Published On: Thu, May 14th, 2015

India’s PM Visits China To Discuss Trade

Prime Minister Narendra Modi with Chinese President Xi

Indian Prime Minister Narendra Modi with Chinese President Xi Junping.

Indian Prime Minister Narendra Modi is on an official visit in China where he will discuss Chinese investment of more than $20 billion in India’s railroad, pharmaceuticals and industrial infrastructure with China’s President Xi Junping. Behind the bilateral conversations there will probably be strategy related talks since both countries have been under tensioned relations of late.

India wants to boost its relations with China as it’s closest and the most economically reliable ally, but there are a few issues that have come between the two countries. Last September whilst the Chinese President was enjoying a reception in India his military stormed disputed territory on the Himalayan border. Chinese soldiers caught India’s officials off guard and the conflict itself lasted for almost two weeks. It ended up with a settlement and was put aside as a matter that will be solved diplomatically. Modi was ridiculed and after the event it left India concerned what Chinas plan actually are.

There are numerous other moves from both sides that raise question what the end game plan is for the two. Publicly agreements are being made, but behind each other backs it’s not that clear who is planning what.

China is investing in a 3,000 kilometer long railroad through Pakistan, India’s rival, with the deal worth around $45 billion which will help China reach the Arabian sea. Also, Chinese submarines are scouting te Indian Ocean for copper, zinc and precious metals without permission increasing its dominance on territory that belongs to India.

On the other hand India took the US’s side in the South China Sea conflict where Beijing’s government asked them not to involve themselves. Also, India signed a strategic partnership worth $35 billion with Japan to improve its navy.

Looking at both countries history it’s not very clear to anyone how the two will make a deal and even more how will they stick to them.

Modi met Xi in his hometown lavishly welcomed by red robed monks and terracotta warriors. On Friday he will meet China’s Premiere Li Keqiang and on Sunday he will meet Chinese businessmen in Shanghai.

The two most populous countries have many reasons to cooperate. Big markets on the both sides could help them in many ways. Last year commerce between the two exceeded $75 billion, but India reported the biggest shortfall of $42 billion in goods such as heavy machinery, home appliances and telecommunication equipment.

Many experts consider that one visit won’t be enough for the two to overcome their disagreements, especially ones related to territory. Indian officials accuse China of occupying 38,000 square kilometers in Jammu and Kashmir, while China claims they are the rightful owners of 90,000 square kilometers in the Indian state of Arunachal Pradesh which is an area the size of England.

Either way to succeed in their partnership both will have to give up on something or find common ground to make any kind of deal work.

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