India, China not rivals: Wen

Prime Minister Singh hosted a private dinner on Wednesday night in honour of Wen, who is here on the first leg of his two-nation visit that will also take him to Pakistan on Friday.

Wen is expected to address some of India's key concerns like those on stapled visas for Jammu and Kashmir residents, its bid for a permanent seat in the UNSC and growing trade imbalance during his talks with his Indian counterpart.

Wen, who is accompanied by a biggest delegation ever of 400 businessmen, senior ministers and officials, said both the countries stand to gain from economic cooperation.

Making out a case for liberalising bilateral trade (about USD 49 billion till January-October 2010), Wen said liberalisation of the markets hold huge potential for the domestic markets of the two countries.

"By opening markets to each other, we will be most dynamic economies and can support each other in economic development," he said.

With two-way trade between India and China poised to cross USD 60 billion this year, Wen said that during his meeting with Prime Minister Singh he would discuss ways to enhance it further.

On India's concerns on trade imbalance, he said China takes its "seriously".

"China takes seriously the trade imbalance between our countries and stands ready to take further measures to facilitate the access of Indian IT products, pharmaceuticals and agro products to the Chinese market," Wen said.

India had a trade imbalance of USD 19 billion with China in 2009-10.

Agreements, which will be signed during Wen's visit include those between China Development Bank and Reliance Power, China Aluminium International Trading Co and Vedanta Aluminium Ltd, Bank of China and IDBI, Dongfang Electric Corporation Ltd and Abhijeet Projects Ltd.

At another event, Wen while giving away the China-India Friendship Awards to nine people, including CPI(M) Polit Bureau member Sitaram Yechury, said the two countries should work "hand-in-hand" in changing global and economic times.

In his arrival statement, Wen said China-India relations faced major opportunities and enjoy broad prospects and that the friendship and cooperation between the two sides have seen comprehensive and rapid progress.