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You are here:  Home   |   World   |   China, India PMs agree to double trade by 2015

 

Thursday 17, May 2012

 
 
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China, India PMs agree to double trade by 2015

By: AFP, Uploaded: 16th December 2010



China and India’s premiers agreed Thursday to double bilateral trade to 100 billion dollars by 2015, during talks that otherwise showed no apparent progress on a series of nagging disputes.

Prime Minister Wen Jiabao and his Indian counterpart Manmohan Singh also agreed to push Indian exports to China in an effort to bridge a current trade surplus estimated at 20 billion dollars a year in China’s favour.

The talks came on the second day of Wen’s visit — his first to India in five years — for which he led a delegation of 400 Chinese business leaders.

Trade between the world’s two fastest-growing major economies totalled 42 billion dollars last year and is expected to reach 60 billion dollars in the current fiscal year to March.

“There is enough space in the world for the development of both India and China and indeed, enough areas for India and China to cooperate,” the two sides said in a joint communique after the meeting.

Since arriving in India, Wen’s delegation has struck deals worth 16 billion dollars in a range of sectors from finance to power generation.

For all the focus on trade, the communique made no mention of any breakthrough on a host of sensitive bilateral issues that have prevented India-China relations from casting off years of suspicion and mutual distrust.

One constant thorn has been a bitter and seemingly intractable dispute over areas of their common Himalayan border, which triggered a brief but bloody war in 1962.

Thursday’s meeting only managed to reaffirm a commitment to resolving the issue — already the subject of 14 rounds of fruitless talks — at “an early date”.

“The two sides shall work together to maintain peace and tranquility in the border areas in line with previous agreements,” the joint statement added.

India fears China is becoming more assertive about its territorial claims.

Beijing complained bitterly last year over visits to the northeast state of Arunachal Pradesh — which China claims in full — by Prime Minister Singh and the Dalai Lama.

Several commentators had called on Singh to take a tough line with his guest, saying India has been too accommodating of Chinese provocations in the past.

“Successive Indian governments have tried to cast aside irritants and make nice with China,” said Brahma Chellaney, author of “Asian Juggernaut: The Rise of China, India and Japan”.

“But that clearly hasn’t worked. In fact, the feckless approach has only encouraged Beijing to up the ante by finding new ways to needle India,” Chellaney said.

Speaking to reporters before his meeting with Singh, Wen said he wanted to reach an “important strategic consensus” during the visit.

China has been reluctant to back India’s drive for a permanent seat on the UN Security Council, but Thursday’s communique stated its support for India to “play a greater role” at the world body.

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Story first published: 16th December 2010




 

 

 

 



 

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