India’s easing of a ban on Chinese toy imports has helped mellow Beijing, which today described the step as a “concrete sign” that would help strengthen cooperation between the two countries.
“We two sides support free trade...This (easing of ban) is a very concrete sign to show that China and India like to work together to tackle the financial crisis and to achieve common development,” Chinese Ambassador to India Zhang Yan told reporters here at a CII function.
India on March 2 relaxed the January 23-ban by allowing import of Chinese toys that conform to international health safety standards.
Beijing had then asked New Delhi to “show prudence and restraint in using trade remedies in the face of the global economic situation, as it could pose a threat to bilateral trade”.
The statement by the Chinese Ministry of Commerce came after Chinese Deputy Commerce Minister Zhong Shan met Indian Ambassador to China Nirupama Rao here on February 3 on the issue.
China’s Ambassador today said that the two countries should work hand in hand in a cooperative manner, instead of resorting to protectionism.
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“When India and China, the two largest developing countries, run their affairs well, it can help restore confidence in the global economic growth and curb the spread of the international financial crisis,” Yan said. Following the restrictions on toys on January 23, the Chinese media had reported that Beijing was contemplating dragging India to the WTO challenging the ban. However, Commerce and Industry Minister Kamal Nath had said the ban was WTO-compatible.
The toys market in India is estimated at Rs 2,500 crore while the volume-driven, price-competitive Chinese toys are estimated to control 70 per cent of the global toys market.