On November 23, 2006, Chinese President Hu Jintao attended China-India Economic, Trade and Investment Cooperation Summit and CEO Forum in Bombay and delivered an important speech. Hu pointed out that both China and India are undergoing rapid growth and facing historical opportunities for accelerated development. The development of China and India offers the two countries precious opportunities to deepen the all-round cooperation and achieve mutual benefits and win-win results. Our two countries should seize the opportunities to expand cooperation, promote the bilateral economic and trade cooperation to greater breadth and depth, and contribute to the development of our respective countries and the rejuvenation of Asia.

The Summit was held in Hotel Taj Maha in Bombay. The participating delegates all stood up and applauded as Hu stepped into the meeting hall at 10 a.m. local time.

Amidst the warm applause, Hu delivered an important speech on the development of the economic and trade relations between China and India. He said that the friendly exchanges between the Chinese and Indian people are long lasting. The bilateral relationship is demonstrating a pleasingly growing momentum since the advent of the new century. Last year, China and India declared the establishment of strategic partnership for peace and prosperity, marking a new stage for the development of bilateral ties.

Hu pointed out that remarkable results have been achieved with the economic and trade cooperation between China and India in recent years, which was also the highlight of bilateral relations. Bilateral trade increased by 15 folds in one decade, with the annual growth rate hitting 32%. The bilateral trade volume is expected to surpass US$20 billion this year, a goal set by the two countries for 2008. China has become the 2nd largest trading partner of India while India is the largest trading partner of China in South Asia. India has become one of the most important overseas project contracting markets for China. Mutual investment also shows a pleasingly growing momentum, which covers emerging industries like telecommunications, software and medicine and plays an obvious exemplary role. The oil companies of our two countries have carried out successful cooperation in the third country, carving new ways for the cooperation between the business communities. The mutually beneficial cooperation between China and India has brought about tangible benefits for both sides and solidified the foundation of our bilateral relations.

Hu put forward a 5-point proposal for promoting China-India economic and trade cooperation.

First, to promote trade diversification. We have set a new goal for bilateral trade to reach US$40 billion by 2010. To achieve this goal, we should work to improve the trade structure, increase the technology content and added-value in commodities, increase the share of new and high-tech products and electronic and mechanical products in bilateral trade, expand the scale of trade, and upgrade the level of cooperation.

Second, to expand cooperation in key areas. China and India enjoy strong complementarities in information technologies, energy resources, infrastructure, science, technology, and agriculture, which offer great potentials for cooperation. We should explore business opportunities in these fields and nurture new growth points for bilateral cooperation. The Chinese government will continue to encourage competent Chinese companies to invest and do business in India, and Indian companies are welcome to explore business opportunities in China.

Third, to improve trade and investment environment. The two governments should, proceeding from the overall interests of the two countries, strengthen consultations and dialogues and properly resolve problems emerging in the process of economic and trade cooperation. The two governments should take active measures to remove obstacles to trade and investment, promote trade and investment facilitation and create an enabling environment for bilateral economic and trade cooperation. The two governments should create better conditions for bilateral economic and technological cooperation, create a fair and favorable trading environment for business communities of the two sides, and further the growth of bilateral economic and trade ties.

Fourth, to strengthen cooperation in multilateral arenas and with third countries. China and India should strengthen coordination in the World Trade Organization and other multilateral economic organizations to jointly uphold the legitimate rights and interests of developing countries. As important members of Bangkok Agreement, the two countries should consolidate cooperation within this framework. China is an observer in the South Asian Association for Regional Cooperation. It is hoped that both sides could unitize this platform to discuss cooperation issues. The two countries should encourage Chinese and Indian companies to carry out energy cooperation in third countries for China and India enjoy broad common interests in the international energy field. The Chinese and Indian companies may conduct joint project contracting in third countries by taking advantage of their respective strengths.

Fifth, to actively discuss trade liberalization. China and India are highly complementary in terms of economy and enjoy great potentials for cooperation. The two countries have basic conditions ready for the establishment of free trade relations. Establishing the free trade area between China and India will lift the bilateral business relations to a higher level and drive regional economic integration in Asia. China and India have initiated the joint feasibility study on regional trade arrangements and agreed to conclude the study by October 2007. It is hoped that this will lay a good foundation for launching negotiations on regional trade arrangements.

Hu expressed his sincere hope that the Chinese and Indian entrepreneurs could look into the future, join hands for cooperation and open up a new vista for bilateral economic and trade cooperation.

Bo Xilai, Minister of Commerce of China, Wan Jifei, Chairman of China Council for the Promotion of International Trade (CCPIT), and Kamal Nath, Minister of Commerce & Industry of India also delivered speeches at the Summit, thanking President Hu for attending the Summit and making the important speech. They said that the speech of President Hu points out the direction for the economic and trade cooperation between China and India in the new century. The Chinese and Indian business communities will seize the historical opportunities presented by the rapid economic growth of the two countries and work to expand bilateral trade, increase mutual investment and upgrade the economic, trade and investment cooperation to a new level.

The Summit was jointly hosted by the Ministry of Commerce of China, CCPIT, Ministry of Commerce & Industry of India, and Federation of Indian Chambers of Commerce & Industry under the theme of promoting the economic and trade cooperation between China and India. There were over 400 participants attending the Summit, including the officials and businessmen of the two countries.

On the morning, Hu met with the relatives of Dr. Kotnis, the great soldier of internationalism who made outstanding contributions to the anti-Japanese war of the Chinese people.

Wang Gang, Alternate Member of the Political Bureau of the CPC Central Committee, Secretary of the Secretariat of the CPC Central Committee, and Director of the General Office of the CPC Central Committee, and other top Chinese officials were also present at the above-mentioned activities.