China says it is ready to open its markets to import more Indian goods and impose a “non-discriminatory” stance on its companies
This is Xu’s first interview with Indian media since taking office, and his words indicate that economic dynamics between the two countries may have changed. Although China’s huge market has brought business opportunities for Indian exporters, Xu also urged India to create a higher competitive environment for Chinese companies operating within its borders. He stressed the importance of fair, transparent and non-discriminatory treatments to promote deeper collaboration.
Trade imbalance and market channel
Xu asserted that China never deliberately pursued trade surplus, believing that this imbalance develops naturally with market forces. “Values of China’s super-large markets will unlock more business opportunities for Indian companies,” he said, noting that India’s recent exports of chili, cotton yarn and iron ore were 17%, 240% and 160% respectively.
Xu said Beijing is ready to support the wider inflow of Indian goods and urged Indian companies to actively use Chinese trading platforms such as China International Import Expo and China-South Asia Expo to connect with Chinese consumers.
But while the signal is open, Xu has also pushed India to address Beijing’s concerns, especially around what China believes is unfair treatment of its business. “We hope that India will provide a fair, transparent and non-discriminatory business environment for Chinese businesses,” he said.
The ambassador also delayed the view that China has imposed curbs on exports of equipment or manpower, a barrier to India’s industry marked as a barrier to manufacturing growth. “There is no mandatory restriction on China,” he said. Instead, he attributed the obstacles to visa delays for Chinese personnel and what he said was the hostile environment of Chinese companies operating in India. Xu said: “Chinese citizens are facing huge difficulties with visas from India. Chinese companies are facing unfriendly and unfair treatment and are often heard in the media against Chinese investment.” He added that these issues have aroused opposition in China. He called for a reset, adding: “Both sides need to meet each other and work together to improve the situation.”
Xu mentioned Prime Minister Narendra Modi’s recent remarks on avoiding conflict through dialogue, saying that a stable and cooperative relationship requires participation and mutual understanding. He added that China is ready to “warmly welcome” PM Modi’s upcoming Shanghai Cooperation Organization (SCO) summit this year.
U.S. tariffs and global uncertainty
Xu criticized Washington’s tariff actions as “unilateral protectionism”, which Xu said undermined global economic stability. He believes that China and India are the leading voices in the global South – they must jointly oppose unilateralism and defend multilateralism.
He pointed out that the United States’ so-called “mutual tariffs” are unilateral, rather than designed to protect American interests rather than promote a fair trade environment. “These actions blatantly violate the legitimate rights of other countries, undermine the rules-based multilateral trading system, and pose a serious threat to global stability,” Xu said.
Xu explained that China is not seeking a trade conflict, but is preparing to defend its interests. He asserted: “If a trade war is forced to impose on us, we will fight back, defend our interests and uphold multilateralism.” He said: “Some countries have made concessions, but the United States has taken advantage of its strengths and demanded more and more.” He reflected China’s frustration about bullying and hegemony in global trade.
Xu turned to the broader global trade landscape, reminding the United States was just one of them. The United States has only 13% of global trade, representing a small percentage of the total market, while more than 190 countries account for the remaining 87%. “There are many opportunities for cooperation outside the United States,” Xu said. “As two largest countries with the largest population, China and India have unique responsibilities for opposing protectionism and unilateralism. Together, we must uphold multilateralism and promote global stability.”
Border issues and management trust
Neither side allowed the boundary issue to define the entire relationship when it came to the need to rebuild trust after the 2020 standoff. He stressed the “positive progress” of Xi Jinping and Modi after the meeting in Kazan, and said that both countries should see each other’s development as an opportunity, not a threat.
Xu added that existing mechanisms such as Corps Commander talks and consultation and coordination work mechanisms help stabilize the situation and called for stronger confidence-building measures.
Brahmaputra, China’s technology and manufacturing barriers
Xu raised concerns about the hydropower project on the river of China’s hydropower project (Yarlung Zangbo), and he promised that the project is only used for energy generation and will not harm downstream countries.
He also denied any intentional Chinese restrictions on exporting technology or manpower to India, but instead accuses Chinese companies of “unfair treatment” and the challenge of obtaining Indian visas in Chinese society.
Media, visa barriers and relationships between people
Xu stressed the trust deficit between the two countries and called for the resumption of media exchanges and the resumption of exchanges among residents and journalists. He noted that China’s mission issued more than 85,000 visas this year, but said obtaining an Indian visa is still a barrier for Chinese citizens.
He urged the Indian media to go beyond “third-party filters” and present a balanced view of China and stressed the role of media in bridging information and perception gaps.
