Modi's China Visit To Focus On Economic, Trade Ties - Eastern Mirror
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Modi’s China visit to focus on economic, trade ties

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By EMN Updated: May 11, 2015 10:40 pm

PTI
BEIJING, MAY 11

Prime Minister Narendra Modi’s visit this week will focus on cementing India’s relationship with China by leveraging on their growing trade and economic ties, even as the two countries grapple with contentious issues of boundary and strategic regional rivalry. Serious differences continue to prevail on the border issue even as both sides are making efforts to ensure that peace and tranquillity prevails, officials said here ahead of Modi’s three-visit to China beginning on May 14.
Officials say China is not keen on the clarification of Mthe Line of Actual Control (LAC) proposed by Modi last year during the visit of Chinese President Xi Jinping.
The clarification of LAC ahead of the resolution of the boundary was expected to restrict aggressive patrolling from both sides.
Two incursions by the Chinese troops in the Ladakh area during Premier Li Keqiang and Xi’s visits to India in the last two years overshadowed the trips.
The incidents prompted Modi to suggest to Xi last year that clarification of LAC would greatly contribute in efforts to maintain peace and tranquillity of the border where troops from both sides often jostle to assert their claims and counter claims.
The issue was also discussed during the 18th round of the border talks held in New Delhi in February this year. External Affairs Minister Sushma Swaraj during her recent visit here said there is a need for an “out of the box” solution in order to not leave it for future generations.
China says the border dispute is confined only to 2,000 km mostly in Arunachal Pradesh whereas India asserts that the dispute covered the western side of the border spanning to about 4,000 km, especially the Aksai Chin area annexed by China in the 1962 war.
But despite differences, both sides are focussing on improving the relations between the border troops with operationalisation of hotlines both at the headquarter level and the commanders level.
Both sides have agreed for a fourth meeting between the commanders in Arunachal Pradesh.
Sources said despite the differences, both sides are keen to push forward the relations with focus on economic and trade issues.
Several agreements were expected to be signed in the meeting between Modi and Chinese Premier Li Keqiang here on May 15
Besides talks with Chinese Premier Li, Modi is set to meet top Chinese CEO including Alibaba founder Jack Ma and address India–China Business Forum at Shanghai on May 16, the last day of his visit.
China has committed to invest USD 20 billion in two industrial parks in Gujarat and Maharashtra in the next five years and the money has not started flowing into India yet.
Chinese officials complain of issues relating to visa access and red tape resulting in the delay of flow of investments.
Besides new investments, the two countries are set to sign a number of agreements to deepen cooperation in skill development.
Officials say the visit is poised for high optics in ancient Xian city where Modi will arrive for his visit.
It will be the first time since Xi took over power two years ago that he will be receiving a foreign leader outside Beijing and will spend considerable time informally interacting with Modi.
While it was seen as a reciprocal gesture by the Chinese leader to the reception Modi accorded to him during his visit to Ahmedabad last year.
The only other leader Xi has spent time walking around was with Barack Obama last year during APEC summit when he took the US President around Zhongnanhai, the imperial garden in Beijing where the top Chinese leadership resides.
Besides having restricted talks with Modi, in his native Xian city, Xi would take the Indian leader on a tour of the iconic Wild Goose Pagoda built in sixth century in recognition of monk Xuan Zang’s contribution in popularising Buddhism.
The visit to the spiritual structure assumes significance as Xuan undertook a journey to India in 645 AD through the ancient Silk Road and returned home after a 17-year-long sojourn with precious Buddhist scriptures. Modi would also be given a traditional Chinese imperial Tang dynasty welcome before the two leaders settle for a banquet.
In all, the two leaders were expected to spend about four hours or even more during which they were expected to have threadbare discussions on the border issue, China’s push for maritime silk road (MSR) project over which India has reservations and India’s big push for Chinese investments which will not happen without the nod from the government.
While playing down expectations of any breakthrough on the border dispute, Chinese officials said ahead of Modi’s visit that Beijing was keen to address India’s reservations over the MSR as it would run into problems if New Delhi is not on board.
China has already announced USD 40 billion fund for the silk road projects.

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By EMN Updated: May 11, 2015 10:40:00 pm
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