Top > Business > 2006 > August > 2006-08-14

Tibet Border Trade with India Scrutinized

Chinese officials said last Thursday that cross border trade between the People?s Republic of China and India through the Himalayan ?Nathu La? Pass is running at a ?low level? and as such was ?not ideal?.Hao Peng, while meeting with a visiting Indian media delegation in the regional capital of Lhasa, spoke out against this situation. Peng, who is the vice chairman of the Tibet Autonomous Region (occupied by China much to the chagrin of many throughout the world), told Chinese media ?India has unilaterally imposed restrictions on trade through Nathu La.?

Peng also said that India has authorized the export of only 29 items from India to China, and that only 15 items were allowed to enter the Indian market from the People?s Republic. Even so, analysts considered the reopening of the Nathu La Pass trade route to be significant economically and politically in terms of Sino-Indian relations. Liu Jiangyong, an international studies specialist with Qinghua University in Beijing, says ?The Nathu Pass will help develop a major land trade route linking China with South Asia. This will also reduce transportation costs.?

Despite his government?s misgivings, Peng was optimistic. ?I hope the Indian government will adopt a more egalitarian approach to cross border trade with China.? The Indian delegation in question, led by Ranjan Roy, who is a newspaper editor in India, said ?I can sense China`s enthusiasm to promote border trade with India. Given the remarkable potential, the two sides should deepen their cooperation on the issue.?