Thursday, September 18, 2014

On the second day today of a three day visit to India the President of the People’s Republic of China, Xi Jinping, has signed multiple economic deals with India’s Prime Minister Narendra Modi.

China would set up two industrial parks in India, one in Gujarat and one in Maharashtra. The deals encompass Chinese investment of US$20 billion in infrastructure projects, modernisation of the Indian railways, and agreements on trade, space exploration, and civil nuclear energy. China has also committed itself to opening its markets to Indian pharmaceuticals and farm products. A final settlement of the unresolved dispute over the Chinese–Indian border in the Himalayas is also to be sought; the dispute, over which the Sino-Indian War of 1962 was fought, arises over where the border should be.

In a message to Chinese journalists on Tuesday, Indian Prime Minister Modi used the slogan “Inch towards Miles”, (standing for “India and China towards Millennium of Exceptional Synergy”) to express his hopes as to the future direction of the two nations’ bilateral ties. The Indian Prime Minister further emphasised the shared history and culture of the two nations which could be further enhanced for a brighter shared future.

The Chinese president’s visit comes amid tension over Chinese territorial claims in the South China Sea, clashing with claims of several other countries, including Japan. In a five day visit to Japan in the beginning of this month, Modi said “The world is divided in two camps. One camp believes in expansionist policies while the other believes in development.” Modi and Japanese Prime Minister Shinzo Abe also came to an agreement which would see Japanese investment in India rise to US$33.6 billion in the next five years.

Another unresolved tension between the two nuclear powers India and China is continued Chinese support of India’s rival Pakistan.

Xi’s visit to India, which began yesterday following visits to Sri Lanka and the Maldives, is part of an initiative Xi likens to the creation of a 21st Century Maritime Silk Road.