Time for deeper China-In­dia co­op­er­a­tion

China Daily (Canada) - - FRONT PAGE -

In­dian PrimeMin­is­terNaren­dra Modi’s three-day visit to China from Thurs­day is ex­pected to strengthen ties be­tween the two neigh­bors and deepen bi­lat­eral eco­nomic and trade co­op­er­a­tion. Modi has launched sev­eral ini­tia­tives to ex­pe­dite In­dia’s eco­nomic growth since be­ing elected prime min­is­ter in­May 2014. His fo­cus is on boost­ing the man­u­fac­tur­ing sec­tor, which has rel­a­tively low ef­fi­ciency and tech­nol­ogy lev­els, and is want­ing in global com­pet­i­tive­ness.

In com­par­i­son, China has achieved re­mark­able break­throughs in var­i­ous in­dus­tries since the launch­ing of re­form and open­ing-up, and its man­u­fac­tur­ing sec­tor has pros­pered. In fact, China’s man­u­fac­tur­ing sec­tor faces the prob­lem of over­ca­pac­ity in some ar­eas. AWorld Bank sur­vey shows man­u­fac­tur­ing ac­counted for 12.9 per­cent of In­dia’s GDP in 2013, com­pared with 31.8 per­cent of China’s. This means there is huge po­ten­tial for deep­en­ing bi­lat­eral co­op­er­a­tion in trade and eco­nomic fields, es­pe­cially in the man­u­fac­tur­ing sec­tor.

he bi­lat­eral trade vol­ume has grown 11 per­cent over the past five years, and China is now In­dia’s largest trad­ing part­ner. Although China en­joys a grow­ing sur­plus— from $20.08 bil­lion in 2010 to $37.85 bil­lion in 2014— it does not fa­vor such kind of trade im­bal­ance. In fact, it has in­creased im­ports from In­dia.

Modi’s visit to China, dur­ing which he will hold talks with Chi­nese lead­ers on a wide range of is­sues, is ex­pected to fa­cil­i­tate the fur­ther open­ing up of In­dia’s mar­ket to Chi­nese en­ter­prises and in­vest­ments. In­creased in­vest­ments by Chi­nese en­ter­prises in In­dia and the sales of their In­dia­made prod­ucts back to China will help nar­row the trade im­bal­ance and strengthen bi­lat­eral trade and eco­nomic ties.

Re­al­iz­ing the im­por­tance of in­creas­ing the flow of for­eign cap­i­tal into In­dia in or­der to boost man­u­fac­tur­ing, Modi has low­ered the cor­po­rate tax. This, along with his ef­forts to re­vise In­dian la­bor laws to re­move the ob­sta­cles for for­eign in­vest­ment, will lay a solid foun­da­tion for co­op­er­a­tion with China.

Modi at­taches im­por­tance to the study of the “China’s model”, es­pe­cially China’s ex­pe­ri­ence in in­ward for­eign in­vest­ment. As chief min­is­ter of Gu­jarat from 2001 to 2014, Modi vis­ited China four times to study its devel­op­ment model. For the pur­pose, he vis­ited not only de­vel­oped Guang­dong prov­ince and Shang­hai, but also rel­a­tively less-de­vel­oped Sichuan prov­ince. Af­ter his visit to Sichuan in 2011, he even built an industrial park in Gu­jarat where en­ter­prises from the Chi­nese prov­ince chan­neled an in­vest­ment of nearly $2 bil­lion.

Also, there is huge po­ten­tial for Sino-In­dian co­op­er­a­tion in in­fra­struc­ture devel­op­ment and power gen­er­a­tion. As big en­ergy con­sumers, the two coun­tries should deepen their co­op­er­a­tion in newen­ergy, such as wind power and so­lar power, while ex­plor­ing ways to work to­gether in the tra­di­tional en­ergy sec­tor. Be­sides, deeper co­op­er­a­tion in en­vi­ron­men­tal pro­tec­tion will im­prove the health and living con­di­tions of peo­ples in both coun­tries.

China’s ad­vanced and com­pet­i­tive high­speed rail tech­nolo­gies are an­other area of co­op­er­a­tion with In­dia. There is huge scope for bi­lat­eral co­op­er­a­tion in the ser­vice sec­tor, too— from bank­ing, se­cu­ri­ties and in­sur­ance to telecom­mu­ni­ca­tions and postal ser­vices. Ed­u­ca­tion and med­i­cal care are other ar­eas in which the two sides can work to­gether for mu­tual ben­e­fit.

The Silk Road Eco­nomic Belt and the 21st Cen­tu­ry­Mar­itime Silk Road ini­tia­tives put for­ward by Pres­i­dent Xi Jin­ping, aimed at pro­mot­ing re­gional and global eco­nomic devel­op­ment, too are apt for co­op­er­a­tion with In­dia, es­pe­cially af­ter it adopted an “east­ward-look­ing” strat­egy.

The China-pro­posed Asian In­fra­struc­ture In­vest­ment Bank, which al­ready has In­dia as a found­ing mem­ber, is likely to deepen co­op­er­a­tion in in­fra­struc­ture con­struc­tion. And the two coun­tries’ en­ter­prises can al­ways co­op­er­ate in in­vest­ment, poverty re­duc­tion, agri­cul­ture, and ed­u­ca­tion projects in Africa, Latin Amer­ica and theMid­dle East in or­der to boost over­all world eco­nomic growth. The au­thor is a re­searcher at the Chi­nese Academy of In­ter­na­tional Trade and Eco­nomic Co­op­er­a­tion, af­fil­i­ated to the Min­istry of Com­merce.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.