First India-China investment body’s office opened at Mao’s birthplace
The liaison office of the first official business body set up by China to step up its investments in India was inaugurated here on Monday amid concerted efforts by both countries to boost their trade ties.
The liaison office of China and India Business Council, (CIBC) was launched here in the capital of Hunan province, the birthplace of Mao Zedong, founder of ruling Communist Party of China (CPC) at a ceremony attended among others by top officials of both the countries. Though set up in 1985 by China, the CIBC remained inactive. Setting up of a liaison office in Hunan province in coordination with Indian Consulate in Guangzhou will make it active, officials said.
The revival of the CIBC is backed by the China Council for the Promotion of International Trade (CCPIT), country's official body, which coordinates Chinese investments and businesses abroad. It was seen as significant step by China to boost its investments in India.
The ceremony was attended by Deputy Ambassador of India Amit Narang, the Consul General of the India in Guangzhou YK Sailas Thangal as well as Vice-Chairman of the National CCPIT, Lu Pengqi and Chairman of the CCPIT, Hunan province, He Jian.
A Chinese official said the office eventually would coordinate investments from all over China and will also open its offices in India.
Hunan has strong trade ties with India with some of its top companies like Zoomlion, a Chinese manufacturer of construction machinery and sanitation equipment and Sany heavy machinery manufacturing company which have already made investments
in India. Chinese officials said, China's investments in India amounted to USD 4.07 billon till last year though Indian officials say it is less than USD 2 billion.
But more Chinese firms evinced interest to invest in India. For its part Indian government in coordination with the various state governments is also conducting campaigns to attract Chinese investments.
The bilateral trade last year amounted to USD 71.62 billion with over USD 53 billion trade deficit in favour of China.
In view of the growing trade deficit, India has been asking China to promote investments.