Looking East, looking West

While China’s Premier Wen Jiabao is visiting India, Huawei announced its plans to invest USD 2 billion into India over the next 5 years in the field of research and manufacturing.

Huawei’s strategy makes a lot of sense. First, it consolidates its presence in one of the world’s center of telecommunication R&D. Second, by locating operations in India, it circumvents potential “Buy India” campaigns. Third, it gets even closer the fastest growing telecommunication market in the world.

Both countries already have deeper ties than one may think. The overall amount of deals to be signed during Wen’s visit ranges between USD 16 and 20 billion – close to the total amount of deals signed between India, France, the UK and the US this year. China is already India’s largest trading partner. So, one can only wonder what could come out of a stengthened partnership between India and China once both governments start to align their interests. Maybe then could the 21st century become the Asian century.