Status quo on border dispute trips progress on India-China business ties - The Economic Times
NEW DELHI: High hopes of a historical new beginning gave way to legacy differences over geography as Chinese President Xi Jinping returned home after a 3-day trip that saw New Delhi and Beijing refusing to yield even an inch over the status quo that puts politics ahead of business co-operation.
The lacklustre joint statement — a wrap-up of the discussions and outcomes at the big meeting — issued on Friday was reflective of the fact that the visit did not go as per expectations. The statement, said foreign policy experts, was less comprehensive than the recent ones India had signed with Australia or Japan after the Narendra Modi government came to power.
"It was impractical to keep boundary dispute separate from the overall relationship. While China made territorial dispute with Japan and Vietnam as core of their ties, they tried to keep boundary dispute separate from other aspects of relations vis-a-vis India. That was not feasible," former foreign secretary Kanwal Sibal told ET.
There was no forward movement on the visa issue with China refusing to stop the practice of issuing stapled visas to those from Arunachal Pradesh - that Beijing claims is disputed territory. Accordingly, India did not agree to sign visa liberalisation agreement that would have smoothened the visit of Chinese professionals here. But the bigger disappointment was on the economic front.
There were reports earlier, fuelled by a Chinese diplomat's statement, that Beijing will offer a $100-billion investment with a focus on infrastructure. What finally translated was $20 billion worth of investments. ET has learnt that the two countries failed to agree on core issues in the run-up to the visit, including visa liberalisation, and this probably shaped Beijing's commitment to reduce the value of proposed investments across variety of sectors, primarily infrastructure.
There was no commitment on 'One China Policy' either before the trip or in the joint statement. While no Sino-Indian joint statement since 2010 refers to 'One China Policy' (reference to Taiwan as a part of mainland China), the Chinese expected that a new government in Delhi would make an exception, official sources said.
Days ahead Xi's arrival, Liu Youfa, China's consul-general in Mumbai, had told reporters that Beijing will commit investments of over $100 billion or thrice the investments committed by Japan during the President's visit next. However, what was put on paper was just $20 billion, which ET has learnt is a consequence of India's unrelenting position on various regional issues.
There are speculations as to what prompted the Chinese diplomat to commit that figure and whether he could have done it without consent from Beijing, given the way the tightly controlled Chinese system works.
Besides, the Chinese were understandably upset over protests by Tibetans in close proximity of the venue of Xi-Modi talks, Dalai Lama's TV interaction in Mumbai and a conclave on Buddhist artefacts in Tibet in Delhi, according to informed sources. Delhi also did not commit to Beijing's grand strategy to revive Maritime Silk Route due to its security implications in the Indian Ocean Region. Also, it was made clear that peace and stability is necessity for BCIM corridor. These, noncommittal, postures, also did not go down well in Beijing, according to well-informed sources.
Another key area of discord was India's decision to invest in oil wealth in South China Sea region. The joint statement, which devoted considerable portion on developing economic linkages, also talked about resolving boundary dispute as a "strategic objective".
NEW DELHI: High hopes of a historical new beginning gave way to legacy differences over geography as Chinese President Xi Jinping returned home after a 3-day trip that saw New Delhi and Beijing refusing to yield even an inch over the status quo that puts politics ahead of business co-operation.
The lacklustre joint statement — a wrap-up of the discussions and outcomes at the big meeting — issued on Friday was reflective of the fact that the visit did not go as per expectations. The statement, said foreign policy experts, was less comprehensive than the recent ones India had signed with Australia or Japan after the Narendra Modi government came to power.
"It was impractical to keep boundary dispute separate from the overall relationship. While China made territorial dispute with Japan and Vietnam as core of their ties, they tried to keep boundary dispute separate from other aspects of relations vis-a-vis India. That was not feasible," former foreign secretary Kanwal Sibal told ET.
There was no forward movement on the visa issue with China refusing to stop the practice of issuing stapled visas to those from Arunachal Pradesh - that Beijing claims is disputed territory. Accordingly, India did not agree to sign visa liberalisation agreement that would have smoothened the visit of Chinese professionals here. But the bigger disappointment was on the economic front.
There were reports earlier, fuelled by a Chinese diplomat's statement, that Beijing will offer a $100-billion investment with a focus on infrastructure. What finally translated was $20 billion worth of investments. ET has learnt that the two countries failed to agree on core issues in the run-up to the visit, including visa liberalisation, and this probably shaped Beijing's commitment to reduce the value of proposed investments across variety of sectors, primarily infrastructure.
There was no commitment on 'One China Policy' either before the trip or in the joint statement. While no Sino-Indian joint statement since 2010 refers to 'One China Policy' (reference to Taiwan as a part of mainland China), the Chinese expected that a new government in Delhi would make an exception, official sources said.
Days ahead Xi's arrival, Liu Youfa, China's consul-general in Mumbai, had told reporters that Beijing will commit investments of over $100 billion or thrice the investments committed by Japan during the President's visit next. However, what was put on paper was just $20 billion, which ET has learnt is a consequence of India's unrelenting position on various regional issues.
There are speculations as to what prompted the Chinese diplomat to commit that figure and whether he could have done it without consent from Beijing, given the way the tightly controlled Chinese system works.
Besides, the Chinese were understandably upset over protests by Tibetans in close proximity of the venue of Xi-Modi talks, Dalai Lama's TV interaction in Mumbai and a conclave on Buddhist artefacts in Tibet in Delhi, according to informed sources. Delhi also did not commit to Beijing's grand strategy to revive Maritime Silk Route due to its security implications in the Indian Ocean Region. Also, it was made clear that peace and stability is necessity for BCIM corridor. These, noncommittal, postures, also did not go down well in Beijing, according to well-informed sources.
Another key area of discord was India's decision to invest in oil wealth in South China Sea region. The joint statement, which devoted considerable portion on developing economic linkages, also talked about resolving boundary dispute as a "strategic objective".
