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World|business|September 17, 2014 / 11:11 AM
Beijing to make $100-billion investment commitment, but proposed visa pact put off

AKIPRESS.COM - xi Chinese President Xi Jinping who arrives in India on Wednesday with $100 billion investment commitments over five years across various sectors will be disappointed that the proposed visa liberalisation agreement is off the agenda, the Indian Times wrote.

Beijing's intransigence of not following a 'one-India' policy by continuing with stapled visas for Arunachal Pradesh residents is the reason why India has put off signing the agreement.

The two sides had earlier decided to sign the visa agreement to ease travel for tourists, business travelers and professionals from either country during Xi's visit.

However, official sources pointed out that India decided to put off the proposed pact to send out a strong message. By refusing to enter into the visa pact till Beijing stops issuing stapled visas, India was asserting that Beijing's stand on Arunachal was unacceptable.

But this is not the first time that India has refused to sign the proposed visa pact. The Modi government is following the footsteps of the previous dispensation that had refused to sign the agreement during Manmohan Singh's last Beijing trip in October 2013. India was upset that the Chinese embassy in India issued stapled visas to two Arunachal Pradesh athletes days before Singh's visit.

China, however, had hoped that it could clinch the visa liberalisation agreement with a new government in Delhi that was willing to expand bilateral economic and investment links. The new visa pact would have enabled smooth travel of large number of Chinese professionals and entrepreneurs following the agreements to set up two industrial parks and announcements of $100 billion investments during Xi's trip.

The visiting President will offer the amount for setting up of industrial parks, modernisation of railways, highways, ports, power generation, distribution and transmission, automobiles, manufacturing, food processing and textile industries.

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