How can India and China balance national interests while promoting open trade?

India and China, as two of the world’s largest emerging economies, face the challenge of safeguarding their domestic industries while also benefiting from the opportunities of open trade. Balancing national interests with the principles of free trade requires careful policy measures and cooperation.

• Selective Liberalization: Both countries can open up sectors where they have competitive advantages, while maintaining safeguards in sensitive areas like agriculture or strategic industries.
• Strengthening Trade Agreements: Negotiating clear and balanced trade agreements can help ensure fair access to each other’s markets and address concerns like non-tariff barriers and intellectual property protection.
• Promoting Investment: Encouraging bilateral investments can create jobs and transfer technology, while setting clear rules to protect national security and critical infrastructure.
• Enhancing Transparency: Regular dialogues and information sharing can reduce misunderstandings about trade policies and build trust between the two countries.
• Addressing Trade Imbalances: Both sides can identify sectors for export diversification and facilitate market access for underrepresented goods and services.
• Dispute Resolution Mechanisms: Establishing joint platforms for resolving trade disputes can prevent escalation and foster a stable trade environment.
• Supporting Domestic Industries: Providing skill development, technology upgradation, and infrastructure support can make local industries more competitive without resorting to protectionism.