(VOVworld) – Chinese President Xi Jinping began a 3-day official visit to India on Wednesday, his first since he took office. The visit offers an opportunity for the two countries to increase economic cooperation and narrow their differences. Hong Van comments:

The first leg of President Xi’s visit will not be New Delhi but Gujarat state, the home of Indian Prime Minister Narendra Modi. Xi will be received by the Indian Prime Minister there before going to New Delhi for further talks.

Economic cooperation, the main purpose of the visit

The Hindu newspaper reported that during the visit, India and China will sign approximately 20 agreements and memoranda of understanding concerning infrastructure development, the establishment of industrial cities, and cultural cooperation. Trade imbalances and China’s investment in India’s infrastructure will also be discussed.

China’s Consul General in Mumbai, Liu Youfa, says that during the visit China will commit 100 billion USD worth of investment to India, 3 times the amount Japan committed to India during Prime Minister Modi’s recent visit to Japan. Chinese investments will be used to build industrial parks and to modernize railways, expressways, seaports, power transmission lines, food processing, and the textile industry. China is considering investing in India’s ambitious plan to build express railways.

President Xi’s 100-member entourage includes leaders of major banks and such companies as China Harbor and China Railway Construction Group.

Prime Minister Modi told the media that the visit is of great importance to India-China relations. He said that strengthened economic cooperation between the world’s two most populous countries will improve the living conditions of their citizens and have a great impact on neighboring countries. India and China account for 35% of the world’s population.

Economic cooperation between India and China has been modest in recent years. China’s overseas investment last year surpassed 90 billion USD but China’s investment in India totaled only 400 million USD. China’s increased investment in India will increase its presence there.

Observers say President Xi’s visit is also aimed at familiarizing himself with the new Indian leadership and preventing New Delhi from allying with Washington and Tokyo to contain China.

Border dispute, a considerable obstacle to bilateral ties

There remain a number of differences in India-China relations. The day before President Xi’s visit, the Indian government announced that it will tighten control of its 3,500km border with China. The announcement followed accusations by the Indian government that over the previous 8 months China had breached India’s border 300 times. Indian Foreign Ministry spokesperson Syed Akbaruddin said Prime Minister Modi will raise this issue during his talks with President Xi.

There have been doubts about India-China relations following the territorial dispute in the Himalayas, where a 1962 border war broke out. India accused China of illegal incursions into its territory. China denied the accusation and claimed part of India’s territory in the border area.

Beijing has established a number of piers and bases throughout South Asia notably in Pakistan and Sri Lanka, raising the concern that China is trying to surround India.