Chinese leaders have emphasised a willingness to put the border talks on the backburner, and focus rather more on trade relations.
Sino-Indian trade relations, which are expected to scale a $20 billion high this year, will gain fresh momentum from Chinese President Hu Jintao’s visit to India beginning November 20. Yet, for all the unsubtle hints from mandarins in Beijing about the desirability of a free trade agreement between the two countries, that’s not really on the agenda.
HONG KONG: “Talk of free trade is superfluous at the moment,” said sources who are familiar with the negotiations. What the two sides are currently studying, the source added, is a Regional Trading Arrangement; over the next 12 months, Joint Study Groups, which have been meeting every two or three months, will submit a report on the feasibility and technical details of such an arrangement — whether it is doable, useful and how it can be done.
Chinese leaders have emphasised a willingness to put the border talks on the backburner, and focus rather more on trade relations. China’s Assistant Foreign Minister Cui Tiankai said recently that trade and economic cooperation suited both countries’ interests. “We hope both sides can do more things beneficial to developing bilateral economics and trade and beneficial to mutual confidence.”
China is also pushing for grant of ‘market economy’ status, which would open up the Indian market for more Chinese exports. Another area of concern for China is that in recent times, Chinese companies have been disqualified from consideration for some Indian infrastructure projects on grounds of security. The Chinese would like to see “a level playing field” for Chinese businesses in India; but significantly, it isn’t just with India that Chinese companies, with their opaque shareholding patterns, face similar problems. During Hu’s visit, a Joint Declaration will be signed, and there will be several agreements — on science and technology, education and cultural visits.
The two sides are also discussing the possibility of opening more consulates on a reciprocal basis.
In April 2005, when Chinese Premier Wen Jiabao visited India, the two sides signed a statement of guiding principles to resolve the intractable boundary dispute. Hu’s visit will project the political will of both sides that the process of maintaining the momentum in bilateral relations continues, says the source.
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