BEIJING — They are the strongest leaders to emerge in years from the world's two most populous nations — and appear to be trying to forge a strong working relationship. In a rare personal touch, Chinese President Xi Jinping will host the Indian prime minister in his hometown of Xi'an for Thursday's start of Narendra's Modi's three-day visit, highlighting warming ties between the Asian giants despite their continued rivalry and contrasting political systems. The move returns the favor after Modi hosted Xi in his own hometown of Ahmadebad last year. The two men will aim to move beyond the symbolism and take substantial steps to seal a new spirit of cooperation. China is looking to India as a market for its increasingly high-tech goods, from high-speed trains to nuclear power plants, while India is keen to attract Chinese investment in manufacturing and infrastructure. With a slowing economy, excess production capacity and nearly $4 trillion in foreign currency reserves, China is ready to satisfy India's estimated $1 trillion in demand for infrastructure projects such as airports, roads, ports and railways. “India is looking for investments, and China has the money. It could be a win-win for both countries,” said Srikanth Kondapalli, Chinese studies professor at New Delhi's Jawaharlal Nehru University. The two countries also have deep, enduring differences over their disputed border and China's expanding naval presence in the Indian Ocean. With a combined population of 2.6 billion, the two nations also remain political polar opposites, with India lining up with fellow democracies such as Japan and the US while authoritarian China regards both as its key rivals. Both Xi and Modi have considerable personal authority to drive the relationship. Since taking the helm of the ruling Communist Party in 2012, Xi has consolidated control over the military, economy and foreign policy to an extent unseen in two decades. Modi's Bharatiya Janata Party swept national elections a year ago, largely based on his personal charisma. In China, top priority for Modi will be exploring ways of reducing India's $48 billion trade deficit with its neighbor amid flagging demand for India's main export to China, iron ore. That task could be eased by establishing a close, personal relationship with Xi and other Chinese leaders, helping Modi further his domestic agenda of strengthening the Indian economy through trade ties and Chinese investment, said T.C.A. Rangachari, a former Indian ambassador to Beijing. “I think the personal relationship does help,” said Rangachari. The informal setting in Xi'an provides the conditions under which “greater understanding between the leaders can take place,” he said. The two are expected to build on agreements reached during Xi's visit to India to begin discussions on civil nuclear energy plus embark on a five-year economic and trade development plan. They also agreed to set up two Chinese industrial parks in India, while China promised to invest $20 billion in Indian infrastructure over the next five years. — AP
