chapter12-No force in the world

INFOCUS | INDIA-CHINA RELATIONS | EXCLUSIVE

Minister Manmohan Singh respectively during BRICS Summit in China and the East Asia Leaders Meetings in Indonesia. Two sides had in-depth discussions on issues of mutual interest and reaffirmed commitments to deepening the strategic and cooperative partnership.

MUST SHED HISTORICAL BURDEN, MUST COOPERATE

No force in the world can stop China, India from rising together Zhang Yan

T

o begin with, I would like to have a glimpse of the past year first.

2011 is no ordinary year for China-India relation. In spite of the complicated international and regional situation, our bilateral relations |48| India-China Chronicle  April 2012

maintained a sound and steady growth with cooperation and interactions unfolding in an all-round manner.

We have also successfully concluded the Year of China-India Exchange announced by two sides during the Chinese Premier Wen Jiabao’s visit to India in December, 2010. To take stock of the year, we have seen a

cluster of positive developments in our bilateral relations.

FIRST

Active high level interactions have visibly enhanced our mutual understanding and trust. Last year, Chinese President Hu Jintao and Premier Wen Jiabao had fruitful meetings with Indian Prime

SECOND

Provincial and state level exchanges have become new highlights of bilateral relation. Successful visits

by Governors of Sichuan, Guangdong and Gansu provinces and Chairman of Xinjiang Autonomous Region of China to India and Chief Ministers of Bihar and Gujarat of India to China produced positive results in economic and cultural cooperation, bringing the local governmental cooperation into the overall picture.

THIRD

Economic and trade cooperation maintained a robust growth and becomes a salient feature of our bilateral ties.

China-India two-way trade in 2011 has touched new height. According to the estimation, during the 11 months of this year the trade volume reaches 67 billion USD, up 21.8 per cent year on year and is expected to exceed 70 billion USD for the whole year. The first branch office of Industrial and Commercial Bank of China opened in Mumbai last year, marking a new milestone in financial cooperation. To settle the trade account in RMB and Rupee is another important move by two coun-

tries to facilitate bilateral economic cooperation. Mutual investments are also gaining new momentum. One recent example is TBEA Corporation, the largest special transformer producer of China, has signed a 400-million USD agreement with an Indian company to invest in Gujarat to put up a factory for manufacturing transformers for power projects in India.

FOURTH

New headway has been made in institutionalization of bilateral cooperation.

The newly established China-India Strategic Economic Dialogue held its first round meeting in Beijing September last year. China-India CEO Forum

I HAVE SENSED A GROWING CONSENSUS VIEW IN FAVOUR OF DEVELOPING A SOUND AND MUTUALLY BENEFICIAL RELATION WITH CHINA AMONG ALL POLITICAL PARTIES AND GENERAL PUBLIC IN INDIA. FROM THE CHINESE SIDE, TO BUILD A STABLE AND MUTUALLY BENEFICIAL RELATIONSHIP WITH INDIA IS THE SET POLICY OF THE CHINESE GOVERNMENT.

is also in the making. At the same time, the existing mechanisms such as the fifth China-India Financial Dialogue, the fourth China-India Defense and Security Talks and consultation on counter terrorism were successfully held in Delhi and Beijing last year.

These new and old mechanisms have helped to enhance mutual trust and deepen economic cooperation between two countries.

FIFTH

Cooperation on international and regional issues has acquired new momentum. Two countries maintained close consultation and worked vigorously within the framework of UN, WTO, G20 and BRICS on issues such as climate change, reform of international financial institutions, Doha Round Trade Talks as well as issues related to the situation in West Asia and North Africa.

Two countries have played constructive role in the proper settlement of relevant issues and defending the interests of developing countries.

SIXTH

People-to-people exchange has added new vitality to our relation. The 500-member Indian Youth delegation visited China last September and was warmly received by Premier Wen Jiabao in the Great Hall of People. The Year of Exchange was successful and colourful.

