China is nudging India to ease restrictions on its exports, increase people-to-people contact by relaxing visa norms and resume direct flights as it pitches for closer economic co-operation following the easing of bilateral ties after the meeting of the two heads of states after a gap of five years.

Promising more market access, home to 400 million middle class and growing, China is also welcoming Indian companies to participate in Chinese upstream and downstream supply chain. “Indian companies can enhance ‘Make in India’ by investing in China,” Chinese ambassador to India Xu Feihong said in Calcutta on Wednesday.

Speaking at an interaction organised by business chamber MCCI in Calcutta, the envoy underscored the need for the world’s two major economies to be closely linked for their development. His comments came days after Chinese premier Xi Jinping met Prime Minister Modi on the sidelines of the BRICS summit at Kazan, Russia, about a week back and subsequent disengagement at the Indo-China border.

Feihong said the two countries reached ‘important common understandings’ on improving and developing China-India relations and ‘set the course to steer the bilateral relations back on the path of steady development’.

China is India’s second largest trade partner with bilateral trade crossing hundred billion dollars for many years. However, the balance of trade is heavily in favour of China. Speaking before the ambassador, MCCI president Amit Saraogi highlighted that it is the single largest trade deficit that India has and attributed this to two factors — the narrow basket of commodities that India exports to China and market access impediments for most of the products in which India has competitive advantage.

The envoy, however, pointed out that overall tariff level has dropped to 7 per cent, in line with developed members of WTO countries. “Third plenary session (of the 20th CPC Central Committee held this July) proposed that all restrictions on foreign investment in the manufacturing industry be removed comprehensively and foreign companies are encouraged to participate in the Chinese upstream and downstream supply chains.”

While encouraging Indian business to enter the vast Chinese market, the ambassador made a strong pitch for clearing the path for Chinese companies to do business in India, in the slow lane after the Galwan clash.

“Indian media reported that some electronic, chemical and renewable energy products still need to be imported from China. Imposing tariffs and restrictions on Chinese products is not conducive to the development of downstream industries and the interests of consumers in India. Indian companies need highly skilled workers from China to install equipment and carry out repairs.”

He also called for more people-to-people contact. “Relaxing visa restrictions and restarting direct flights will have great significance. It will enhance people to people exchange. In 2024, outbound tourists from China are expected at 130 million. India should not miss the opportunity,” the ambassador said during his first visit to Calcutta, while exhorting ‘specific disagreement’ not to affect the bilateral relations.