Wednesday, December 15, 2010

Business is used by China to break containing from U.S.

Wen Jiabao visiting

These days China’s Premier Wen Jiabao is in India for his three-day visit. Unlike the over $10 billion package U.S. President Barack Obama and French President Nicolas Sarkozy signed during their visits to India earlier this year, the agreements between India and China will reach 16 billions. As China’s media reports, the deals will largely focus on investment, the construction of infrastructure, and the purchase of Indian products including agricultural products.

Analysts believe the 16 billion deals are very significant to China’s geopolitics, especially when U.S. is re-entering Asian affairs with high profile this year. Looking around China from South Korea, Japan, Taiwan, Vietnam, and India to Afghanistan, China believes U.S. is building a net to contain it. When forbidding high-tech exports to China, U.S. is actively selling high-tech arms to India, and promised to support India to become permanent members of the UN Security Council.

To break containing from U.S., China believes business trade with India is important as same as improving its military defence. During the past 10 years, China has become India's second largest trading partner. The value of bilateral trade is expected to reach $60 billion this year, a 30-fold increase since 2000. By enhancing its economic ties with India, China is expecting that India won’t stand closer to U.S. too much in the future on international affairs regarding China due to India’s own economic interests and reliance on China.