Experts, who held parleys at a public discussion organized by Ananta Aspen Centre on "India and China-A New Engagement?" here on Friday, opined that closer ties with Tokyo will not impact the relationship between New Delhi and Beijing.
A panel of eminent experts held discussions on how India and China can usher in a new era of bilateral relationship.
Former foreign secretary Shyam Saran, who initiated the discussion, said it is good that the visit of the Chinese President is taking place soon after Prime Minister Narendra Modi's successful trip to Japan.
"China is expected to be more amenable and sensitive to Indian interests. I feel stronger India-Japan ties will create a positive setting to raise the level of India-China relations as well," he added.
Saran emphasized that the notion that strong Indo-Japan ties will hamper the relations between India and China is untrue. He said on the contrary the Chinese will compete with the Japanese over ties with India and will raise the level of relationship.
Saran further said that India can expect the Chinese investments in a big way.
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India and China are more politically and economically engaged than at any time in recent history but the road leading to mutually-beneficial bilateral ties between the two countries has not been very smooth.
In this backdrop, enormous importance is being attached to the upcoming visit of Chinese President Xi Jinping to India in September. This would also be President Jinping's first interaction with the new leadership and the government of India.
The Chinese President's visit is an excellent opportunity for leaders of both countries to address issues of bilateral concern and build a solid foundation for new agreements on infrastructure, security, defence and trade.
The discussion panel consisted of the President of Centre for China Analysis and Strategy Jayadev Ranade, economist Dr. Arvind Virmani, who is also former Executive Director of IMF, and Pramit Pal Chauduri, foreign editor of The Hindustan Times.
Calling for stronger trade ties with China, Ranade said, "President Xi Jinping's visit is aimed at striking a personal equation with Prime Minister Modi to prevent India from getting closer to Japan and the U.S. After the Indian PM's visit to Japan, it is likely that the Chinese will now give concrete figures for investment in India."
Ranade also said that Chinese investment should be welcomed but should be cautiously regulated and monitored by the government to see that to which sector it is going to.
Meanwhile, Dr. Virmani compared the economies of both the countries and said that in terms of economic necessities both India and China will benefit by being each other's partners.
"China has seen 10 percent growth in the last three decades, which no other country has been able to achieve. However, China is still looking for markets to expand and sustain its growth, and India is the only big market right now. India and China should jointly collaborate on high-speed railway networks, based on the BOOT model (build, own, operate, transfer). India can also consider setting up a China-centred Export Promotion Zone (EPZ), especially in the areas of manufacturing and construction," Dr. Virmani said.
He also said that China wants to export its construction services and capital goods to sustain growth, and for this Indian market is the best option.
Chauduri on his part emphasized on India and China being natural trade partners in the years to come. He said that Japan and China are the best possible trade partners for India. Chauduri said the Chinese FDI in India is very less and China will be looking to increase it in the light of growing Indo-Japanese ties on trade and FDI in India.
On foreign policy matters, he said that China becomes uncomfortable when India gets closer to the US.
Saran agreed that China will be concerned with India's proximity to United States. He also hinted that Tibet issue could be a possible factor adversely influencing the Indo-China relations. He said that India should be cautious about the sectors in which the Chinese investments will be allowed.
The panelists also underscored the need for policy reforms in India to boost growth manufacturing.