Events like “Treasures of Ancient China” exhibition, Sichuan Week, Yunan Acrobatics Troup performance and cultural activities like “A Grand Stage April 2012  India-China Chronicle |49|

INFOCUS | INDIA-CHINA RELATIONS | EXCLUSIVE

for China-India Youth Traditional Culture Exchange” were organized in India and China respectively, creating cross-culture dialogues between two ancient civilizations. China has also provided financial support to the reconstruction of Nalando University.

The performance of our relationship in the year 2011 is impressive and fruitful.

More importantly, it has demonstrated the following salient features.

FIRST

China-India relation is anchored on a more solid political base than before. It is encouraging to see that the leaders of two countries have viewed our relations from a long-term and strategic perspective. They have given increasing importance and attention to our relationship which provides strong political foundation for the development of our bilateral relations. Furthermore, I have sensed a growing consensus view in favour of developing a sound and mutually beneficial relation with China among all political parties and general public in India.

From the Chinese side, to build a stable Chinese Premier Wen Jiabao during the India-China Business Co-operation Summit in New Delhi

|50| India-China Chronicle  April 2012

FACING WITH SIMILAR CHALLENGES AND HISTORICAL TASKS, CHINA AND INDIA ARE COMPLIMENTARY TO EACH OTHER AND ENJOY CERTAIN DEGREE OF SYNERGY. THE TWO COUNTRIES ARE PARTNERS OF COOPERATION, AND PARTNERS FOR GROWTH AND PROSPERITY. CHINA’S DEVELOPMENT PROVIDES OPPORTUNITY TO INDIA, SO DOES INDIA’S DEVELOPMENT TO CHINA. and mutually beneficial relationship with India is the set policy of the Chinese government. President Hu Jintao stated on many occasions that India is an important neighbour of China.

China is ready to work with India to maintain the sound momentum for further advancement of the China-India Strategic and Cooperative Partnership and for the common interests of two countries.

SECOND

China-India relation has become more substantive. Both countries pursue an independent foreign policy and share growing common interests. Today, China-India relation is developing in a comprehensive manner and has acquired strategic significance. Both countries not only enjoy growing cooperation in economic field, but also work closely in political and security fields, brining tangible benefits to our people. On issues directly affecting our interests as well as global situation, such as climate change and issues related to the West Asia and North Africa, two countries worked constructively and effectively to defend the interests and rights of our two countries as well as that of all developing countries.

THIRD

China-India relation holds great potential. As two fast growing economies, China and India provide opportunities to each other. In spite of the financial and debt crisis in US and Europe, China and India enjoy stability domestically and boast a relatively rapid economic growth. With 2.5 billion populations, huge markets and rich human resources, China and India are regarded by the international community as powerhouse for world economy and are expected to play a bigger role in the

reform of international economic and financial governance as well as in the global economic recovery. Facing with similar challenges and historical tasks, China and India are complimentary to each other and enjoy certain degree of synergy. The two countries are partners of cooperation, and partners for growth and prosperity. China’s development provides opportunity to India, so does India’s development to China.

FOURTH

China-India relation has matured. We are fully aware of the fact that there are differences and challenges left over by history. But we know much better how to manage them. We are keenly aware that cooperation between the two countries benefits both and confrontation only hurts each other. As two Asian neighbours and fast growing economies, China and India share more common interests than difference. Both have adopted a “looking forward” approach and are trying their best not to let the historical burdens to stand in the way of our cooperation. When we are facing problems, we are now more than willing to engage each other in dialogue and consultation to diffuse the risk. As to the perceived competition between the two countries, so long as it is a fair and friendly one, we also look at it in a positive way. As Indian Prime Minister

Mamnohan Singh and Chinese Premier Wen Jabao pointed out that the world is large enough for both China and India to develop and prosper. And there is enough room for two countries to cooperate.

