China and India, the two giants of Asia, have been talking (unconvincingly) of the possibility of a bilateral free trade agreement for several years. A feasibility study was completed in October 2008, but there is much opposition from India’s business sector as well as many other political complications that are likely to keep the idea on a very low flame for a while.
last update: May 2012
Photo: PP Yoonus / CC BY-SA 3.0
Not only has India failed to agree on its own trade and investment deal with the EU, the country has failed to capture any significant share of China-based global supply chains.
By opting out of RCEP, PM Modi had already shown the way. This is an opportunity for the domestic economy.
India has a Bilateral Investment Treaty with China since 2007. The treaty provides foreign investors the right to fair and equitable treatment.
India and China said a new committee, headed by senior ministers, will meet at the earliest and discuss ways to pare the $53-billion trade deficit between the two countries.
In the talks, the Chinese president also agreed to take sincere steps in a concrete way to address India’s concerns over ballooning trade deficit in China’s favour.
A spat between the world’s most populous countries is holding up a pan-Asian trade agreement encompassing nearly a third of all global trade.
In a presentation made by the Aluminium Association of India (AAI), the industry told the government that manufacturers were suffered owing to the impact of unfavourable free trade agreements.
Trade ministers of China and Japan pledged to further enhance bilateral economic and trade cooperation during their meeting here on Wednesday.
Did Prime Minister Modi and China’s President Xi Jinping agree at Wuhan that India would quietly join projects linked to China’s Belt and Road Initiative, while formally opposing the China Pakistan Economic Corridor which cuts through PoK?
The coming weeks will see a never-before intense bilateral engagement between India and China at the highest levels.