embassy of india beijing trade and commerce wingcustoms) (i) a. india-china trade (in us$ billion)...

Embassy of India

Beijing

Trade and Commerce Wing

***

Commercial Report

October 2017

2 TRADE & COMMERCE WING

Table of Contents

1. Trends in India-China trade from January to October 2017

(i) India-China Trade

(ii) Top 15 items of India’s Exports to China

(iii) Top 15 items of Global Exports to China

(iv) Top 15 items of India’s Imports from China

(v) Top 15 items of Global Imports from China

(vi) Top 5 competitors of top 15 exports from India to China

(vii) India-China Mutual Investments

(viii) Significant trends in India-China trade and investment

2. Important statements of commercial significance by Chinese leaders

3. Market access (Alerts on tariff changes, non-tariff barriers)

4. Trade Queries received and replied during the periodregarding imports/exports between India and China


1. Trends in India-China trade from January to October 2017 (Data Source: China Customs)

(i) A. India-China Trade

(In US$ Billion)

India’s Exports to

China

Growth % of India’s Exports to

China

India’s Imports

from China

Growth % of India’s

Imports from China

Total Bilateral

trade

Growth % of Total

Bilateral trade

13.18 42.22 55.36 12.60 68.53 17.30

(i) B. China’s Global Trade

(In US$ Billion)

China’s Total Exports

Growth % of China’s

Exports

China’s Total Imports

Growth % of China’s Imports

China’s Total Trade

Growth % of China’s Total

Trade

1,830.13 5.62 1,444.72 18.09 3,274.85 10.78

(ii) Top 15 items of India’s Exports to China

(In US$ Million)

SN HS

Code Category Value

% Share in total Import

Percentage (%) growth

Total All Commodity Chapters 13,176 100 42.22

1. 71 Nat Etc Pearls, Prec Etc Stones, Pr Met Etc; Coin

2,137 16.22 3.67

2. 74 Copper And Articles Thereof 1,738 13.19 169.33

3. 26 Ores, Slag And Ash 1,736 13.17 80.7

4. 29 Organic Chemicals 1,273 9.66 72.36

5. 52 Cotton, Including Yarn And Woven Fabric Thereof

1,005 7.63 9.56


(iii) Top 15 items of Global Exports to China

(In US$ Billion)

SN HS

Code Category

Value

% Share in total Import


Total All Commodity Chapters 1,444.72 100 18.09

1. 85 Electric Machinery Etc; Sound Equip; Tv Equip; Pts

363.45 25.16 9.24

2. 27 Mineral Fuel, Oil Etc.; Bitumin Subst; Mineral Wax

198.00 13.71 42.9

3. 84 Nuclear Reactors, Boilers, Machinery Etc.; Parts

138.18 9.56 15.08

4. 26 Ores, Slag And Ash 103.22 7.14 40.74

5. 90 Optic, Photo Etc, Medic Or Surgical Instrments Etc

79.42 5.5 5.45

6. 87 Vehicles, Except Railway Or Tramway, And Parts Etc

64.23 4.45 12.69

7. 39 Plastics And Articles Thereof 56.39 3.9 15.06

8. 29 Organic Chemicals 45.35 3.14 28.76

6. 25

Salt; Sulfur; Earth & Stone; Lime & Cement Plaster

814 6.18 32.23

7. 84

Nuclear Reactors, Boilers, Machinery Etc.; Parts

526 3.99 27.73

8. 85

Electric Machinery Etc; Sound Equip; Tv Equip; Pts

472 3.58 24.3

9. 72 Iron And Steel 421 3.2 255.85

10. 15 Animal Or Vegetable Fats, Oils Etc. & Waxes

343 2.61 40.51

11. 39 Plastics And Articles Thereof 307 2.33 36.09

12. 27 Mineral Fuel, Oil Etc.; Bitumin Subst; Mineral Wax

236 1.79 41.62

13. 41 Raw Hides And Skins (No Furskins) And Leather

212 1.61 -6.14

14. 32 Tanning & Dye Ext Etc; Dye, Paint, Putty Etc; Inks

186 1.41 29.31

15. 79 Zinc And Articles Thereof 154 1.17 539.31


9. 12 Oil Seeds Etc.; Misc Grain, Seed, Fruit, Plant Etc

36.23 2.51 19.09

10. 74 Copper And Articles Thereof 32.52 2.25 21.13

11. 88 Aircraft, Spacecraft, And Parts Thereof

21.25 1.47 14.47

12. 30 Pharmaceutical Products 20.40 1.41 23.02

13. 44 Wood And Articles Of Wood; Wood Charcoal

19.09 1.32 20.27

14. 47 Wood Pulp Etc; Recovd (Waste & Scrap) Ppr & Pprbd

17.69 1.22 26.53

15. 72 Iron And Steel 17.59 1.22 30.19

(iv) Top 15 items of India’s Imports from China

(In US$ Million)

