Focus: GS-II International relations
Why in news?
As India reassesses its trade relations with China and considers a range of moves to reduce dependencies, China has called for ‘equal’ treatment for its firms and described ‘forced decoupling’ between the two economies as being harmful to both.
- India has rolled out moves to more tightly regulate Chinese investment and to dilute the presence of Chinese companies in certain sectors.
- The Chinese envoy, speaking at an event hosted by the Institute of Chinese Studies (ICS) on Thursday, said “forced decoupling of the Chinese and Indian economies is against the trend and will only lead to a lose-lose outcome.”
- The envoy said that the Chinese and Indian economies are interwoven and interdependent citing statistics showing that 92% of Indian computers, 82% of TVs, 80% of optical fibre, 85% of motorcycle components are imported from China.
- Beijing has hit out strongly at both the banning of 59 Chinese apps and at moves by India to impose restrictions on Chinese firms participating in highway projects and exporting power equipment.
- India has also long complained of a lack of reciprocal treatment in China, with Indian firms in China facing market access issues and a range of non-tariff barriers, particularly in the pharmaceuticals and information technology sectors.
-Source: The Hindu