On Tuesday, China announced that it expects New Delhi will provide a more “fair, friendly and convenient” business environment for Chinese companies to operate in the country. It also stated that both Asian giants should forge greater cooperation to boost trade and investment. The announcement came just before Chinese President Xi Jinping’s visit to India.
Chinese Ambassador Sun Weidong made the remarks in an interview to sources which come amid the US asking leading countries to not allow Chinese telecom giant Huawei to roll its 5G mobile networks. India is ready to execute trials for 5G services mobile network but has not taken any final decision whether to allow Huawei trails.
The Chinese Ambassador further claimed there is huge potential for China and India to expand business ties and both the countries should uphold free jointly speak out against trade protectionism and unilateralism in the current situation of rising uncertainties in the “external environment”.
In the last few months, tensions between China and the US have increased regarding the bitter trade war. The ambassador said, “China encourages its companies to invest in India and hopes that India will provide a more fair, friendly and convenient business environment for Chinese companies to operate in India.”
Huawei has already been banned by the US over the concerns of security. Huawei is the world leader in telecom equipment and the number two smartphone producer in the world. On Friday afternoon, the Chinese President will arrive in Chennai to hold the second unofficial summit with the Indian Prime Minister Narendra Modi. The meeting is scheduled to take place in the coastal town of Mamallapuram in Tamil Nadu.
Mr Weidong said that more than 1,000 Chinese companies are making business in India and they have increased their investment in industrial parks, e-commerce and other areas with a total investment of $8 billion. These companies also created 200,000 local jobs in the country, he added.
In order to promote regional economic integration and speed up negotiations on the Regional Comprehensive Economic Partnership Agreement (RCEP), both the countries should work together, said the Chinese envoy. China, India, South Korea, Japan, Australia and New Zealand, the six countries and 10-member ASEAN in the RCEP is engaged in negotiations for a free trade impact.
“China has taken active measures to increase imports from India, including lowering tariffs on some Indian imports, sending purchasing delegations to India, and assisting in the export of Indian agricultural products and pharmaceuticals to China,” he said.