China, India to reopen border trade
(Xinhua)
Updated: 2006-06-19 09:01 Both sides marked 2006 as the year of Sino-Indian friendship.
More
than 5,000 border residents came to Yadong county, where the Nathu La Pass is
located, every year for a trade of 3.6 million yuan (450,000 U.S. dollars),
although the trading port in Yadong did not officially open, statistics from the
county show.
China and India signed a memorandum of understanding on the
resumption of border trade at the Nathu La Pass in 2004. The Chinese State
Council approved the plan on the construction of border trade markets in Yadong
in the ensuing year.
"The reopening of the Nathu La Pass is a key move
in strengthening economic and trade ties, which will also enhance mutual
political trust," Prof. Liu said.
China and India recorded 18.73 billion
U.S. dollars in trade volume in 2005, up 37.5 percent from the previous year,
according to the Chinese Ministry of Commerce. The volume is expected to exceed
20 billion U.S. dollars this year.
Currently China and India trade
mostly by sea transportation. Tibet Autonomous Region imports from and exports
to India via Tianjin, a port city in the north which is thousands of kilometers
away.
Tibet is expected to benefit much from the resumption of border
trade at the Nathu La Pass, Hao Peng said.
"If only 10 percent of
Sino-Indian trade goes through the pass it means at least more than one billion
U. S. dollars."
Last year the foreign trade volume of Tibet was 200
million U.S. dollars.
With the reopening of Nathu La Pass, iron ore and
livestock products from India and wool, herbs and electric appliances from China
can be transported into the other country through the short cut, Hao said.
Businessmen have showed interests in the area after China approved the
construction of border markets in Yadong in 2005.
Wang Ping, head of the
Yadong county government, said more than 30 business people came to Yadong in
the first quarter for investment talks, while only two or three came the same
period last year.
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