China Invites India To RCEP: Could This Redefine Bilateral Trade And Economic Ties? | World News
India China RCEP: India’s ties with China have witnessed a shift, especially after the US imposed stringent tariffs. Both countries are now looking for ways to strengthen their economic relations.
“If New Delhi adopts a more open stance towards Beijing and joins RCEP, China could import more from India. Indian goods could become more competitive than others. Tariffs on products within this bloc could reach zero within a decade. Greater cooperation in trade and investment could benefit both countries,” Leqing Zhang, director of the Center for International Financial Studies in Beijing, told ET. Possibilities of India joining RCEP, “
India stayed out of RCEP mainly to protect its domestic industries and farmers. Concerns include an influx of cheaper imports from China, especially electronics, machinery and dairy products, which could hurt local manufacturers and widen the trade deficit.
Add Zee News as Preferred Source
Some RCEP provisions on services and investments are also not in line with India’s national interests. These factors caused New Delhi to back out in 2019.
China May Import More from India
Zhang expressed optimism about potential trade integration if India reconsiders its stance. “I believe that if India adopts a more open approach towards China, we can definitely import more from India,” he said.
He also expressed hope that both sides could resolve remaining border issues.
India’s exports to China fell 14.4% to $14.3 billion in fiscal 2024-25 from $16.7 billion in fiscal 2023-24, while imports from Beijing increased by 11.5% to $113.4 billion from $101.7 billion in the previous year.
“RCEP has been in existence for several years. Unfortunately, India has not joined it so far. Maybe in the future, India may reconsider this policy. We can achieve greater integration in trade and bilateral trade can grow rapidly,” he said.
Special Offers and Deals
Zhang emphasized that Chinese companies can establish branches and factories in India. The country’s strong service sector and tourism potential could attract investment from China and create growth opportunities in both countries.
“China and India are major economies. Challenges remain but India is experiencing the highest economic growth,” he added.
Comparison of Economic Growth
He pointed out that although China’s growth rate is slower than before, a 5% growth rate is sustainable. World Bank data shows China’s GDP growth falling from 5.4% in 2023 to 5% in 2024.
In contrast, India’s GDP increased by 7.8% in the April-June quarter, reaching the highest level in the last five quarters. India’s fiscal year 2025 growth stood at 6.5%.
He also highlighted global challenges affecting economic momentum, including U.S.-led protectionist measures and reciprocal tariffs.
“China and India will feel the impact of these shocks,” he said.
India faces 50 percent tariffs and China faces 30 percent tariffs.
Technology and Artificial Intelligence as Growth Catalysts
Zhang emphasized that technological advances and green transition initiatives, especially in the field of artificial intelligence (AI), will increase investments and accelerate economic growth. “Artificial intelligence will play a very important role,” he said.
He added that China is shifting its economy from dependence on exports and investment towards domestic consumption, a strategic move affected by global uncertainty and US tariffs.
