‘India, China have wisdom to address boundary issue’

Chinese Premier Li Keqiang today said that India and China have the “wisdom” to find a mutually acceptable solution to the boundary problem and the two countries have not shied away from addressing the vexed issue.

Li also said that China will support its enterprises to increase investments in India and help Indian products have access to Chinese market as he supported a favourable trade balance to decrease the mounting bilateral trade deficit.

Trade imbalance

The trade imbalance is currently around $30 billion.

A day after two rounds of talks with Prime Minister Manmohan Singh, Li said that China has the intention to “sincerely” resolve the pending issues, including that of cross-border rivers, and favoured increased bilateral relations between the “two big neighbours’’.

Supporting a favourable trade balance and seeking to decrease the trade deficit between India and China, he said Beijing will support Chinese enterprises to increase investments in India and help Indian products have access to Chinese market.

‘New paradigm’ of cooperation

Addressing the Indian industry at a function organised by FICCI here, the Chinese premier said cooperation between the “two big neighbours” will lead to a “new paradigm” of cooperation.

“India and China have not shied away from addressing boundary question, have wisdom to find a fair and mutually acceptable solution...We have been able to put all issues on the table,” he said.

He also quoted a Chinese proverb — a distant relative may not be useful as a near neighbour — to emphasise on the relations between the two neighbours.

Bilateral relations

Invoking ancient relations between the two, he said: “we will be able to take the bilateral relations to new highs. We have launched a new agenda...taking India-China relations to a new starting point for further growth,” he said.

“We are one-third of the world’s total population and our interactions attract the world. Without doubt, China-India relations are most important global relations,” he said.

Stressing on the need for increased people-to-people interaction between India and China, Li declared 2014 as the year of exchanges between the two nations “so as to boost our understanding and friendship’’.

Li favoured peace and stability in the South-East Asia region and hoped that the “relevant issues” will be resolved soon.

“We have also discussed issues of regional security. We hope there is peace and stability in South Asia and a stable South-East Asia is consistent with China’s interests,” he said adding that Beijing will always be a “strong defender” of world peace.

On India-China trade relations, Li said it is imperative for the two countries to maintain a “dynamic trade balance“.

“India and China are huge markets with huge potentials...we will support Chinese enterprises to increase investments in India and help Indian products have access to Chinese market,” he said.

Bilateral trade target

While striving to realise the trade turnover target of $100 billion by 2015, the two countries agreed to take measures to address the issue of trade imbalance.

These include cooperation on pharmaceutical supervision, including registration, stronger links between Chinese enterprises and Indian IT industry, and completion of phytosanitary negotiations on agro-products, the joint statement said.

In 2012, the bilateral trade was $66 billion, a decline over $74 billion in 2011. The two countries have set a target of $100 billion by 2015 for bilateral trade.

Rising trade deficit

India faces a growing trade deficit vis-a-vis China. By end 2011, India’s trade deficit was $27 billion. According to Chinese trade figures released in January 2013, the figures rose to $29 billion by 2012.

Li said peaceful co-existence between India and China will be of global significance and they should seek cooperation from not afar but closely.

The cooperation between the two countries will induct a “new dynamism” in its relations, he said.

Noting that China is still a developing country, he said: “I want the voice of developing countries to be stronger. China and India are linked to each other through natural boundaries. Our friendly relations date back to ancient time.”

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