Chen Deming (left), China’s former trade minister, and Ratan Naval Tata, honorary chairman of the Indian conglomerate Tata Group, attend a panel discussion during the Boao Forum for Asia Annual Conference 2018 in Hainan, April 11, 2018. (PHOTO COURTESY OF BOAOFORUM.ORG)
China and India should expand commercial ties to foster economic growth and continue to promote opening up amid global trade challenges, according to economists and business leaders.
Former trade minister Chen Deming told a panel at the Boao Forum for Asia Annual Conference 2018 that liberalization and actively participating in the global value chain was fundamental to resolving trade problems.
Chen Deming, China’s former trade minister, speaks at a panel during the Boao Forum for Asia Annual Conference 2018 in Hainan, April 11, 2018. (PHOTO COURTESY OF BOAOFORUM.ORG)
Chen said trade protectionism would bring more losses than gains. "Seeking more industrial cooperation will be good for both nations," he said.
"Sound economic cooperation can be achieved based upon mutual trust at high levels," Chen said.
He urged India to remove barriers Chinese investors face, to improve the business environment and open the door wider to Chinese companies.
Ratan Naval Tata, honorary chairman of the Indian conglomerate Tata Group, echoed Chen's remarks, saying mutual respect should be developed between India and China.
Tata told the panel both countries have many opportunities for development — especially in commerce and trade. The two nations should work together to achieve this.
But it was very important for India and China to establish trust and understanding to obtain win-win results, he said.
China and India have achieved impressive economic growth and China is one of India’s largest trade partners, though the trade has long been skewed toward China.
Ajit Ranade, chief economist of Aditya Birla Group, shares his view during a panel discussion at the Boao Forum for Asia Annual Conference 2018 in Hainan, April 11, 2018. (PHOTO COURTESY OF BOAOFORUM.ORG)
Ajit Ranade, chief economist of the Aditya Birla Group, said seeking more cooperation while engaging in competition is crucial. This is because both nations were implementing reforms and improving their economic structures.
Ranade said China is able to shift its manufacturing labor-intensive sectors; it could build more production bases in India — which will help the economic transition of both countries.
Long Yongtu, the chief negotiator for China’s World Trade Organization entry early this century, said some traditional sectors in China face wage increases and rising costs. This might slow the nation’s efforts to move toward a consumption-driven economy, while India needs to promote such sectors to boost employment.
Long said India might need to learn from other economies and attract more investment from China, particularly in manufacturing. This would help to boost that sector’s growth.
India’s service-sector growth has outpaced that of its manufacturing – which was quite incompatible with India’s current economic development stage, Long said.
Manufacturing accounts for about 27 percent of India’s total economic output while services account for 53 percent, he added.
Dattesh D.Prabhu Parulekar of Department of International Relations, Goa University, speaks during the regional organization panel at the Boao Forum for Asia Annual Conference 2018 in Hainan, April 11, 2018.
(PHOTO COURTESY OF CHLOE ZHANG)
At another Boao forum venue, Professor Dattesh D Prabhu-Parulekar of the Department of International Relations at Goa University, said India and China could communicate more on development experiences and strengths.
He cited satellite technology as a field in which both countries can join hands in offering quality services to the region.
As huge developing economies changing fast, both countries need to upgrade their development to transform their economies and societies toward modernization.
Asia, with its populous nations, requires more specific and practical cooperation. Both India and China should adapt to changes in the world and transform themselves to progress further.
