The Cabinet has approved an investment protection agreement
with China, which is miffed that its firms are being
discriminated against for security reasons. But CNBC-TV18
reports that the Chinese have not had their way on a
free trade agreement.
Ambassador, Sun Yuxi had complained of unequal treatment
after three Chinese firms were barred from port projects
on security grounds. He was preparing the grounds for
an investor protection agreement during President Hu''s
visit. That is now a certainty.
Ranjan Dasmunshi, the I&B minister, says, "The
Cabinet has given its approval for a bilateral investor
protection agreement with China."
Chinese were keen on a free trade agreement, but they
have settled for something less, though they hesitate
to acknowledge that there has been a climb down.
Yuxi, Chinese ambassador, says, "Officials of our
two commerce ministries are talking actively on a regional
and India have adopted a twin track strategy of pressing
ahead with economic consolidation. But the border dispute
has a way of insinuating itself into the apparent cordiality,
as happened earlier this week, when Sun Yuxi said that
Arunachal belongs to China.
Yuxi says, "I was giving a historical background.
But now we are going to abide by the principles in the
political parameters and the guiding principles."
Chinese also have a grouse about difficulty in getting
visas to India.
Overall, it is these niggling issues that are likely
to be sorted out during the Chinese President''s visit.