Here I must point out that not every country in the world is happy to see China and India getting closer and prospering together. Some even try to drive a wedge between us. I must point out again, that China and India’s rising together is an irreversible historical trend that no force in the world can stop. In spite of all kinds of prophecies

AS TWO ASIAN NEIGHBOURS AND FAST GROWING ECONOMIES, CHINA AND INDIA SHARE MORE COMMON INTERESTS THAN DIFFERENCE. BOTH HAVE ADOPTED A “LOOKING FORWARD” APPROACH AND ARE TRYING THEIR BEST NOT TO LET THE HISTORICAL BURDENS TO STAND IN THE WAY OF OUR COOPERATION.

with ill-intention, China-India relation takes its own course and moves ahead because the two countries know where their national interests lie and how to handle their relations. Our cooperative relation poses no threat to others and is not developed at the expense of other countries’ interests.

2012 has arrived and the traditional Chinese New Year, the year of dragon will come soon. In Chinese culture, it is the most auspicious time to plan. As the Chinese saying goes, a good beginning is crucial to a successful year.

In order to push the bilateral relations forward, we should join hands and work in the following areas.

FIRST

efforts should be made to further increase political trust and enhance strategic cooperation.

Political trust is the very foundation of any bilateral relation. To achieve this, two sides should maintain the sound

Prime Minister Manmohan Singh speaks at the BRIC Summit in Brasilia, Brazil. President of Russian Republic Dmitry Medvedev (R), President of Brazil Luiz Inacio Lula Da Silva and President of China Hu Jintao look on

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momentum of high-level exchanges and interaction. Fully utilizing all existing mechanisms to enhance the confidence and minimize the suspicion and distrust. This year India will play host to the BRICS’ Summit. We should do our utmost to make the best preparation to ensure a successful and fruitful summit, thus giving positive impetus to the cooperation of five countries as well as to China and India relation. I can assure you that China will closely coordinate and cooperate with India to ensure its success.

actively considered. FTA and RTA are useful instruments to facilitate and boost bilateral trade in a bigger way. As a first step, the two countries can work on a regional trade arrangement and at the same time prepare the ground for a fullfledged FTA. 5. Efforts should be made to increase tourism cooperation. With a large population and rich tourist resources, the two countries possess great potential to become major tourist destination for each other. Regrettably, last year altogether only 600 thousand tourists travelled between the two countries. Compared with 16.5 million between China, Japan and Korea, the figure between China and India is too small. I am of the view that more Chinese tourists to India can also help narrow the trade gap of our two countries.

SECOND

more work should be done to upgrade our economic cooperation. The global economy will remain uncertain at least for some time. China and India should optimize our own potentials and ensure healthy development of our respective economy. We should strive to meet the trade target of 100 billion USD by 2015 set by our leaders. The Chinese side is fully aware of the necessity to narrow the trade gap between the two sides in order to ensure the sustainability of bilateral trade cooperation. China will take measures to increase the import of Indian products which have market demand in China.

But our cooperation should not be limited in trade only. To deepen our economic cooperation, there is much room for us to explore. Here I will just provide some food for thought.

1. China and India should diversify trade structure, expand the scope and items, and increase the technical content and added value to the products. At the same time, cooperation should be expanded into financial, service and investment sectors.

2. China and India should initiate policy dialogue and coordinate our economic development strategy in order to ensure steady growth of our respective economy. China started its 12th Five Year plan last year. This year India will launch its 12th Five Year plan. We should exchange our experience and methods in changing the mould of development, readjusting the |52| India-China Chronicle  April 2012

THIRD

I MUST POINT OUT THAT CHINA AND INDIA’S RISING TOGETHER IS AN IRREVERSIBLE HISTORICAL TREND THAT NO FORCE IN THE WORLD CAN STOP. IN SPITE OF ALL KINDS OF PROPHECIES WITH ILLINTENTION, CHINA-INDIA RELATION TAKES ITS OWN COURSE AND MOVES AHEAD BECAUSE THE TWO COUNTRIES KNOW WHERE THEIR NATIONAL INTERESTS LIE AND HOW TO HANDLE THEIR RELATIONS.

economic structure and building an environmentally friendly and inclusive economy, with a view to achieving the best results in our economic development.

3. Mutual investments should be encouraged. China welcomes Indian companies to invest in China and is willing to encourage more Chinese companies, especially private companies to come and invest in India.

We hope the Indian side will make additional efforts to create more conducive environment for foreign investors, especially the visa service.

Two countries also can explore the possibility of jointly investing in third countries.

4. Free trade agreement or regional trade arrangement should be

Emphasis should be placed on expanding people and culture exchanges.

People-to-people exchange serves as a cornerstone of state-to-state relations and can play crucial role in minimizing the so-called “trust deficit”. The Chinese side will work with the Indian side to continue the annual youth exchange programme and expand the exchanges of journalists, media and think-tanks.

Cross-cultural exchanges can enrich the knowledge of each other and foster closer ties among peoples. We are ready to provide assistance in Chinese language teaching in Indian secondary schools. And Indian students are most welcome to study in China. We will continue to lend our support to the revival of the Nalanda University.

FOURTH

efforts should be made to enhance our regional and international cooperation to promote common interests.

We should step up our coordination and cooperation on regional and international issues and work together to address the challenges of global implications such as climate change, food security, energy security, reform of global financial system, counter terrorism etc. to ensure those issues will be handled

EFFORTS SHALL BE MADE FOR A GOOD PREPARATION FOR THE 15TH SPECIAL REPRESENTATIVES MEETING ON THE CHINA-INDIA BOUNDARY ISSUE. IN ORDER TO MAINTAIN THE PEACE AND TRANQUILITY OF THE BORDER AREA BEFORE THE FINAL SETTLEMENT OF THE ISSUES IS FOUND, IT IS NECESSARY FOR TWO SIDES TO WORK OUT A NEW MECHANISM TO SERVE THAT PURPOSE. WE ARE WILLING TO WORK WITH INDIAN SIDE TO ACHIEVE THAT IN THE NEAR FUTURE. in line with the interests of developing countries and in a fair and equitable manner. China and India also should promote the rights and increase the say of developing countries in the global decision-making process.

FIFTH

properly manage sensitive issues and differences. Mutual understanding and mutual accommodation are crucial in dealing with differences and disagreements in our relations. We should handle them from a long-term and strategic perspective.

So long as we follow the spirit of equality and mutual respect, we will be able to ensure a stable and healthy bilateral relation. It is China’s policy to maintain good neighbourly relations with all its neighbours, including India. We welcome India to play a more active role in international and regional affairs. We are happy to see the recent improvement of relations between India and its neighbours. A stable South Asia is not only a blessing to China and India, but also a great contribution to the region and the world at large. With the joint efforts of our two countries, the situation along the China and India border area is on the whole peaceful. Efforts shall be made for a good preparation

for the 15th Special Representatives Meeting on the China-India boundary issue. In order to maintain the peace and tranquility of the border area before the final settlement of the issues is found, it is necessary for two sides to work out a new mechanism to serve that purpose. We are willing to work with Indian side to achieve that in the near future.

China has also declared to the rest of the world on many occasions that it takes the path of peaceful development and is committed to upholding world peace and promoting common development and prosperity for all countries. To this end, China has stuck to an independent foreign policy of peace. As President Hu Jintao reaffirmed in his New Year address few days ago, that China will continue to advance our opening-up drive for winwin results, and will unswervingly stick to the path of peaceful development and independent foreign policy of peace. We will develop our friendly relations and mutually beneficial cooperation with various countries in the world following the Five Principle of Peaceful Coexistence. An open and harmonious China of prosperity and stability will make an even greater contribution to the whole world.

Mr Deng Xiaoping and Prime Minister Rajiv Gandhi, two great visionary leaders of China and India, shared a consensus view during their historical meeting in 1988 that China and India together can give the world new perspectives on a new international order and that the Asian age will arrive only when both China and India developed. Today the evolution of the world situation has proved their far-sightedness and outstanding vision. China and India are on their way to translating their vision into reality. What shall we do now? The answer is clear and simple.

That is to cooperate. With the joint efforts of China and India, we will not only create a brighter future for our two countries and two peoples, but also make fresh contribution to the world peace and prosperity.  (This is a speech by HE Zhang Yan, Ambassador of the People’s Republic of China at a lecture on China-India relations)

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