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Focus on China

Indian, Chinese firms sign deals worth $22bn

– ‘Complex’ relations –

Earlier during Modi’s visit Chinese President Xi Jinping welcomed him in Xian, the capital of his ancestral home province Shaanxi, in what his host said was an unprecedented gesture.

But relations between the world’s two most populous nations are soured by a long-running border dispute that saw them fight a brief war in 1962, and on Friday Modi told Chinese Premier Li Keqiang that Beijing needs to “reconsider its approach” to their ties.

“Our relationship has been complex in recent decades,” Modi said, adding there were issues that “trouble smooth development of our relations”.

His comments stood out from the usual public declarations by diplomatic visitors to Beijing, who normally stick to uninterrupted pledges of friendship and good relations.

Both countries are members of the BRICS grouping of major emerging economies, but Beijing has vowed to pour investment into India’s arch-rival Pakistan, as it rolls out infrastructure development plans across Asia, much of which bypass India.

Chinese contracts to build or manage Indian Ocean ports have raised concerns it is seeking to establish a “string of pearls” in the region.

Li acknowledged on Friday that “we do not deny that there are some disagreements between us”, but added: “We have far more common interests than differences.”

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