The over dependence on cheap Chinese products, to include heavy machinery would be paving a way for Chinese neo colonialism. It maybe noted that the article states - More than half of the PRC's imports consists of raw iron ore and other low-end commodities and raw materials, rather than high value-added goods such as processed steel. It is the Chinese way to ensure a slow dependence on China. While China cannot change Indians into vassals of China as they did not other non Han races who were slowly assimilated, the Chinese way of slowly converting people to their way of thinking should never be forgotten. It is subtle and unobtrusive and is projected as a 'win win' for those following their ways. An explanation that it is so is the simple allegory that China is actually a devious imperialist and colonialist country with cunnig ways to make people dependent on them. To believe that China is not a colonialist or an imperialist power would be a wrong premise. It may appear incongruous prima facie, but a look at their history would indicate that precisely the size of China today was but a legacy of colonial pursuit. The key 'magic wand' was to change the population brought under Chinese rule, by Chinese expansion and colonial pursuit was to do so 'by the Chinese way'. In short, destroy the captured peoples' culture, heritage, traditions, customs, languages and instead transplanting it with Han replicas. In addition, the Chinese employed humiliation on the captured people by calling them barbarians, wherein they found solace and respect into 'converting' to being Hans!!! I have at length explained in many of my posts and so recounting would be repetitious. However, for those interested, here is an interesting link on the Ancient Chinese Barbarians; Ancient Chinese Barbarians That said, it will be seen that while India is having a huge trade deficit with China and that too buying cheap and low end goods, China with stoic ensured that India does not get a headway into China with high end products and services which can queer her commanding economic leverage. It is interesting how the Chinese are touting a FTA with all due politeness and with the ulterior motive to destroy India's economic growth!! The Chinese chicanery is worth observing. While reaffirming its support for U.N. Security Council Resolution 1267, which imposes sanctions on individuals, companies, and other entities engaged in international terrorism, Wen praised Pakistan for its immense effort in the War of Terror. It short, it indicates China has no principles. In the strategic realm Wen gave little evidence of actually changing Chinese policies that challenge Indian sovereignty. These include Beijing's claims that the eastern Indian state of Arunachal Pradesh is an extension of Chinese-ruled Tibet; and the PRC's refusal to grant regular visas to Indian citizens of Kashmiri origin who travel to China. However, it appears that India's patience is wearing thin. India responded by refusing to include its usual recognition of the PRC's sovereignty over Tibet and Taiwan in the joint communiquÃ©. Therefore, as it stands, there is little hope of an Sino Indian thaw. In this connection, the visit of the Russian President and signing of the huge defence deal is an indicator of India, resolve to identify the Chinese puzzle in concrete strategic terms, wherein, while keeping the Indo US strategic ties in place to ensure that the seas remain strategically sanitised, she also attempt to woo Russia into a partnership whereby China has little elbow room for manoeuvre in the neighbourhood, with Russia imposing her squeeze on the land mass. Hence, China from all ends remain 'boxed' and confined from any attempts at mischief.