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China-India cooperation helps promote open global trade, counter protectionism

Xinhua | Updated: 2017-07-26 10:33
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BEIJING — For China and India - the world's two biggest markets, their strengthening of trade cooperation and advocacy of open trade policy will definitely contribute to promoting open global trade and containing protectionism.

Firstly, India's open foreign economic policy is an important force for the current world where protectionism is on the rise.

The South Asian nation has adopted a positive and open foreign economic policy and has been an important supporter for the open foreign trade policy.

Under the leadership of Prime Minister Narendra Modi, India has implemented an active foreign policy, has reformed foreign investment policy and encouraged domestic enterprises to go on the international market.

India has been actively attracting foreign investment, has created a favorable investment climate and has been the largest destination for foreign direct investment in the world for the past two years.

Luo Zhaohui, Chinese Ambassador to India, has said, "India's current reform and opening policies are very attractive, which puts forward a 'made in India' strategic planning, proposes the road of 'eastward strategy' and so on."

The country "has also put forward a lot of inter-connectivity initiatives, and vigorously promotes multi-sector technical and economic cooperation agreements of the Bay of Bengal rim. In terms of inter-connectivity and the Belt and Road Initiative, we two big neighboring countries should be natural partners," he said.

Proposed by Chinese President Xi Jinping in 2013, the Belt and Road Initiative aims to build trade and infrastructure networks connecting Asia with Europe and Africa on and beyond the ancient Silk Road routes. It comprises the Silk Road Economic Belt and the 21st Century Maritime Silk Road.

Secondly, China-India cooperation can effectively improve openness of the world economy, and counter trade protectionism which is now largely led by the United States under the Donald Trump administration.

The two developing countries share common views and stands on many international affairs. For example, India has cleared its commitment to developing green economy and is a champion of the Paris Climate Agreement.

After the United States formally withdrew from the agreement, Indian prime minister has made clear his commitment to developing green energy, and promised that India's efforts of tackling climate change will not be limited to the Paris Climate Agreement.

According to Prasoon Sharma, a researcher at a global think tank in India, China and India have the largest markets and manufacturing sectors of the world, and if the two countries join hands, they will drive economic growth of the world, promote trade balance across the globe and bring peace and happiness to the peoples of the world.

Moreover, the two countries have great potential in finance, which is regarded as the original intention and cooperation content of the BRICS countries - Brazil, Russia, India, China and South Africa.

Currently, the two countries focus on such financial cooperation as emergency reserve planning, green finance and currency swaps, which is greatly in the interest of open global trade and containment of protectionism.

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