labels: industry - general, economy - general
Chinese official hopeful of $50-billion Indo-China tradenews
06 August 2005

Chennai: The bilateral trade between China and India, the 7th and 10th largest economies respectively, can exceed the $50-billion mark by 2010 from the current $15 billion.

Delivering the keynote address at the 'conference on China: An India opportunity' organised by the Confederation of Indian Industry (CII) in Chennai on August 5, 2005, Wang Jinzhen, assistant chairman, China Council for the Promotion of International Trade said, "India has now become one of the top ten trading partners of China with Sino-Indian bilateral trade registering impressive growth since 2003 following the agreements signed during the visits of high-level political and business delegations of both the countries."

According to him, the bilateral economic and trade cooperation though having developed at a rapid pace, is too small comparing our two economies. Both the countries need to look at further expanding the bilateral trade by way of establishing China-India free trade agreement (FTA). He also sought more
industrial cooperation in the areas of IT, energy, software, service, machinery and equipment for sustaining the momentum of bilateral trade growth.

Jinzhen also pointed out that China is ambitious in investing in other countries. He said China had invested, , in over 7000 overseas projects so far in non-financial sectors with the total investment amounting to US$ 36.8 billion.

Liang Hong, executive director, chief China economist, Goldman Sachs (Asia) L L C said that China's per capital income in the coastal areas, where around 200 million people live, is around $4,000 as compared to the country's average per capita income of $1000, representing a big market. She said that the consumers are moving up the consumption ladder with their expenditure with respect to recreation, education and culture, housing, transportation, medicine and medical services is on the rise since 1992.

Talking about the China's IT services landscape, Talasila Rao, head, iGate, China, said that contrary to the popular perception, China would start appearing on the radar screen as a credible player in the outsourcing market by 2007. He said with the large base of domestic industry, which is keen on computerisation, the growing presence of multinationals, the market for IT products and services are rapidly increasing.

He also said that Indian IT industry could make use of China to address the IT needs of the multinational corporations present there and tap the Japanese market opportunities with a Chinese base.

Earlier delivering the theme address, Parasu Raman R, chairman, CII (southern region) said that India's economic engagement with China has been recently renewed and has led to a rise in trade over the last decade. He said that in order to accelerate the trade between both the countries, it is imperative for both the nations to expand their trade baskets and find newer and value added areas of economic cooperation.

The chairman, CII-Tamil Nadu B Santhanam, pointed out the successfulChinese strategies of Tamil Nadu-based industries in automobile and pharmaceuticals. He said that the bilateral trade between Tamil Nadu and China alone could touch $10 billion by 2010.




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Chinese official hopeful of $50-billion Indo-China trade