M A I N   N E W S

China pitches for regional trade pact with India
Ashok Tuteja/TNS

New Delhi, May 21
Assuring India of Beijing’s commitment to address the issue of trade imbalance, Chinese Premier Li Keqiang today pitched for a regional trade accord between the two countries.

“China is willing to launch negotiations on a China-India regional trading arrangement,” he said addressing a gathering of Indian business honchos, intellectuals and students before leaving for Mumbai.

This is not the first time China has mooted the proposal for a trade arrangement with India. India has been sitting over it due to vehement opposition from the Indian industry, particularly small and medium enterprises. The fear among Indian businesses stems from the fear that cheap Chinese products will flood the Indian market, threatening the very survival of the domestic industry.

Li said his country would support greater investments by Chinese companies in India and also take steps to provide access to Indian products into the Chinese market.

He said the two countries had the “wisdom” to find “fair, reasonable and mutually acceptable” solution to the boundary dispute. “We have not shied away from addressing the vexed (boundary) issue...we are one third of the world’s total population and our interactions attract the world. Without doubt, China-India relations are the most important global relations,” he said.

Emphasising that Beijing was sincere about resolving all outstanding issues with India, Li drew attention to the agreement signed yesterday between the two countries for sharing hydrological data. Li said he was “satisfied” with the “candid, frank and fruitful” talks he held with PM Manmohan Singh and other Indian leaders over the past two days during which both sides were able to put “all issues on the table”.