Sharma who was in China to attend the eighth Joint Economic Group dialogue urged the host country to remove tariff and non-tariff barriers on import of Indian rice, fruits and vegetables. He also requested to facilitate landing rights for Indian TV channels in China, and the import of more Indian films.

Sharma informed that New Delhi had doubled its foreign workers visa quota to 40, a decision that likely to help more Chinese firms than any other. However, the number of immigrant workers is still not allowed to exceed more than one percent of the total number of workers employed in any project. While China’s Commerce Minister Chen Demin reciprocated by saying that Indian workers would also get visas on liberal basis.

During the meet, Wen showed keen interest in improving bilateral ties with India and said that only if India and China shared common development platform that they could translate this century into an Asian one. Similarly, Sharma said the time for exclusivity in the international governance structure was over; and both nations would have to be at the front of a new global governance architecture.

After meeting several Chinese leaders, Sharma claimed the meet was very positive and substantive as it covered every component of the bilateral ties. He said that he received assurance from Beijing to encourage the Indian firms in the information technology, pharmaceutical and construction sectors to work with local partners to have ‘more presence and access’ in China.

In 2008–09, China exports to India stood at about $27bn while India’s remained around $11bn. China and India plan to take advantage of its vast consumer base of about 2.5bn people which could be larger than any bloc or region excluded of these two nations.

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India in January even had banned Chinese toys on the grounds that they contained toxic lead paints and flawed designs. Commerce and Industry Minister of India, Anand Sharma informed the parliament that the country had however lifted the ban two months later on the condition of permitting products those maintained WTO standards as India complied with WTO rules.

During the same parliamentary session, the state minister for commerce of India, Jyotiraditya Scindia said that Indian Embassy in China is in constant touch with the authorities to resolve this issue. The ban on milk and milk products, including chocolate from China will be effective till December 24 this year.

Nonetheless, China purportedly as a retaliatory measure has informed New Delhi that its food and safety organization, GAQSIQ had encountered food safety problems in imported food products like seafood and sesame oil from India. China further clarified its stand that if India insisted on extending the ban on milk and milk products till the end of the year, it would be forced to respond to the quality of the Indian food imports too.

In 2008-09 fiscal, India-China bilateral trade has witnessed a significant jump of about $51bn from its previous year’s $38bn. China has become the largest trading partner of India in 2008-09 by replacing the US. But if China sets for a trade war with India by imposing restrictions on Indian imports as well, the growth in two-way trade is likely be in for drastic decline.

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