An memorandum of understanding for a $4.63-billion project financing with Reliance Power, a part of the Anil Ambani Group and $400-million facility agreement with ICICI Bank were part of 49 MoUs signed on Wednesday during Chinese Premier Wen Jiabao’s visit. The list of MoUs underscored the strong position China has come to occupy as India’s premier trading partner, a theme that is dominating the visit of Wen.
Among the agreements signed include a $1.2-billion facility between Bank of China and IDBI Bank and between China Development Bank and Reliance Power for $1.1 billion on Sasan power
In addition the Federation of Indian Chambers of Commerce and Industry has entered into an MoU with its counterpart, China Chamber of Commerce for mutual cooperation.
In a separate development, Shanghai-based telecom equipment manufacturer Huawei has already announced an investment of $2 billion in a new research facility in Bangalore and its manufacturing unit in Chennai. The business deals are significant as India and China still have serious differences over a host of issues, like stapled Chinese visas for those living in Jammu and Kashmir. Wen said he will seek to boost mutual trust and understanding and cement trade and econmomic ties between the two Asian giants during his three days’ stay in India.
“My current visit is aimed at promoting friendship, expanding cooperation, building on our past achievements and opening up new dimensions for mutual benefit and common development of the two countries,” Wen said in a written statement, released on his arrival at noon.
Wen began his trip to India, his second to the country, Wednesday afternoon with a visit to the Tagore International School, where he informally interacted with schoolchildren and talked about Chinese culture, Tai-chi and calligraphy.
He said the two countries are connected by mountains and rivers and enjoy a traditional friendship dating back more than 2,000 years. This year also marks the 60th anniversary of diplomatic ties between the two neighbors, he added in the statement.
The premier is accompanied by some 400 Chinese business leaders, including chiefs of top firms like power equipment major Shanghai Electric, metals refiner SinoSteel and telecom gear giants ZTE and Huewei.
Wen’s official entourage includes Foreign Minister Yang Jiechi, Communications Minister Li Shenglin, Culture Minister Cai Wu, Director of Research Office Xie Fuzhan, Vice Commerce Minister Gao Hucheng, and Director in the Premier’s Office Qiu Xiaoxiong.
Wen will hold official talks with Manmohan Singh Thursday. The two will also oversee celebrations of the 60th anniversary of diplomatic ties between the two nations. A host of agreements are also on the cards, especially in infrastructure, telecom and energy.
According to officials bilateral cooperation agreements that are set to be inked Thursday would cover trade, renewable energy, infrastructure and finance.
China is also India’s largest trading partner with the value of two-way merchandise exchange rising from $18.7 billion dollars in 2005 to $51.8 billion last year. The Chinese trade office expects this to top $60 billion this year.
During Wen’s last visit to India in 2005, the two sides finalized guiding principles and political parameters for resolving their boundary dispute.