India to put safeguard duty on China aluminium imports

The government will impose safeguard duties on Chinese aluminium imports and is probing shipments of other goods, a top official said, days after China said such moves may severely damage trade ties between the Asian giants.

Trade Secretary G.K. Pillai told reporters India was concerned about the sharp rise in imports from China and was investigating several goods being shipped from China.

Last month, India slapped a six-month ban on Chinese toys, and state media said that China may ask the World Trade Organisation to investigate the move.

Pillai said the safeguard duty on aluminium from China would be imposed in one or two weeks.

Earlier this month, China's Commerce Ministry said India had launched 17 probes of Chinese-made products since October and cautioned New Delhi that such moves would have a serious impact on bilateral economic and trade ties.

China ran an $11.2 billion trade surplus with India in 2008, according to Chinese government figures, with goods flows growing strongly in both directions.

Imports from India grew faster, although from a lower base, than China's exports to its neighbour.

India's trade with China has increased in recent years after decades of rivalry that included a brief war in 1962.

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