CHEN Deming
Minister of Commerce
People's Republic of China
China and India are both ancient civilizations endowed with a rich history. Cultural exchanges and commercial ties between the two countries date back to a long time ago. Accomplished Chinese monks Fa-Hien and Xuanzang who traveled westward to India to acquire Buddist scriptures and Kuchean Buddist monk Kumarajiva and Zen master Damo who bore Buddhist classics all the way to China are the testimony of friendship between the two peoples. Having embarked on the fast track of economic and social development, today China and India are demonstrating to the rest of the world the bright future of the two countries and Asia's rise.
As the two largest developing countries, China and India share similar national realities and are at similar development stages, and the two economies are strongly complementary to each other. It is for the need of continuing economic and social development and in the fundamental interests of the two peoples that China and India deepen their bilateral economic and trade relations. Thanks to concerted efforts of the two sides, two-way trade and economic cooperation has scored remarkable progress and become a highlight of the overall bilateral relationship. According to Chinese statistics China-India trade grew from USD 2.9 billion in 2000 to USD 51.8 billion in 2008, registering a 16-fold increase in eight-year time and a 43% annual growth rate. At present China is India's largest trading partner while India China's top trading partner in South Asia. Cooperation in infrastructure construction has been moving forward rapidly. Since 2006 Chinese companies have completed in India engineering projects with a cumulative value of USD 11.1 billion, and these projects help improve the condition of India's infrastructure. Mutual investment has been increasing steadily. Cumulative Indian investments in China have exceeded USD 300 million while Chinese investments in India amounted to USD 250 million. In addition, the two countries have been working closely to safeguard the legitimate rights and interests of developing countries in the multilateral trading system and climate change negotiations, among others.
The development of China and that of India are mutually reinforcing rather than exclusive. Since India is well known for its IT industry and China good at manufacturing, the two can learn from each other’s strengths to offset their own weaknesses. Given their mature technologies and good value for money, Chinese companies and equipment are a good choice for India to upgrade infrastructure. Meanwhile India’s strength and best practices in finance, education, health care, and private economy merit China’s learning. More importantly, both countries are undertaking the unprecedented cause of providing one third of the world population with the benefit of modernization and industrialization. Therefore the two countries face many similar challenges when moving forward. We have more reasons than ever to learn from each other, and I agree with Prime Minster Manmohan Singh that both India and China have immense opportunities to work together and there is ample space in the world to accommodate the growth ambitions of both countries.
The world economy is in a time of great development, great re-adjustment and great transformation with a more visible prospect of multi-polarization. As globalization continues, the world economic pattern will undergo new changes. As important emerging economies, China and India share many opportunities as well as challenges. To deepen bilateral trade and economic cooperation helps the two countries sharpen their competitive edges, enables common development, and contributes to the overall development of the developing community and the prosperity and advancement of Asia.
To strengthen strategic mutual trust and cement the foundation for economic and trade relations. China and India are partners instead of rivals. Chinese and Indian experiences both show that only openness can lead to progress, only cooperation can lead to development, and losses incurred by protectionism and isolation outweigh the gains. Both countries should strengthen communication and consultation to reduce unnecessary trade remedy and restrictive measures, and resolve economic and trade issues through dialogue and consultation. As big countries in Asia, China and India are both engaged in regional cooperation. The two countries shall discuss regional trade arrangements with a forwardlooking attitude to elevate and deepen bilateral trade and economic relations.
To expand trade size and promote balanced growth of trade. The size and development potential of the Chinese and Indian economies indicate that there is huge room for further growth of bilateral trade and economic cooperation. We on the part of China are aware that the two-way trade is in favour of China, and we do not intentionally pursue a trade surplus. China has taken proactive measures in recent years to increase import from India. In 2008 the Chinese side organized buying missions to India for the first time and purchased over USD 400 million worth of products. Committed to stimulating consumption, China welcomes Indian companies to explore the Chinese market and increase their exports to China. Meanwhile, the Chinese side supports companies of both countries to carry out trade and investment in fields like information technology, energy conservation and environmental protection, infrastructure and agricultural development to supplement each other and foster new growth opportunities.
To improve public services and create a sound environment for cooperation. Businesses are the main players in the trade and economic arena, and the two governments should take measures to facilitate business and personnel exchanges. Trade and investment facilitation should be advanced to create an equitable, transparent and predictable regulatory environment for companies of both countries. Business associations from the two sides should be allowed to play a bigger role in enabling mutual understanding of the two business communities and their efforts of exploring each other’s market. More information about the benefits of bilateral cooperation should be disseminated to erase miscommunication, dispel suspicion, and enhance mutual trust.
To strengthen cooperation in multilateral arena and safeguard the interests of developing countries. As the international systems are experiencing profound transformation, China and India are duty-bound to shape a new international economic order which is fair and rational and to safeguard legitimate rights and interests of the developing community. The two countries should strengthen communication and coordination on major issues like financial crisis, institutional reform for global governance, Doha Round negotiations, and climate change in a bid to protect the shared interests of developing countries and contribute to a balanced and coordinated development of the world economy.
This year marks the 60th anniversary of the founding of diplomatic relations between China and India. Looking back upon the history, we can see that Chinese and Indian people have always been together on their path and in their destiny, as Mahatma Gandhi once said that China and India have always stood together and gone the same way. I believe in the 21st century China and India will live in greater harmony, work closely in a spirit of mutual benefit and win-win, and create a brighter future.