Global Times said instead of opening shops in India, Chinese firms should set up their units in China.
Traders' body CAIT has strongly condemned the report published in China's Global Times in which the state-run daily, in reaction to boycott of Chinese goods in India, had said "Indian authorities bark" about the growing trade deficit.
The Confederation of All India Traders (CAIT) termed the remark as "great insult" to India and urged people to refrain from buying Chinese goods this Diwali.
"The remarks by Chinese media are at a very low level speaks the mentality of China on this issue and also reflect the anxiety of China by the success of social media campaign (to boycott Chinese goods)," CAIT said.
A piece in the Chinese newspaper had said: "Let the Indian authorities 'bark' about the growing trade deficit with China. The fact of the matter is they cannot do anything about it."
CAIT National President BC Bhartia & Secretary General Praveen Khandelwal said that such a remark amounts to great insult of our country.
"It appears that China is under a wrong impression that Indians can not celebrate Diwali without Chinese products. Let the Diwali festival give an appropriate answer to China since the campaign has deeply penetrated among women and children in houses beyond markets who have made up their mind not to purchase Chinese goods in this Diwali festival season," the traders' body said.
However, it said, boycotting of Chinese products at this stage is not going to affect China since on every season as the goods are usually imported 2-3 months before adding that Indian traders will have to suffer losses, arguing that "nothing can beat patriotism".
CAIT urged the Union Government to declare a policy for reimbursement of losses suffered by Indian traders.