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How to reduce trade frictions

(China Daily)
Updated: 2011-01-14 08:02

Trade between China and India has increased rapidly over the past decade. China is now India's largest trading partner, and India is China's largest trading partner in South Asia.

Despite this positive development, trade frictions between the two countries have become frequent. For the sake of China and India both, measures should be taken to reduce the trade frictions.

First, the two countries should cast aside their differences and improve bilateral cooperation. There is a strong potential for China and India to work through their differences by doing more business together.

As some Indian officials said recently, India and China can intensify their cooperation in infrastructure. The two sides can benefit from expanded economic contacts and generate more win-win cooperation, instead of falling into the trap of zero-sum game.

Moreover, China and India should shift from regional competition to regional cooperation, and strengthen bilateral exchanges.

To avoid protectionist measures, which will impede economic development, China and India should seriously consider establishing a free trade area.

Xie Jing, via e-mail

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