This is the age of free market economy and regional cooperation. Countries around the world are trying to increase trade ties and sign free trade agreement (FTA). The only exceptions are perhaps the two Asian neighbors India and China. They have the two fastest economies in the world today. China is now interested to sign a FTA but Indian traders are not so enthusiastic about it.
Indian traders and decision makers are afraid of basically two things about FTA. On the one hand, they are afraid of the cheap Chinese goods flooding Indian markets. This will seriously hurt Indian producers. On the other hand, Indian traders are afraid of dumping of Chinese goods. Chinese economy is still controlled by the Chinese government and Chinese government gives a lot of subsidy to its companies so that they can export goods at cheap price in the international market.
I feel that age old rivalry and suspicion is another important factor in this regard. Well, Chinese leaders will have to come forward and address this issue. They have to eradicate any existing mistrust among the Indian leaders and traders. On the other hand, Indian leaders should try to realize that this is not the age of economic isolation.
What is your view about it?
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