The Hindu: “Calls to reshape ‘increasingly unsustainable’ trade model amid growing imbalance
China has called for a move to boost mutual investments with India as a measure to strengthen trade ties and reshape what officials have acknowledged is an increasingly unbalanced and strained business relationship, as trade talks between both countries begin in New Delhi on Monday.
The Chinese Commerce Ministry told The Hindu in a written interview ahead of the visit of Commerce Minister Chen Deming, who will lead the Chinese delegation in Monday’s talks, that the relatively strong foreign exchange reserves of both countries and an increasing desire of businesses to go overseas should drive the future of trade ties.
“There is great space for China and India to cooperate in mutual investment,” the Commerce Ministry said.
Both countries will hold the ninth round of the Joint Economic Group (JEG) dialogue in New Delhi on Monday. India’s trade deficit and Chinese concerns about the investment environment in India, particularly in the power and telecom sectors, is expected to be at the focus of the talks.
In an apparent attempt to ease concerns about strains in the trade relationship, Chinese officials have suggested a new approach. Boosting mutual investments would be one way of shifting the relationship from the current model. Trade over the past decade, which has grown from a few billion dollars to US$ 74 billion last year when China became India’s biggest trade partner, has largely been driven by Chinese appetite for Indian ores and Indian need for Chinese machinery.”
via The Hindu : News / National : China keen to boost mutual investments with India.
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