China on Thursday said a boycott of its goods in India would impact bilateral cooperation and lead to reduced investments from Chinese entrepreneurs in the country, PTI reported. The announcement follows calls to boycott China-made goods during the Diwali season to protest China's support of Pakistan, amid hostilities between India and Islamabad.
Stating that goods sent to India comprised only 2% of Beijing's exports, China said, "Without proper substitutes, the biggest losers of the boycott of Chinese goods will be Indian traders and consumers." The official statement said China is the largest goods trading nation in the world.
The Confederation of All India Traders had predicted a reduction in sale of China-made products by 30% during the Diwali season. The association also predicted a decline in the sale of products beyond Diwali merchandise.
Stating that the interdependence between the two countries had increased significantly over the years, China said India was Beijing's largest trading partner, import source and fourth largest export market.