India, China Aim to Double Trade
by ARPAN MUKHERJEE and ABHRAJIT GANGOPADHYAY
by ARPAN MUKHERJEE and ABHRAJIT GANGOPADHYAY
India's Manmohan Singh, right, and Wen Jiabao in New Delhi Thursday.
NEW DELHI—India and China said they aim to lift their annual bilateral trade to $100 billion by 2015, more than double the total last fiscal year, illustrating new efforts to boost cooperation between the world's two fastest-growing major economies.
The announcement came after a meeting Thursday between Chinese Premier Wen Jiabao and Indian Prime Minister Manmohan Singh. Mr. Wen arrived in New Delhi Wednesday for his first trip to India since 2005 and will depart Friday for Pakistan.
Mr. Wen's promises that Beijing will open its large consumer market more to India, which runs a huge trade deficit with China, were welcomed in India.
"China is already India's biggest trade partner and today's announcement is a positive step forward to boost regional economic activity," said Manoranjan Sharma, chief economist at Canara Bank.
Bilateral trade is expected to exceed $60 billion in the current fiscal year to March 31, after totaling $42.4 billion last year.
Chinese Premier Wen Jiabao and Indian Prime Minister Manmohan Singh say they are optimistic about the future, as talks between the two Asian nations wrap up. Video courtesy of Reuters.
The leaders made no visible progress on other thorny political issues that have hobbled ties, including over disputed borders, visa issues, a controversial Chinese water-diversion project and China's support for Pakistan.
Mr. Wen, who has sought to focus the visit onincreasing trade cooperation and Wednesday announced deals between Indian and Chinese companies valued at a combined $16 billion, touched Thursday on disagreements between India and China over their Himalayan borders. These border disputes, over which India and China went to war in a 1962 conflict that Beijing won, are a "historical legacy" inherited by both governments, Mr. Wen said in a speech to diplomats after meeting with Mr. Singh.
"It requires patience and will take a fairly long period of time," he added about efforts to solve the border issues, that inflame public opinion in both nations. On China's plans to dam the Brahmaputra River, which runs through both nations, Mr. Wen assured New Delhi that it wouldn't affect water on the Indian side of the border.
He didn't mention China's decision to refuse a visa to a senior Indian general this summer, which led to a suspension of military cooperation, still in effect, or China's continued support for Pakistan, which has received help from Beijing to build civilian nuclear reactors. Nirupama Rao, India's foreign secretary, told a news conference that Mr. Singh had been "able to express our concerns quite clearly" over Pakistan's failure to stop terrorists operating in India. On water resources and borders, India and China agreed to talk more in the future, she said.
Talks during Mr. Wen's visit have centered on trade. "We are now creating an enabling environment to reach the next economic frontier," Ms. Rao said.
Mr. Wen sought during the visit to strengthen commercial ties with big-ticket investment proposals and a promise to further open China's markets to India.
On Wednesday, Indian and Chinese companies signed more than 40 deals in the power, commodities and telecoms sectors for a combined $16 billion. Many of the deals were Chinese bank financing agreements for large Indian orders of Chinese exports of telecom and power-producing equipment.
During the first 10 months of 2010, China exported goods valued at $32.87 billion to India, but its imports totaled only $17 billion.Mr. Wen reiterated that Beijing will heed New Delhi's request to broaden access of Indian exports such as pharmaceuticals, information technology and agricultural products to shrink India's trade deficit.Mr. Wen also said in his speech to the diplomats that China understands and supports India's desire to play a bigger role at the United Nations, including the Security Council. China has long opposed a permanent seat for India on the council, and Mr. Wen's comments Thursday didn't appear to represent a change to that position. President Barack Obama during a visit to India in November for the first time publicly backed India's inclusion as a permanent member of the Security Council.
India, concerned over its trade deficit of $19 billion last fiscal year, wants better market access for its exports. For now, India's main export to China is iron ore, while it imports large amounts of high-value manufactured goods.
"The two sides agreed to take measures to promote greater Indian exports to China with a view to reduce India's trade deficit," the two countries said in a joint statement.
India-China trade ties have often been rocky, as India continues to impose antidumping duties—the highest by any country at the World Trade Organization last year—against Chinese products, alleging that the prices of some goods are set artificially low.
China has also raised objections to India's stringent regulations in sourcing power and telecommunications equipment, calling them discriminatory.
China and India have shared interests in reform of the council, with both supporting expanded representation of developing countries, Mr. Wen said Thursday.
—Tom Wright contributed to this article.
