Post the India - China high profile visit, press reports seem to convince us that the giants have begun to trust eachother in matters of business and the border. While resolving the border issue will be the true test of trust, India and China are increasingly seen working together and backing eachother at international forums. Hopefully, frosty feelings from the cold war have melted, paving the way for the Asian cenutry. But a doubt remains in my head, do India and China really trust eachother? Only time will tell….

Nonetheless, another opportunity for India and China to show off their support for eachother at an international forum will be at the World Economic Forum (WEF), soon to be held in Davos. Meeting admist the US financial meltdown, global capitalists will be looking to India and China to pave the way, abating an international crisis.

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Numbers: (32.6,24.3)

Numbers: (100,29)

“2007 returns won’t be repeated. 2008 will be a very difficult year for the global economy”

I am not saying this but Economists are!

If you need a bit of depth into the subject you need to check out the interview (below) where Gerard Lyons, chief economist and Head of Global Research, Standard Chartered Bank, has his “Outlook 2008: India, China; Emerging markets investment themes” for us, where he analysis and shares who is going to win the race of global growth figures and who’s going to have its tables turned. 

Some of the important questions considered in the video are:

1. What’s in the picture for USA in 2008?,  will emerging markets be effected by this and how?
2. will China be able to handle the position that US occupied….? Will it actually complete the race and then be stable onwards with similar figures or will the Chinese Engine slow down? You can also read here for more discussion on this
3. Will inflation be higher than expected?
4. what’s in store for Chinese currency reserves?

See it here and lets discuss

Beijing, Jan.14 - H.E. Dr. Manmohan Singh, Prime Minister of the Republic of lndia, and H.E. Mr. Wen Jiabao, Premier of the State Council of the People’s Republic of China, yesterday met in Beijing with the aim of strengthening peace and prosperity between the two nations as well as developing a strategic and cooperative partnership.

lndia and China, home to more than one-third of the world’s population, play a significant role in the future economic and social development of Asia and thus this meeting in Beijing served to further highlight the importance that both countries have attached to their role in maintaining sustainable economic and social development and simultaneously driving forward two of the most booming economies in the world.

In his speech Dr. Singh highlighted a number of important issues that the two nations must face as well as ways in which both China and India can work together in harmony to ensure that this development continues unabated. Here are some excerpts:

In his opening paragraphs, Dr. Singh strongly emphasized the importance of strengthening the relationship between India and China stating that: “the India-China friendship and common development will have a positive influence on the future of the international system. India-China relations are not targeted at any country, nor will it affect their friendship with other countries.”

“Both China and India believe that in the new century, Panchsheel, the Five Principles of Peaceful Co-existence, should continue to constitute the basic guiding principles for good relations between all countries.”

Dr. Singh reiterated that: “An international system founded on these principles will be fair, rational, equal and mutually beneficial, will promote durable peace and common prosperity, create equal opportunities and eliminate poverty and discrimination.”

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China-India bilateral trade doubled in 2007

By Chris Devonshire-Ellis

Jan.14 - Dr. Manmohan Singh, India’s Prime Minister, addressed the India-China Economic, Trade & Investment Summit this morning and reminded the delegates that a resumption of Chinese and Indian global trade was just a return to the previous global balance of the 18th century.

His full comments at the summit are reproduced below

Ladies and Gentlemen,

India and China are today the fastest growing large economies in the world. We should remember that China, India and Europe had almost equal shares of world income in the early 18th century. As the 21st century unfolds, both India and China stand poised to regain their weight in the global economy.

Our two countries will need to work together to ensure that we contribute to, even as we benefit from, the economic resurgence and integration of Asia. Our two economies are becoming engines of economic growth and must use our natural and human resources, technology and capital for the common benefit of the region.

The Indian economy has witnessed growth rates of close to 9 percent per year in the last three years. Our macro-economic fundamentals are strong. We have undertaken a series of economic reform measures to facilitate investment and growth. Our savings and investment rates have increased to 35 percent of our GDP and are rising. With a predominantly young population, there is potential for further increase in these rates.

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While upbeat talks are being held this week in Beijing between the Indian Prime Minister Dr. Manmohan Singh and the Chinese President Hu Jintao, concerning record trade figures between the two nations, the real key to the continuing development of this relationship is a resurgent Russia. Indeed, while bi-lateral talks between India and China will make the headlines, it’s really a triumvirate story that is developing – the new Trading bloc that will be made up of these three superpowers to counterbalance both the United States’ aggressive desire for oil inflicting global imbalances upon the world’s economy and the geopolitical and geographical expansion of Europe.

It’s a subject largely unreported and little understood in the media’s seeming unending fascination with China and the hullabaloo of an American election. Yet Russia is expected to join the WTO later this year, with just Saudi Arabia standing between them and a mandate to come aboard and fully participate in the global community. Doing so will further add strength to Russia’s already booming economy, yet with wary eyes on its borders with Europe, and strongly felt suspicions concerning the proposed American desire to place missile sites in Poland, Russia is more likely to align itself with India and China as the global balance of power settles down into a tri-polar power base of America, Europe and Asia. (more…)

Jan. 14 - Prime Minister Manmohan Singh began his three-day visit to China yesterday with an informal meeting with his Chinese counterpart Wen Jiabao as both sides grapple to find a mutually acceptable solution to the on-going issue of disputed border areas. Dr. Singh and Wen discussed a range of issues of mutual interest during their ‘restricted meeting’, held at the Diaoyutai State Guest House. National Security Advisor, MK Narayanan, Foreign Secretary Shivshankar Menon and Indian Ambassador to China Madame Nirupama Rao were also present during the discussions. The borders issue is expected to figure prominently during the discussions though both sides do not expect any breakthrough at this stage. Special Representatives MK Narayanan and Dai Bingguo, senior Vice Foreign Minister, will brief the leaders on the progress in negotiations on the boundary problem.

“An early settlement of the boundary question will advance the basic interests of the two countries and should, therefore, be pursued as a strategic objective,” said Dr. Singh.

Dr. Singh, who was accorded a red carpet welcome at the Beijing international airport, will have official delegation-level talks with Wen at the Great Hall of the People today. (more…)

Jan. 14 - Indian Prime Minister Dr. Manmohan Singh arrived in Beijing yesterday and urged the Indian business community both in India and China to “think big” and engage China to learn to both compete and cooperate.

“Indian businesses should think big. Indian business is ready to face the brave new world of globalization. China is an important part of that brave new world of globalization. We must engage China and learn to both compete and cooperate,” Singh said.

Singh discussed with high level Indian businessmen the problems they faced in developing trade with China, including the huge surplus in commerce with India. The main thrust from the Indian side was to ask him to press Beijing for the early removal of trade and non-trade barriers, and specifically in areas such as textiles and steel. Business leaders also praised Dr. Singh on the recent trends in bilateral trade and investment flows. They also drew attention to both the opportunities as well as the challenges faced by the Indian business in China. (more…)

Numbers: (130,42)