The Hindu : International / India & World : Nathu La: China disappointed at `low levels' of trade

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Sunday, Aug 13, 2006

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International - India & World

Nathu La: China disappointed at `low levels' of trade

Pallavi Aiyar

``New Delhi has imposed series of restrictions on number of items that are permitted to be traded''

Beijing : A month after trading formally re-started across the Nathu La pass linking Sikkim and Tibet, Chinese authorities have expressed disappointment at the "low levels" of trade taking place.

According to Xinhua, China's official news agency, Deputy Chairman of the Tibetan Autonomous Region Hao Peng has blamed the Indian side, citing a series of restrictions that New Delhi has imposed on the number of items that are permitted to be traded.

"India has unilaterally imposed restrictions on trade through Nathu La," Xinhua quoted Mr. Hao as saying. Last month, in an exclusive interview to The Hindu in Lhasa, Mr. Hao reiterated that China was open to allowing free import and export of goods through the pass as long as they did not include any contraband.

"We are in fact willing to export anything Indian traders might want and similarly we hope to import more things from India, including iron ore," he had said.

Currently, iron ore makes up the bulk of Indian exports to China, but the commodity is shipped by sea to ports along China's eastern seaboard, involving detour of thousands of kilometres before it can reach the mainland's interiors.

Iron ore is not included in the list of 29 allowed items for India to export through the Nathu La pass.

Mr. Hao was quoted as saying that he was disappointed by the fact that trade at Renqinggang market, set up on the Tibetan side of the border, is currently worth less than RMB 100,000 ($12,500) a week. "This is far less than we expected."

Moreover, while Indian traders can spend the night at the Renqinggang market where accommodation facilities are already operational, it is not yet possible for Chinese traders to stay at Sherathang, the equivalent market on the India side. Plans to build a 100-bed hostel at Sherathang are, however, reportedly in the pipeline.

Tibetan authorities earlier expressed the hope that trade through Nathu La could eventually make up 10 per cent of the overall bilateral trade.

Given that bilateral trade reached $18.73 billion last year, this is a considerable target. However, it is clear that unless there is a strong political will, it may be a long wait before this goal is achieved.

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