SN HS

Code Category Value

% Share in

total Export

Percentage

(%) growth

Total All Commodity Chapters 55,359 100 12.6

1. 85 Electric Machinery Etc; Sound Equip; Tv Equip; Pts

17,788 32.13 29.53

2. 84


9,864 17.82 13.99

3. 29 Organic Chemicals 5,246 9.48 11.2

4. 39 Plastics And Articles Thereof 2,178 3.93 9.98

5. 90 Optic, Photo Etc, Medic Or Surgical Instrments Etc

1,523 2.75 4.72

6. 94 Furniture; Bedding Etc; Lamps Nesoi Etc; Prefab Bd

1,409 2.55 -3.16

7. 72 Iron And Steel 1,281 2.31 6.07

8. 73 Articles Of Iron Or Steel 1,171 2.12 0.54

9. 87

Vehicles, Except Railway Or Tramway, And Parts Etc

1,001 1.81 0.94

10. 31 Fertilizers 842 1.52 -34.1

11. 70 Glass And Glassware 592 1.07 -0.16

12. 64

Footwear, Gaiters Etc. And Parts Thereof

579 1.05 9.54


13. 59 Impregnated Etc Text Fabrics; Tex Art For Industry

575 1.04 3.31

14. 76 Aluminum And Articles Thereof 564 1.02 3.03

15. 27

Mineral Fuel, Oil Etc.; Bitumin Subst; Mineral Wax

561 1.01 27.87

(v) Top 15 items of Global Imports from China

(In US$ Billion)

SN HS

Code Category

Value

% Share in total Export


Total All Commodity Chapters 1,830.13 100 5.62

1. 85

Electric Machinery Etc; Sound Equip; Tv Equip; Pts

468.81 25.62 4.7

2. 84


307.63 16.81 9.75

3. 94

Furniture; Bedding Etc; Lamps Nesoi Etc; Prefab Bd

73.50 4.02 0.1

4. 62

Apparel Articles And Accessories, Not Knit Etc.

61.79 3.38 1.03

5. 61

Apparel Articles And Accessories, Knit Or Crochet

59.54 3.25 -6.33

6. 90

Optic, Photo Etc, Medic Or Surgical Instrments Etc

57.69 3.15 3.43

7. 39 Plastics And Articles Thereof 57.54 3.14 7.98

8. 87

Vehicles, Except Railway Or Tramway, And Parts Etc

54.64 2.99 9.97

9. 73 Articles Of Iron Or Steel 46.42 2.54 4.25

10. 95

Toys, Games & Sport Equipment; Parts & Accessories

46.34 2.53 23.93

11. 64

Footwear, Gaiters Etc. And Parts Thereof

40.34 2.2 1.74

12. 29 Organic Chemicals 39.66 2.17 14.17

13. 72 Iron And Steel 35.93 1.96 -1.37

14. 27

Mineral Fuel, Oil Etc.; Bitumin Subst; Mineral Wax

27.29 1.49 30.23

15. 42

Leather Art; Saddlery Etc; Handbags Etc; Gut Art

24.01 1.31 3.17


(vi) Top 5 competitors of top 15 exports from India to China from Jan. to Oct. 2017

(In US$ Billion)

