On the eve of Prime Minister Atal Bihari Vajpayee's visit to China, Confederation of Indian Industry has released a survey on Sino-Indian business relations, which reflect growing interest of Indian companies in the Chinese market.

The sectors surveyed included stainless steel, information technology, banking, pharmaceuticals and consumer goods. IT has been identified as a high potential area for further business development.

Other areas in services sector where both countries could work together included tourism and hotel industry, healthcare, educational services and technical education.

The survey revealed that over the past one year there has been a sizeable number of Indian companies interested in foraying into the Chinese market.

Several Indian companies in the IT and pharma sectors have established their presence in China during the past five years. Indian companies could also explore sectors like ITeS, financial services, consumer goods, auto and auto components, oil and gas medical equipments and food packaging equipments.

The survey highlighted the change in the nature of business between the two countries.

"Earlier, the focus was trading but now it is moving to manufacturing and in manufacturing it is to have joint venture companies," it said.

The success of these joint ventures could be banked upon to service third country market, it said, adding tapping the Chinese market would be advantageous for the Indian companies as it had a fully developed supply and demand chain and this market would also facilitate Indian companies' entry into other markets in ASEAN.

Citing the advantages the Indian businessmen enjoyed in China, the survey said licenses for setting up shops or for trade came fast. Most companies got their approvals under six months.

However, there were certain problems like language, lack of clarity regarding domestic regulations, red tape, lack of proper protection for intellectual property rights and unavailability of large number of skilled labour, which could affect trade.

The survey charted out certain positives about China, which included the Chinese government's openness for FDI without seeking too much documentation, high level of