Chinese President Xi Jinping shakes hands with Indian Prime Minister Narendra Modi during the G20 Summit in Hangzhou, Zhejiang province, China September 4, 2016.
China and India may be talking about improving their trade relationship but there is little action to go with the words.
According to Indian government officials and representatives of various Indian trade bodies, progress is very slow - and may even be getting slower after last weekend's truce between the United States and China in their trade war.
Both India and China have sought to rebuild trust after a armed standoff over a stretch of the Himalayan border last year.
Indian Prime Minister Narendra Modi and Chinese President Xi Jinping have met a number of times this year to give impetus to the trade discussions. The latest was last week, when they met on the sidelines of the G20 meeting in Argentina.
China on Thursday expressed confidence in striking a trade deal with the United States within their 90-day ceasefire period, praising the recent meeting between U.S. President Donald Trump and Chinese President Xi Jinping as highly successful.In Argentina last weekend, Trump and Xi agreed to a truce that delayed the planned Jan. 1 U.S. hike of tariffs to 25 percent from 10 percent on $200 billion of Chinese goods while they negotiate a trade deal."We are very confident in reaching an agreement (with the United States) within the next 90 days," China's commerce ministry spokesman Gao Feng said in a weekly briefing, adding both sides have been communicating and cooperating "smoothly" since the leaders met in Argentina.China's ultimate goal during the 90-day trade talks is to remove all U.S. tariffs imposed on Chinese goods, Gao said.China commerce ministry says goal in trade talks with US is to remove all tariffsHis comments come as the arrest of a top executive of Chinese tech giant Huawei by Canadian authorities, on Washington's request, threatens to spark a flare-up in tensions between the world's two economic powerhouses once again.The two countries have hit each other with tit-for-tariffs on goods worth hundreds of billions of dollars in sectors from automobiles to agriculture and energy, stymying trade and redrawing global supply chains.Gao confirmed for the first time since the high-stakes meeting that China had agreed to implement consensus reached by both sides on agriculture, energy and cars, although he did not give details on any specific measures."We will start with agricultural products, energy, automobiles to immediately implement the issues that the two sides have reached consensus," Gao said, when asked about what is on the negotiation agenda.China telecoms giant Huawei CFO arrested in Canada"Then, in the next 90 days, we will follow a clear timetable and roadmap to negotiate on issues such as intellectual property right protection, tech cooperation, market access and trade balance," he said, stressing the consultations should be based on meeting the interests of both parties.The White House has said China had committed to start buying more American products and lifting tariff and non-tariff barriers immediately, while beginning talks on structural changes with respect to forced technology transfers and intellectual property protection.The United States has levied additional duties of between 10 percent and 25 percent on $250 billion of Chinese goods this year as punishment for what it calls China's unfair trade practices. China has responded with its own tariffs.Huawei founder's daughter arrested on US request, puts trade war truce in doubt"China and United States have reached very important consensus as both sides' interests overlap," Gao said. His comments echoed earlier remarks made by senior Chinese diplomat Wang Yi, who said the meeting was "friendly and candid" and would help to avoid further trade tensions."All of these help to safeguard China's legitimate interests, and are also in the interests of the United States, and even more are in line with the expectations of the international community," he added in a statement carried on the foreign ministry's website.But global markets have been nervous about the prospects of a Sino-U.S. trade dispute spilling over to growing rivalry between both sides in areas such as technology, and many economists have remained cautious about being too optimistic on a temporary truce.The daughter of Huawei's founder is facing extradition to the United States, dealing a blow to hopes of an easing of Sino-U.S. trade tensions and rocking global stock markets.Trump also warned this week of more tariffs if the two sides could not resolve their differences.
China hails Trump-Xi summit, says 'very confident' in trade deal
Indian and Chinese officials said after that meeting there was talk of Beijing increasing its soymeal, rapeseed meal, rice and sugar imports from India, while China would push for more Chinese exports of dairy products, apples and pears to India.
India is also keen to increase its exports of drugs to China.
In reality, though, getting such exchanges turned into deals is going to be a laborious process.
"When we say the Chinese are receptive, it means the talks are happening, but it's going slow," said one senior Indian government official with direct knowledge of the discussions. "It can be termed as progress because just a few months ago, we weren't even talking," said the official, who did not wish to be named because he is not authorised to talk to media.
The Chinese commerce ministry did not respond to a faxed request for comment for this article.
China's commerce ministry said on Thursday that the ultimate goal in Sino-U.S. trade talks is to remove all tariffs, adding that the recent meeting between U.S. President Donald Trump and Chinese President Xi Jinping had been successful.In Argentina last weekend, Trump and Xi agreed to a 90-day truce that delayed the planned Jan. 1 U.S. hike of tariffs to 25 percent from 10 percent on $200 billion of Chinese goods while they negotiate a trade deal.China has reached a consensus with the United States on agriculture, energy and cars, and what has been agreed will be implemented immediately, Gao Feng, spokesman at the commerce ministry, told reporters.China and the United States will continue to hold talks on agriculture, energy, services and other sectors, Gao said, adding that China is very confident of reaching an agreement on trade with the United States in the 90-day period. China telecoms giant Huawei CFO arrested in CanadaHuawei founder's daughter arrested on US request, puts trade war truce in doubt
China commerce ministry says goal in trade talks with US is to remove all tariffs
Bilateral trade between China and India touched $89.71 billion in the year ending March 2018, with the trade deficit widening to $63.05 billion in China's favour, more than a nine-fold increase over the past decade.
