Industry experts are of the view that with China offering to reduce average tariff to 12 per cent by 2002, India will be under tremendous pressure to do likewise. It could mean a further reduction in average tariff from the current applied rate of 27 per cent to around 15-16 per cent.

Besides tariffs, there is expected to be a divergence in views regarding foreign investment, including insurance and financial sector. China is already the largest recipient of foreign direct investment (FDI) and has put a cap of 49 per cent foreign equity in the insurance sector whereas India has capped foreign equity at 26 per cent.

The situation could worsen if China decides to devalue its currency. India's export competitiveness could get further eroded with Chinese exports finding favour with importers.

Analysts said India's opposition to issues like labour, competition policy and environmental issues could find a strong backing from China. Though there are no views available on China's expected stand on the issues at the moment, there could be a similarity of views on these issues.

"India should discuss these concerns with China and get a feedback before the ministerial conference. It can then respond accordingly and re-strategise its negotiating position at Seattle," said CII's senior adviser (policy) TK Bhaumik.

Bhaumik feels that there is enough time for India to re-strategise its negotiating position as it is going to Seattle with an initial and not a fixed agenda.

As far as advantages from China's entry into the WTO are concerned, firstly, since China will be subjected to WTO rules, it may help India to face competition from a WTO-disciplined China. As China is also seeking treatment as a developing country, it cannot talk a different language from those of the developing nations.

And if China joins the developing nations at the ministerial conference, then the negotiating strategy of the developing nations becomes more stronger as China accounts for about 4 per cent of the world trade and boasts of a large domestic market, hitherto selectively tapped.

The absence of the China - the world's fifth largest trading nation in the WTO was considered a major lacunae of the multilateral trading body.While China's accession to the WTO is expected to expand the global market within a rules-based framework, experts feel India will need to put in place an issue-based strategy for negotiation which will have common positions with China wherever possible.