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| Will correct trade imbalance: Wen to PM |
| Press Trust Of India / Cha-Am Hua Hin (Thailand) Oct 25, 2009, 00:58 IST |
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Chinese Premier Wen Jiabao today assured Prime Minister Manmohan Singh that his country would correct the balance of trade that is currently in its favour.
The issue of trade imbalance in the $41.60 billion merchandise engagement with India came up during a meeting of the two premiers on the margins of the Association of the Southeast Asian Nations (Asean) summit here.
“He (Wen) said China will work with India to correct the growing trade deficit,” secretary (east) in the Ministry of External Affairs, N Ravi, told reporters after the Singh-Wen meeting.
In the bilateral engagement of $41.60 billion for the fiscal 2008-09, Chinese imports to India were a tidy $31.33 billion. But India’s exports were far less at $9.27 billion creating a gap which the domestic Indian firms have expressed concern over.
Leading business chambers have also conveyed their concern to the government over “dumping” of Chinese goods in the Indian market as China was facing a slump in the western economies.
The Indian government, on its part, has initiated the maximum number of anti-dumping investigations against imports from China. For strengthening the commercial ties, Wen also suggested early consultations by the Joint Economic Group.
Wen said he would encourage the Chinese companies to invest in India and welcome Indian investment in China.
Prime minister Singh described India’s economic and trade relations with China as a “vital pillar” of the partnership.
He also referred to bilateral exchanges in the field of defence.
STRESS ON BILATERAL TALKS
Chinese premier also agreed that bilateral issues should be properly handled through discussions even as they chose to skirt the controversy over Arunachal Pradesh.
The two leaders underlined the importance of building trust, harmony and better understanding and agreed that neither side should let differences act as impediments to the growth of their relations.
During the hour-long talks with Wen, Singh said both sides should have better understanding at the political level so that the bilateral relations are robust and strengthened.
Wen concurred with Singh that the issues which may arise in the bilateral relationship should be “properly handled” through discussions and they should not become impediments in the development of the friendly ties, N Ravi, secretary (East) in the Ministry of External Affairs, told reporters.
The two leaders did not discuss the issue of Arunachal Pradesh over which the two countries have sparred in the recent past.
Chinese state-run news agency Xinhua said the two leaders agreed to make efforts to gradually narrow differences on border issues.
Singh and Wen agreed to try to ensure peace and stability in the border area, saying this would be conducive to resolving the border issues and furthering bilateral cooperation, Xinhua reported.
The two sides agreed to continue talks with the aim of incrementally removing the barriers to a solution that was fair and acceptable to both sides, the Chinese agency said.
From the Indian side, Ravi only read out a prepared text but did not take any questions from the media.
The Chinese Premier said it was important that India and China should live in harmony and friendship and enjoy prosperity, Ravi said.
Describing Singh as an “old friend”, Wen said it was important to implement the agreements outlined in the 10-pronged strategy of 2006 and Vision Document of last year to “deepen mutually beneficial cooperation” on bilateral, regional and international issues.
“We want to have a healthy and steady relationship with India,” Wen said and expressed confidence that in the years ahead that the two countries will have good relations.
Wen referred to Singh’s remark that both countries have enough space to develop and cooperate and said that “there are sufficient areas in the world for India and China to enhance such cooperation”.
The meeting came as the two countries struck conciliatory notes after provocative statements from China on Arunachal Pradesh evoked a strong response from India.
Wen, while felicitating Singh on his re-election, recalled that in the past years they had reached important agreements on developing and strengthening bilateral ties.
“This serves the interests of the two countries, the region and the world,” he said while stressing the importance of high level visits to this end.
Terming his meeting with Wen as productive, Singh said it was a “good discussion” and the two sides agreed to further promote strategic and cooperative partnership and seek to build trust and understanding.
Singh, while reviewing with Wen the bilateral relations in all aspects, said he would like to see the ties move forward in every direction.
He described the economic and trade relations as “a vital pillar of our partnership” and referred to the exchanges in the defence field.
Singh noted India’s readiness to cooperate with China on global issues like climate change, world trade and the global financial crisis.
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