1. Export and Import

India was the largest trading partner of China in South Asia. According to the China Customs, the bilateral trade volume between China and India in 2004 reached US$13.6 billion, up by 79.1%, among which China's export to India was US$5.92 billion, up by 77.3%, while China's import from India was US$7.68 billion, up by 80.6%. China mainly exported machinery and equipment, electric and electronic products, products of the chemical or allies industries, textiles and textile articles, mineral products, base metals and articles of base metal, plastic and articles thereof, rubber articles thereof, ceramic products, glass and glassware, miscellaneous articles, measuring instruments, clocks and watches, vegetable products, etc. The major imported products of China from India included mineral products, base metals and articles of base metal, products of the chemical or allies industries, plastic and articles thereof, rubber articles thereof, textiles and textile articles, gems, precious metals, machinery and equipment, electric and electronic products, leather and leather thereof, vegetable products, footwear, headwear, etc.

China-India Trade Volume (Million US$)

Year and Growth	China Exports  to India	China Imports From China	Trade Volume	Adverse Balance of China
2000	1560.75	1353.48	2914.23	-207.27
2001	1896.27	1699.97	3596.24	-196.30
Growth(%)	21.5%	25.6%	23.4%
2002	2671.73	2274.18	4945.91	-397.55
Growth(%)	40.9%	33.8%	37.6%
2003	3343.59	4251.49	7595.08	907.90
Growth(%)	25.2	87.0	53.6
2004	5926.67	7677.43	13604.10	1750.76
Growth(%)	77.3	80.6	79.1

2. Economic cooperation

According to the Ministry of Commerce, the turnover of completed engineering contracts by the Chinese companies in India reached US$ 240 million in 2004, and the volume of the newly signed contracts was US$ 430 million. The volume of completed labour service cooperation contracts was US$1.03 million, and that of the newly signed labour service cooperation contracts was US$50,000.

 

3. Investment

According to the Ministry of Commerce, 2 Chinese-funded non-financial enterprises were set up in India in 2004, with a total contractual investment of US$2.20 million from Chinese investors. By the end of 2004, there were accumulatively 17 Chinese-funded enterprises set up in India with a total investment of US$22.83 million from Chinese investors.

According to the Ministry of Commerce, India investors invested in 37 projects in China in 2004, with a contractual volume of US$62.90million and an actual utilization of US$19.48 million.