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India seeks longer work visa permits from China

Background India is seeking a liberalized visa regime from China for Indian professionals.  Presently, they get work permits for only one year. Furthermore, China has a cosy trade relationship with India in the background of unsympathetic and protectionist measures of the US. India has raised this matter in the Trade Policy Review at the World Trade Organization. Moreover, it has highlighted the challenges faced by Indian business persons doing business with China. Additionally, China has shown readiness to address long pending concerns of India recently on the trade front. The countries held their 11th Joint Economic Group Meeting in May and agreed to draft a medium - and long-term roadmap full of action points and timelines for addressing the issue of the trade deficit also. The services sector India’s representative at the WTO stated that in the services sector, Indian firms face the challenge to include complex requirements to participate in contracts of the state-owned enterprises. Additionally there are issues connected to licensing, qualification requirements, and taxation. Indian professionals face a few visa restrictions like granting of single year permits. The authorities in China need to look into these issues and soon resolve them. A visit by Zhang Shaogang, Director General, Chinese Ministry Of Commerce, to resolve bilateral differences regarding commitments of Regional Comprehensive Economic Partnership was not successful. India declined to consider the demand of China to eliminate tariffs in 90% traded goods. Great scope for partnership India took up the stand that there is great scope for partnership between state-owned enterprises of China and the Indian IT companies, which can make available state-of-the-art and custom-designed solutions. Moreover, India asked for openness in the Chinese SOEs to access these services. There are a few success stories in the services sector in India-China collaboration. The Indian lobby group National Association of Software and Services Companies has signed an agreement concerning joint investment in December with the Dalian Municipal People’s Government of China’s for developing a collaborative technology platform for leveraging mutual strength in technology. Furthermore the Apollo Hospital Group is also constructing a Modern Hospital in partnership with the Hainan Ecological Smart City Group. Signing a protocol India and China signed a protocol on export of non-basmati rice during the visit of PM Modi to China in June, 2018. A team from China is presently on a visit to India for certifying rice mills which can export non-basmati rice to China. Early completion of the process is essential to meet an age-old demand of India. Additionally, it will help to increase Indian exports and also benefit both countries. India also made a demand to China regarding liberalizing imports of agriculture products, and bovine meat. Presently they face a challenge because of severe and unclear regulatory requirement. Moreover, India has a skewed trade with China and the latter it enjoys a trade surplus of $63 billion in 2017-18. This increasing deficit is posing difficulties for India to sustain.  Hence there is a need for a serious effort to find a remedy for this situation.

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