Standoff at border, handshake in Gujarat: India, China sign 3 pacts shortly after Xi Jinping’s arrival

Ahmedabad: India and China on Wednesday signed three-Gujarat specific pacts shortly after Chinese President Xi Jinping commenced his three-day visit to the country from the home state of Prime Minister Narendra Modi.

State authorities rolled out the red carpet as Xi, the first Chinese leader to visit Gujarat, was given a warm welcome after an Air China special aircraft carrying him and his delegation landed at the airport. Giant billboards in Mandarin, Gujarati and English were put up at various places here to welcome him.

Read: With border and investments on agenda, Chinese President Xi Jinping arrives in India

Xi's three-day visit is aimed at ramping up trade and investments, besides having discussions on substantive issues including the contentious border dispute. It also coincides with Modi's 64th birthday.

The three pacts were signed in the presence of Modi.

Read: Meeting between Xi Jinping and Narendra Modi a courtesy discussion: MEA

Xi and his wife Peng Liyuan, dressed in a pale pink knee-length dress, were welcomed by the PM at the entrance of the Hyatt Hotel. Modi gave bouquets to the couple.

Prime Minister Narendra Modi waves along with Chinese President Xi Jinping and his wife Peng Liyuan at a hotel in Ahmadabad (Photo: PTI)

The choice of Gujarat as Xi's first stop in India marks a departure from protocol and many see it as a sign of warm relations between the two leaders. When the couple landed at the Ahmedabad airport, apart from a guard of honour, there was a traditional Gujarati dance.

Read: Xi Jinping wears Nehru jacket while touring Sabarmati Ashram

The three pacts include making Guangzhou city in China and Ahmedabad as sister cities, setting up of industrial parks in this state and an agreement between Guangdong province and the Gujarat government for development of cultural and social ties between the two provinces, officials said.

The agreement, aimed at developing industrial parks, was signed between China Development Bank (CDB) and Industrial Extension Bureau (iNDEXTb) of Gujarat Government. It envisages promoting the bilateral trade and setting up of industrial parks in the state, especially for electronics and electrical goods.

Prime Minister Narendra Modi with the Chinese President, Xi Jinping and First Lady Peng Liyuan having a look of a Bodhisattva idol displayed at an exhibition in Ahmedabad (Photo: PTI)

While an agreement was signed between Guangdong province and Gujarat government for development of cultural and social ties between the two provinces, another MoU was inked between Guangzhou city and Ahmedabad, to make them sister cities.

These MoUs will facilitate exchange of ideas and services between Gujarat and China, officials said.

Read: Border rows, railways likely topics of India-China talks as PM Modi welcomes Xi Jinping

Besides Modi and Xi, Chief Minister Anandi Patel and her Cabinet colleagues, members of Chinese delegation and several top businessmen from the state were present at the event.

Modi also accompanied Xi to the tranquil Sabarmati Ashram on Ahmedabad's Ashram road and explained its historical significance to the Chinese leader.

They later took a walk down the Sabarmati riverfront, which was a riot of colour with the visiting dignitaries treated to a mix of Gujarati tradition and culture through dance forms including the famous garba dance.

Chinese President Xi Jinping holding umbrella and Prime Minister Narendra Modi watch a cultural performance as they walk on the Sabarmati River front in Ahmadabad (Photo: AP)

Here are some facts about India-China relations and issues likely to come up for discussion:

BORDER DISPUTE

China beat India in a brief border war in 1962 and relations have remained sour over their still-disputed 3,500-km (2,200-mile) frontier.

India has reported a rise in incursions by Chinese troops in recent years, charges China denies. Modi is expected to take a tougher stance with neighbouring countries, including China.

Read: Ahead of President Xi Jinping's India visit, China violates LAC

In the first such signal, Modi's government eased restrictions on building roads and military facilities along the border to boost defence preparedness and close the gap on China's superior transport network.

VISAS

China often refuses to stamp visas on Indian passports from disputed territories and instead staples them to the page, a practice that infuriates India.

China has refused to issue visas to Indians from Arunachal Pradesh state, where the two countries fought the 1962 war, saying they do not need permission to travel to China. China claims the whole of Arunachal Pradesh, which it calls "South Tibet".

Read: With border and investments on agenda, Chinese President Xi Jinping arrives in India

In 2012, India started stamping its own map on visas it issues to holders of new Chinese passports that contain a map depicting disputed territory within China's borders.

The visa issue is likely to be on the agenda during Xi's visit.

TRADE TIES

China is India's largest trading partner, with two-way trade at about $66 billion last year. However, $51 billion of that came from Chinese exports.

India hopes new investments from China will partly help offset its trade deficit. China plans to invest about $7 billion in two industrial parks in western India, media reported this month.

Read: China reaches out to Modi, may commit $6.5 billion for industrial parks during Xi Jinping 's visit

India will also ask its neighbour to set up manufacturing units for exports as it seeks to revive its economy.

RAILWAYS

India has the world's fourth-longest rail network but has added only 11,000 km of track since independence in 1947. China, in comparison, added 14,000 km of track in the five years to 2011.

China is expected to pledge billions of dollars of investment in India's rail network that can help reform the now-decrepit British-built system.

NUCLEAR TIES

In 2013, Chinese Premier Li Keqiang said the two countries would cooperate in civil nuclear energy. Leaders of the two energy-starved countries may discuss the possibility of a civil nuclear cooperation agreement, Indian officials said.

China has committed $6.5 billion to finance the construction of a major nuclear power project in Karachi, the financial hub of neighbouring Pakistan, India's traditional foe. But Beijing might make a push to supply India with its new-generation reactors, The Hindu newspaper said.