As a follow up to the recent China visit of Prime Minister Atal Bihari Vajpayee to step up economic cooperation, the government on Friday decided to offer fresh tariff concessions to Beijing.

This was decided at the Cabinet meeting chaired by the prime minister, Divestment Minister Arun Shourie told reporters in New Delhi.

The tariff concessions have been provided under the Bangkok Agreement that is in operation among the South Asian and Pacific countries.

The tariff concessions are expected to be reciprocated by China.

This would lead to a rise in exports of major items like chemicals, leather, textiles and diamonds to China.

The concessions will be available to about 700 items, which constitute about 30 per cent of Indian exports.