China envoy meets Pillai on trade balance
India has raised the issue of huge adverse balance of trade with China when Chinese ambassador to India Zhang Yan met home secretary G.K. Pillai on Wednesday. India has also has made it clear to Chinese telecom
companies that if they come clean on ownership concerns and do not pose a security challenge, they will be allowed to sell their equipments here. Mr Yan met Mr Pillai taking up the issue of certain Chinese companies whose equipment have evoked security concerns in India. Mr Pillai apprised the Chinese envoy of his meeting with the representatives of Chinese telecom manufacturing firm ZTE held earlier in the day. The government has sought clarifications and additional information from the Chinese vendor before it takes a final view on allowing its equipments into India. “Those companies who do not have ownership problems will be allowed entry into India within 30 days,” a top government official explaining that security clearances are done to verify whether the companies keen to enter India have any links with the People’s Liberation Army of China or blacklisted by Indian security agencies.
“We had a very good discussion. It was a positive meeting. I hope all relevant issues will be resolved,” Mr Zhang said.
ZTE officials told Mr Pillai that they will give certifications of their equipments sold in other countries to India to support their stance and resolve ownership concerns.
Certain Chinese companies have also expressed its willingness to examine the possibility of setting up manufacturing units in India, government sources said. “The talks were held in a positive environment. We have appealed to the government. Let’s see.” D.K. Ghosh, ZTE India head said after a half and hour meeting with Mr Pillai. The sources said that ZTE is employing 7000 people of which 82 per cent are Indians. ZTE and Huwaei Technologies are the two Chinese telecom companies whose equipment have evoked security concerns in India. The home ministry, however, maintained that no foreign companies’ equipments are allowed at sensitive locations like Jammu and Kashmir and the Northeast.
The meeting between Mr Zhang and Mr Pillai assumes significance in the backdrop of environment minister Jairam Ramesh’s remarks in Bejing that the home ministry was being “alarmist” and “paranoid” in its approach towards entry of Chinese companies in India. Clarifying the home ministry’s stand, Home secretary G.K. Pillai had referred to the adverse balance of trade between India and China. “The total volume of trade between India and China is $38 billion. The balance of trade in favour of China is $24 billion every year. Therefore there can be no cause to say there is discrimination against China in so far as trade is concerned,” he had said.
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