HS Code

Category Competitors Value % Share in

total Import

Total World 11.66 100.00

71

Nat Etc Pearls, Prec Etc Stones, Pr Met Etc; Coin

South Africa 4.61 39.49

Japan 0.84 7.23

Belgium 0.68 5.87

Thailand 0.44 3.77

United States 0.43 3.72


74 Copper And Articles Thereof

Chile 6.46 19.87

Japan 2.47 7.61

Zambia 2.25 6.91

Taiwan 2.02 6.20

Australia 1.59 4.88


26

Ores, Slag And Ash

Australia 43.24 41.89

Brazil 15.02 14.56

Peru 8.00 7.75


Chile 6.13 5.94


29 Organic Chemicals

Korea South 10.60 23.37

Japan 5.60 12.35

Taiwan 4.56 10.06

Saudi Arabia 4.24 9.34



52

Cotton, Including Yarn

And Woven Fabric Thereof

Vietnam 1.73 24.57


Pakistan 0.76 10.79

Australia 0.45 6.42

Uzbekistan 0.33 4.70


25

Salt; Sulfur; Earths And Stone; Lime And Cement Plaster

Turkey 0.94 18.53



Iran 0.24 4.79




84

Nuclear

Reactors, Boilers,

Machinery Etc; Parts Thereof

Japan 27.83 20.14

Germany 17.38 12.58



Taiwan 9.59 6.94


85

Electrical Machinery etc, Sound Equip; Tv Equip; Pts

Taiwan 76.50 21.05


Japan 34.28 9.43

Malaysia 25.09 6.90

Vietnam 14.93 4.11


72

Iron And Steel

Japan 4.89 27.78


Indonesia 1.59 9.05


Taiwan 1.20 6.82


15

Animal Or Vegetable

Fats, Oils Etc. & Waxes

Indonesia 2.69 40.73

Malaysia 1.28 19.45

Canada 0.49 7.43

Ukraine 0.39 5.91

Brazil 0.34 5.19


39

Plastics And Articles Thereof


Japan 7.94 14.08

Taiwan 7.21 12.79




27

Mineral Fuel, Oil Etc.; Bitumin Subst;

Mineral Wax

Russia 21.84 11.03


Angola 16.81 8.49


Iraq 11.21 5.66


41

Raw Hides And Skins (No Furskins) And

Leather


Brazil 0.53 11.10

Australia 0.44 9.35

Italy 0.44 9.19




32

Tanning & Dye Ext Etc; Dye, Paint,

Putty Etc; Inks

Japan 0.83 21.60

Germany 0.48 12.49



Taiwan 0.35 9.25


79

Zinc And Articles Thereof



Kazakhstan 0.27 15.81

Spain 0.21 12.21

Japan 0.07 4.03

(vii) A. India-China Mutual Investments*

Chinese Investment in India till October 2017

(cumulative)

US$ 3.356 billion

Chinese Investment in India (Jan.-Oct. 2017)

provisional (NON-FINANCIAL)

US$ 248 million

Indian Investment in China till October 2017

(cumulative)

US$ 853.26 million

Indian Investment in China (Jan.- Oct, 2017)

provisional (NON-FINANCIAL)

US$157.09 million

(*Provisional data from Ministry of Commerce)

(vii) B. China’s Global Investment

China’s Outward FDI Flows (non-financial) January to October 2017

US$ 86.31 billion (-40.9% y-o-y)

Foreign Direct Investment in China January to October 2017

US$ 102.68 billion (1.9% y-o-y)

Data Source: Ministry of Commerce


(vii) Significant trends in trade and investment

S.N. Details of Significant Trends & Analysis

1. China’s Economy - January to October 2017: According to official data released by the National Bureau of Statistics (NBS), China’s manufacturing purchasing managers' index (PMI) came in at 51.6 in October 2017, registering a decline from the 52.4 in September. This indicates a slowdown in the pace of the expansion of manufacturing activity in the country. China’s Consumer Price Index (CPI), the main gauge of inflation, rose 1.9% year on year in October 2017. China's Producer Price Index (PPI) – an index which measures cost of goods at the factory gate, rose 6.9% year on year in October 2017, on par with last month. In the period from January to October 2017, Chinese investors made direct non-financial investment of US$ 86.31 billion. This figure represents a decrease of 40.9% year on year. In the period from January to October 2017, China’s actual use of Foreign Direct Investment (FDI) amounted to US$ 102.68 billion, registering an increase of 1.9% year on year.

2. Bilateral Trade - January to October 2017 : In the period from January to October 2017, India-China bilateral trade increased 17.30% year-on-year to reach US$ 68.53 billion. India’s exports to China increased by 42.22% year-on-year to reach US$ 13.18 billion. India’s imports from China saw a year-on-year growth of 12.60% to reach US$ 55.36 billion. The trade deficit for October of 2017 stood at US$ 42.18 billion. India’s exports to China: Exports of Zinc and article thereof to China showed an exponential increase of 539.31%. The export of Copper and Iron & Steel to China also showed exponential growth of around 169.33% and 255.85% respectively. India was the second largest exporter of diamonds (worked/not worked) to China (US$ 2.12 billion with a share of 33.38%) after South Africa. India’s cotton (including yarn and woven fabric) exports to China registered a growth of 9.56% to reach US$ 1.005 billion-with India becoming the second largest exporter of cotton to China with a 14.29% market share (after Vietnam). India was the second largest exporter of Salt; Sulfur; Earths And Stone; Plastering Materials, Lime And Cement to China with exports amounting to US$ 814 million and a 16.07% market share). India’s imports from China: China exported electrical machinery and equipment (HS Code: 85) worth US$ 17.79


billion from China, registering a year-on-year increase of 29.53%. Of this, Electrical apparatus for line telephony (HS Code: 8517) constituted 41.79% of exports with a value of US$ 7.43 billion. India was the second largest export destination for Chinese organic chemicals, with exports worth US$ 5.25 billion and a market share 13.23%. India was the largest export destination for Chinese Fertilizers, with exports worth US$ 842 million, however this commodity witnessed a year on year decrease of 34.10%.

