Page 355 - SSB Interview: The Complete Guide, Second Edition

the two countries proposed opening up the Nathu La and Jelep La Passes in
Sikkim, which would be mutually beneficial to both countries. 2004 was a
milestone in Sino-Indian bilateral trade, surpassing the $10 billion mark for
the first time. In April 2005, Chinese Premier Wen Jiabao visited Bengaluru

to push for increased Sino-Indian cooperation in high-tech industries. In a
speech, Wen stated, “Cooperation is just like two pagodas (temples), one

hardware and one software. Combined, we can take the leadership position in
the world.” Wen stated that the twenty-first century would be “the Asian
century of the IT industry”. The high-level visit was also expected to produce

several agreements to deepen political, cultural and economic ties between
the two nations. Regarding the issue of India gaining a permanent seat on the
UN Security Council, on his visit, Wen Jiabao initially seemed to support the

idea, but had returned to a neutral position on the subject by the time he
returned to China. In the South Asian Association for Regional Cooperation
(SAARC) Summit (2005), China was granted an observer status. While other

countries in the region are ready to consider China for permanent
membership in the SAARC, India seems reluctant.

A very important dimension of the evolving Sino-Indian relationship is

based on the energy requirements of their industrial expansion and their
readiness to proactively secure them by investing in the oilfields abroad — in
Africa, the Middle East and Central Asia. On the one hand, these ventures

entail competition (which has been evident in oil biddings for various
international projects recently). But on the other hand, a degree of
cooperation too is visible, as they are increasingly confronting bigger players

in the global oil market. This cooperation was sealed in Beijing on 12
January 2006 during the visit of Petroleum and Natural Gas Minister Mani
Shankar Aiyar, who signed an agreement which envisages ONGC Videsh Ltd

(OVL) and the China National Petroleum Corporation (CNPC) placing joint
bids for promising projects elsewhere. This may have important
consequences for their international relations.

On 6 July 2006, China and India reopened Nathu La, an ancient trade route
which was part of the Silk Road. Nathu La is a pass through the Himalayas
and it was closed 44 years prior to 2006 when the Sino-Indian War broke out