Editorials

Look beyond trade

(China Daily)
Updated: 2010-05-11 07:53

Ediotr's note: The Indian side should view its trade ties with China from the broader perspective of Sino-Indian friendship and make concrete efforts to root out obstacles in the way of bilateral trade.

China and India should handle ongoing trade frictions delicately. That will add sincerity to the mutual promise of honoring commitments on taking the relationship to a new level this year, the 60th anniversary of the establishment of diplomatic relations between the Asian powers.

Trade ties hit a rough patch recently after India reportedly suspended approval for the import of Chinese telecom equipment due to so-called security risks.

In fact, skirmishes over trade have arisen from time to time in recent years, with most such disputes being instigated by the Indian side.

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The latest import restriction violates World Trade Organization norms. Worse, it could chill Sino-Indian friendship, which has been warming of late due to positive efforts by leaders on both sides.

China and India share a common interest in ratcheting up national economic growth, and their economies increasingly complement each other.

A stable trade relationship is a win-win deal for both nations, and one that also benefits the global economy.

The overall trade outlook is still rosy, with the first two months of this year recording a jump in bilateral trade by 55 percent from the same period last year. Notably, of the total $8.98 billion, Indian exports touched $3.49 billion, a 75 percent increase from 2009.

The Indian side should view its trade ties with China from the broader perspective of Sino-Indian friendship and make concrete efforts to root out obstacles in the way of bilateral trade. In this regard, the remarks by Indian Environment Minister Jairam Ramesh seem prudent. Ramesh said over the weekend in Beijing that India should take a "much more relaxed" approach to Chinese investments and remove "needless" restrictions.

To dispel suspicion about Chinese investments, India should treat China more as a trustworthy partner instead of as a potential competitor. A higher degree of political trust is needed to build a healthier economic and trade relationship.

(China Daily 05/11/2010 page8)