Promotion of Trade and Investment between People’s Republic of China and India: Toward a Regional Perspective

Abstract

Open regionalism and integration between the world’s two largest developing countries, People’s Republic of China (PRC) and India, in trade, investment and infrastructure can foster outward-oriented development, and economic and social benefits that could result in poverty reduction. In view of the increasing trend of regional integration, particularly the expanded European Union and North American integration, the opportunity costs of not moving toward greater economic integration between neighboring countries the PRC and India, which have much in common, could be increasing. This paper discusses the possible areas of PRC−India economic cooperation and economic integration between the northeastern region of India and southwestern provinces of the PRC.