Visiting President Hu Jintao made a five-point proposal in Mumbai Thursday for promoting Sino-Indian economic and trade cooperation at the India-China Economic, Trade and Investment Cooperation Summit and CEO Forum.

 

The first is to expand and upgrade bilateral trade.

 

The two countries have set a new goal for bilateral trade to reach US$40 billion in the year 2010. To achieve this goal, Hu said both sides should work to improve the trade structure, increase the technology content in commodities and add value to them, increase the share of new and high-tech products and electron mechanical products in bilateral trade, expand the scale of trade and upgrade the level of cooperation.

 

The second is to strengthen cooperation in key areas.

 

Hu said the respective strength of China and India in information technology, energy resources, infrastructure, science and technology and agriculture is mutually complementary and offers great potential for cooperation. The two sides should explore business opportunities in these fields and nurture new growth stimulus to boost business ties.

 

The Chinese government will continue to encourage competent Chinese companies to invest and do business in India, and Indian companies are welcome to explore business opportunities in China, said Hu.

 

The third is to improve environment of trade and investment.

 

He said the Chinese and Indian governments should, acting in the overall interests of the two countries, strengthen consultation and dialogue and properly resolve problems in business and trade.

 

He said both sides should take measures to remove obstacles to trade and investment, promote trade and investment facilitation and create an enabling business environment. The two governments should create better conditions for bilateral economic and technological cooperation and ensure a fair and favorable trading environment for business communities of the two sides.

 

The fourth is to strengthen cooperation in multilateral fields and with third countries.

 

He said China and India should strengthen coordination in the World Trade Organization and other multilateral economic organizations to jointly uphold the legitimate rights and interests of developing countries.

 

The two countries should encourage Chinese and Indian companies to enter into energy cooperation in third countries, and they may conduct joint project contracting in third countries by drawing on mutual strength, noted Hu.

 

The fifth is to actively explore trade liberalization.

 

He said to establish a China-India free trade area will lift the bilateral business relations to a higher level and promote regional economic integration in Asia.

 

China and India have started joint feasibility study on regional trade arrangement and agreed to conclude the study by October 2007, said Hu, hoping this will lay a good foundation for launching negotiation on regional trade arrangement.

 

China-India two-way trade, growing at an average annual rate of 32 percent, rose to US$18.7 billion in 2005 from US$1.16 billion in 1995, a jump of 15 times in ten years. The bilateral trade volume this year is expected to exceed US$20 billion.?

 

China is now India's second largest trading partner and India is China's largest trading partner in South Asia. Besides, India is also one of China's most important project contracting markets.???

 

Bilateral mutual investment is growing, and it covers new industries such as telecommunications, software and pharmacy, which serve as an example for investment in other sectors.

 

Hu said China-India business cooperation, which is mutually beneficial in nature, has brought much benefit to both countries, and solidified the foundation of the relations.

 

He said China takes India as a friend and partner and sincerely wishes India greater progress in development.

 

The development of the two countries cherishes good opportunities to deepen bilateral all-round cooperation and achieve win-win progress, said Hu, adding that both sides should seize the opportunity to advance bilateral economic cooperation and trade in depth and width.

 

He said he hoped that business communities of the two countries will be future- oriented and work together to boost the bilateral business ties and contribute to both national development of the two countries and the rejuvenation of Asia.

 

More than 400 government officials and business people from both sides attended this summit meeting.

 

Hu started the four-day state visit to India Monday, which is the first visit to India by Chinese head of state in 10 years.

 

India is the third leg of Hu's four-nation tour, which has already taken him to Vietnam and Laos, and will also take him to Pakistan.

 

He attended the 14th APEC (Asia-Pacific Economic Cooperation) Economic Leaders' Meeting from November 17 to 19 in Hanoi, capital of Vietnam.

 

(Xinhua News Agency November 23, 2006)