New Delhi, Dec 16: India and China today agreed to raise the bilateral trade to USD 100 billion by 2015, step up investments and permit banks of other countries to open branches and representative offices.
The two sides also decided to reduce the trade deficit, which is in favour of China, said a joint communique issued after talks between Prime Minister Manmohan Singh and Chinese Premier Wen Jiabao.
"Set a new bilateral trade target of $ 100 billion by 2015. The two sides agreed to take measures to promote greater Indian exports to China with a view to reduce India's trade deficit," it said.
The bilateral trade between India and China is expected to be around $ 60 billion in 2010. The bilateral trade imbalance was against India to the extent of $ 19 billion during 2009-10.
China agreed to support Indian participation in its national and regional trade fairs, enhance exchange and cooperation of pharmaceutical supervision and expedite completion of phytosanitary negotiations on agro products.
The two sides decided to grant permission to the banks of the other countries to open branches and representative offices, it said.
Earlier, RBI Deputy Governor Shyamala Gopinath and Vice Chairman of China Banking Regulatory Commission (CBRC) signed a memorandum of understanding to enhance cooperation in the banking and financial sectors between the two countries.
The modalities for allowing banks of other countries to open branches and representative offices, the Communique said, "will be worked out by the concerned authorities".
In view of the potential to step up bilateral trade between the neighbours, the two sides decided to establish a Strategic Economic Dialogue to enhance macro-economic policy coordination and address challenges facing economic development.
India and China have also agreed to "jointly oppose protectionism in all forms", besides expanding bilateral cooperation in sectors like infrastructure, environmental protection, information technology, tele-communications, investment and finance on a priority basis.
The two sides agreed to encourage greater mutual investment and project contracting cooperation between businesses of the two countries and deal appropriately with issues concerning economic and trade frictions.
It was resolved to constitute an India-China CEO's Forum to deliberate on business issues and make recommendations on expansion of trade and investment cooperation.
Meanwhile, Exim Bank Chairman and Managing Director TCA Ranganathan and China Development Bank Cooperation Vice-Governor Gao Jian signed a MOU to boost bilateral trade between the two countries.
In a bid to remove irritants which have crept in bilateral relations in the last one year, India and China today reached broad consensus on several issues and pledged firm commitment to resolve outstanding differences, including the boundary issue at the earliest through peaceful negotiations.
After holding talks on key security and strategic matters, Prime Minister Manmohan Singh and his Chinese counterpart Wen Jiabao issued a joint statement which said, "There is enough space in the world for the development of both India and China and indeed, enough areas for India and China to cooperate."
Noting that resolution of the boundary question is one f the ten-pronged strategies agreed by leaders of the two countries, the leaders decided that pending its resolution, the two sides shall work together to maintain peace and tranquility in the border areas in line with the previous agreements.
The two sides also noted the good cooperation between China and India in the field of trans-border rivers with the Indian side appreciating the assistance provided by the Chinese side on the flood-season hydrological data and emergency management.
Underlining their unequivocal opposition to terrorism in all its forms and manifestations, the two countries stressed that there is no justification for any act of terrorism anywhere.
"They committed themselves to countering terrorism through joint efforts that include disrupting the financing of terrorism," the statement said.
Recognizing common interests and similar concerns on major regional and international issues, the two sides decided to enhance their coordination and cooperation in multilateral forums.
"China attaches great importance to India's status in international affairs as a large developing country, understands and supports India's aspiration to play a greater role in the United Nations, including in the Security Council," the statement said.
The two sides also agreed to further broad-base and balance trade and economic cooperation and identify new opportunities to realise the vast potential for future growth. PTI
