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India, China to resolve dumping dispute, foster bilateral trade; potential for harbour ventures seen

Talks are on between India and China over the issue of India's anti-dumping duty on several of Chinese goods. The issue is expected to be resolved amicably, the Chinese ambassador Zhou Hao said in New Delhi today.

Addressing a meeting organised by the Federation of Indian Chambers of Commerce and Industry, Hao said India has taken no steps to scrap the duty. ''We hope India will rectify the fault soon and these issues would be resolved amicably through bilateral dialogue.''

Meanwhile, some segments of the Indian industry, such as pharmaceuticals and steel, have complained that because of excessive cheap imports from China, the domestic industry is being very adversely affected.

China Council for Promotion of International Trade vice chairman An Chengxin said a multi-billion Chinese harbour machinery company -- Zhen Hila -- has bid for participating in the harbour development programmes in India. The company presently is supplying harbour equipment to North America, Canada, the Middle East, Malaysia and other places.

He said India, with a long coastal line, can develop many harbours which can facilitate its export. This also will bring down the transaction costs. Many Chinese companies will be interested in the harbour development and are willing to discuss with Indian parties as to how to implement these projects.

Chengxin said Indo-Chinese bilateral trade has increased over the years, and is growing at the rate of five per cent per annum, and is not matched up with the potential. The trade volume has to be expanded and a lot has to be done for identifying new commodities that can be traded between the two countries.

Laying emphasis on technology transfer between India and China, he said there has to be an emphasis on bilateral investment, technology cooperation and sharing of information.

Rangachary, joint secretary, ministry of external affairs, said that of the 52 joint ventures set up by India and People's Republic of China, 50 joint ventures are in India and only two Indian companies are operating in China. He also mentioned that SBI and NIIT have set up their branches in China which would be of great help in the coming years in boosting the bilateral trade and investment.

Chengxin said there could be meaningful tie-ups between India and China in agriculture chemicals and plastics. Rangachary also observed that the two way trade should go beyond the commodity framework and should encompass various segments for mutual interest.

He further mentioned about the increasing pro-trade measures between the two countries, such as granting of most favoured nation treatment to both the countries way back in 1984, setting up of inter-ministerial commission and the non-official body of Joint Business Council which can catalyse the volume of trade to a higher orbit of growth.

UNI

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