News

China, India to seek deeper economic ties

By Qin Jize (chinadaily.com.cn)
Updated: 2010-04-11 20:01

Beijing and New Delhi have expressed a desire to replicate their successful cooperation at Copenhagen in areas of trade, and vowed to seek stronger economic ties.

The pledge was made by government and business leaders from both countries on Sunday at a Luncheon Session on the sideline of the Boao Forum for Asia (BFA).

"India is prepared to deepen economic engagement with China," said Indian Environment Minister Jairam Ramesh, noting that breaking down trade barriers must work both ways.

BFA Secretary General Long Yongtu said bilateral trade and investment lag far behind their potential.

Commerce Minister Chen Deming expected earlier that trade between the two to rise to $60 billion this year as the world's two most populous nations are recovering from the global financial crisis more quickly than developed countries.

China is India's largest trade partner but the bilateral trade boom has been a mixed blessing for New Delhi.

The Indian side has seen a trade deficit of about $16 billion in China's favor and identified it as a point of friction in a relationship key to Asia's peace and stability.

Amit Mitra, secretary general of Federation of Indian Chambers of Commerce and Industry said the lack of mutual trust has hindered the development of trade relations.

He said the insufficient number of flights between the cities of the two countries also restricted the exchange for the two nations who know little about each other's conditions and policies.

Fan Gang, a well-known economist, said the two economies can learn from each other and cooperate in areas such as China expanding domestic consumption, the IT industry and India improving infrastructure and manufacturing capacity.

The two countries are confident enough to work together as Asia continues to become a significant part of the global economy and as two key representatives of the developing world.

In another development, China and India have also worked with each other as well as some other emerging economies to ensure they have a greater say in international financial matters.

The second BRIC Summit, which groups China, India, Brazil and Russia, is scheduled to be held in Brazil next week.