India and China have to study the impact of regional trades forging among many countries. Asia’s two largest economies for the first time have decided to work together on a project like this. This move also indicates the beginning of Asian rivals’ closeness in regards of trade.
NITI Aayog (which completed its first year recently) and China’s Development Research Institute together will conduct the study.
This year, US led Trans Pacific Partnership got a momentum after all the 13 member countries including Japan and Vietnam signed the agreement pact. The US wants to counter the Chinese miracle with combing all the smaller countries together. China on the other hand, also have “One Road One Belt” program that envisions connecting three continents Europe, Asia and Africa, based on the ancient “Silk Route”.
The study will measure the impact of regional trade formations on their economies. It will also look out for the options to carve out – Regional Comprehensive Economic Partnership (RCEP).
Both countries on many occasions have shown solidarity despite having a troubled relationship, and trade relations have steadily increased in recent years. For example, during the WTO meeting held in Nairobi, both argued that Doha Development Round should remain firmly remain on WTO’s agenda.