— This is the script of CNBC's news report for China's CCTV on September 2, Tuesday.
Welcome to the CNBC Business Daily, I'm Qian Chen.
Japan and India appear to be cozying up to each other.
The two nations agreeing to strengthen defense ties to keep China at bay.
but Japanese prime minister Shinzo Abe and Indian prime miniser Narendra Modi, were not able to reach a deal on nuclear energy...
Although the two men did say they made 'significant progress' in those negotiations.
But is this really ALL about China?
[TAIMUR BAIG / Chief Economist, Asia, Deutsche Bank] "From my perspective it's more economics than politics on the India side and perhaps a mixture of politics and economics on the Japan side."
But India right now is shopping for money. And that to me trumps any longer geopolitical considerations especially with respect to China because I'm sure India also wants very strong relationship with China. It is India's largest trading partner. So yes, from a broad based big picture perspective, of course India Japan -- two democracies against the non-democratic China sort of makes sense. But I think Modi's visit is not about that. It's more about money.
[SHEILA SMITH / Senior Fellow for Japan Studies, Council on Foreign Relations] "There's been a long term Japanese interest in expanding especially economic ties with India and there's been some initial forays into military cooperation between all three military services. But I think Modi's visit this week really sort of brings it all together to a new stage of creating goals. They refer to it as a strategic global partnership which I think was an interesting language. But really what they were speaking to was the uncertainty ahead in the Asia Pacific."
While he's in Japan, Modi is widely expected to meet with the CEO of Uniqlo.
Reports say the two could discuss the Japanese casual chain wear's entry into the Indian market...
Asia's biggest apparel retailer has reportedly been eyeing an expansion in India after the nation eased FDI rules.
One analyst is optimistic about the Fast Retailing's exapnsion drive.
[MIKIHIKO YAMATO / Deputy Head of Research, SG-Ji] "Per capita in India.. a couple of thousand bucks per capita is rising. And it's nearly becoming an ideal market for Japanese retailers. And as you may know, de-regulation of foreign investments are to be coming. If you are single branded like Uniqlo, you can actually enter into India's market as of now. The regulation for overseas retailers right now is that you cannot own majority of the joint venture in India yet. But that is about to ease. So I think a door's about to be open for foreign players now in India."
I'm Qian Chen, reporting from CNBC's Asian headquarters.
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