New Delhi: Exactly a month since their informal meeting in India, Prime Minister Narendra Modi and Chinese President Xi Jinping are set to meet again — this time formally. The bilateral meeting will take place in Brasilia on the sidelines of the BRICS Summit starting Wednesday.
The leaders had met for the second informal summit on 11-12 October at Mamallapuram in India when both sides discussed a wide range of issues concerning bilateral ties, with a focus on expansion of bilateral trade.
According to sources, both sides are expected to discuss the mega free trade pact — Regional Comprehensive Economic Partnership (RCEP) — even as both leaders may also formally announce the creation of a High-Level Economic and Trade Dialogue mechanism, which will be co-chaired by Finance Minister Nirmala Sitharaman and Chinese Vice-Premier Hu Chunhua.
The meeting between Modi and Xi, hence, assumes critical importance as this will be taking place within days of Modi walking out of RCEP earlier this month.
India opted out of RCEP pact mainly because it feared Chinese goods would flood its markets, even as it could not cull out a deal for itself in getting more access for its professionals in Beijing. These issues will crop up in the talks tomorrow, sources told ThePrint.
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Beijing wants India to reconsider RCEP decision
After India’s rejection to RCEP, Beijing has said it will address New Delhi’s concerns in coming on board the trade pact inviting India to reconsider its decision.
This had also been reiterated by Commerce and Industry Minister Piyush Goyal as he said India will continue to negotiate RCEP. Member countries have decided to formally sign the deal in 2020.
The RCEP is being negotiated between 16 countries, including the 10 ASEAN members — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam — and their six trade partners — Australia, China, Japan, South Korea and New Zealand, besides India.
Modi’s meeting with Xi is also coming at a time when Goyal will be simultaneously meeting his American counterpart US Trade Representative Robert Lighthizer. It is expected that the much-touted India-US limited trade pact can be agreed during this visit.
Sources said India did not agree to RCEP as it came under pressure from the US.
Also read: Narendra Modi rejecting RCEP shows Swadeshis and Left think alike on trade
Also on the agenda
Indian and China will also have to schedule a meeting of their respective Special Representatives for boundary talks.
Besides, India may discuss the issue of China-Pakistan Economic Corridor (CPEC) as New Delhi is upset with the fact that it passes through Pakistan-occupied Kashmir (PoK).
“Since India walked out of the RCEP, a lot of backdoor channel talks have been going on. It is a misplaced idea India has made that RCEP is led by China, whereas the truth is the main driver is ASEAN (in the RCEP),” veteran diplomat and former Indian Ambassador Phunchok Stobdan told ThePrint.
He added, “In strategic terms, Kashmir will not come up at all. Maybe the border talks can be discussed and also the China-Pakistan Economic Corridor, in which they are now feeling the pinch.”
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