China, India Strengthen Trade and Defense Ties

June 1 (LPAC) -- China and India are working on developing a regional trade agreement, Chinese officials announced. "If China and India, the world's two largest countries whose economies are experiencing the fastest growth, can figure out a trade arrangement, the vast East and South Asian markets would receive a significant boost, while Asian economic integration would be facilitated," Vice Minister of Commerce Yi Xiaozhun was quoted by the China Daily . There will be a meeting June 4 in Beijing to discuss initiating the agreement, to be completed by October.

The two countries have already achieved their goal of increasing bilateral trade to $20 billion, and are now striving to reach $40 billion in bilateral trade by 2010.

The two Asian giants will also set a date for their first defense dialogue, Indian External Affairs Minister Pranab Mukherjee and new Chinese Foreign Minister Yang Jiechi agreed at the Asia Europe Meeting in Hamburg, the Indian News Post reported today. The two sides signed a memorandum of understanding (MOU) for defence cooperation when Mukherjee had visited Beijing as Defence Minister in 2006. The two nations had agreed also to conduct their first-ever joint army maneuvers during the visit of Indian Army Chief Gen. J.J. Singh to China, which ended May 27.