Last week, a hornet’s nest was stirred when the US-China joint statement issued at the end of the US President, Mr Barack Obama’s visit to China hinted at China mediating between India and Pakistan. Expectedly, the statement was criticised widely in India. Mr Obama’s visit to China came on the heels of verbal exchanges between India and China, threatening the existing bilateral ties.

The Ficci President, Mr Harsh Pati Singhania, had expressed the fear that business and economic relations could be affected by this.

PRANAB’S WISDOM

Despite all these verbal exchanges, the Finance Minister, Mr Pranab Mukherjee, went on record to say any differences between the two countries could be solved through dialogue. Conceding that there were differences on both sides, he said: “We have agreed to resolve them through dialogue.”

According to him, India does not visualise any conflict on border issues with China. He said bilateral trade between the two countries is expanding fast. “We have institutional arrangements. There is the Indo-China Joint Commission. It meets regularly... any dispute could be resolved,” he said.

TRADE

It does not make “economic sense” for India and China to scale up aggression. Sino-Indian bilateral trade has been witnessing over 30 per cent growth in the last few years.

Last year, it increased 34 per cent to $51.8 billion. Exports to China increased 39 per cent to $20.3 billion, while imports rose 31 per cent to $31.5 billion.

While India’s major exports to China include iron ore, cotton, oil-meal, organic chemicals, copper a

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