New Delhi and Beijing cannot let differences turn into disputes: India’s ambassador to China
- Ambassador Vikram Misri has called on China to balance its US$60 billion trade deficit with India ‘before the issue becomes politically sensitive’
- He also says India will not take sides over its use of US-blacklisted Huawei, as ‘any decision taken over this will only be taken in our national interest’
“This trade imbalance is not economically sustainable in the long run,” said Misri at an Asia Society event in Hong Kong. “It is in our mutual interest to find workable solutions before the markets react in unpredictable ways and the issue becomes politically sensitive.”
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Analysts said this would pave the way for a better relationship between India and China.
The leaders of the two nations met four times last year and twice in 2019, with Xi set to visit India later this year. Both men share an understanding that “our rise can be mutually reinforcing” and a mutual interest in “preventing differences from turning into disputes”, the ambassador added.
But while Misri, a career diplomat posted to Beijing at the start of this year, stressed that differences would not derail ties, he made no bones about the thorny issues both sides are grappling with.
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Both nations are still engaged in the second of a three-stage process to settle their border dispute – the world’s largest in terms of area, he said.
The first stage was an agreement on the political parameters for a boundary settlement in 2005. The current stage involves agreeing on a framework for a boundary settlement, which Misri said would be translated “into a delineated and demarcated boundary” in the final stage.
Communication over water and shared rivers has also been a key area of cooperation for the two nations.
They have established channels for information sharing on cross-frontier rivers, which last year enabled the Chinese side to warn the relevant Indian authorities of a landslide which would send a large amount of water to India. While in this instance the two sides were able to avert a loss of life, they can do more to broaden cooperation, Misri said.
He alluded to how China and India are vying for influence in the Indian Ocean, saying it was an area where both had “contiguous zones of maritime interest”.
The two sides need to work together to preserve peace and stability in the Indo-Pacific region – which stretches from the Indian Ocean to the central Pacific Ocean – and ensure transparent economic and commercial cooperation, infrastructure and connectivity, he said.
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Misri, who served as the private secretary to Modi as well as former prime ministers Manmohan Singh and I.K. Gujral, said there were three areas of mutual interest for India and China.
Besides a “peaceful periphery”, they should cooperate to ensure there are open international systems regarding trade and technology, and that global governance is reformed so the voices of nations such as theirs can be heard.
Washington says Huawei equipment could be used by Beijing for spying and the US Commerce Department has placed the company on its entity list, effectively banning US companies from selling equipment and components to it.
Misri referred to this, and said: “Let’s see how it shapes up.”
Still, he said, “there’s no question on taking sides over this”. “Our leadership is very clear that any decision taken over this will only be taken in our national interest.”
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