiscal year ended March 2020, and exported $16.6 billion,
according to the country's Commerce ministry.
    Below are trade arrangements and financial deals in major
industries and products between the two countries:
    
    ** Pharmaceutical
    India sources around 70% of its active pharmaceutical
ingredients (APIs) from China to supply its vast pharmaceutical
industry that includes Sun Pharmaceutical Industries  SUN.NS ,
Lupin  LUPN.NS  and IPCA Labs  IPCA.NS .  urn:newsml:reuters.com:*:nL8N2E257E
    India's pharma imports from China were $2.68 billion in
2019-20.
    
    ** Automotive
    India's auto parts imports from China were $4.2 billion in
2019, including engine and transmission parts, according to data
from the Auto Component Manufacturers' Association of India
(ACMA).
    New Delhi has asked auto companies to cut imports from
China, but industry experts say India relies heavily on China
for cheap auto parts and electronic components.  
    Maharashtra, home to financial capital Mumbai, in June
stalled a proposal by China's Great Wall Motor  601633.SS  to
invest nearly $500 million.  urn:newsml:reuters.com:*:nL4N2DZ2VY
    Great Wall Motor and SAIC  600104.SS  unit MG Motor have bet
big on India with investment proposals.  urn:newsml:reuters.com:*:nL4N29M23E
 urn:newsml:reuters.com:*:nL3N27K10U
    
    ** Investment & Finance
    In April, India tightened rules for investments from
neighbouring countries, including China, to prevent
opportunistic takeovers after the COVID-19 pandemic.
 urn:newsml:reuters.com:*:nL4N2C603S
    Chinese firms' existing and planned investments in India
stand at more than $26 billion, research group Brookings said in
March.
    Chinese tech gaints Tencent and Alibaba  BABA.N  have
fuelled growth of Indian digital payments firms Paytm, grocer
BigBasket and ride-hailing giant Ola.
    
    ** Metals
    India's steel exports more than doubled between April and
July to hit their highest level in at least six years, boosted
by a surge of Chinese buying.  urn:newsml:reuters.com:*:nL4N2FX0AG
    India's exports of iron and steel and related articles to
China stood at $595.9 million, while Indian imports from China
in 2019-2020 stood at $2.71 billion.
    India in June imposed an anti-dumping duty on flat-rolled
steel products that are plated or coated with alloy of aluminium
and zinc originating in, or from countries including China.
 urn:newsml:reuters.com:*:nD8N28101G
    
    ** Non Essential Items:
    The Indian government has been consulting with companies on
tightening curbs on 1,173 non-essential products including toys,
plastics, steel items, electronics and specific auto components,
according to a trade body official.
    India has also been planning to impose higher trade barriers
and raise import duties on around 300 products from China and
elsewhere. urn:newsml:reuters.com:*:nL4N2DU32T

 (Compiled by Nallur Sethuraman in Bengaluru and Neha Arora in
New Delhi; Editing by Bernard Orr)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))