India - Yunnan reaches out

Qin Guangrong

A Chinese province that is geographically proximate to India emphasises avenues of cooperation and friendship.

Interaction between China and India goes back thousands of years. It is a time-honoured friendship. Recent history has seen both supporting and learning from each other in their fight for national independence and in their modernisation efforts. They have consolidated their fraternal relationship even in times of difficulty, moving along a path of cooperation and friendship.

As one of the Chinese territories situated nearest to India, Yunnan has served as a bridge for Sino-Indian exchanges since ancient times. The Southern Silk Road, the Tea Horse Caravan Road, Stilwell Road, the Hump Route, and the 2,700-mile-long oil pipeline from Kolkata to Kunming, all have had a part in this.

In recent years, the BCIM Forum for Regional Economic Cooperation, the China-South Asia Business Forum and the Cooperation Mechanism between Yunnan and West Bengal have helped strengthen cooperation.

Yunnan is seeking to make friends in India, to aid partnerships in development. It is rich in natural resources. Among 142 types of minerals found here, the reserves of 25 rank among the top three in China. With its huge reserves of phosphor and non-ferrous metals, Yunnan is known as the Kingdom of Non-ferrous Metals.

Yunnan is an important source of power, with hydel reserves of 100 million KW. The province arguably has the best biodiversity range. The number of species of higher plants and animals found in its northwest accounts for a third of the nation’s total.

With its scenic and historical places of interest and colourful ethnic culture, Yunnan is a tourist destination. Tourist arrivals this year are expected to exceed 100 million.

Yunnan has an industrial system with cutting-edge competitiveness covering tobacco, minerals, tourism, biological resources and hydropower. It is the top tobacco-producing province in China. It is the largest export base for fresh cut flowers in Asia. The per capita GDP of Yunnan is expected to be over $1,800 this year.

Yunnan has major advantages in the context of China’s exchanges and cooperation with India. Located in southwest China, it borders Vietnam, Laos and Myanmar. The shortest distance between Yunnan and India is 490 km. Geographic proximity and historical connections have laid solid foundations for cooperation. The main roads linking Yunnan with the neighbouring countries have been upgraded. Kunming has air links with 25 foreign cities. A two-hour Kunming-Kolkata flight opened in 2007.

Momentum


Yunnan has friendly exchanges and economic and trade ties with over 110 countries and regions. The trade volume with India is still relatively small, but there has been momentum in recent years. Over the past five years, bilateral trade increased from $50.48 million to $333 million, up 45.8 per cent on an annual basis. In the first three quarters of this year, two-way trade reached $410 million — up 152 per cent over the same period last year.

The figures prove the dynamism in and huge potential for economic and trade cooperation. Both sides should work together, give full play to existing advantages, draw on each other’s strengths and realise mutually beneficial development. I have the following six suggestions.

First, build mechanisms for cooperation. Between Yunnan and India the BCIM Regional Economic Cooperation is in place. There is also the Cooperation Mechanism between Yunnan and West Bengal. These two mechanisms are functioning well, playing positive roles in promoting exchanges and cooperation between Yunnan and India.

Second, support the development of the convention and exhibition economy. Strengthening exhibition exchanges is an important way to facilitate economic and trade cooperation. More delegations are set to participate in conventions and exhibitions held in India and push for extensive trade cooperation. The Kunming Import and Export Commodities Fair (Kunming Fair) has been held in Yunnan for 16 sessions. It has become an important platform for China to conduct economic and trade exchanges with South-East and South Asia. Friends from the Indian business community are welcome to participate in the 17th session of the Kunming Fair and the 2nd South Asian Commodities Fair to be held on June 6, 2009. Booths will be provided for Indian enterprises free of cost.

Third, expand cooperation in the development of hydel resources. Only a third of Yunnan’s hydel potential has been tapped. It has technical advantages in hydel power development. India is itself strong in the sector, and the two sides can complement each other. The two sides should have more contacts and facilitate exchanges and cooperation in terms of investment, technology and administration.

Fourth, increase cooperation in the prospecting and development of mines. Yunnan and India have seen a certain amount of trade volume in minerals. Yunnan imported over $100 million worth of mineral products from India in the first three quarters this year. The two sides can give better play to their own advantages, seek new modes for mining cooperation. They can cooperate more in prospecting and smelting.

Fifth, explore new ways of agricultural cooperation. Yunnan is a big agricultural province, with natural advantages and advances in agricultural technology. It is strong in the production of agro-products including tobacco, vegetables, spice oil, coffee, tea mushroom, nuts and flowers. Its export volume of ago-products ranks first in West China. The two sides can further explore cooperation in rearing milch cows, tea planting, silk production, agricultural technology and deep processing of agro-products. Good use could be made of aviation links to increase trade in fresh agro-products and improve cooperation in processing refrigerated and dried agro-products.

Economic corridor


Sixth, develop the economy by building passageways. Yunnan and India need to do more in building the Kunming-Kolkata economic corridor and laying a better foundation for alround and multi-level cooperation. Air links could be extended to connect Kunming with New Delhi, Mumbai and Bangalore as well. A breakthrough in air cargo transportation should be sought. Building a land-sea passageway linking Yunnan with India via Myanmar should be considered. Bilateral transit trade could be facilitated by establishing a consultative mechanism of cooperation.

The foundation for friendly cooperation between Yunnan and India has been laid, and hopefully there will be more Indian friends visiting and investing in Yunnan.

Meanwhile, there will be more friends from Yunnan and the rest of China visiting India to study and explore development opportunities. The cooperation is bound to yield achievements. Taking it to a new level will contribute to the common development and prosperity of China and India.

(Edited excerpts from remarks made by Qin Guangrong, Governor of Yunnan Province, China, in New Delhi on November 12 marking the start of the visit to India by a delegation from Yunnan.)