Es­say: '5Cs to Pro­mote China-In­dia Re­la­tions'

Key­note Speech by Am­bas­sador Luo Zhao­hui at the Open­ing Cer­e­mony, on 18 June 2018 of China-In­dia Re­la­tions Sem­i­nar

FICCI Business Digest - - Contents -

Ijust came back from Qing­dao, China, where Pres­i­dent Xi Jin­ping and Prime Min­is­ter Modiji held the bi­lat­eral meet­ing on the side­lines of the SCO Sum­mit (Shang­hai Co­op­er­a­tion Or­gan­i­sa­tion) on 9 June 2018. Their dis­cus­sion fo­cused on the im­ple­men­ta­tion of con­sen­sus reached dur­ing the Wuhan in­for­mal Sum­mit, 41 days be­fore.

Prior to Qing­dao, the two sides made a lot of ef­fort to pre­pare for the meet­ing. We have taken note that Prime Min­is­ter Modiji made a speech at Shangri La Di­a­logue in Sin­ga­pore which sent a pos­i­tive mes­sage.

In Qing­dao, the two lead­ers agreed to hold the sec­ond round of in­for­mal sum­mit next year. This is the most sig­nif­i­cant out­come of the meet­ing.

The Chi­nese De­fence Min­is­ter, Min­is­ter for Pub­lic Se­cu­rity will visit In­dia and the Spe­cial Rep­re­sen­ta­tives' Meet­ing on the Bound­ary Ques­tion will be held in Bei­jing in 2018.

The two for­eign min­is­ters will cochair the first meet­ing of high-level peo­ple-to-peo­ple and cul­tural ex­change mech­a­nism.

China will im­port more sugar, nonBas­mati rice and high-qual­ity medicines from In­dia to re­duce trade im­bal­ance. A new bi­lat­eral trade tar­get has been set for 100 bil­lion USD by 2022. In­dia agreed to fa­cil­i­tate the es­tab­lish­ment of Bank of China branch of­fice in Mum­bai. The two sides agreed to share hy­dro­log­i­cal in­for­ma­tion con­cern­ing cross-bor­der rivers and en­hance con­nec­tiv­ity in the re­gion in­clud­ing the BCIM (Bangladesh–China–In­dia– Myan­mar Fo­rum for Re­gional Co­op­er­a­tion) co­op­er­a­tion projects.

The two sides de­cided to move for­ward 'China-In­dia Plus' co­op­er­a­tion in Afghanistan, start­ing from joint train­ing pro­gramme for Afghan civil ser­vants.

The meet­ing ex­tended for an ad­di­tional 15 min­utes. What im­pressed me most was that Pres­i­dent Xi showed strong in­ter­est in Bol­ly­wood movies. He once again men­tioned Dan­gal, and two other movies, Baahubali 2 and

Hindi Medium which are be­ing screened in China.

The Qing­dao meet­ing is es­sen­tially the con­tin­u­a­tion of the Wuhan in­for­mal sum­mit. In Wuhan, the Sum­mit cre­ated a new model of en­gage­ment between the two lead­ers. It is of great sig­nif­i­cance, fruit­ful and a mile­stone in the his­tory of bi­lat­eral re­la­tions.

Wuhan Sum­mit en­hanced the chem­istry and friend­ship between the two lead­ers. Pres­i­dent Xi told the guests that he had re­ceived the for­eign leader twice out­side Bei­jing dur­ing the five years of is ten­ure. The first was in Xi'an in 2015. Wuhan was the sec­ond one. Modiji was deeply touched.

They spent 9 hours to­gether over 7 events in­clud­ing 4 one-on-one meet­ings, be­sides walk­ing and teatast­ing along the lake­side, boat ride and a mu­seum tour. Modiji re­called his visit as Chief Min­is­ter of Gu­jarat to the Three Gorges Dam near Wuhan. Strate­gic com­mu­ni­ca­tions, meet­ings, heart-to-heart di­a­logues

Strate­gic com­mu­ni­ca­tions, meet­ings, heart-to-heart di­a­logues are im­por­tant. What's equally im­por­tant is to im­ple­ment the con­sen­sus, trans­mit lead­ers’ per­sonal friend­ship down to the peo­ple, and take more con­crete ac­tions.

are im­por­tant. What's equally im­por­tant is to im­ple­ment the con­sen­sus, trans­mit lead­ers’ per­sonal friend­ship down to the peo­ple, and take more con­crete ac­tions. The Qing­dao meet­ing has shown the right di­rec­tion.

Why China-In­dia re­la­tions are so im­por­tant that the two lead­ers pay such at­ten­tion to?

From the bi­lat­eral per­spec­tive, China and In­dia are neigh­bours that can­not be moved away. We are the most pop­u­lous and largest de­vel­op­ing coun­tries. We have shared his­toric glory of friendly in­ter­ac­tions. We also have pend­ing bound­ary is­sues. Our re­la­tions are so mul­ti­fac­eted and com­pli­cated, that they call for spe­cial care and at­ten­tion.

From the per­spec­tive of do­mes­tic de­vel­op­ment, both coun­tries are at the crit­i­cal stage of eco­nomic de­vel­op­ment, deep­en­ing re­form, and ad­vanc­ing mod­ern­iza­tion. So­cial­ism with Chi­nese char­ac­ter­is­tics has en­tered a new era. The Chi­nese peo­ple are pur­su­ing the Chi­nese dream. In the mean­time, In­dia puts for­ward a vi­sion of 'New In­dia'. We should syn­er­gize the de­vel­op­ment strate­gies and share gov­er­nance ex­pe­ri­ences.

