Notwithstanding the growing political ties, China has accused India, its biggest trade partner in South Asia, of carrying out restrictive trade practices, including technical barriers, opaque and complicated regulations and slapping anti-dumping duties on Chinese goods worth millions of dollars.
In its first-ever foreign market access report on India along with 18 other major trading partners of China, the Ministry of Commerce, noted that despite submitting relevant information to the Indian side, the Chinese side is still waiting for India's decision on whether to grant "individual market economy status" to China.
The report, according to China Daily summed up Chinese companies' trade and investment environments with its 19 major trading partners in 2003 and shows the ministry's concern about barriers in some foreign markets.
On India, the MOFCOM noted that high tariffs are imposed on certain import products.
Though peak tariffs for the fiscal year of 2003-04 were lowered from 30 per cent to 25 per cent, the downturn adjustment did not cover most agricultural produce. Instead, the tariffs for agricultural produce were raised, it pointed out.
High import tariffs, particularly on household electric appliances, motorcycles and components and garlic impeded the entrance of relevant Chinese products into the Indian market.
Commenting on the customs procedures, the report noted that there were no clear provisions in Indian laws and regulations on withdrawal of imported cargo.
In practice, the Indian customs authorities usually require the exporter who applies for withdrawal to present a no-objection certificate/letter signed by the intended importer.
However, importers concerned are usually reluctant to sign a certificate/letter of this kind, and as a result, exporters concerned cannot collect their cargo in the normal way.
As a result, Chinese enterprises suffer great losses, it said.
The MOFCOM report also criticised India's law on drug and cosmetics, which stipulates that foreign drugs may not enter the Indian market unless they have obtained an Indian registration certificate since April of last year, and the registration certificate has to be renewed every three years.
On the issue of anti-dumping, the ministry noted that by the end of 2003, India had initiated 71 anti-dumping investigations, one safeguard investigation and one product-specific safeguard investigation against Chinese products.
Further, the report noted that India refuses to recognise China as a 'market economy' in its anti-dumping investigations.
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