A 25-member delegation from India's Federation of the Indian Chambers of Commerce and Industry (FICCI) has travelled to Beijing and Shanghai in a bid to iron out some critical issues that the delegates feel are constraining Indo-Chinese trade.

One of the issues the delegation is most concerned about is the worrying trend for Chinese banks are using technicalities to dishonour letters of credit (L/Cs) on behalf of clients who are unable or unwilling to pay for imports (DCWorld, 03 June 2003).

Steel concerns

The business delegation, whose late-June 2003 trip coincides with Indian prime minister Atal Bihari Vajpayee's visit to China, has on its agenda the problems in negotiating L/Cs. The delegates are particularly concerned about how this issue affects India's steel exports to China.

The delegation is also looking into the possibility of exchanging tariff lines under the Bangkok Agreement in certain sectors and working to forge partnerships between Indian and Chinese companies.

High profile

Vajpayee's six-day visit to China is a high profile affair and very much focused on developing Indian exports. Business leaders from around 100 of India's largest companies are on tour with their leader.

Amongst the Indian companies touting for business during the visit are the giant software developer, Infosys Technologies, the country's biggest tractor maker, Mahindra and Mahindra; largest drug manufacturer, Ranbaxy Laboratories Ltd and top cement manufacturer, Grasim Industries.

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