NEW DELHI, Dec 20: China and India may have a lot more in common besides their dense populations. In fact, if one goes by the ambitious plans of some of the Chinese businessmen who want to invest in India, a large number of Indo-Chinese collaborations might materialise in the coming century leading to an era of growing co-operation. The consumer goods sector, it seems, holds the maximum scope for collaborations.

Jason Y. Wang of China Star Group (HK) Corporation Ltd., a company manufacturing a wide range of electronic items from video compact disc players to automated wheel chairs, feels that with the growth in the Indian economy, the demand for consumer goods has risen in India. Wang says that the development of market in India is very similar to that in China. "We have observed that the kind of electronic items being preferred by the Indian households is the same as the ones used in China. This makes us confident of the success of the products we are planning to launch here."

According to Wang, the quality of the electronic items produced by his company can any day match the quality of the leading multinational brands available in India, but the prices are much lower. Giving an example, Wang says, "Our VCDs are as good as Sony and Panasonic, but the price of $120 at which it is available is much lower than theirs. Every intelligent buyer would like to go for the cheaper brand."

China Star Group is initially looking for dealers who can market their goods in India and is also keen on entering into collaborations with Indian companies. Says Wang, "We are looking forward to collaborations as early as possible. India is technically developed in software technology and we think that joint ventures between India and China will be very successful."

Liu Riquin of Beijing Jewellery Import and Export Corporation, an association of jewellery manufacturers, wants to explore the possibilities of exporting jewellery and gem-studded figurines to India. "We are not very sure about the kind of jewellery preferred by Indians. According to what we have gathered, Indians go for small items. But, we want to investigate further."

The corporation, which has been exporting various precious stones including gems, jadeites, diamonds, gold and silver jewellery, antiques, hard stone articles and brocades to the US and the European countries, has now targetted India because "the market is big and is growing".

Peng Bo of Zhuhai Xianxing Electronic Company Ltd. wants to introduce in the Indian market a high-tech intelligent cassette telephone which can be used only by inserting a card. Says Bo, "This telephone can work as an administrative telephone in offices as it can keep a tab on the number of calls made by an individual and can hence cut down bills."

Though Bo is on a look out for agents, he says he would prefer to enter into a collaboration with a good Indian company. "We have our terms and conditions. Indian companies which will be ready to stick to them will be considered." Bo says that some changes will have to be brought about in the instrument to suit the Indian conditions. "The pulse rate is different in India."

Different varieties of pencils, pens, sharpeners and erasers have always delighted children around the world, including India. Taking advantage is a Chinese stationary products unit, Shanghai Phoenix Chemical Co Ltd, which is planning to export its products to India. Says Winfield Wang of China Chamber of International Commerce, "Indians are good consumers and go for products which are good to look at and useful. So, we are sure that our products will be liked."

Wang says that the popularity of their company's products is evident as fake pencils bearing their name are already circulating in the Indian market. "Our stationary is colourful and high on quality which attracts customers."

Julie Hsu of Nera, Guizvou Newara Import and Export Company, a unit which exports chemicals to India, is optimistic about doing more business in the country. "We deal in a number of products including hardware, electronics and other tools and equipment and want to export them to India." According to Hsu, some discussions are going on with units in India who are willing to market these products. But, "nothing is final yet".

Hsu says that her company is not immediately prepared to enter into a collaboration with an Indian company. But, she is hopeful that collaborations will take place soon. "After we have expanded our business to a certain scale, we will think of entering into joint ventures."

Hsu, however, feels that the import duties are very high in the country. "Our products, which are very cheap, become expensive because of the heavy levies imposed on us." Despite the duties, Hsu says that her company was doing good business in the country. But she is quick to add, "If the duties are lowered then we definitely will do better business and the volumes will also rise."

Jason Wang agrees with Hsu but feels that the duties will come down in the near future. Comparing India with China Wang says, "The Indian custom duty is high like it was in China 10 years back. Indians are slowly realising that high customs, although good for an individual, is not good for the development of the country."

Wang says that India is already moving in the right direction as free zone areas have been established in Calcutta and Mumbai. "After liberalisation, India has started producing a large number of goods and any country producing goods for exports cannot afford to have high custom duties."Wang says that in the coming era of reduced duties, the business bonds between India and China will be strengthened.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.