Xi seeks to reset ties
Xi seeks to reset ties
India's new prime minister rolled out the red carpet for Xi Jinping in his hometown yesterday, as the Chinese president began a maiden visit with Asia's rival superpowers seeking to reset relations.
Narendra Modi pulled out all the stops for Xi, organising an intimate riverside dinner in Ahmedabad, the main city in his home state of Gujarat, where giant billboards in Chinese, Gujarati and English welcomed him.
With both sides eager to emphasise cooperation over competition, Xi said in an article published yesterday "the world's factory and the world's back office" made a winning combination, welcoming Indian businesses to China and pledging vital funding for infrastructure development.
Xi will hold official talks with Modi and India's President Pranab Mukherjee today when the two sides will sign a string of agreements expected to include nuclear cooperation.
China's consul-general in Mumbai Liu Youfa said Xi would "commit investments of over $100 billion", noting this was triple the sum pledged by Japan during Modi's visit earlier this month.
Yesterday's agenda was deliberately informal, including a riverside stroll. Modi also escorted Xi through a photo exhibition on Gandhi's life.
After the private dinner with Modi, who celebrated his 64th birthday yesterday, Xi was headed for New Delhi.
Border issues are on the agenda for the visit of Xi, who is accompanied by his wife Peng Liyuan, that came amid reports in India of new Chinese incursions along the de-facto frontier.
Modi has made clear he will pursue a more muscular foreign policy than the previous centre-left Congress government. During his election campaign, he said China would have to shed what he called its "expansionist mindset", although he also spoke admiringly of China's economic success.
China is India's biggest trading partner, with annual two-way commerce of more than $65 billion. But the trade deficit with China has soared to over $40 billion from $1 billion in 2001-02, Indian data shows.
Experts said China would seek to allay Indian concerns over the widening deficit as it tries to cement its relationship with its western neighbour at a time of heightened tensions with Japan and several Southeast Asian nations over disputed sea territory.
Xi headed to India after visiting the Maldives and Sri Lanka as China asserts its influence in a region traditionally in India's sphere.