Indo China Relations Essay
1. Rise of India and China Changing Global Balance:According to Singapore's Minister Mentor Lee Kuan Yew, the rise of India and China was changing the global balance. India and China together account for 40 per cent of the world's working age population and 19 per cent of the global economy in PPP (Purchasing Power Parity) terms, according to Mr. Lee. In the next 20 years their collective share of the global economy could match their percentage of the global population.
2. Asian Renaissance will Depend on How India and China Work Together:Mr. Lee stressed that Asia's place in the world would depend on how both India and China work together as they rise and …show more content…
C. India Asked China to Correct the Trade Imbalance:India's then Commerce Minister Kamal Nath proposed to the Chinese side to look into lifting non-trade barriers and technical barriers to trade against India, as a matter of priority. Specifically, he asked that Indian vegetables and fruits be given access to Chinese markets.
D. Negotiations for a Regional Trade Agreement (RTA):Chinese experts have suggested an early negotiation of a Regional Trade Agreement (RTA) as a possible solution to overcome India's trade deficit with China. A Joint Task Force was set up by India and China to study the feasibility of an RTA.
E. Indian Industry Opposed to RTA with China:
Indian industry is strongly opposed to a RTA with China, according to the President of the Confederation of Indian Industry, Sunil Bharti Mittal. * Indian industry has urged the Government to use utmost restraint when negotiating the matter with China. * More time is needed to ascertain that a RTA would not be used to swamp Indian markets with cheap Chinese goods. India is already an instigator of anti-dumping investigations against China. * An RTA could involve the recognition of China as a market economy, which India is reluctant to grant due to continued suspicions regarding the transparency of pricing and