New Delhi: Even as the Indian government ramps up scrutiny of Chinese companies for alleged financial improprieties and both countries differ over trade figures, the two Asian giants held the latest round of foreign office-led border talks to discuss the continuing border stand-off in Eastern Ladakh.
The two sides have dual channels at the foreign office and military level to discuss the border situation, which has remained tense since May, 2020, when the stand-off began. The last round of diplomatic talks under the rubric of the Working Mechanism for Consultation and Coordination on India-China Border Affairs (WMCC) was held in November, 2021. The discussions between the senior military commanders were last held two-and-a-half months ago.
In March, Chinese foreign minister Wang Yi visited India, becoming the highest-ranking government visitor from Beijing since the stand-off.
At the 24th round of WMCC held virtually on Tuesday, May 31, the Indian side was led by the Ministry of External Affairs’ Additional Secretary (East Asia), Naveen Srivastava. The Chinese side was led by the foreign ministry’s director-general of the Boundary and Oceanic department, Hong Liang.
The Indian press release about the meeting said that the two sides “exchanged views on the current situation along the LAC in the Western Sector in Eastern Ladakh”.
“They agreed that as instructed by the two Foreign Ministers, both sides should continue the discussions through diplomatic and military channels to resolve the remaining issues along the LAC at the earliest so as to create conditions for restoration of normalcy in bilateral relations,” said the MEA’s public note.
It added that the two countries also agreed to hold the next round of talks between senior commanders at an early date. The forthcoming round would aim to achieve the “objective of complete disengagement from all friction points along the LAC in the Western Sector in accordance with the existing bilateral agreements and protocols,” said the handout.
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The Chinese foreign ministry said that the two delegations had a “frank and in-depth exchange of views” on the current situation. As per a machine translation, the Chinese readout also stated that military talks would be held “as soon as possible” to resolve the “remaining issues in western section of the border in accordance with the principle of mutual equal security”.
The language used in the readouts demonstrated the continued differences in approach between the two countries in finding a final resolution to the stand-off, with India insisting on the implementation of current border pacts while China highlights the need for mutual and equal security.
Meanwhile, China also urged India to “provide a fair, just and non-discriminatory business environment for Chinese companies” after media reported that Chinese tech firms ZTE and Vivo had come under the scrutiny of Indian authorities.
A day earlier, Bloomberg had reported that India’s Ministry of Corporate Affairs had received information from unnamed sources that indicated potential violations, including fraud by the two firms.
India has come down heavily on China-based firms since 2020 after the stand-off began. More than 200 mobile applications, including TikTok and Alibaba, have been banned.
In December 2021, the Income Tax department conducted searches in over two-dozen premises of Chinese mobile companies, including Oppo, Xiaomi and OnePlus.
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Last month, the Enforcement Directorate (ED) seized more than Rs 5,500 crore from Xiaomi’s bank accounts in India for allegedly breaching foreign exchange laws. It was put on hold following a court order.
Huawei Telecommunications’ India chief Xiongwei Li, a Chinese national, was stopped from boarding a flight to Bangkok from Delhi on May 1 on the basis of a look-out circular against him. He has approached the Delhi high court to quash it on the grounds that the lookout circular by Indian authorities violated Indian laws.
During the daily briefing on Tuesday, Chinese foreign ministry spokesperson Zhao Lijian said that China was “closely following the situation”.
“The Chinese government always asks Chinese companies to abide by laws and regulations when doing business overseas. In the meantime, we firmly support Chinese companies in safeguarding their legal rights and interests. The Indian side should act in accordance with laws and regulations and provide a fair, just and non-discriminatory business environment for Chinese companies operating in India,” he said.
Zhao also disputed the Indian commerce ministry’s statistics that the United States has surpassed China to become India’s top trading partner in 2021-22.
According to the data of the commerce ministry, in 2021-22, the bilateral trade between the US and India stood at $119.42 billion as against $80.51 billion in 2020-21.
During 2021-22, India’s two-way commerce with China aggregated at $115.42 billion as compared to $86.4 billion in 2020-21, the data showed.
However, foreign ministry spokesperson Zhao claimed that Chinese official statistics show that China’s trade stood at $125.66 billion in 2021-22 and topped $100 billion in annual trade volume for the first time, which meant that China remains India’s largest trading partner.
He noted that the disparity in trade figures published by China and India results from different statistical measurement scales.
“China doesn’t dissent over India’s developing normal trade relations with other countries and doesn’t have much interest in trade ranking changes,” Zhao asserted.
However, he added, “What we care about is whether the Indian side has the will and takes real actions to create a fair, transparent, sustainable and sound environment for bilateral trade and investment, further expand mutually-beneficial cooperation between the two sides and deliver tangible benefits to the two countries and two peoples”.
The Chinese foreign ministry official also reiterated that the boundary question should not overshadow the whole relationship and should be “put it in an appropriate position in bilateral relations and under effective control and management”.