India bans Chinese ships from oil trade as relations further deteriorate
- China-flagged and owned vessels have been barred by India from bidding on tenders for chartering tankers to import or export oil
- The move is unlikely to hit trade flows as Chinese vessels are mostly used in India for the transport of liquefied petroleum gas
Most of the foreign tankers they use or charter are flagged in Liberia, Panama and Mauritius, said two Indian oil executives, asking not to be named because they are not authorised to speak on the matter. The use of Chinese vessels is limited and mostly used in the transport of liquefied petroleum gas, they said.
Modi government builds trade barriers amid China-India border dispute
The three state-owned oil refiners – Indian Oil, Bharat Petroleum and Hindustan Petroleum – did not immediately comment on the development.
India’s new trade curbs on some of its neighbours is seen aimed primarily at limiting participation of Chinese groups in orders and tenders offered by government-owned companies. India – which imported goods worth more than US$70 billion from China in 2019 – has already banned scores of Chinese mobile phone applications in an attempt to reduce dependence on its products.