With a massive, yet demanding middle class, the Chinese Communist Party needs a reliable source of cheap labor to continue to allow Chinese nationals to enjoy mass-produced daily products. step forward India, mass producer.
Gateway House speaks to Chris Devonshire-Ellis, Founding Partner, Dezan Shira & Associates, on China's offer to invest $300 billion in India's infrastructure over the next five years, India's potential to become a manufacturing hub for the Chinese economy, and what the visit of President Xi Jinping to India at the end of 2014 could mean for bilateral relations.
Discussions at the recent India-China Strategic Economic Dialogue in Beijing focused on Chinese investment in infrastructure in India. China’s strategy of funding projects in India comes from practical necessity – to meet the demands of China's growing middle class for affordable, market based services
Chinese Premier Li Keqiang’s visit to India is likely to include an empty shopping basket of opportunities that keep domestic Chinese consumers content. Mr. Li should encourage Indian companies to fill that Chinese consumer need, and additional concessions may, if handled correctly by India, be sought as a result.