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Edition: U.S. Article Comments (0) Email Print Reprints Full Focus Best of the week Our top photos from the past week. Full Article Best pictures of the year Read Murdered Alabama children were tortured: documents 09 Dec 2010 Senior diplomat Richard Holbrooke critical after surgery 12 Dec 2010 Grocery chain A&P files for bankruptcy 12 Dec 2010 Three New Orleans policemen convicted in Katrina death 09 Dec 2010 Iran not a rogue state: Australia 12 Dec 2010 Discussed 166 Obama unveils tax deal with Republicans 87 WikiLeaks founder Assange arrested in Britain 69 Special Report: STD fears sparked case against WikiLeaks boss Watched Bejeweled bra exposed in NY Thu, Oct 21 2010 Row over vote orgasm video Fri, Nov 19 2010 Bill Clinton backs Obama tax plan Fri, Dec 10 2010 China's envoy: hopeful of free trade talks with India Tweet This Share on LinkedIn Share on Facebook By Henry Foy NEW DELHI (Reuters) - China hopes to have free trade discussions with India during the Chinese Premier's visit to New Delhi this week, a signal of how the two Asian powerhouses may try to smooth tensions over their economic and border... Related News China's envoy: hopeful of free trade talks with India 1:04am EST Indian trade minister rejects EU social, environmental clauses Fri, Dec 10 2010 Q+A: What are the issues in troubled Kashmir? Thu, Dec 9 2010 Q+A: What China's trying to do to resolve the Korea confronation Tue, Dec 7 2010 U.S. and allies urge China to rein in North Korea Mon, Dec 6 2010 Analysis & Opinion India’s indignation over (un)diplomatic conventions Suu Kyi underlines India’s strategic approach to Myanmar Related Topics World » China » Stocks By Henry Foy NEW DELHI | Mon Dec 13, 2010 2:20am EST NEW DELHI (Reuters) - China hopes to have free trade discussions with India during the Chinese Premier's visit to New Delhi this week, a signal of how the two Asian powerhouses may try to smooth tensions over their economic and border rivalries. "The free trade agreement is the next stage (of India-China relations). It is our hope that we can start the process," China's envoy to India, Zhang Yan, told reporters in New Delhi on Monday. "We are very much positive on these issues. I think that in general the Indians think it is positive but need more time." Wen Jiabao's visit will be the first to India by a Chinese premier in four years and comes a month after President Barack Obama's trip as major world powers boost ties with a South Asian nation that is one of the few stars in a weak world economy. Despite a boom in bilateral commerce in the past decade and cooperation on global issues such as climate change, India and China remain suspicious of each other's growing international clout and influence. Assistant Chinese Foreign Minister Hu Zhengyue said everything would be up for discussion during the December 15-17 visit to New Delhi. Wen then goes straight to Pakistan, India's nuclear rival, for another two nights. "No issues are off the table," Hu told reporters in Beijing, adding the India trip was to expand bilateral trade, increase cooperation and promote regional peace and stability. China and India plan to sign a series of business deals, including one agreed in October for Shanghai Electric Group Co to sell power equipment and related services worth $8.3 billion to India's Reliance Power. Representatives from Shanghai Electric and commercial banks would accompany the delegation and try to iron out financing details, said Liang Wentao, a deputy director general at the Ministry of Commerce. He would not give a value for the total amount of deals to be signed. SUSPICIONS STILL STRONG India's trade deficit with China rose to $16 billion in 2007-08 from $1 billion in 2001-02, according to Indian customs data. China is India's biggest trading partner, with bilateral trade expected to pass $60 billion this year. India has sought to diversify its trade basket, but raw materials and other low-end commodities such as iron ore still make up about 60 percent of its exports to China. In contrast, manufactured goods -- from trinkets to turbines -- form the bulk of Chinese exports. "We believe the trade imbalance is due to the economic structure of the two countries and the import and export trade structure. As trade develops, that gap should narrow," Liang said. India and China have also clashed repeatedly over a raft of political issues including their long-disputed border, China's increasingly close relationship with Pakistan, and fears of Chinese spying. 1 2 Next World China We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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