New Delhi: The Chinese President will come to India this weekend for his first-ever visit in seven years. He is expected to make a visit to the meeting of the major emerging economies called BRICS. The visit is set to strengthen ties between the two superpowers in Asia, experts say. However, they also caution the trade and business relations between the countries aren’t improving as quickly as the political ones.
There are still numerous issues for companies in both countries. They include the delay of investment approvals, the length of time for obtaining visas and regulations that prevent the permission of specific machines and equipment to cross the border. This reflects the substantial disconnect between rhetoric and reality between the leaders and underlying business conditions between the two nations, analysts said.
The relationship between China and India has been a tense one for decades. There was a brief war between the two nations in 1962. After a deadly border conflict in 2020 which claimed the lives of 20 Indian soldiers and four Chinese soldiers, their relations became even more frosty.
There is no confirmation that if there will be a face-to-face meeting between Xi and Indian Prime Minister Narendra Modi during this visit or not. A meeting like that is considered vital to determining the future of the relationship. The two heads of state briefly met this month at a regional meeting in Kyrgyzstan. Both leaders see the two countries as partners and not rivals, and see them as providing opportunities for growth and not threat, China’s foreign ministry said.
But, there is still a sense of distrust. Recently, Alipay a Chinese Ant Group-backed payment company rejected a proposal from India to link its digital payment system with Alipay. The officials gave the reason of the national security concerns. Besides, India is considering looking into the Chinese smartphone manufacturer Xiaomi (Xiaomi Technology Co) for financial malfeasance and violation of foreign investments regulations.
An additional meeting between Modi and Xi might be helpful to resolve some of these issues, experts have said. However, they aren’t about to see a significant improvement in trade soon. What will actually count going forward is whether everyday business between the two countries begins to improve, and isn’t just merely a handshake and photos.
