Yu Jing, spokesperson of Chinese Embassy in India on Tuesday said that relations with India are at a crucial stage of improvement and development, with both countries working to move bilateral relations forward on a sound and steady track.

“The China-India relations are at a crucial stage of improvement and development. We stand ready to work with India to move bilateral relations forward on a sound and steady track,” Jing said in a message on X.

The Chinese Embassy in India also welcomed the ongoing peace talks between India and Pakistan, emphasising China's commitment to regional stability. Yu stated that China has been closely monitoring the developments and actively promoting dialogue between the two nations.

"Over the past weeks and months, China has closely followed the developments between India and Pakistan, actively promoted talks for peace, and worked to maintain regional peace and stability. China welcomes and supports India and Pakistan in properly settling differences and seeking fundamental solutions through dialogue and consultation. China stands ready to continue playing a constructive role to this end," she wrote on X.

The Chinese Ambassador's message signalled a potential shift in the economic dynamics between the two nations despite heightened global trade uncertainty due to Trump tariffs. While China’s market presents commercial opportunities for Indian exporters, Xu also urged India to create a more level playing field for Chinese enterprises operating within its borders to foster deeper cooperation.

India’s trade deficit with China surged to a record level in the fiscal year ended March 31, almost touching the $100 billion-mark, latest government data showed, even as officials fear that the Indian market may see decreasing Chinese goods, with the US slapping a 245 per cent tariff on imports from China.

India exported goods worth $14.25 billion to China in 2024-25, a 14.4 per cent dip from $16.66 billion the previous financial year (2023-24), according to detailed trade data released by the commerce ministry.

In 2024-25, India imported Chinese merchandise worth $113.45 billion, a 11.5 per cent jump from $101.73 billion imported the previous financial year. The data showed India’s imports from China registered a robust double-digit growth while Indian exports to the country contracted, leading to huge trade deficit of $99.2 billion.