India warns traders in deals with Chinese businessmen

India has warned its traders to be wary in dealings with their Chinese counterparts who could supply stones, bricks, mud, salt among other things in place of genuine orders.

"It is to enhance the commercial cooperation between India and China by drawing attention to some of the risks faced by Indian traders/SMEs to take preventive and/or mitigating action," the advisory issued by the Indian consulate in Shanghai said this week.

It said the traders could be duped with "sand, stones, salt, bricks, mud etc. in place of chemicals, Silicon Carbide, Aluminium and Zinc ingots, shellac, plastics, polymers etc."

In the past, such advisories have been put up on the website of the Indian embassy.

An official in the Indian embassy described the advisory as a "routine thing".

"The bilateral trade is increasing. The advisory is to encourage (traders) to follow due diligence to avoid trade dispute," an official at the Indian embassy told IANS.

"It's a routine thing. Don't read too much into it," the official added.

Ties between both nations have taken a hit after a string of issues in the past few months, the latest being India's refusal to renew the visas of three Chinese journalists based in India.

Beijing's opposition to New Delhi's bid for membership of the Nuclear Suppliers Group is also one of the irritants.

Trade deficit between the two countries increased to $44.7 billion during April-January period of 2015-16.