Who would like to oppose the informal Wuhan Summit between Prime Minister Narendra Modi and President Xi Jinping, at least when the world is revolving on the axis/pivot of business. The most satisfactory outcome of this informal summit was the joint communication by the two nations, India and China, saying they will strengthen their business relations. But, this communication is throwing a question, mainly in India, and that is will they reduce/remove the trade imbalance, which is too deep.
In 2017, the trade between India and China stood at $84.44 billion, which was a historic high. Ironically, India exports to China stood just at $34 billion, while Chinese export to India was massive $68.17 billion, which means India, is in deficit and this difference of about $50 billion cannot be ended in a day or two.
However, under the prevailing global conditions, where the United States has increased import duty on 1300 Chinese products, in return to which, China also increased the import duty on 128 US products, there is a hope for India, as it can be a market to its products and a supplier of goods on which import duty has been increased. This means, India has the upper hand on China, who would like to maintain its position as the second economic superpower of the world, and India can ask it to reduce the gap and start exporting its product and ask its companies to open its manufacturing hubs in India by employing Indian youths in various positions.
Apart from this, there are many obstacles that may have a negative impact on the relation between the two nations and they are China’s relation with Pakistan, development of Gwadar port, plan on the so-called ‘China-Pakistan Economic Corridor’ that violates India’s sovereignty and territorial integrity, recognition of Hafeez Saeed as a global terrorist, which has been declined by it till date and many more.
Other reasons are connected to Nepal and Afghanistan. China is the biggest investor in Afghanistan and would not accept India’s investment in Afghanistan. Same is the situation with Nepal, where China has been investing in anything.
At this point of time, we can only hope that the meet was matured one and India would have diplomatically asked the other country to improve its wrongs at the earliest. After all, diplomacy is an art in which one says that other go to hell in a cautious and pleasant manner.
(Written By Rajesh Badal, Senior Journalist)