Is not the time rope for New Delhi to seriously engage in talks with Beijing on the trade front? The issue has gained considerable importance as the trade deficit with China has been constantly on the rise during the past few years. Nearly 50 per cent of the total trade deficit is accounted for by China, indicating the enormity of the problem. This means if appropriate steps are taken to reduce the deficit with China, it will have a huge impact on the total deficit as well. Besides China, the other top 4 countries with which India’s trade balance is negative are Switzerland, Saudi Arabia, Indonesia and Iraq. The top 5 countries with which India has surplus trade balance are the US, UAE, Hong Kong, the UK and Singapore. Cotton yarn, among others is the major item of export to China.