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Indian officials argued that the measures were fully compliant with GATS commitments and in line with the democratic rights of its citizens to privacy. They said China has “one of the most restrictive digital economy frameworks in the world” and should reflect on its own transparency record first and its long-standing reluctance to fully open up to foreign trading services. “All software suppliers have to comply with our domestic regulations,” another official said.
Relations between the two nations have worsened since a deadly clash in June between Indian and Chinese soldiers along a disputed border in the Himalayas in which 20 Indian soldiers were killed. New Delhi has since imposed 100 percent physical checks on shipments from China, which is its second-biggest trading partner. Trade turnover between the two countries was worth $87 billion in the fiscal year ending March 2019, with a trade deficit of $53.57 billion in China’s favor, the widest India has with any country.
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