Indo-China bilateral trade reflected a downward trend in the first half of this year due to the global economic scenario.

But in the long run, the two countries have ample opportunities to step up trade and investment, especially in sectors such as construction, IT, pharma and energy.

This was the view that emerged at the end of a seminar on ‘Doing Business with China’, organised by the CII here today.

During the first half of 2012, the bilateral trade volume was $32.4 billion, down by three per cent. While the investment from China to India was $15 million, down by 37 per cent, the project contract volume was less than $2 billion, down as much as 83 per cent.

“But I still believe there is huge potential to explore. For example, China is relatively strong in tourism and transport, while India’s advantages are software, IT, finance and insurance,” Ms Tian Xiaoqin, Secretary, Economic and Commercial Embassy of the People's Republic of China, pointed out.

Chinese statistics show that China’s cumulative investment in India reached $590 million by end-June, while Indian FDI in China touched $469 million.

Construction is seen as a major sector for bi-lateral engagement between the two countries. By June , Chinese companies have signed projects in India worth $57.6 billion and completed turnover of $29.8 billion. With India planning to invest $1 trillion in infrastructure development, this could offer a potential platform for Sino-India economic cooperation.

Dr Henry Siling Li, Deputy Director, China Executive Leadership Academy, pointed out that the rising labour cost was a major concern in China.

“Earlier, we had the labour cost advantage, but today our labour cost is more than in India,” he pointed out.

amitmitra@thehindu.co.in

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