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BRICS Summit: China Seeks India’s Cooperation in Trade after Doklam Standoff

BRICS Summit: China Seeks India’s Cooperation in Trade after Doklam Standoff

After failing to push back India in Doklam standoff, China now seeks India’s cooperation in trade. President Xi showed great hospitality to India at BRICS Summit, depicting change in strategy from China’s Side.

All that Matters is Business

During the bilateral talks on the sidelines of BRICS Summit with India, China clearly signaled trade cooperation with India. China has fear that India may think on decreasing trade ties with China. India has a trade deficit of $51.1 billion with China and that is why China wants India not to think of decreasing such ties. The total trade between the two countries amounts to $71 billion where China’s export to India is $62 billion. On the other hand, there has been a significant growth in investment from China in last few years. China’s investment in India for 2016-17 was $ 278 million which was less yet it has improved from the figure of 2011 where FDI from China was only $101 million.

In the bilateral talks, Xi called for bringing ties on the right track and reaffirmed that the difference between the two countries should not exceed to disputes. Xi even said that China is ready to work with India and wants India’s guidance in pursuing the five principles of Panchsheel, a treaty signed between both the countries in 1954. Foreign Secretary S. Jaishankar said that the talks between the two leaders was extremely constructive and their discussion were only forward looking.

Positive Cooperation will help both the Countries 

India is keen on getting more FDIs from China which is relatively less compared to the rest countries. India has concern over the trade deficit growing between the two countries. Experts have noted that India has economic bargain power over China because of huge exports from China. India can use trade as a measure to silent and push back China on different issues. Something China has understood now. Investment from China will help in reducing trade deficit and India is also thinking to avoid Chinese investment in critical sectors like telecom and electronics.

India’s success over Doklam standoff issue has somewhere pushed China backwards. Trump’s threat of economic sanctions over China is also the reason why China doesn’t want any more disputes. This is the phase when India can take the charge and benefit immensely from China.

Featured Image Source: Tweet by Narendra Modi

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