visit of chinesh premier Wen Jiabao to india.

Visit of Chinese  premier Wen Jiabao  to India

The India Chinese companies signed  48 agreements worth 16 billion dollars as Chinese premier  Wen  Jiabao began three days visit seeking to deepen  trade  and investment relations between two Asian giant on 15th December . The top Indian  Chinese companies signed agreements in several sectors including power,telecoms,steel ,wind energy, food and maritime products as Chinese  premier sought to down  play rivalry between two countries.

As Wen Chinese  premier  said “ china and India are partners for co0operation, not rivalry in competition. There is enough space in the world for development of both china and India .” Wen also said he took the trade balance between  two seriously and was  ready to act for more access for Indian I T and pharmaceuticals firms in Chinese market.

The trade between two Asian giants expected to reach 60 billion dollars and china enjoys trade surplus. India’s exports to china largely include iron ore and commodities and New Delhi  has making efforts to diversify  its trade baskets.

The Chinese premier has arrived in India with delegation  of 300 businessmen in a visit aimed at deepening economic engagement between two world’s fastest growing economies. Chinese premier said “ India, china’s 2.5 billion population was a huge market and opening markets would be mutually beneficial to two countries.” The potential for expansion of cities and urban areas hold huge promise for growth.

The Chinese premier counted India’s strength in service sectors such as software and pharmaceutical and financial services  while china draws its strength from manufacturing and engineering sector.

The Chinese premier also called for easy procedures for movement of capital and people and creation of more favorable conditions for mutual investment. Several top Indian companies such as Reliance power , Adani ,  GMR are tapping of  Chinese  power equipment.  Indian firms stated that  Chinese power equipment manufacturers delivers on time and pricing is competitive. Similarly several Chinese telecoms equipment such as Hwawei and ZTE have garnered huge market share in the Indian telecoms  equipment market.

The “stapled  visa “ issue could not be unstapled during the two rounds of talks prime minister Manmohn Singh  and Chinese premier Wen Jiabao held here Wednesday and Thursday but India ,china which reiterated their desire to co-operate and set an ambitious trade target 100 billion dollars  by 2015.

The main constraint is stapled  visa which India says  challenges its sovereignty and territorial integrity.

Briefing journalists,foreign secretary Nirupama Rao said visa issue was raised by Mr. Wen  himself who said china took India’s concern seriously. He suggested that officials from both sides should have in depth consultations so that issue can be resolved satisfactory .

Beyond visa issue however two countries made progress by agreeing to strategic  economic dialogue to enhance macro-economic policy co-ordination and address challenges in economic development and co-operation. They also opened new areas co-operation such as maritime security. Despite pause in defense exchanges at senior levels, India -china agreed to work together in tacking piracy in Gulf Aden, where both sides have deployed warships.

There was a forward movement on security co-operation,trans border rivers and addressing the imbalance in trade.

Finally Manmohn Singh and Chinese premier Wen Jiabao   agreed  to settle all issues  including border dispute with officials discussions from both sides.

It is absolutely necessary for both India and china come forward  and work together for establishing greater economic co-operation for improving business relations .