Write to Arpan Mukherjee at arpan.mukherjee@dowjones.com and Abhrajit Gangopadhyay at Abhrajit.gangopadhyay@dowjones.com
NEW DELHI—India and China said they aim to lift their annual bilateral trade to $100 billion by 2015, more than double the total last fiscal year, illustrating new efforts to boost cooperation between the world's two fastest-growing major economies.
The announcement came after a meeting Thursday between Chinese Premier Wen Jiabao and Indian Prime Minister Manmohan Singh. Mr. Wen arrived in New Delhi Wednesday for his first trip to India since 2005 and will depart Friday for Pakistan.
Mr. Wen's promises that Beijing will open its large consumer market more to India, which runs a huge trade deficit with China, were welcomed in India.
"China is already India's biggest trade partner and today's announcement is a positive step forward to boost regional economic activity," said Manoranjan Sharma, chief economist at Canara Bank.
Bilateral trade is expected to exceed $60 billion in the current fiscal year to March 31, after totaling $42.4 billion last year.
Chinese Premier Wen Jiabao and Indian Prime Minister Manmohan Singh say they are optimistic about the future, as talks between the two Asian nations wrap up. Video courtesy of Reuters.
The leaders made no visible progress on other thorny political issues that have hobbled ties, including over disputed borders, visa issues, a controversial Chinese water-diversion project and China's support for Pakistan.
Mr. Wen, who has sought to focus the visit onincreasing trade cooperation and Wednesday announced deals between Indian and Chinese companies valued at a combined $16 billion, touched Thursday on disagreements between India and China over their Himalayan borders. These border disputes, over which India and China went to war in a 1962 conflict that Beijing won, are a "historical legacy" inherited by both governments, Mr. Wen said in a speech to diplomats after meeting with Mr. Singh.
"It requires patience and will take a fairly long period of time," he added about efforts to solve the border issues, that inflame public opinion in both nations. On China's plans to dam the Brahmaputra River, which runs through both nations, Mr. Wen assured New Delhi that it wouldn't affect water on the Indian side of the border.
He didn't mention China's decision to refuse a visa to a senior Indian general this summer, which led to a suspension of military cooperation, still in effect, or China's continued support for Pakistan, which has received help from Beijing to build civilian nuclear reactors. Nirupama Rao, India's foreign secretary, told a news conference that Mr. Singh had been "able to express our concerns quite clearly" over Pakistan's failure to stop terrorists operating in India. On water resources and borders, India and China agreed to talk more in the future, she said.
Talks during Mr. Wen's visit have centered on trade. "We are now creating an enabling environment to reach the next economic frontier," Ms. Rao said.
Mr. Wen sought during the visit to strengthen commercial ties with big-ticket investment proposals and a promise to further open China's markets to India.
On Wednesday, Indian and Chinese companies signed more than 40 deals in the power, commodities and telecoms sectors for a combined $16 billion. Many of the deals were Chinese bank financing agreements for large Indian orders of Chinese exports of telecom and power-producing equipment.
During the first 10 months of 2010, China exported goods valued at $32.87 billion to India, but its imports totaled only $17 billion.Mr. Wen reiterated that Beijing will heed New Delhi's request to broaden access of Indian exports such as pharmaceuticals, information technology and agricultural products to shrink India's trade deficit.Mr. Wen also said in his speech to the diplomats that China understands and supports India's desire to play a bigger role at the United Nations, including the Security Council. China has long opposed a permanent seat for India on the council, and Mr. Wen's comments Thursday didn't appear to represent a change to that position. President Barack Obama during a visit to India in November for the first time publicly backed India's inclusion as a permanent member of the Security Council.
India, concerned over its trade deficit of $19 billion last fiscal year, wants better market access for its exports. For now, India's main export to China is iron ore, while it imports large amounts of high-value manufactured goods.
"The two sides agreed to take measures to promote greater Indian exports to China with a view to reduce India's trade deficit," the two countries said in a joint statement.
India-China trade ties have often been rocky, as India continues to impose antidumping duties—the highest by any country at the World Trade Organization last year—against Chinese products, alleging that the prices of some goods are set artificially low.
China has also raised objections to India's stringent regulations in sourcing power and telecommunications equipment, calling them discriminatory.
China and India have shared interests in reform of the council, with both supporting expanded representation of developing countries, Mr. Wen said Thursday.
—Tom Wright contributed to this article.
Write to Arpan Mukherjee at arpan.mukherjee@dowjones.com and Abhrajit Gangopadhyay at Abhrajit.gangopadhyay@dowjones.com
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