Taking a long-term view of the border problem, Chinese leaders have responded to Indian anxieties on the issue, pointing out that there could not be a short-term solution but differences on the issue “could be put on the back burner” to not stand in the way of cooperation in key areas.

This was conveyed to Prime Minister Manmohan Singh today by CPM politburo member Sitaram Yechury who returned from China at the head of a party delegation which met several Chinese leaders, including Foreign Minister Li Zhao Xing and Luo Gan, a member of the powerful Standing Committee in charge of internal security.

Keen that Chinese companies are able to take up Indian projects, Chinese leaders told the CPM delegation that the politically sensitive and complex border issue should not come in the way of widening relations, especially in the area of economic cooperation and creating helpful conditions for Chinese businessmen.

The Chinese side told the delegation that “mutual trust” had to be the basis for improved relations, and one way of doing it would be to have a level playing field for Chinese businesses in India.

The CPM delegation has suggested to the Government that it’s necessary to identify areawise security concerns in which FDI will be accepted, instead of having a countrywise screening process. The suggestion has been made in the light of recent cases where Chinese companies have been kept out of Indian contracts following security concerns raised by the Home Ministry.

Yechury suggested the restrictions that had been in place since 1962 should be done away with. The issue was also the subject of the CPM delegation’s discussions with Chinese leaders who indicated that Indian had not reciprocated the more liberal visa regime that the China had for Indian businessmen. The CPM delegation was evidently impressed with the infrastructure development and the model for Chinese special economic zones, which Yechury conveyed to the PM. Making special mention of the Pudong New Zone, he took up key points of Chinese SEZs and presented them as a model for India to emulate: housing and employment as compensation where land had been acquired for SEZs, and withdrawal of tax concessions. The Left parties recently submitted a note to the UPA on SEZs.

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