The Indian government is very keen to reduce that gap. A recent study commissioned by India's trade ministry and reviewed by Reuters, said: "There is no bilateral trade relationship of greater economic and political significance for India than with China."
The reduction in trade tensions between Washington and Beijing, which has led to a delay in the imposition of larger punitive tariffs by the United States pending further trade talks over a 90-day period, means that the Chinese government may not feel the need to speed up its discussions with New Delhi, Indian officials said.
The government has received calls from jittery exporters who want to know whether the improvement in the relationship between China and the United States would make India's position weaker, said the senior Indian government official.
Security has been tightened in Uttar Pradesh, India on the eve of Thursday’s 26th anniversary of the demolition of a 16th-century mosque.A senior official in the Uttar Pradesh government told Anadolu Agency that sufficient security arrangements have been made and security has been deployed in all sensitive places, to prevent any untoward incidents in the northern town of Ayodhya.“We’re keeping a close eye of the sensitive places, and additional security personnel have been deployed as well,” the official said on condition of anonymity.India drains lake after discovery of HIV-infected bodyThis time, officials say, they are taking more measures keeping in view fresh tensions in the town from Nov. 25, when thousands of Hindus nationalists descended on Ayodhya to demand the construction of a temple at a site where the historic Babri Mosque once stood.There have recently been renewed efforts by Hindus in India to promote building a temple in Ayodhya.In December 1992, Hindus gathered at the disputed site and destroyed the 16th-century mosque named after Mughal Emperor Babur. The destruction sparked nationwide riots that left around 2,000 people dead. Muslims have demanded a new mosque at the site. Hindus claim that this was where their god Ram was born, demanding instead a temple be erected there. The Indian Supreme Court is set to hear the case in January.China, India and US to drive global power transmissionImpatience and nationalist votesRight-wing Hindu leaders, however, are saying the time has come when governments should build the temple.“We can’t wait so long. We’re demanding that an ordinance should be come up in Parliament so that temple can come up soon,” Vinod Bansal, national spokesperson for the right-wing Vishwa Hindu Parishad (VHP), told Anadolu Agency.He said saints and VHP leaders are meeting on Dec. 9, in New Delhi, to again demand that the government introduce a measure to build a temple.Indian police probe if violence over dead cow was result of conspiracyThe Press Trust of India (PTI) quoted Sharad Sharma, another VHP spokesperson, saying that on Thursday the VHP and various Hindu groups in Ayodhya are likely to organize “a number of religious programs, including a hawan, so that a grand temple of Lord Ram is built."Muslim leaders, however, say that only the top court will resolve the issue.Tasleem Rahmani, head of the New Delhi-based Muslim Political Council, told Anadolu Agency: “It is the duty of everyone to wait for the final verdict of the Supreme Court. The matter is sub judice. Any attempt to build the temple will actually amount to contempt of court and insult to our judicial institution.”Zafaryab Jilani, senior advocate at the High Court, Lucknow and convener of the Babri Masjid Action Committee (BMAC), told Anadolu Agency the judgment of the Indian Supreme Court is the only solution to the dispute, and fresh attempts by some Hindu parties are aimed at "polarizing Hindu votes” ahead of spring 2019 general elections.Leaders from the ruling Bhartiya Janta Party (BJP) say they will wait till January, when the case comes up at the Supreme Court.“As far as the BJP is concerned we have made clear in the manifesto and it is known to everyone that a grand temple, will come up … however, the current situation suggests the case is pending in the Supreme Court and we need to wait till January,” Syed Zafar Islam, a BJP spokesperson, told Anadolu Agency. “The party will explore all the options” in the case, he said.
Security tightened in north India on eve of mosque demolition anniversary
ROADBLOCK FOR INDIA
Ajay Sahai, director general of the Federation of Indian Export Organisations, also said China's truce with the United States may be a roadblock to improved trade with Beijing.
"As it is, the China-U.S. tariff tension was a temporary opportunity and it is not correct for companies to base their long-term strategies on it," said Sahai.
One longer term impediment to improved trade is product quality, and trade, industry and government officials in India said both Beijing and New Delhi could take time to iron out their differences.
Last week, India and China signed an agreement allowing Beijing to inspect imports of Indian fish meal and fish oil.
A Chinese trade delegation is coming to India on Dec. 10 to inspect soymeal plants, said D.N. Pathak, executive director of the Soybean Processors Association of India.
India wants China to drop a years-long ban on soymeal imports from the South Asian nation. China was a leading buyer of Indian soymeal, a key ingredient in animal feed, until Beijing banned the purchases in late 2011 over quality concerns.
In November, India's trade ministry said the country could export up to 2 million tonnes of sugar, but trade officials said the target was too steep because China has already exhausted its import quota for this year.
Although India has contracted to sell some tiny shipments of rice to China, officials said New Delhi would find it difficult to boost volumes as Beijing has traditionally been importing the staple from Vietnam and Thailand and the Chinese would take time to develop a taste for Indian rice.