Modi-Xi informal summit: India, China agree to set up new mechanism for issues relating to trade and investment
Indian Foreign Secretary Vijay Gokhale said at a press briefing that the deficit was a concern for India and the Chinese side was willing to address it.
President Xi Jinping briefed PM Narendra Modi on Pak PM Imran Khan’s recent visit to Beijing and the Kashmir issue is understood to have figured in the summit in that context. The dialogue on terror financing was important ahead of FATF plenary in Paris from Sunday that would decide whether Pakistan will continue in the Grey List or downgraded to Black List.
In pursuit of their efforts to further deepen economic cooperation and to enhance their closer development partnership, the two Leaders have decided to establish a High-Level Economic and Trade Dialogue mechanism with the objective of achieving enhanced trade and commercial relations, as well as to better balance the trade between the two countries, according to MEA statement.
They have also agreed to encourage mutual investments in identified sectors through the development of a Manufacturing Partnership and tasked their officials to develop this idea at the first meeting of the High-Level Economic and Trade Dialogue. India is seeking investments in China in IT and pharmaceutical sectors.
They also agreed on the importance of concluding negotiations for a mutually-beneficial and balanced Regional Comprehensive Economic Partnership.
Both Leaders are concerned that terrorism continues to pose a common threat. As countries that are large and diverse, they recognized the importance of continuing to make joint efforts to ensure that the international community strengthens the framework against training, financing and supporting terrorist groups throughout the world and on a non-discriminatory basis.
They shared the view that an open, inclusive, prosperous and stable environment in the region is important to ensure the prosperity and stability of the region. Both Leaders shared the view that the international situation is witnessing significant readjustment. They were of the view that India and China share the common objective of working for a peaceful, secure and prosperous world in which all countries can pursue their development within a rules-based international order.
This is important in the context of China’s BRI which is considered to challenge current rules based order.
The Leaders recognized that India and China have a common interest in preserving and advancing a rules-based and inclusive international order, including through reforms that reflect the new realities of the 21st Century. Both agreed that it is important to support and strengthen the rules-based multilateral trading system at a time when globally agreed trade practices and norms are being selectively questioned. India and China will continue to work together for open and inclusive trade arrangements that will benefit all countries.
The two Leaders have exchanged views on outstanding issues, including on the boundary question. They have welcomed the work of the Special Representatives and urged them to continue their efforts to arrive at a mutually-agreed framework for a fair, reasonable and mutually acceptable settlement based on Political Parameters and Guiding Principles that were agreed by the two sides in 2005. They reiterated their understanding that efforts will continue to be made to ensure peace and tranquility in the border areas, and that both sides will continue to work on additional Confidence Building Measures in pursuit of this objective.
ET was the first to report that boundary CBMs, trade deficit, Kashmir, terrorism, WTO and geo-politics will be on agenda of the second informal summit.