MAY 2015

POINT
OUT
INDO CHINA
highways, pipelines and communication
nodes.
The Chinese want India to join in, Modi
would have back pedalled.
Climate change has been given another
shot in the arm, both sides seeking to build
on past cooperation. In fact, it merited a
separate document, and came as a bit of
a surprise given the two sides have taken
different views on it.
The new element was the door being
opened for direct contacts between Indian
states and Chinese provinces, which is
clearly driven by the prime minister’s
conviction that development really lies
in the states and state governments
must foster policies and environments
that result in growth. New consulates in
Chennai and Chengdu are expected to
help in this process, as also Modi’s decision
to overrule security concerns and allow
e-visas for Chinese tourists.
There was reference to the “skewed”
bilateral trade, a euphemism for India’s
ballooning trade deficit with China
now hovering close to the $40 bn mark.
Brahma Chellaney, professor of strategic
studies in Delhi’s Centre for Policy
the new element was the door being opened for direct contacts
between indian states and chinese provinces, which is clearly driven
by the prime minister’s conviction that development really lies in the
states and state governments must foster policies and environments
that result in growth. new consulates in chennai and chengdu are
expected to help in this process, as also modi’s decision to overrule
security concerns and allow e-visas for chinese tourists.
Research, warns that the commercial deals
signed in Shanghai may only worsen the
deficit “with Chinese state owned banks
financing Indian firms to buy Chinese
equipment … while doing little to boost
China’s little investment in India which
totals just one per cent of China’s annual
trade surplus”.
India is expected to tap China’s expertise
in running high speed and bullet trains but
rather than have it built for us, would prefer
technology and skills be transferred here.
Whether China is willing remains to be seen.
Much has been reported in the media
about China’s poor response to earlier
commitments of investment. About $20 bn
was committed when Modi and Xi Jinping
met last year. This time the figures are even
lower at $10 bn. This may have something
to do with India needing to get its own
act together in terms of infrastructure but
equally, China needs to step up to the plate
and deliver.
Modi and Xi have carved out space at the
highest level. Now comes the hard part for
both sides, following up on the agreements
signed, facilitating policies and cutting
through red tape, getting things to move
on the ground. After the Ni Haos and
Namastes, there’s a lot of work to be done.
28
maY 2015