An eleven-member Chinese delegation was in Bangalore to promote bilateral trade between India and China and more particularly with Karnataka. The State’s apex industry association, the Federation of Karnataka Chambers of Commerce & Industry (FKCCI) played host to the Chinese delegation from the China Association for International Friendly Contact. indiamarkets.com News Service spoke with Chen Zuming, Deputy Secretary General, China Association for International Friendly Contact to find out more about their bilateral trade plans with India.

Here are the excerpts.

indiamarkets: Where do Indo-China relations stand as of today?
Zuming: At the outset, let me tell you we are here primarily to promote and improve bilateral relationships. After some setbacks to our trade relations in the recent past, we are both gradually emerging from that shadow of gloom, today. The leaders of both countries are adopting a very positive and practical approach towards improving trade.

indiamarkets: What are the main areas China is looking at for trade with India?
Zuming: We will primarily look into the agriculture sector. Our exports to India will mainly comprise farm products. Another area of interest would be the IT sector. We clearly acknowledge India’s stronghold in the global software industry today, but I must say that when it comes to hardware technology, China has a certain edge over India.

indiamarkets: Speaking about hardware technology, trends suggest that India maybe losing out to China with respect to outsourcing or contract manufacturing..
Zuming: Well, I wouldn’t fully agree with that. Yes, it is true that our small and medium sized manufacturers are doing well in this area. It is also true that we have an advantage when it comes to production costs. But, when it comes to using technology in these processes, India is at par with China. This is an important factor and India should learn to capitalize on this. Again with good bilateral relations, we can both work out this issue to our advantage.

indiamarkets: With the WTO era just round the corner, what is China’s stand, especially on its import policy?
Zuming: Many more such fora for a one-to-one exchange between experts of both countries could help our trade relations in a big way. With regard to our import policy, we have reached an agreement with India, especially on import of agricultural products. China is also soon likely to decrease the import duty on Indian products by up to 10 per cent, thereby helping Indian exporters. Specifically, India can look forward to attractive opportunities in China’s service sector.

One important thing that needs to be mentioned here is that China will adhere to WTO regulations very soon, thus opening up its markets to India just as for the rest of the world.

indiamarkets: What level of competition do you foresee between India and China in the WTO era? Definitely the years ahead portray a picture of stiffer-than-ever competition in Asia...
Zuming: Cooperation, rather than competition between India and China is what we must both aim at in the WTO era. Competition does have its positive aspects-such as the compulsive need for continuous upgradation, both in terms of technology and quality. But again, here cooperation could help us both mutually.

indiamarkets: What according to you effect growth in economy?
Zuming: To put it very crisply, I would say the following three points would be imperative for growth of any economy. A stable society, quick developments in all fronts to keep up the momentum of economic growth and finally, every country should adopt a unique policy of trade.