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India-China Trade Hits Record $155.6B as Ties Reach 'New Level of Improvement'

Chinese Ambassador to India Xu Feihong announced that bilateral trade reached a historic high of $155.6 billion in 2025, growing over 12% year-on-year. He stated the relationship has moved to a "new level of improvement" following the meeting between Prime Minister Narendra Modi and President Xi Jinping in August. The ambassador highlighted the restoration of direct flights, tourist visas, and religious pilgrimages, facilitating greater people-to-people exchange. Looking ahead, China expressed support for India's BRICS chairmanship and readiness to strengthen coordination on Global South interests.

Key Points: India-China Trade Hits Record High Amid Improving Relations

  • Record $155.6B bilateral trade in 2025
  • Ties improved post Modi-Xi Tianjin meeting
  • Travel and pilgrimage exchanges restored
  • China supports India's BRICS chair role
  • Shared philosophies of harmony and self-reliance
3 min read

China-India trade hits record $155.6 billion as relations reach 'new level of improvement': Ambassador Xu Feihong

Bilateral trade reached $155.6B in 2025 as Ambassador Xu Feihong cites a 'new level of improvement' following Modi-Xi meeting.

"relationship has transitioned from a 'reset' to a 'new level of improvement' - Ambassador Xu Feihong"

New Delhi, February 3

Marking the onset of the 'Year of the Horse', Chinese Ambassador to India, Xu Feihong, on Tuesday hailed the strengthening ties between New Delhi and Beijing, revealing that bilateral trade reached a historic high of USD 155.6 billion in 2025.

Speaking at the Chinese New Year Reception in the national capital, Ambassador Xu noted that the relationship has transitioned from a "reset" to a "new level of improvement" following the meeting between Prime Minister Narendra Modi and President Xi Jinping in Tianjin last August.

Highlighting the robust economic engagement, the Ambassador stated that bilateral trade grew by over 12 per cent year-on-year. In 2025, bilateral trade between China and India reached a record high of USD 155.6 billion, with India's exports to China growing 9.7 per cent, underscoring the significant potential for economic and trade cooperation between the two countries.

He also provided an update on China's domestic economy, noting that its GDP has exceeded 140 trillion yuan (approximately USD 20 trillion), with growth at 5 per cent and a contribution of more than 30 per cent to global economic growth.

The Ambassador emphasised the restoration of normalcy in travel and religious exchanges, noting that China has resumed the pilgrimage for Indian devotees to the sacred mountain and holy lake in the Xizang Autonomous Region, with nearly 20,000 Indians participating last year. Furthermore, he highlighted that India has resumed issuing tourist visas to Chinese citizens and direct flights between the Chinese mainland and India have been restored, facilitating smoother exchanges between the two peoples.

Drawing parallels between the two ancient civilisations, Ambassador Xu noted that China's vision of "a world of great harmony" echoes India's philosophy of Vasudhaiva Kutumbakam (the world is one family). He also compared China's focus on self-reliance with India's Atmanirbhar Bharat strategy, suggesting that both nations share common intellectual traditions and value pursuits.

He reflected on his visits to the Ajanta and Ellora Caves, as well as to Rabindranath Tagore's Santiniketan, noting that these experiences helped him sense the enduring cultural ties and spiritual resonance between the two nations.

Looking ahead, the Ambassador expressed China's support for India's role as the BRICS rotating chair. He affirmed Beijing's readiness to strengthen coordination with New Delhi to advance the interests of the Global South and practice "true multilateralism".

"We stand ready to work with India to draw wisdom from our traditional cultures and uphold the consensus that China and India are each other's cooperation partner and development opportunity," Xu added.

The event, held on the eve of Lichun (the beginning of spring), was attended by diplomats, members of the Chinese diaspora, and representatives from various sectors, signalling an optimistic outlook for the 2026 lunar year.

- ANI

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Reader Comments

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Priya S
The cultural and spiritual connections mentioned are heartwarming. Vasudhaiva Kutumbakam is indeed a beautiful philosophy to build relations upon. If increased trade leads to more people-to-people exchanges, like the pilgrimages, that's a positive step forward. 🙏
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Aman W
$155.6 billion! That's massive. It shows our economies are deeply linked whether we like it or not. While border issues are critical, we can't ignore this economic reality. Engagement is better than isolation, but it must be on fair terms.
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Sarah B
As someone working in manufacturing, I see both sides. Chinese components are often cheaper, helping keep costs down. But this also stifles our own supply chains. The government needs smart policies to ensure this trade benefits our long-term industrial growth, not just short-term gains.
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Karthik V
The talk of "true multilateralism" and BRICS coordination is the key takeaway for me. In a world dominated by Western blocs, India and China working together for the Global South can be a game-changer. Hope the diplomatic warmth translates into tangible cooperation on the world stage.
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Nisha Z
Good to hear direct flights are back! Makes travel so much easier for students and families. The economic figures are impressive, but peace and stability at the border is the foundation for all this. Hope the "new level of improvement" includes lasting solutions there.

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