India Expects Stability in Its Relations with China

PHNOM PENH, Cambodia (NNN-Bernama) -- India expects continuity and stability in its relations with China, its largest trading partner, after the once-in-a-decade leadership change in the Communist nation, India's Commerce Minister Anand Sharma said on Sunday.

Replying to a question on the change of leadership in China and whether he anticipated its impact on relations with India, the Commerce and Industry Minister said he expected "continuity and stability in the bilateral ties".

Sharma is accompanying Indian Prime Minister Manmohan Singh to Phnom Penh for the Asean and East Asia Summits, Press Trust of India (PTI) reported.

However, Sharma refused to pre-judge whether the new Chinese leader Xi

Jinping was a conservative. Xi was appointed as the General Secretary of the ruling Communist Party of China this week and is expected to become Chinese President next March.

Speaking ahead of a meeting between Manmohan Singh and the outgoing Chinese Premier Wen Jiabao, Sharma said the Indian Prime Minister is expected to seek larger investments from China, particularly in the National Manufacturing and Investment Zones being set up in India.

"The meeting between the Prime Ministers will cover all issues," Sharma said.

The meeting between Manmohan and Wen, who have met a number of times during the last few years, could be their last as China has replaced its old guard with a new set of leaders.

Sharma said that in the past, India has flagged, both at meetings at PrimeMinister level and Commerce Minister level, the issue of a "fair trade balance"and market access for India in IT and pharmaceutical sectors.

"But it doesn't mean these are the only issues. We consider China as an important partner, largest trading partner," Sharma added.

China is India's largest trade partner but the trade deficit between the two economies has ballooned to US$23 billion in China's favour in October this year, as India continues to import more than what it exports to the country.

India and China have a set a target of taking their total trade to US$100 billion by 2015. The total bilateral trade reached a high of US$73.90 billion last year but the figure dropped to US$55.6 billion in the first 10 months of this year, a drop of 8 per cent. -- NNN-BERNAMA