Amid the India-China border standoff, the Modi Government told the Parliament that it will not end the China’s ‘Most-Favoured Nation (MFN)’ trade status.
"No such proposal is under consideration at this time whether the government is planning for the withdrawal of MFN status to China to reduce the export-import business with that country,” Commerce and Industry Minister Piyush Goyal said in his written reply to the Lok Sabha. The question was asked by BJP MP Manoj Kotak.
However, after the Pulwama attack in February 2019, the Modi government had abolished Pakistan's MFN status.
According to the data provided by the Minister, India’s exports from China fell by 27.63% during April- August, while value of imports from China stood at $4.98 billion in August and $5.58 billion in July.
In view of the tense situation along the LAC in Ladakh, the Centre’s decision might come as a shock, provided China is acting arbitrarily. With the MFN status intact, China will continue to get trade related facilities which will increase its imports.
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