yes and look at this....
"China, India to Boost Trade, Investment, Energy Ties (Update2)
By Bibhudatta Pradhan and Anand Krishnamoorthy
Nov. 21 (Bloomberg) -- China and India, the world's two fastest-growing major economies, agreed to boost trade and investment and promote cooperation in areas such as civilian nuclear energy.
The two sides signed as many as 13 agreements today in New Delhi during Chinese President Hu Jintao's visit, the first by a Chinese president in a decade. The president, who arrived in India yesterday, said today he wanted to ``strengthen the friendship between the two countries, increase mutual trust, expand cooperation and chart a course for the future.''
India and China, who fought a border war in 1962, have improved political, economic and military ties in recent years. The world's two most populous nations, which aim to consolidate trade and economic cooperation by ending years of mistrust, said they want an early settlement of their boundary dispute.
Trade between the two countries should be boosted to $40 billion by 2010, said Indian Prime Minister Manmohan Singh at a joint press conference in New Delhi before the agreements were signed. Trade has risen from $260 million in 1990 to $18.7 billion in 2005, Sun Yuxi, China's ambassador to India said in a release issued in local newspapers in New Delhi today. It has reached $13.6 billion in the first seven months of this year and is expected to surpass $20 billion by the year end, he said.
`Promoting Dynamism'
``The idea now is to keep promoting the dynamism that has come through trade and thereby allowing it to become a foundation of the relationship,'' said Alka Acharya, chairman of East Asian studies at the School of International Relations, Jawaharlal Nehru University, New Delhi. ``The high-level negotiations are designed to promote the overall environment for the improvement of the relationship.''
Trade will form the foundation of the ties between the two, China and India said in a joint declaration issued in New Delhi today after the agreements were signed.
``Both sides believe that comprehensive economic and commercial engagement is a core component of their strategic and cooperative partnership,'' the two said. ``They shall make joint efforts to diversify their trade basket, remove existing impediments and optimally utilize the present and potential complementarities in their economies.''
The two sides will promote nuclear energy cooperation.
``The two sides agree to promote cooperation in the field of nuclear energy, consistent with their respective international commitments,'' the joint declaration said.
Huawei Technologies Co. and other companies linked to the Chinese government want to invest in India, which, Singh has said, needs $320 billion by 2012 to upgrade ports, expand railways and build roads.
Investment Accord
The investment agreement signed between the two nations ``provides for a framework for bilateral investment flows,'' according to a press release issued by the two. ``This will send a positive signal to prospective Indian and Chinese investors.''
Hu's visit is also aimed at the rest of the world, a Chinese's spokeswoman said.
``We hope the visit will increase confidence building between China and India and send a message internationally that the two countries are partners that will cooperate in development for the sake of peace in Asia and in the world,'' said the Chinese foreign ministry's spokeswoman Jiang Yu at a press conference today in Beijing.
China will open a consulate in the eastern Indian city of Kolkata and India will open one in Guangzhou.
Dispute Settlement
Settling disputes and increasing confidence among companies to invest in each other's countries are key to better ties between China and India, whose combined gross domestic production in 2020 may eclipse that of the U.S. now. Growing ties can also help Hu and Singh cooperate in securing oil and gas assets and improve the lives of more than a third of humanity staying in Asia.
Economic and political ties between the neighbors have been marred by territorial disputes and a war of about a month in 1962. The two nations are seeking to resolve differences and boost trade as their economies grow, fueled by consumption of their combined 2.4 billion people.
China's economy, the world's fastest-growing, may likely expand at more than 10 percent this year, according to a forecast by the People's Bank of China. India's economy may grow at an 8.5 percent pace in the year to March 31, according to government estimates.
There is ``enough space'' for both countries to develop, Singh said. Both countries are ``satisfied with the growth momentum of their relationship,'' Hu said, referring to it as one of ``global significance.''
The Chinese president said that settling the boundary dispute was a ``common strategic objective'' of the neighbors.
Resolving Differences
``Both sides are committed to resolving outstanding differences, including on the boundary question, through peaceful means and in a fair, reasonable, mutually acceptable and proactive manner, while ensuring that such differences are not allowed to affect the positive development of bilateral relations,'' the joint declaration said.
India claims 38,000 square kilometers of Chinese-controlled territory in Kashmir, an area the size of Switzerland. China claims 90,000 square kilometers of land in Arunachal Pradesh, which is controlled by India.
The combined gross domestic production of China and India may be $16 trillion a year by 2020, according to an October report by CLSA titled ``Chindia,'' coined from the two country names. The two nations may account for 17 percent of world GDP by then, up from 7 percent now, it said.
``We are bearing witness to a unique and profound economic transformation that will continue to reshape the global economic and social landscape,'' Jonathan Slone, CLSA's head of broking, wrote in the report.
Hu's visit follows a trip by Chinese Premier Wen Jiabao in April last year. During Wen's visit, the two countries concluded agreements to resolve historic rivalries and boost commercial ties between them.
Hu will visit Mumbai, India's financial capital, and Agra, home to the Taj Mahal, after he leaves New Delhi tomorrow.
To contact the reporters on this story: Anand Krishnamoorthy in New Delhi at anandk@bloomberg.net ; Bibhudatta Pradhan in New Delhi at bpradhan@bloomberg.net .
Last Updated: November 21, 2006 05:13 EST " |
