It can now be said: two of the world?s fastest growing economies, representing more than a third of humanity, have a shared vision regarding their ?co-opetitive? role in a regional and broader global context. The most substantive outcome of Prime Minister Manmohan Singh?s maiden visit to China was the signing of a vision document with his Chinese counterpart, Wen Jiabao, which recognises that the profound global transformation currently underway presents both India and China with an historic opportunity to work together. Mechanisms have been put in place to resolve long-standing bilateral issues like the vexed boundary question, promote greater engagement on economic matters, including civil nuclear cooperation, and intensify high-level exchanges. To be sure, the realities of the Sino-Indian relationship remain highly complex and the several points of friction won?t vanish with just a vision statement. The big factor of change, however, is the growing maturity to address problems that resulted in a trust deficit that the high principles of the Panchsheel deal failed to forestall.
Nowhere is this more obvious than in the sphere of bilateral economic matters. The growing engagement has resulted in a doubling of trade volumes earlier than targeted, but has triggered friction because of a massive surplus in China?s favour. Both sides exchanged frank views on this matter and have decided to minimise trade imbalances and eliminate barriers to investment. Dr Singh emphasised that growing competition between the two nations is not inconsistent with cooperation, nor is it adversarial. Accordingly, the bar on bilateral trade has been raised to $60 billion by 2010. Both countries have decided to establish a high-level business leaders? forum to provide advice on economic ties. In a regional context, they have taken a positive view on each other?s participation in multilateral cooperation processes like Saarc, Bimstec and Shanghai Cooperation Organisation. Globally, both favour an early conclusion of the Doha Round and intend to strengthen their coordination with other developing countries. The upshot is a realisation that as the fastest-growing economies in the world, they have become the engines of global growth at a time of uncertainty in the world economy. That while they will compete, they must cooperate.
