India, China to double trade to $40 billion

Visiting Chinese President Hu Jintao and prime minister Dr Manmohan Singh today said the two countries would endeavour to double their trade with each other to $40 billion a year by 2010 and encourage two-way investment flows.

The two countries expect the trade between them to reach $20 billion next year — up from $250 million a decade ago.

President Hu is the first Chinese head of state to visit India in 10 years and his four-day itinerary includes a visit to Mumbai.

The two leaders also agreed to renew efforts to solve their border dispute, saying the two neighbours had sufficient room to grow together and yet remain sensitive to the other''s concerns.

They also agreed to speed up the joint feasibility study on a regional trade arrangement. Hu said. that the two countries would "sign an agreement on investment, promotion and protection between the two countries".

Last year China formally recognised Sikkim as part of India, though it continues to stake its claim to Tawang in Arunachal Pradesh. Hu said, "Pending an eventual solution to the boundary question, the two sides need to continue their efforts to work together to maintain peace and tranquillity in the border areas."