Trade with China Continues Despite Tensions

October 26, 2026

Recently, there have been high hopes that the ongoing tensions between India and China along the Line of Control would ease. After China’s agreement with the US, it was hoped that India, understanding the importance of India’s markets, would behave well with India for its own economic betterment. But this does not seem to be happening. On one hand, China embraces India, while on the other, due to its expansionist policy or to dominate trade, it wants to have the upper hand. On one hand, tensions with China continue in Eastern Ladakh, and on the other, in Arunachal Pradesh. The Director General of the Indo-Tibetan Border Police says that tensions between the security forces of both countries still persist at many places in Arunachal Pradesh. Following the Galwan Valley clash in eastern Ladakh, the armies of both countries remain engaged. India has also formed drone teams to monitor China. There’s much talk of boycotting Chinese goods in India, but where does it actually happen? Even today, Indian markets cannot function without Chinese goods. Most of the raw materials for India’s pharmaceutical industry come from China. Congress leader Jairam Ramesh has also said that India seems to be promoting “Import from China,” not “Make in India.” He pointed out that India’s trade deficit with China has increased to a record $112 billion in the 2025-26 fiscal year. Remember, the more the trade deficit increases, the more our currency will depreciate against the Chinese yuan. In such a situation, why wouldn’t China arrogantly confront India? A year ago, this trade deficit was $99 billion. How did it now rise to $112 billion? These days, Diwali is going on. Not only Chinese firecrackers are sold cheaply, but Chinese electrical and communication equipment is also cheaper than Indian equipment. Due to this, Indian small and cottage industries are getting ruined. It is true that Chinese goods are not guaranteed, but it is also true that due to the lure of this guarantee, Indians do not give up cheap Chinese goods and prefer to buy expensive Indian goods. On one hand, there is border tension between India and China, on the other hand, the markets of India are still filled with Chinese products. No matter how many slogans are raised from the pulpits to boycott China, the truth cannot be denied. It is well known that wars today are not fought solely with muscle power or weapons. The devastation that cheap Chinese imports have wreaked on our products, isn’t this our economic defeat? Therefore, if we are to compete with China and stand up to it in every field, India will have to abandon the import-fromChina label and become self-reliant, just as India is currently making its military self-reliant. To achieve this, India will have to transform its agriculture-based economy as well as its manufacturing economy. The recent revenue growth has come primarily from the tourism and space sectors. Agriculture also doesn’t present a promising picture, and we are unable to generate capital. A major reason for this is India’s lack of research and exploration. Until we address this shortcoming and reduce the country’s manufacturing and production costs with our own Indian-origin inventions, competing with China will be difficult. Despite the military tensions between India and China, the reality is that Indians prefer to buy cheaper Chinese products in the markets rather than Indian ones.