China Pushes India Investments

China is currently focusing on making investments in India. This is quite timely, given that Xi Jinping, China’s President, is scheduled to make a visit to the country. The focus is transport. China is seeking to enhance railways in India while constructing expressways.

China-to-IndiaTo further improve relations and investment opportunities between the two countries, China’s Foreign Minister, Wang Yi committed to China continuing the trend of issuing visas to Arunachal Pradesh residents, one of India’s 29 states. It is hoped that this will be seen as a “goodwill gesture” to Indian citizens.

Wang has pointed out that these days there are “consultations and a positive attitude” between the two countries, which facilitates the process of issue resolution as it arises.

What all this shows also is that China is committed to supporting India with its economic progress. Of India Wang said that his country “stands by your side throughout your efforts of reform and development. No country can choose its neighbour, but friendship may be fostered.”

This sentiment was echoed by India’s Ministry of External Affairs spokesman, Syed Akbaruddin, who pointed out that, “both leaders felt that there was tremendous untapped potential for the growth of economic ties.” Still, before these efforts can move forward, there is some significant unfinished business.   The fact is, India runs a $40 billion trade deficit with China. There is a chance of China putting money into industrial parks in India. This might help rebalance trade.

In conclusion, there is work to be done but if the trend of positive attitudes and communication is maintained, a large space could be created for China India investments to move forward.