Saturday, April 23, 2011

Compared with large scale trade, mutual investment is negligible

Rapid development in China and India trade while, still want to see the two countries some deep economic interaction.
Compared with large scale trade, mutual investment is negligible. By the end of 2005, China 4735 million dollars to invest in India, printed one hundred ninety-six project investment in China, contract amount to 421 million - the actual investment 1.22 billion dollars. Based on the so-called "safety", because the Chinese for India infrastructure investment projects has been subjected to obstruct, some Chinese telecom companies to India's investment is not approved, Hong Kong hutchison whampoa, huawei, zte, Chinese companies investing India port, communication industry many times when was forbidden. China enterprise investment activity was banned repeatedly, MBT Panda,to a great extent, and the two countries didn't reach bilateral investment protection agreement about. Chinese enterprises face discrimination in India, two countries that still lack enough political relationship trust, and the lack of trust is the further economic interaction fabricated barriers.
China and India in the 21st century's rise is already the undisputable fact, but the development of both countries also faces many of the same problems, energy demand is key. Yet India's land area is not small, but resources are not rich, is actually resources small, 70% of the domestic demand for oil imports. History for energy struggle between countries toward conflict is not uncommon, MBT Shuguli GTX,cases of sino-indian can avoid opted to not only relates to whether the two countries will walk the road of peace and development, but also related to Asian and world peace and stability. In 2006, China and India have before each other in overseas oil assets malignant competition, the internecine experience. As the two largest developing country, China and India both sides gradually realized that the significance of energy cooperation. Two countries begin to cooperation, in January, 2006, India's oil minister's visit, the two countries signed a memorandum of cooperation and for the energy bid for overseas oil assets to obtain win-win results. Sino-indian energy cooperation in theory is feasible, once successful cooperation, the two sides in improving buying overseas assets strength, price game ability, or even eliminate Asian "premium", "Asian premium" refers to the Middle East country sells to Asian prices,MBT Kisumu, sold to Europe and the United States than the average 1 ~ 2 dollars higher than average barrel, Asian countries each year to pay more for 50 million to 100 million dollars. For Asian "premium" in 2005, China's oil imports to reach more than the amount paid $5.4 billion. "The existence of Asian premium" for Asian economic competitiveness adversely affect. International energy say increased respect is to be expected. And this cooperation show that between the great powers can be a win-win relationship is rather than zero and. (but xing enlightenment)

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