12/14/2010, 00.00
INDIA – CHINA
Send to a friend

Wen Jiabao in New Delhi to remake intricate Sino-Indian relations

The two Asian giants have increased their trade in the past few years. They remain apart over territorial issues and international politics like relations with Pakistan, Tibet, borders, support for Maoist insurgencies and water rights. Both countries want however to boost their economic growth and think they can do it better together.

New Delhi (AsiaNews/Agencies) – Premier Wen Jiabao begins a three-day tour of India tomorrow. In addition to important trade agreements, he will discuss with Indian Prime Minister Manmohan Singh bilateral relations as well as international issues like Pakistan and India’s desire to have a permanent seat at the United Nations Security Council.

In his first visit in five years, Wen will lead a delegation of more than 400 people, mostly top government officials and business people, in order to bolster economic ties between the two Asian giants.

The two countries are expected to seal more than 45 business deals worth a combined US$ 20 billion in areas such as electricity and medicine. For years, the two entertained limited economic relations because of their traditional rivalry and their respective claims to certain Himalayan regions.

“The leaders of both nations agree the world has sufficient space for the two emerging economies to grow," Assistant Foreign Minister Hu Zhengyue said in Beijing yesterday.

Experts note a desire to foster economic growth is pushing both sides towards mutually advantageous trade agreements.

A “free-trade agreement is the next stage [in India-China relations]. It is our hope that we can start the process," said Zhang Yan China's envoy to India.

Chinese businesses are very interested in the Indian market, with its rising middle class that runs in the hundreds of millions.

India is wary though about an invasion of Chinese goods, which could penalise its own developing manufacturing base. In fact, in the first nine months of the year, India accumulated a trade deficit of US$ 13.7 billion as Sino-Indian trade grew by 46.7 per cent from a year ago to US billion.

However, political issues should dominate the talks. The two leaders are expected to agree to a hotline to be used to communicate at any time to settle misunderstandings.

India is distrustful about China’s traditional support for its rival Pakistan. The two nations are also at odds over border issues, in particular in the heavily militarised Arunachal Pradesh.

Unofficially, New Delhi also sees China’s print all over Maoist rebel groups active in Bihar and other Indian states.

Beijing, for its part, blames New Delhi for hosting Tibetan refugees who have officially set up representation in Indian Tibet.

Equally bad from a Chinese perspective, India’s ambassador to Norway attended the Nobel Peace Prize award ceremony for Chinese dissident Liu Xiaobo despite Beijing’d expressed displeasure.

When they meet, Wen and Singh will also discuss waters issues, in particular the Brahmaputra and other rivers that flow into India from the Chinese-occupied Tibetan plateau. Beijing wants to build large hydroelectric dams in the region, whilst New Delhi is opposed because of what that might do to millions of its people living downstream.

India however needs Chinese support to get a permanent seat on the United Nations Security Council, something that it already got from US President Barack Obama.

Both nations have an interest in regional security, which favours greater military cooperation between them.

Wen will fly directly from India to Pakistan on Friday, where his three-day visits is expected to focus on co-operation in energy and China's pledge of US$ 200 million in aid to help the country rebuild after devastating floods.

China agreed to sell Pakistan two 300-megawatt nuclear reactors, and is believed to be in talks about a much larger reactor. It is also working with Pakistan to set up a transport network linking its main ports to the Arabian Sea.

Wen is also expected to address the Pakistani parliament.

TAGs
Send to a friend
Printable version
CLOSE X
See also
Pope talks about the Middle East, the Holy Land and the food crisis with Bush
13/06/2008
Wen warns, touching the yuan would cause unrest in China
23/09/2010
White House to stop Beijing's "imperialist" policy in the South China Sea
24/01/2017 15:55
Press conference on anti-Christian violence disrupted by Hindu activists
07/06/2006
Wen Jiabao, an outstanding partner but China must “do more, says Obama
24/09/2010


Newsletter

Subscribe to Asia News updates or change your preferences

Subscribe now
“L’Asia: ecco il nostro comune compito per il terzo millennio!” - Giovanni Paolo II, da “Alzatevi, andiamo”