China has sought talks with India to allay concerns on the Regional Comprehensive Economic Agreement (RCEA) that it is spearheading as Beijing seeks newer markets amid the ongoing trade war with the US.

The 16-country RCEA has been in negotiations for some time now and China is keen to conclude it by end of 2019. India’s wariness about a possible flood of Chinese goods, and its demand for looser immigration rules for its tech professionals remain sticking points.

China’s inability to close the trade deal highlights the continuing suspicion among its Asian trading partners over Beijing’s effort to increase its influence in the region. RCEP, along with the Belt and Road Initiative to build investment and trade links with countries along the old Silk Road to Europe, is a key element in China’s efforts to seize the geopolitical advantage following what many in the region see as a US retreat under President Donald Trump.

The meeting is likely to take place before the end of this month, and New Delhi has drawn up a list of issues it will take up with Asia’s largest economy. That includes providing zero-duty access to fewer Chinese goods as opposed to those offered to other members of RCEP. It also will seek a longer period to phase out levies on Chinese goods compared to 20 years offered to the others.