Business
Chinese firms eyes investments http://www.ndtvprofit.com/homepage/storybusinessnew.asp?template=&whichstory=n&id=30318
Sunday, March 19, 2006 (Beijing):
Chinese companies are eyeing big investments and trade contracts in India in hopes of cashing in on lucrative opportunities.
This was stated by China's Commerce Minister on Sunday.
The Chinese interest was evident at a weekend conference in Bombay, which was attended by some 1,000 corporate executives from around the world and a fifth of them came from mainland China and Hong Kong.
"We believe the economic potential of India will continue to grow," said Commerce Minister Bo Xilai, who was heading about 200 Chinese delegates to the conference.
With growth close to 8 per cent, India is the world's fastest expanding economy after China.
Bo said many of China's top companies are keen to invest in India, especially in infrastructure projects, where the country needs huge investments in order to sustain the current economic boom.
Senior executives from companies such as Shanghai Electric Power Generation Group, ZTE Corp. and China Corporation Bank were attending the conference hosted by the Asia Society and the Confederation of Indian Industry.
"We have a lot to learn from each other," Bo said. "China has a lot to offer in infrastructure development to India and we can learn (from India) about developing software, information technology and how to improve the services sector."
Ambitious target
Earlier last week, Bo held talks with Indian officials in New Delhi and proposed an ambitious target to more than treble two-way trade between the giant Asian neighbors to $50 billion (euro40 billion) in five years.
Trade links between the two countries are as old as their history - Indian traders shipped spices in exchange for Chinese silk for centuries - but a border war in 1962 severely strained ties.
In recent years, the governments of the two countries have engaged in talks to resolve their border dispute and other political differences. Last year, Chinese Premier Wen Jiabao visited India, proposing a strategic alliance between New Delhi and Beijing.
Although two-way trade increased 35 per cent annually over the past five years to about $15 billion in 2005, officials insist there is potential for much greater exchanges between two of the world's fastest growing economies.
Businesses from both sides often complain about procedural hurdles and lack of familiarity with each other's languages. During Bo's visit to New Delhi, the two sides agreed to set up several joint groups to address these issues.
(AP)