ABSTRACT
This chapter reviews the outstanding features and the prospects of trade relations between China and India. It argues that the trade imbalance and one-way complementarity, the two outstanding features of Sino-India trade relations, result from different economic development modalities. India’s trade deficit with China is mainly an endogenous problem of India, related to its poor performance in the manufacturing sector. If transformations in economic and even social developments are carried forward in both countries, the bilateral trade pattern and composition will undergo changes, which will make bilateral trade more complementary and more balanced. With the two most populated countries interacting more economically, Sino-India trade will concomitantly have an impact upon the existing global trade regime, which is still dominated by the developed economies.
