INDIAN Elements
from guangdong to gujarat
Facing down the sceptics of the developed world, Xi Jinping has continued to push his policy of Asian integration across the region. An interesting aspect of the New Silk Road agenda, is the inclusion of a number of Indian states and cities. Considering the competitive and often controversial relationship between the two nations, the mutual desire to increase investment and trade seems to be growing rapidly.
The Indian Element: One Belt, One Road
September 24, 2015
States like Gujarat and Rajasthan are looking to attract Guangdong companies to invest in their respective local markets. Also in attendance were representatives from the Asia Development Bank, acting as a catalyst for investment and offering technical assistance throughout the process.
Despite the provincial weight behind events such as this, it is the city-level governments that play a more active role in promoting the creation of Xi’s various New Silk Road projects. The host-city of the event, for example, accounted for 1.6 billion USD in bilateral trade with India in 2014. Foshan has played an active role in establishing bilateral relations with countries across Asia in the name of the One Belt, One Road policy. In the last three months alone, Foshan has sent delegates to India, Thailand, and Indonesia. It also maintains a heavy focus on Japanese inbound and outbound investment, with specially-tailored parks targeting Japanese companies.
In direct opposition to national and international media reports focusing on deteriorating relations between China and it’s South East Asian neighbours, it seems that those on the ground are adopting a more business-as-usual approach.
There has been a realisation on both sides that there is a great need for cooperation...
Ajay Shanker Signh, Guangdong Federation of Industry & Commercen
The US State Department has expressed support for the creation of a “New Silk Road”; hoOn September 23, the Guangdong government hosted a delegation from India as part of the “One Belt, One Road” initiative taking Asia by storm. The India-China (Guangdong) Knowledge Sharing Seminar aimed to address the surprisingly low levels of bilateral investment between the two countries, considering their similar development trajectories.
The seminar was hosted just as the country’s two leaders landed in the U.S., ready to compete for the attention of the American business community. In Guangdong, however, the tone was conciliatory.
Guangdong accounts for a full sixth of China’s trade with India, and earlier this year President Xi Jinping and India’s Prime Minister Narendra Modi witnessed the signing of a cooperation agreement between Guangdong and India. In 2014, one third-tier Guangdong city alone accounted for 1.6 billion USD in bilateral trade with India.
The event was attended by the Director of the Department of Economic Affairs of India, Mr. Ajay Shanker Singh, as well as leading members of the development bureaus of Gujarat and Rajasthan. Xi Jinping has personally promoted the sister-province relationship between Guangdong and Gujarat.
