China, India call for all-round expansion of economic cooperation

China and India have agreed that an all-round expansion of economic cooperation between the two countries constitutes an important dimension of their stronger relationship and they should make joint efforts to increase bilateral trade volume to 20 billion US dollars or higher by 2008.

In a joint statement during Chinese Premier Wen Jiabao's four- day visit to India ending Tuesday, the two sides welcomed the report of the Joint Study Group (JSG) that was set up to examine the potential complementarities between the two countries in expanded trade and economic cooperation.

The JSG in its Report has identified a series of measures related to trade in goods, trade in services, investments and other areas of economic cooperation, and recommended their expeditious implementation to remove impediments and facilitate enhanced economic engagement between China and India.

The joint statement, signed here Monday by the Chinese Premier and his Indian counterpart Manmohan Singh, said that the two Prime Ministers tasked the Ministerial-level China-India Joint Economic Group (JEG) to consider these recommendations and coordinate their implementation.

For this purpose, the two sides will make their best endeavor to hold the next meeting of JEG within the next six months, the statement said.

The JSG has also recommended a China-India Regional Trading Arrangement, comprising of trade in goods and services, investments, identified understandings for trade and investment promotion and facilitation, and measures for promotion of economic cooperation in identified sectors.

The Prime Ministers agreed to appoint a Joint Task Force to study in detail the feasibility of, and the benefits that may derive from, the China-India Regional Trading Arrangement and give recommendations regarding its content, the statement said.

Both sides noted that the Agreement on the Establishment of a Financial Dialogue Mechanism would further facilitate the dynamic and diversifying economic cooperation between the two sides. They will continue consultations on concluding the Bilateral Investment Promotion and Protection Agreement, it said.

The two sides also agreed to further promote the cooperation in the spheres of education, science and technology, healthcare, information, tourism, youth exchange, agriculture, dairy development, sports and other fields on the basis of mutual benefit and reciprocity.

They decided to establish a China-India Steering Committee on Scientific and Technological Cooperation chaired by their Ministers for Science and Technology, and start consultations on an agreement on mutual recognition of academic certificates and degrees between China and India.

The two sides announced the launching of regular youth exchange activities. China will invite 100 Indian youth to China within the year of 2005 and hold an exhibition this year on advanced and applicable technologies in India.

The two sides recognized the importance of strengthening mutual connectivity and agreed to jointly work towards further enhancement of direct air and shipping links, tourism and people- to-people contacts.

It was noted with satisfaction that an MOU on major liberalization of civil aviation links between China and India was concluded during the visit, the statement said.

The two sides agreed to cooperate in the field of energy security and conservation, including, among others, encouraging relevant departments and units of the two countries to engage in the survey and exploration of petroleum and natural gas resources in third countries, said the statement.

It also said that the two sides noted the useful exchanges and interaction in the military field and decided to further promote such exchanges and interaction.

"They agreed that broadening and deepening of defense exchanges between the two countries was of vital importance in enhancing mutual trust and understanding between the two armed forces, and to ensuring a peaceful environment in which they could pursue their respective national development objectives," the statement said.

The two sides decided to further strengthen effective contacts and exchanges in this field.

Wen Jiabao is paying a four-day state visit to India at the invitation of Indian Prime Minister Manmohan Singh, the last leg of his four-nation South Asian tour, which also took him to Pakistan, Bangladesh and Sri Lanka.