2. Important India related statements of commercial significance by political leaders, think tanks, chambers, associations etc.:

President Xi's keynote speech at APEC CEO Summit on November 11th, 2017 http://www.china.org.cn/chinese/2017-11/13/content_41884700.htm

We must advance with the trend of times, live up to our responsibility and work together to deliver a bright future of development and prosperity for the Asia-Pacific. First, we should continue to foster an open economy that benefits all. Openness brings progress, while self-seclusion leaves one behind. We the Asia-Pacific economies know this too well from our own development experience. We should put in place a regional cooperation framework that ensures consultation among equals, wide participation and shared benefits, build an open Asia-Pacific economy and promote trade and investment liberalization and facilitation. We should make economic globalization more open, inclusive and balanced so that it benefits different countries and people of different social groups. We should proactively adapt to the evolving international division of labor and actively reshape the global value chain so as to upgrade our economies and build up new strengths. We should support the multilateral trading regime and practice open regionalism to make developing members benefit more from international trade and investment. The building of a free trade area of the Asia-Pacific (FTAAP) is the long-cherished dream of the business community in our region. It was in response to the call of the business community that APEC leaders, for the first time, initiated the FTAAP vision in Hanoi in 2006. In 2014, the FTAAP process was launched in Beijing. We should get into action, fully implement the Beijing Roadmap, move toward the FTAAP and provide an institutional underpinning for growing an open economy in the Asia-Pacific. Second, we should continue to pursue innovation-driven development and create new drivers of growth. The current global economic recovery is, to a large extent, the result of cyclical factors, while the lack of self-generating driving forces remains a nagging problem. To avoid the risk of the global economy entering a "new mediocre", we must sustain growth through innovation. The new round of technological and industrial revolutions is unfolding before us.

http://www.china.org.cn/chinese/2017-11/13/content_41884700.htm


Digital economy and sharing economy are surging worldwide, and breakthroughs have been made in new technologies such as artificial intelligence and quantum science. We in the Asia-Pacific cannot afford to be just onlookers. What we should do is to seize the opportunity, increase input in innovation, change the model of development and nurture new growth areas. We should promote structural reform, remove all institutional and systemic barriers to innovation and energize the market. We should implement the APEC Accord on Innovative Development, Economic Reform and Growth adopted in Beijing, deepen cooperation on the internet and digital economy and strive to be a global leader of innovative growth. Third, we should continue to enhance connectivity and achieve interconnected development. Interconnected development is the best way to achieve mutual benefit and win-win outcome. We the Asia-Pacific economies are closely connected, and our interests are interlocked. Such an interconnected development will both open up new horizon for our own development, and create driving force for us all to achieve common development as partners. In 2014, the APEC Connectivity Blueprint was formulated. This Blueprint should guide our efforts to build a comprehensive, all-round and multi-tiered Asia-Pacific connectivity network. We should boost the real economy through the building of connectivity, break bottlenecks to development and unlock potentials. With these efforts, we can achieve coordinated and interconnected development. Fourth, we should continue to make economic development more inclusive and deliver its benefits to our people. The current headwinds confronting economic globalization is mostly generated by the lack of inclusiveness in development. Hard work is still needed if we are to bring the benefits of development to countries across the globe and people across our society, and thus turn our vision into reality. President Xi’s remarks titled "Working Together for a New Chapter of Win-Win Cooperation in the Asia-Pacific" at the first session of the 25th Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting in Da Nang, Vietnam on November 11th, 2017

http://news.xinhuanet.com/english/2017-11/11/c_136745175.htm

First, we need to promote innovation as a strong growth driver. Innovation is the most powerful lever for development. As new technologies emerge and the new industrial revolution gains momentum, we face a rare historic opportunity for innovation-driven development. We need to strive for both scientific and technological innovation and institutional innovation, build synergy between market and technology, and help bring to fruition new technologies, new business forms and models to fully unlock our development potential. This is why, in the context of APEC, we need to implement in real earnest the Roadmap on the Internet and Digital Economy we have drawn this year. Innovation has proven to be essential to the emergence of new drivers for the


