China and India Propose Joint Infrastructure Projects in Afghanistan

China and India are now discussing how to develop joint economic projects in other countries, including desperately needed infrastructure in Afghanistan. Indian National Security Adviser Shiv Shankar Menon, who is in Beijing July 4-7 as the direct representative of Prime Minister Manmohan Singh, has met with Prime Minister Wen Jiabao and Foreign Minister Yang Jiechi, to discuss expanding economic relations by going into new areas of international cooperation, specifically infrastructure projects in Afghanistan and developing Afghan mineral resources, The Hindu reported yesterday.

The discussions with Menon overall are being greeted as very positive by his Chinese hosts. He will also discuss the Chinese-Indian border and Indian reservations about China's proposal to provide two nuclear reactors to Pakistan. Pakistani President Asif Ali Zardari will himself arrive in Beijing on July 6, an indication of easing relations concerning Pakistan between China and India.

Yang Jiechi told Indian journalists that the two sides "even talked about the possibility of cooperating in certain subjects in other countries, whether three-party or four-party collaborative projects, in the economic field as well." China already has a $3.5 billion contract to develop the Aynak copper mine in eastern Afghanistan, and is ready to invest in road and rail projects, including a line which would link Turkmenistan with Pakistan's Gwadar port. India has also already invested over $1.3 billion in developing infrastructure in Afghanistan, including a key road linking Afghanistan to Iran.

Yang Jiechi also said that the two sides discussed how to further boost their trade volume and to create even better conditions for mutual investment. China already became India's largest trade partner in 2008-09, replacing the U.S., and India is China's 10th biggest trade partner. The relationship is expanding, despite the world economic crisis, and the two sides are seeking to realize $60 billion in bilateral trade this year, up from less than $3 billion in 2000.

Menon is the third top-level Indian government official to visit China since April, when External Affairs Minister S.M. Krishna was in Beijing. President Pratibha Patil was in Beijing in late May.