China's Wen pushes India trade

NEW DELHI – the Chinese Prime Minister Wen Jiabao, on his first trip here in five years, wanted that Wednesday from his country militant relationships develop more positive turn off attention with India towards: the growing trade relationship between the two fast-growing Asian economies.

Mr Wen talks with Indian and Chinese businessmen in his first public engagement during his visit, announced $16 billion in deals between the two countries in sectors, from telecommunications to out to makes and raw materials.

After the last years of the poor relations where China and India fell on its borders, visas and China's support for Pakistan, who Mr. Wen made a plea for an improvement in relations based on trade.

Getty Images Indian Prime Minister Manmohan Singh and the Chinese Prime Minister Wen Jiabao held a joint press conference in Beijing on 14 January 2008.

"Some media have described China and India as opponent." I this view do not agree with ", said Mr Wen. "There is enough room in the world for China and India." "We both are economic cooperation and trade to win."

India's economy grows, both China and the United States hope to increase ties here. In November, President Barack Obama announced on a trip to export India, $10 billion in services for U.S. companies in India. British Prime Minister David Cameron announced in July, a defence deal worth $1.1 billion.

China hopes push your trade agenda to push the United States and other Western countries as a major driver of India's growth. India is also interested in Chinese know-how and financial muscle to use as it prepares to spend up to $1 trillion in infrastructure development in the coming years.

Mr put Wen a vision in which India's and China's economic strengths complement each other: China engineering and infrastructure; India in information technology and pharmaceuticals.

"The 21st century is the Asian century," Wen said Mr. "It is the century in which China and India can make great achievements." Anand Sharma, India's Minister for trade and industry, suggested a similar tone: "we strengthen, the synergies are."

But Mr Wen confirmed the huge trade imbalance currently bedeviling India's commercial relationship with China. Twentyfold grown two way trade since 2000 and is expected to reach $60 billion this year, i.e. China probably already is India's largest trading partner.

India, is however a relatively minor supplier were in China, mainly on exports of were like iron ore, makes Chinese during the import of high value and leave telecommunications equipment. New Delhi regularly complains about the Chinese dumping of the products on its markets and obstacles to its exports of higher value such as pharmaceutical and telecommunications products to China.

Mr Wen said China stand ready to facilitate better access to Indian exports but did not specify what Beijing plans to take. He calls India soon to start talks towards a free trade agreement, and for the removal of barriers to investment, a reference to India often protective policies mean that no Chinese banks operate here while 10 Indian banks have branches in China.

Indian officials say, Pact talks about a free trade area are unlikely until Beijing some removed its barriers and moves to other political tensions between the two countries across borders and other problems to solve.

Many of the deals announced Wednesday for Indian companies to export products such as frozen fish, iron ore and yarn to China. But the larger deals were arrangements for Chinese banks to finance the purchase of Indian companies of Chinese exports of goods from the energy and telecommunications sectors.

India's reliance on exports of raw materials makes it "look like an African country in China," said Brahma Chellaney, Professor of strategic studies at the New Delhi-based Center for policy research think tank, referring to China's massive investment in mines in Africa.

There was some confusion about the exact amount of offers to say was a cumulative $ 20 billion with Indian officials earlier Wednesday. Many of the larger makes and appeared previously announced Telekom agreements have been. Officials on both sides were at a loss to explain the difference.

One of the offerings to help companies in October for a loan of an undisclosed size from China development a list that was provided by the Confederation of Indian industry, acquire Bank, Indian conglomerate reliance ADA group, power-producing installations from Shanghai Electric group co. signed an agreement for reliance to buy $10 billion in equipment.

Despite the focus on trade in a number of political issues hang over China's relations with India and are expected to be addressed if Mr Thursday Wen meets with Indian Prime Minister Manmohan Singh.

A year ago a dispute over the countries was led in the Himalayas and has still not settled. India suspended this summer and China high-level military Exchange to China denied a visa for an official visit to give Indian General and still have to continue.

China backed by Pakistan, India's regional rival, has also relations sour. Beijing helps Pakistan to build civilian nuclear reactors and has financed the construction of roads, railways and ports.

China's plan to build a massive dam on the River Brahmaputra, which began in November has now, angered India, shares the downstream parts of the River.

Compensate for China, India has forging defence and economic relations with other Asian countries were closer, also afraid of China of strong diplomacy in recent months are recorded with Japan and Viet Nam angry territorial gaiters.

India strengthened defence cooperation with Japan and South Korea. A free trade agreement with Korea came this year effect and New Delhi is working on a similar agreement with Japan.

Write toTom Wright in the tom.wright@wsj.com

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