Chinese economy in recent years. Thirty years ago, China's first email was sent from Beijing. Today, China has 750 million Internet users, our on-line retail sales are growing by 30 percent a year, our "sharing economy" has reached 3.5 trillion yuan in size, and China's mobile payment transactions have exceeded 158 trillion yuan. This example shows that as long as we keep exploring, we will see more opportunities and successes of innovation-driven development. Second, we need to open up our economies to create more space for development. History has taught us that closed-door development will get nowhere, while open development is the only right choice. We need to remain true to APEC's founding purpose: advance trade and investment liberalization and facilitation, build an open economy, uphold and strengthen the multilateral trading regime, and help rebalance economic globalization. We need to take determined steps toward a Free Trade Area of the Asia-Pacific in line with the agreed roadmap, and herald a new round of development in the Asia-Pacific in the course of opening up. Next year will mark the 40th anniversary of China's reform and opening-up. In nearly four decades, China has opened its arms to embrace the world and achieved "leapfrog development" of itself in this process. Looking ahead, China will open still wider and its development will deliver even greater benefits to the rest of the world. Starting from next year, China will hold an International Import Expo. I am sure this new platform of mutually beneficial cooperation will help all parties to better share the opportunities of China's development. Third, we need to pursue inclusive development to enhance our people's sense of fulfillment. Lack of inclusiveness in development is a problem facing many economies. We should redouble efforts to address this problem. To enable more people to share the benefits of development, efforts must be made to strike a better balance between fairness and efficiency, capital and labor, technology and employment. Greater attention must be paid to the impact of artificial intelligence and other technological advances on jobs. APEC members need to do a good job of implementing the Action Agenda on Inclusion formulated this year, and deepen cooperation on poverty reduction, micro, small and medium-sized enterprises (MSMEs), education, fighting corruption, urbanization and women's empowerment. All this will contribute to the well-being of the 2.8 billion people in the Asia-Pacific region. China gives high priority to employment. We have worked to ensure that economic development is pursued in a way that supports job creation, encouraged business start-ups as a means to create more jobs, and paid particular attention to the employment of college graduates and other key groups. We have also provided the labor force with better education and training to tackle structural unemployment. In each of the past few years, we have created over 13 million new jobs in cities and towns. An important thing we have learnt from all this is that with better coordination and the right measures, economic restructuring does not have to come at the expense of employment. On the contrary, stable employment would allow greater leeway for reform and development.


Fourth, we need to enrich our partnerships and deliver benefits to all involved. As APEC economies, we have a stake in each other's success and our future is closely connected. With a shared future in mind, we need to develop a stronger sense of community, harmonize our policies and create synergy. We need to foster a spirit of harmony in diversity, draw on each other's strength, pursue mutually beneficial cooperation and draw on each other's best practice in development. We should consider the interests of others while pursuing those of our own, and reduce the adverse spillovers of our domestic policies. As we have agreed on the direction and framework of an Asia-Pacific partnership, it is time to take solid steps toward this goal. China has put forward the Belt and Road Initiative and is pursuing it in a spirit of extensive consultation, joint contribution and shared benefits. This initiative is well received and supported by various parties. The successful and fruitful Belt and Road Forum for International Cooperation held in Beijing in May marked a new stage of full implementation. Going forward, China will deepen policy, infrastructure, trade, financial and people-to-people connectivity with our Asia-Pacific partners, seek interconnected development and move toward a community of shared future.

3. Market access

a. Alerts on tariff changes, non-tariff barriers (SPS/TBT measures, import

and export procedures/restrictions/prohibitions/licensing etc.); trade

policy developments.

S. N. Notification no. and date or other reference

Details of products, sectors affected (including HS codes)

Effective from

1 CFDA adjusts

imported drug

registration

administration

policies

China Food and Drug Administration

(CFDA)’s Decree No. 35, the Decision of

China Food and Drug Administration to

Amend Administrative Measures for

Imported Drug Registration, was released

on Oct. 10 with immediate effect. Three

policies have been adjusted:

pharmaceutical companies will be allowed

to simultaneously conduct phase-I clinical

trials on drugs in China and abroad, except

biological drugs for disease prevention;

registration application procedures will be

October 10, 2017


4. Trade Queries received and replied during the period regarding Imports/Exports between India and China:

18 Trade Queries were received and responded to during the period of reporting.

******

improved with the introduction of the

Multi-Regional Clinical Trials (MRCT) drug

importation application system –

producers may directly apply for market

release of imported drugs which satisfy

relevant criteria; the requirement of

"supplying product launch approval issued

by the country or region in which the

foreign pharmaceutical company is

located" has been abolished – mainly

applicable to imported new chemical

drugs and imported innovative biological

drugs for disease treatment for which

applications for clinical trial or product

launch have been submitted.

embassy of india beijing trade and commerce wingcustoms) (i) a. india-china trade (in us$ billion)...

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