It was in 2014 when visiting Chinese President Xi Jinping hinted at giving greater market access to Indian products and today it reiterated its stand on the move to bridge the widening trade deficit. The sudden change in Chinese stand is baffling as till date Indian products were not finding equal footing and always enjoyed the trade advantage. The move will give an impetus to the export of Indian rice besides a Green Channel for Indian pharmaceutical products to China especially those which already have USFDA and EUFDA accreditation. India expressed concerns at the long drawn procedures for clearances which tend to frustrate the Indian companies seeking business opportunities in China. Bilaterally, China is now India’s largest trading partner in goods, while we compete for global markets. Today, we have mechanisms to deal with issues like trans-border rivers, the trade deficit and so on. Fundamentally we have a relationship with elements of cooperation and competition at the same time. This duality is also true in terms of core national interests. Both countries have an interest in improving on the existing security and economic order. But we compete in the periphery that we share, hence the Indian hesitation on OBOR and our sensitivity about the Chinese military presence in the Indian Ocean littoral. And neither thinks the other has accepted its territorial integrity. In September 2013, during a visit to Kazakhstan, China’s president, Xi Jinping, announced a Chinese initiative – the setting up of connectivities across the landmass of Eurasia and the waters of the Indian Ocean that would collectively be known as the One Belt, One Road or OBOR. Mounting bilateral trade deficit has been a cause for concern for India which had sought greater market access for its goods for a long-term sustainable trade relationship. India has more immediate and specific concerns, which pertain to the China-Pakistan Economic Corridor (CPEC). The corridor was announced within a month of the publication of the OBOR vision and action plan document, which had highlighted the need for extensive consultations across Asia. While India might share China’s position that extremism should be countered with development, it cannot accept that the CPEC’s logistical projects should pass freely through large parts of Pakistan-occupied Kashmir.
