India has for the first time emerged as the 10th largest trading partner of China in 2006, according to latest Chinese foreign trade statistics. While the European Union retained the status of Chinas top trading partner, bilateral trade between China and India hit an alltime record at 24.9 billion US dollars last year, exceeding the 20billiondollar goal two years ahead of target. In 2006 Chinas total exports reached USD 969.1 billion, up 27.2 per cent and imports grew by 20 per cent to touch USD 791.6 billion. Thus, China enjoyed a favourable trade surplus of USD 177.5 billion in 2006.

Currently, Chinas main exports to India are mobile phones, antibiotics, coal, coke, textile machinery and spare parts. Chinas major imports from India are iron ore and concentrate, steel products, primary plastics, alumina and diamond.

IndiaChina bilateral trade during JanuaryDecember 2005 amounted to USD 18.71 billion, up 37.64 per cent over 2004 when it was USD 13.59 billion. Bilateral trade has soared from USD 2.91 billion in 2000 to USD 18.7 billion in 2005, an average annual rise of 45 per cent, officials from the Chinese ministry of commerce said. The two Asian giants, both among the worlds fastest growing economies, had signed an agreement in 2005, pledging to raise the bilateral trade volume to USD 20 billion by 2008.

By the end of 2006, China had signed economic and technical contract amount in India worth USD 7.012 billion and completed turnover of USD 2.108 billion. The value of Chinese project contracting market in India from 2004 to 2006 amounted to USD 5.616 billion. In 2006 alone, Chinese companies won project contracts worth USD 3.298 billion.

Currently, India has become one of Chinas most important overseas project contracting market, Chinese officials said.