The Chinese government's decision to step in to rescue two Indian businessmen from an ugly situation in Yiwu city of Zheijiang province was timely. The two were first held by local traders demanding to be repaid $1.58 million owed them by the Indians' absconding Yemeni employer. Later, after they were freed by a court, the traders surrounded their hotel, preventing them from leaving. The reluctance of Yiwu authorities to give the two Indians adequate protection and an incident involving an Indian diplomat giving consular assistance to them forced New Delhi to put out a strongly worded advisory “not to do business with Yiwu.” The annual bilateral trade between India and China is worth over $60 billion; nearly one-third of this comprises business deals in eastern China, where the Yiwu Market — one of the world's largest wholesale commodity markets — is located. Rightly, Beijing has taken Indian concerns seriously, promising action against five Yiwu traders in connection with the incident. But the two Indians will have to stay back and face court proceedings against them by the creditors, and the Indian advisory remains. The incident holds lessons for both sides. It underscores the urgent need for a non-government mechanism to mediate in such incidents. With the number of such disputes on the rise, intervention by Beijing or New Delhi each time cannot become the template for resolving them. It is surprising that despite the booming trade between the two countries, no joint trade body, such as a chamber of commerce exists, to which businessmen can take their problems, that could give advice on finding reliable business partners, run credit checks or provide legal assistance. A recently opened economic wing at the Indian Embassy in Beijing does not have a mandate to handle disputes, while the CII and FICCI have one representative each for all of China.
The Yiwu spat has also underlined that the high level of trade has done precious little to remove the mistrust that pervades the relationship between India and China at the popular level. This runs counter to the view — often quoted in the context of India-Pakistan relations — that healthy trade between two countries and the people-to-people interactions it generates builds goodwill and lobbies on both sides for improving bilateral relations. In truth, mistrust between the people of two countries is often a product of mistrust between the states involved. Trade by itself is no magic wand. If New Delhi and Beijing are serious about creating positive attitudes at a popular level, they must actively promote people-to-people interactions, and take steps on the ground, such as encouraging educational and cultural exchanges, and travel for tourism. They must also desist from propaganda against each other.
There is so much hue and cry about this incident.And a sense of mistrust start prevailing among indians. Each time this type of incident occurs ,both the government become hyper active,this compels them to take neccessary action.Because each goverment realise mightbe consequences.Indo-china trade today stood $60 billion and both country have agreed to raise it to $100 billion by 2015.whenever something happens each country interprate and present the situtation before the world based on their respective interest.Be it the case of south china sea oil exploration by Indian oil companies or this case.This shows that it is long way to go in terms of matured and healthy relation between these two asian giants.
The Los Angles Times article quoted by one of the posters has also quoted one of the Indian traders saying that they are overtly dependent on China as Indian customers seek cheap products, which are only available in China. I wonder why is it that low cost goods are only available in China. It is not that they require hi-tech expertise lacked by Indian manufacturers. I feel it has to do with the advantage that Chinese manufacturers have with respect to production scale, low labor cost, superior infrastructure and transportation cost. Indian manufacturers are hobbled by restrictive labour laws that discourage from hiring and expanding manufacturing scale coupled with poor infrastructure including power and transportation. as a result India is the loser all around, it cannot generate the jobs sorely needed, creates huge trade imbalance with China, raises external account deficit and aggravates rupee depreciation.
I read with dismay the insinuation by one of the posters (based on Los Angeles Times article that quotes from Chinese paper Global Times) that Indian diplomat who was allegedly assaulted in Yiwu was less than truthful in his allegation of mistreatment by Chinese traders. While it is not impossible that the allegation of mistreatment is exaggerated it doesn't behoove of a fellow Indian to take the line peddled by an ultra-nationalist Chinese paper like Global Times on face value. Or is it that since it is published in a American newspaper LA Times somehow it carries more weight over the allegations by Indian embassy! It just goes to show lack of self-confidence on our part and that is exactly what China is counting on its quest to dominate India and the rest of Asia in this century.
On Global Business needs more honesty. Today it happen in China tomorrow same will happen in others country
Full facts regarding the case are not clear. There are conflicting allegations. It would be better for India to build proper business and commerce infrastructure, in the absence of which all this is merely 'ninja' business like the mining scams under investigation now. Next, Indian government should be put strict quality specifications and control in place for all imports - that would discipline irresponsible traders who have gotten use to simply washing their hands off once they sell a Chinese product. In fact, in the market Chinese actually means "no guarantee" - is that an image created by the Chinese themselves or our own dishonest traders who ride on weak or absent import regime?!
LA Times reporting under caption " Indians' ordeal rattles New Delhi-Beijing ties- writes "In a peculiar twist before their arrival in Shanghai, an Indian diplomat was caught trying to sneak Raheja and Agarwal out of a Yiwu court hearing under the pretense of going to the toilet, the Chinese state-owned Global Times reported Thursday." Clearly there is more to the incident than being reported in India. Time for Indian authorities to realize that these days of fully interconnected world being truthful and frank will serve the cause of country better than being too clever.
Trust is the rockbed of good relations. It is the 'sine qua non' for hassle free trade and promotion of inter-personal as well as inter-State harmony. Let us keep the torch of trust alight however high or stormy the tempest is and maintain winsome relationship with our neighbouring nations.
Rightly said. Both countries need each other in the wake of global recession .cultural & commercial exchange programs shall be facilitated by both countries. Stray incidents like this shall not be allowed mar the relationships&lose a great Oppurtunity .
Neither the government of India nor the News media is giving a correct picture of what actually happened in yiwu that brought wrath of the locals there on the two Indian business men. There are a lot of foreign business men in China and We have not heard so far any such incident concerning them. Then how come the Indian traders alone got themselves into trouble? The editorial, instead of pinpointing the true facts of the case, is just beating around the bush.
The trade between India and china is about to increase.In this time there is need of free relationship.If both country shows interest, both will be in profit.Thus we can say that our total development and progress depends upon our behaviour.
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