BEIJING: China has permitted setting up of a new trade body to promote and coordinate Chinese investments and businesses with India, a first such official initiative taken by the Communist trading giant.

The council was set up by China Council for the Promotion of International Trade (CCPIT) and will be based in China’s Hunan province.

CCPIT has approved the formation of the Council under its Hunan provincial unit for a period of two years.

Announcing formation of the council, He Jian, Chairman of Hunan Sub-Council of CCPIT in a communication to the media said “My first important job on arriving at my new post is to establish China India Business Council”.

The Council will be based in the office of the CCPIT in Changsha, provincial capital of the Hunan province, he said.

The Council also plans to open offices in New Delhi and Hyderabad to promote and coordinate Chinese investments in India which are on the rise in recent years.

The bilateral trade between India and China stood at USD 70,71 billion in 2015-16. The total import and export volume of China, the world’s biggest trader, stood at 24.59 trillion yuan in 2015.

Chinese Vice Minister for Finance Shi Yaobin said during India-China Financial Dialogue last month that Chinese investments in India amounted to USD 4.07 billion till last year.

More Chinese firms have evinced interest to invest in India.

For its part the Indian government in coordination with the various state governments is also conducting campaigns to attract Chinese investments.

In view of the growing trade deficit, India has been asking China to promote investments.