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Free trade between India, China?
Published in The Saudi Gazette on 14 - 12 - 2010

BEIJING: Chinese Premier Wen Jiabao visits India and Pakistan this week with the delicate task of easing Indian suspicions about China's rise while reaffirming close ties with New Delhi's rival Islamabad.
Wen travels to Asia's other rising giant India on Wednesday for an expected two-day visit with an agenda topped by festering border disputes that have vexed ties between the world's two most populous countries for decades.
He then travels to Pakistan for a three-day stop where a range of deals will highlight the two sides' close relations.
In New Delhi, Wen – who said in October there is “enough space in the world” for China and India – is expected to highlight increasing trade and developing-country solidarity in talks with his counterpart Manmohan Singh.
But Beijing's ambassador to New Delhi Zhang Yan admitted Monday the relationship was “fragile” and needed “special care”, while analysts said India was likely to raise a number of concerns. These include their competing claims over Himalayan border regions – which saw them fight a war in 1962 and an issue which has come to the fore again with recent strong assertions by China of its territorial rights.
Indian Foreign Secretary Nirupama Rao said recently ties will improve if “China shows more sensitivity on core issues that impinge on (India's) sovereignty and territorial integrity.”
Analysts, however, expect no breakthroughs on the border issue. “The Indian government has not been forthright in raising strategic issues with China and now is the right time for them to sensitize China,” said Sujit Datta, an international conflict expert at Jamia Millia Islamia University in New Delhi.
Delhi is also concerned about alleged trade barriers that contribute to a trade deficit with China estimated by some at 25 billion dollars this year. Zhang suggested Monday that the two countries “should work together as a world factory and world office,” while Liang Wentao, deputy director general of China's commerce ministry, said the trade imbalance was due to structural factors.
He again dismissed Indian concerns over a dam on the Brahmaputra river in Tibet that has raised fears it could disrupt water supplies downstream in India and harm ecosystems.
A further irritant is Beijing's unwillingness to back India joining it as a permanent member of the UN Security Council, unlike US President Barack Obama. Wen's trip to Pakistan, meanwhile, will aim to further cement a relationship both sides describe as “all-weather.”
China will announce it has extended cooperation in 36 development projects in Pakistan and will sign agreements in energy, infrastructure and other sectors, Pakistani foreign office spokesman Abdul Basit said.
Wen will meet with Pakistan's president and prime minister, and address parliament, a rare honor.
– Agence France


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