Brushing away fears of yet another diplomatic spat between Delhi and Beijing, Wang Xuefeng, consular at the Embassy of China in India said “In the past three years, Chinese enterprises have completed India infrastructural projects with a total value of ten billion dollars. The two-way investment is also showing a booming trend. China’s ever-growing market also means huge space for Indian companies.” The statement comes a few weeks after the India-China South Sea Dispute, two weeks after China postponed defence talks, days after India canned plans for 51 percent foreign direct investment in multi-brand retail and two days after China released 13 India diamond traders who illegally carried diamonds from duty free Hong Kong into Mainland China, where high import duties on diamonds apply.
Frosty ties have brought with them heightened uncertainties and distrust amongst the two nations. Skirmishes between the neighbors are rising, while this could be attributed to India’s firmer stance on bilateral relations, the tensions are not easing corporate anxieties which are already high due to the European crisis. The postponed defence talks between generals from both armies will take place today and are expected to pave the way for friendlier ties to come. Nonetheless, China-India relations are nowhere near where they were a year ago when Premiere Wen Jiabao visited India and proposed several multi-billion dollar deals in addition to strengthened cultural and people to people collaborations.
Trade is booming between the two nations, Indian exports to China which comprise mostly metals, ores, iron and steel, cotton jumped 68.8 percent to US$19.6 billion in 2010-11 from US$11.6 billion in the previous year. The imports also increased 41 percent to US$43.5 billion from US$30.8 billion in the same period. Indian imports from China comprise electrical machinery and equipment, nuclear reactors and boilers, organic chemicals, fertilisers, finished iron and steel.