China ready to take sincere action to reduce trade deficit: Xi assures Modi

Chinese President Xi Jinping has assured Prime Minister Narendra Modi that Beijing is ready to take "sincere action" to reduce the trade deficit.

Addressing the media following the conclusion of Mamallapuram Summit, Foreign Secretary Vijay Gokhale said: "The two leaders held a "good discussion" on trade. As you know this has been the issue which has been a cause of concern. President Xi Jinping after hearing out PM Modi, assured that China is ready to take sincere action in this regard and to discuss in the very concrete way on how to reduce the trade deficit."

The Chinese President had arrived in Chennai on a two-days informal visit. He held a one-on-one discussion with Modi on various issues in the coastal historic city of Mamallapuram. They also discussed matters related to trade and the economy. The two leaders spent five hours of "quality time".

India and China have decided to establish a new mechanism to discuss trade, investment and services, at an "elevated level", Gokhale said.

"One of the important understanding which was reached between the two leaders was that a new mechanism will be established to discuss trade, investment and services, at an elevated level. From China, it will be the Vice Premier, Hu Chunhua and from India, it will be FM Nirmala Sitharaman," Gokhale said.

The location and the dates of the mechanism are yet to be decided. "The decision on- when and how this mechanism is to be activated will be done through the diplomatic channel. this was not something that the leader goes through," Gokhale said.

The foreign secretary said that President Xi also "welcomed" the investment from India into China including in information technology.

The two leaders started the second day of the summit with one-to-one talks which lasted for over an hour. Xi during the delegation-level talks said that he and Prime Minister Narendra Modi had "heart-to-heart" and "candid discussions like friends" on bilateral ties during the second informal summit here.

They concluded the summit with delegation-level talks between India and China.