INSUBCONTINENT EXCLUSIVE:
concluded the key Strategic Economic Dialogue with Beijing during which differences persisted over China's controversial One Belt One Road
initiative.Remarks by NITI Aayog vice-chairman Rajiv Kumar came as he held the fifth Strategic Economic Dialogue (SED) dialogue with his
Chinese counterpart He Lifeng, the chairman of China's top planning body the National Development and Reform Commission (NDRC), in Beijing
on Saturday.During the talks, the Belt and Rroad Initiative also came up for discussion."India suo motu has been the supporter of the
rule-based multilateral trading order
In that sense, we don't have to take sides either one-way or the other," Mr Kumar told the media when asked about India's stand on the
current trade spat between China and US.The SED, a key platform between India and China to discuss trade and economic issues, was resumed
this year after last year's disruption amid the Dokalam standoff.The meeting took place amid growing rapprochement between the two countries
after the standoff."India has always taken an independent position on trade issues," Mr Kumar told the media.His remarks came as the US and
China announced tit-for-tat tariffs on each other's products
US President Donald Trump is ramping up pressure on China to cut the $375 bilateral billion trade deficit."While India does not like any
measures that harm the rule based international trade regime, there is no reason to take sides in this," he said."We are not that level of
Our shares are much smaller
We are the takers of the rules than makers," he said.Mr Kumar mentioned the US and Japanese trade war in late 1980 when Washington
successfully pressured Japan to cut the trade deficit."That is what the US is still expecting
If you notice, both sides have announced their position (to cut tariffs) but they have not given the dates
This is posturing," he said."I don't think anybody is interested in trade war trade crisis," he said.In his address at the SED yesterday, Mr
Kumar made a strong pitch for China to allow India's exports of soybean and sugar.Soybean is regarded as most important for US farmers and
China is the largest importer
China has threatened to impose 25 per cent tariffs on its imports if Donald Trump went ahead with his tariff plan for China.Elaborating on
his stand in asking China to import soybean and sugar from India, he said, "My hint was much more towards agricultural tariffs in China than
anything else".China's agricultural tariffs are high and India's agricultural exports suffer as a result of it.Asked whether the US-China
trade spat is advantageous to India, he said, "If war happens, elephants fight and grass gets affected
We don't want that," Mr Kumar said, adding that the US and China being the world's top two economies are giants."We are not there yet," he
said.Apparently, China has raised th One Belt One Road Initiative at the SED for which India responded raising its concerns over the
sovereignty issue regarding the China-Pakistan Economic Corridor (CPEC) as it is being laid through Pakistan-occupied Kashmir (PoK).Mr Kumar
said the Chinese brought up the OBOR issue and the Indian delegation responded by saying it is a matter of sovereignty which cannot be
compromised.The Chinese side "extolled" the OBOR virtue and emphasised how it is "completely nonconflictual and respectful of sovereignty
and independence", he said."After hearing India's response they chose to ignore it," he said.But at the same time there was no reference to
the CPEC and it is covered in the sovereignty-related concerns raised by India, Mr Kumar said."Both sides recognize the differences over the
But there is sufficient scope within the defined red lines to take the development cooperation forward," he said.There was a discussion at
the SED about the Bangladesh, China, India, Myanmar (BCIM) corridor
While China says it is a part of the BRI, India says the project predates that.Mr Kumar said the main focus for India is Asian trilateral
The BCIM is a work in progress.Currently Bangladesh and Myanmar are not interested in it in view of the Rohingya refugee crisis, Mr Kumar
said.China for its part appreciated India's Act East Policy to improve connectivity in the north-eastern states.He said the core message
from the SED was that "we must focus incessantly and unremittingly on the development cooperation possibilities despite differences"."Major
take away for India was that China has expressed interest in joining the International Solar Alliance mooted by India," Rajiv Kumar said."It
If that happens it can be a big shot the arm," he said.There were some "positive noises" from China on investing in Prime Minister Narendra
Modi's scheme for housing for all Indians by 2022.Mr Kumar said that there was immense potential to set up special clusters for Chinese
investments like textiles, leather, food processing, electronic components and pharmaceuticals.
