Economic Challenger Issue 85 Oct to Dec 2019 | Page 4

EDITOR’S DESK
THE SINO - INDIAN INFORMAL SUMMIT
The Second Indo-China Informal Summit was
held on 11 th -12 th October, 2019 in the historical
shore town of Mamallapuram in Tamil Nadu
56.3 Km. away from Chennai. The Seventh
Century monument of ‘Pancha Ratha’, Over
looking the Coromandel Coast of Bay of
Bangal. This coastal town had a historical trade
links with China's Fujian province.
The Informal Summit between Prime Minister
Narendra Modi and Chinese Premier Xi Jinping
ended on a positive note. The two sides
discussed confidence building measures (CBM)
at the highest level to address outstanding
issues, including the boundary Question (LAC),
terrorism and trade deficit.
A New era of cooperation would start between
India and China due to this Chennai connect.
After one-to-one delegation – level 90 – minute
talk with Xi, PM Modi was very satisfied
Premier Xi, termed it “Candid”, and “Heart – to
Heart” discussions on bilateral relations.
In order to deepen economic cooperation and
enhance closer development partinership the
two sides have decided to establish a high-level
economic and trade dialogue mechanism to
achieve enhanced trade and commercial
relations as well as better balance of trade
between the two countries.
The two leaders have also agreed to encourage
mutual investments in identified sectors
through the development of a manufacturing
partnership. India is seeking investments in
china in IT and Pharma Sectors. The two sides
expressed hope for achieving concluding
negotiations for a mutually beneficial and
balanced Regional Comprehensive Economic
Partnership (RCEP). It was important to
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strengthen these at a time when globally
agreed trade practices and norms are being
selectively questioned. PM Modi also accepted
Premier Xi's invitation for the Third Informal
Summit in China.
In mamallapuram meet India did not favour
China's proposal for a piecemeal approach to
settle the six decade old boundary dispute.
India Conveyed to Xi that both sides should
first work towards clarification of LAC.
China wanted an early harvest deal on the less
disputed part of the three sectors of LAC while
Delhi preferred “a complete package deal”
covering entire length of the boundary. The two
leaders in the second informal summit
discussed putting in place more CBMs to
maintain peace and tranquility along the LAC.
Many issues remain to be solved between India
and China but we must not be in any fallacy
that all is going to be well through these
informal meets. Mainly, China still continues to
be a road block for India in its accession to the
NSG (Nuclear Suppliers group). Moreover, it
will continue to prop up Pakistan in its terror
activities. Again China will oppose the Indo-
Pacific Policy just as India Opposes China's
Belt & Road Initiative (BRI). China is also
awaiting a favourable decision on 5G and
Huawai.
The two leaders had their first Informal Summit
in Wuhan, China on 27-28 April 2018. here
Modi and Xi had agreed that the two countries
had the maturity and wisdom to handle all
differences through peaceful discussion and
respecting each other's sensitivities, concerns
and aspirations.
Economic Challenger// ISSN 0975-1351/ Issue 85, October - December 2019