Bilateral trade between China and India is expected to
hit US$20 billion this year, fulfilling the target set by both governments two
years ahead of schedule.
The information was revealed
by the Ministry of Commerce spokesperson Chong Quan. The prediction was based on
the fact that imports and exports between the two countries hit US$17.9 billion
in the first three quarters of the year.
China's President Hu Jintao
(R) shakes hands with Chief of India's ruling Congress party Sonia Gandhi
before their meeting in New Delhi November 21, 2006. India and China
agreed on Tuesday to boost trade and renew efforts to solve their border
dispute, adding there was enough room for the Asian giants to grow
together while remaining sensitive to the other's concerns.
"China and India are complementary in trade," Chong said. "And the potential
The 45 per cent average annual growth in trade has made China India's second
largest trading partner after the United States, and helped India become China's
11th largest trading partner.
According to a study undertaken by the Associated Chambers of Commerce and
Industry of India, Sino-Indian bilateral trade is likely to touch US$50 billion
China and India enjoy great potential in economic co-operation, said Zheng
Ruixiang, former ambassador to India. He added that China is advanced in
hardware and manufacturing sectors while India is good at software and services
He said both governments are striving to promote bilateral trade and
investment flows, and "China's national policy to develop the Western region is
expected to further boost co-operation in the sub-region."
In another development, China's foreign direct investment (FDI) to India
climbed to US$48.47 million by September, touching sectors including
communications and light industry. India's realized investment in China's
non-financial sectors totalled US$136 million.
Chong said it is just the beginning of bilateral investment.
However, the Indian Government sought to restrict Chinese FDI in strategic
sectors such as airports, ports, telecommunications and information technology.
In September, the Indian Government directed the Chennai and Mumbai port
trusts to reject a bid by Hutchison Port Holdings on security grounds.
The same happened in a US$4 billion tender for a GSM
telephone system floated by Indian government-controlled Bharat Sanchar Nigam
Ltd. China's ZTE communications and US Motorola were rejected, a sign that entry
into India's booming infrastructure market is not going to be