Hu Jintao arrives in India
TEXT OF STORY
SCOTT JAGOW: Only one Chinese President has ever set foot in neighboring India. That was a decade ago. But today, China’s Hu Jintao arrives in New Delhi for a four-day visit. Miranda Kennedy gives us some economic background.
MIRANDA KENNEDY: China and India may be two of the world’s fastest-growing economies, but until recently, they’ve had a pretty bad relationship.
They fought a border war back in 1962 they still haven’t recovered from, but this year trade between the giants is expected to hit $20 billion, fueled by China’s huge appetite for India’s raw materials and India’s eagerness to buy cheap Chinese goods.
TS Vishwanath has tracked the change for India’s industry lobby group.
TS VISHWANATH: Because we are neighbors, and there is this huge market in both countries put together, and with both countries wanting to globalize and looking for markets outside their borders, trade is bound to grow.
This week, China and India hope to sign agreements on things like investment protection, defense, and overseas oil exploration.
But that doesn’t mean the rivalry has ended. Both countries complain about a lack of transparency in trade, and despite China’s cajoling, India refuses to recognize it as a free market economy.
In New Delhi, I’m Miranda Kennedy for Marketplace.
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