India, China to hold dialogue on financial issues

Amid tensions over denial of visa to a top Indian Army General by China, India and China are set to hold two-day high level annual dialogue here on a host of bilateral and global financial issues from September 1.

Finance Secretary Ashok Chawla would be heading a four- member team, which included senior officials of the Reserve Bank of India to hold the talks with a team of Chinese officials headed by Vice Finance Minister, Guang Yao Zhu.

Chinese Finance Minister Xie Xuren would meet Chawla at a dinner to be hosted by him for the Indian delegation.

The talks are being held in the backdrop of tense stand off over the denial of visa to Indian Army's Northern Command Chief Lt General B S Jaswal to join the military delegation for a high-level visit Beijing.

As a result India has put on hold defence exchanges between the two countries. The talks between the financial officials were scheduled earlier.

The financial dialogue is important for the two fast emerging economies of the world especially in the backdrop of economic recovery from 2009 global economic crisis, Indian officials here told PTI.

This year's annual dialogue would focus on a number of global, regional and bilateral economic and financial issues which included in depth talks on macro economic situation and policies in the two countries and Global macro economic situation and prospects.

The two sides are also set to discuss China-India institutional initiatives to support infrastructure financing, co-ordination on tariff policies to promote regional economic and trade cooperation.

The other issues of talks included, financial sector development, global financial architecture to regulate global financial stability, managing global economic challenges and the issues relating to G-20 progress and climate finance.

The talks would benefit both the countries which are aspiring to play a bigger role in the world economy, officials here said.

"It is great platform to discuss issues relating to G-20, global banking regulatory issues concerning IMF and World Bank, where the two countries acquired considerable influence," they said.

Issues concerning bilateral trade, which is set to touch $60 billion too is expected to come up during the talks.

Bilateral trade during the six months crossed $30 billion with India.

Chinese exports to India in the first half of this year reached $18.4 billion against India's exports to China of $11.9 billion.

While India has been pressing China for more trade access, China for its part is urging India to reduce tariffs on a host of products.