In the end, Ernst concludes, both the U.S. and China have a strong interest in finding a compromise during the APEC Summit. From the U.S. perspective, a mini ITA-2 without China would be an oxymoron. Not only is China the world biggest smart-phone market, it is also by far the most important market for U.S. semiconductor firms.
India and China both see themselves as having outgrown a world order dominated by the West. They are moving beyond traditional bromides like their joint advocacy of the "Five Principles of Peaceful Coexistence," to pragmatic cooperation in the framework of the BRICS grouping. They recently came together to announce the creation of the BRICS Bank, which will be located in Shanghai and headed by an Indian.
Currently, India's labor laws only apply the 20 to 25 million workers in what is called the "organized sector," which includes registered corporations and businesses. New higher minimum wages must also be made to apply to the other 175 million workers who work in the unorganized or unincorporated sector, as farm hands, pushcart vendors, construction workers, private security guards, household help, drivers, shoe shiners, waiters, shop help etc. Currently, this is not happening.