From the global per­spec­tive, in re­cent years, the de­vel­op­ing coun­tries rep­re­sented by China and In­dia have emerged as a group, con­tribut­ing to the on­go­ing 'rise of the East' in the trans­form­ing world. Against the back­drop of antiglob­al­iza­tion and ris­ing pro­tec­tion­ism, China and In­dia as ma­jor emerg­ing mar­ket economies, are faced with the pres­sure of es­tab­lished pow­ers. We should co­or­di­nate our po­si­tions and also ex­plore ways to be with each other.

Now, I want to share with you the fields of pri­or­ity with 5Cs to pro­mote China-In­dia re­la­tions, namely, com­mu­ni­ca­tion, co­op­er­a­tion, con­tacts, co­or­di­na­tion, and con­trol.

First, Strate­gic Com­mu­ni­ca­tion

How to co­ex­ist with each other, how to look at re­spec­tive de­vel­op­ment and how to judge in­ten­tions of China and In­dia, are key is­sues that ur­gently call for the strate­gic guid­ance from the lead­ers.

Be­sides the in­for­mal sum­mits, the two lead­ers agreed to main­tain strate­gic com­mu­ni­ca­tion in dif­fer­ent forms such as phone con­ver­sa­tion, cor­re­spon­dence, meet­ings. Cer­tainly, they will meet again dur­ing BRICS Sum­mit in South Africa in July and prob­a­bly G20 Sum­mit in Ar­gentina in Novem­ber.

We need to strengthen ex­changes between se­nior of­fi­cials of the govern­ment, mil­i­tary and leg­is­la­ture of our two coun­tries, and give full play to the ex­ist­ing mech­a­nisms to en­hance strate­gic com­mu­ni­ca­tion and in­crease mu­tual un­der­stand­ing.

Sec­ond, Eco­nomic Co­op­er­a­tion

China is In­dia's largest trad­ing part­ner. Last year, the bi­lat­eral trade vol­ume reached 84.4 bil­lion US dol­lars. More than 800 Chi­nese com­pa­nies are in­vest­ing and do­ing busi­ness in In­dia, cre­at­ing over one lakh job op­por­tu­ni­ties for In­dia.

China does not seek the trade im­bal­ance with In­dia. In March this year, a trade del­e­ga­tion led by Chi­nese Com­merce Min­ster Zhong Shan pur­chased goods worth – 2.4 bil­lion US dol­lars in In­dia. We en­cour­age more In­dian com­pa­nies to par­tic­i­pate in the first China In­ter­na­tional Im­port Expo in Shang­hai this Novem­ber. But sur­pris­ingly so far only four In­dian com­pa­nies have de­cided to par­tic­i­pate in the Expo. We call for the In­dian govern­ment and the busi­ness cir­cles to be more ac­tive in par­tic­i­pat­ing.

We would also like to ne­go­ti­ate a re­gional trade ar­range­ment with In­dia to ex­pand trade re­la­tions. We may en­cour­age eco­nomic co­op­er­a­tion on ma­jor projects such as new in­dus­trial parks and high­speed rail­ways.

Third, Peo­ple-to-Peo­ple Con­tacts

China and In­dia are closely linked in his­tory. Nowa­days, prac­tic­ing yoga, watch­ing Bol­ly­wood movies and tast­ing Dar­jeel­ing tea have be­come fash­ion­able among the Chi­nese youth. We should tap the huge po­ten­tial and it is well-worth do­ing to strengthen mu­tual un­der­stand­ing between the two peo­ples.

We should give full play to the high-level peo­ple-to-peo­ple and cul­tural ex­change mech­a­nism to en­hance ex­changes in the fields of movie, sports, tourism, mu­seum and youth.

We will con­tinue to pro­mote re­li­gious ex­changes and make ar­range­ment for the pil­grims to Kailash Manasarovar.

A 200-mem­ber Chi­nese youth del­e­ga­tion will be here early next month.

Fourth, Co­or­di­na­tion on In­ter­na­tional and Re­gional Is­sues

China-In­dia re­la­tions have gone be­yond bi­lat­eral scope. We have broad con­verg­ing in­ter­ests and face com­mon chal­lenges in Asia and be­yond. We need to en­hance co­op­er­a­tion in SCO (Shang­hai Co­op­er­a­tion Or­gan­i­sa­tion), BRICS (Brazil, Rus­sia, In­dia, China and South Africa), G20 and join hands to tackle global chal­lenges to forge global eco­nomic in­te­gra­tion, free trade and mul­ti­lat­er­al­ism. We should con­tinue to push for­ward 'China In­dia Plus' co­op­er­a­tion. Se­cu­rity co­op­er­a­tion is one of the three pil­lars of SCO. Some In­dian friends sug­gested that China, In­dia and Pak­istan may have some kind of tri­lat­eral co­op­er­a­tion un­der the SCO.

Fifth, Con­trol and Man­age­ment of Dif­fer­ences

In­dia is our im­me­di­ate neigh­bour. It's quite nat­u­ral to have dif­fer­ences with neigh­bours. We need to nar­row dif­fer­ences through ex­pand­ing co­op­er­a­tion. How­ever, it does not mean that dif­fer­ences would be ig­nored.

The bound­ary ques­tion between our two coun­tries was left his­tory. We need to build on con­ver­gence to find a mu­tual ac­cept­able so­lu­tion through the Spe­cial Rep­re­sen­ta­tives' Meet­ing while adopt­ing con­fi­dence­build­ing mea­sures to main­tain the peace and tran­quil­ity along the bor­der.

Am­bas­sador Luo Zhao­hui

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