As India’s economy gains momentum, China’s growth slows down. Who will win the title of “world’s fastest-growing major economy” this year? Some Western observers aim to usher in the New Year by fanning hopes for a dragon-elephant competition.
China shouldn’t get involved in this phony war. India’s economy is still in the early stages of industrialization, while China – the world’s factory – is pursuing an industrial transition as labor and fuel costs rise.
The two countries are at different stages of development, and a comparison of economic growth rates does not have much meaning.
India’s economic performance is being closely watched ahead of the nation’s 2019 general elections.
No matter who wins the elections, a good economic performance will be conducive in maintaining policy continuity and consistency, and a smooth transition will reduce the barriers to China-India economic cooperation.
It doesn’t matter to China if it loses the battle on GDP growth. Chinese people focus more on cooperation opportunities, rather than talk of economic competition.
Chinese State Councilor and Foreign Minister Wang Yi visited India from Friday to Monday with the aim of boosting people-to-people and cultural exchanges.
For decades, the US has attracted many talented Indian and Chinese scientists and technicians. Those people account for a large proportion of the talent employed by US high-tech enterprises, sustaining US power worldwide.
The US companies that have hired Chinese and Indian talent therefore serve as conduits for people-to-people exchanges between China and India. Their Chinese or India counterparts should assume a more active role in talent exchange.
In the era of global interdependence, cross-border talent flows have reached unprecedented levels. If China and India can expand people-to-people exchanges, they can consolidate their positions as emerging technology powers. China’s digital economy is now equivalent to one-third of the country’s GDP. The two countries have wide scope for economic cooperation, which will further prop up growth in not only China but also India.
China will maintain an open mind in studying India’s position as the fastest-growing economy among the Group of 20 nations. China and India have very different national conditions, so they have their own characteristics in developing sectors such as finance, manufacturing and services.
India’s rapid growth can help broaden China’s mind in its opening-up process, exploring the potential of its economy.