When China meets India
He Fan, 3 June 2013
Quite an interesting piece! He Fan highlights the possible areas of cooperation between the two Asian juggernauts.
“The foundations of this renewed relationship should be based on the comparative advantages of both countries. China’s manufacturing sector is still very competitive, even by international standards. But more and more Chinese companies will increase outbound investment in the face of rising labour costs in China and Beijing’s official policy of ‘going abroad’, which encourages Chinese companies to invest more aggressively in overseas markets. India should seize this opportunity to attract Chinese investment. Such investment would not only allow India to acquire cutting edge technologies but also, more importantly, create more job opportunities, especially for unskilled labourers.
Another area where there is huge potential for mutual cooperation is infrastructure investment. Following the sharp decline of outbound investment from the United States and Europe in the aftermath of the global financial crisis, India will have to rely more on South-South cooperation, and China is ready to help.
Finally, there is significant scope for bilateral cooperation in the service sector. China is currently in the process of launching a new program of structural reform, which will focus on further developing its service sector in priority areas such as IT and healthcare. China and India could accomplish much if they worked together to achieve these goals.”
For details see the link below: