"China and India are only countries with over a billion population each with a huge market demand," Li Wei, President of Development Research Centre (DRC), said at the third annual dialogue meeting with NITI Aayog Vice Chairman Rajiv Kumar.
"We can further integrate our markets at deeper level and form a mega scale regional market which will be very much significant to the development of our two countries," Li said.
In the mega regional market, both the countries not only can leverage their comparative advantage, "but we can create our new comparative advantages. In this, the two countries will be in a better position in global competition," he said.
India has protested the USD 50 billion China-Pakistan Economic Corridor (CPEC), a part of the BRI, as it passes through Pakistan-occupied Kashmir (PoK).
Li also called for India-China cooperation in working for global governance to safeguard the multilateral cooperation.
China is loosing its competitive advantage due to a rise in labour wages which has forced the industries to shift their bases abroad, Li said.
"India has rich labour resources. Its population is young with the average age of 30 years. You have a strong competitiveness of achieving industrial transfers," he said.
The DRC, under the State Council, China's Cabinet, is the agency mainly responsible for doing research on strategic, long-term issues in China's economic and social development.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)