From Our Special Correspondent
Daijiworld Media Network - Panaji

Panaji, Nov 19: In the backdrop of slump in demand for iron ore to China, a senior Chinese embassy official today said that India and China should establish long term iron ore trade agreement with a new pricing system for stable supply and demand.

Peng Gang, Economic and Commercial Counsellor of Chinese Embassy in India, said that first half of this year, Indian iron ore exports to China witnessed a market share decrease to 15 per cent from 25 per cent in 2005.

He said that both sides might try to establish long-term iron ore trade agreement with a new pricing system, with the purpose of establishing a long and stable supply and demand relationship. Gang was addressing `International Iron Ore and steel Making Raw Materials Conference,‘ in Goa. The two day long conference has attracted several Iron ore traders and buyers from across the globe including countries like China and Indonesia.

The Chinese ambassador said that 'it is very important to keep a transparent and stable policy system of mining, trading and export.’

Stressing for the better cooperation between the conventional trading partners, Gang said that China and India might carry out comprehensive cooperation on environmental protection and low-carbon economy, try to apply Green Innovative Technologies to produce green and clean steel and other products.

He said that the both the countries should continue to deepen mutual trust, strengthen communication, promote mutually beneficial cooperation, properly handle differences, so as to enhance the development of China-India Strategic Cooperative Partnership and create a favorable macro environment for the iron ore trade between the two countries.

“Both sides can enhance the cooperation in the areas of mining exploration, development and deep processing,” he said adding that the policies should be adapted to encourage Foreign Direct Investment (FDI) in this sector.

From Chinese side, we would like to encourage more Chinese competent enterprises to establish more joint ventures in iron ore and steel-making sector with their Indian peers to increase the capability of iron processing and steel production of India, he said.

He said that during the past 3 years, mutual investments have boosted 10 times, and Chinese enterprises have completed infrastructural projects with total value of more than 10 billion USD in India.

“The bilateral trade volume reached 61.7 billion USD in 2010, 20 times of increase within 10 years. From January to September of this year, bilateral trade maintains a strong momentum of growth. The two-way trade volume reached 54.5 billion USD, increased 20 per cent if compared with the same period of last year,” Gang said.