Rice trade between India and China has stalled after Beijing suspended imports from seven Indian companies over unverified allegations of genetically modified organisms (GMOs), a move Indian stakeholders strongly deny since no GM food crops are cultivated domestically. Simultaneously, Indian activated carbon exporters face severe banking restrictions for shipments heading to Russia and Sudan as financial institutions enforce strict EU and US international sanctions, threatening market share loss to cheaper Chinese alternatives. Meanwhile, India’s imports of engineering goods, textiles, toys, and plastics from China surged significantly in FY26, with overall Chinese imports reaching $131.63 billion and pushing the bilateral trade deficit to $112.16 billion. To combat potential duty evasion and low-quality goods from flooding local domestic markets, the Commerce Ministry has reinforced strict Quality Control Orders (QCOs), testing protocols, and enforcement under the Customs Act.