India, China to set up mechanism to trim trade deficit, improve investment

PM Modi said that the 'Chennai Connect' would add great momentum to India-China relations and would benefit the people of the two nations and the world

Prime Minister Narendra Modi and Chinese President Xi Jinping concluded their second informal summit on Saturday, rekindling the “Wuhan spirit” of their previous such meeting with “Chennai connect”. Xi promised to address India’s concerns on its trade deficit with China as well as its misgivings on the Regional Comprehensive Economic Partnership (RCEP) free-trade pact. 

The two sides agreed to set up a new “high-level economic and trade dialogue mechanism” to enhance trade and commercial ties. Chinese Vice Premier Hu Chunhua and Finance Minister Nirmala Sitharaman will head the mechanism, which will also identify sectors for mutual investments for joint manufacturing