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INDIA CHINA BILATERAL RELATIONS

29th October, 2024

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Picture Courtesy: https://www.financialexpress.com/india-news/india-china-bilateral-talks-modi-amp-xi-meet-a-new-phase-in-border-relations/3647946/

Context:

The Indian Prime Minister and Chinese President held a meeting during the 2024 BRICS Summit scheduled in Kazan, Russia. 

Key Discussions during the meeting

The Indian PM welcomed the recent agreement between India and China on patrolling arrangements, highlighting its importance for peace and stability along the border. He underlined that mutual trust, respect, and sensitivity are essential to maintaining cordial relations between the two neighboring powers.

Both leaders acknowledged the significance of maintaining stable and predictable bilateral relations, which they believe will contribute positively to regional and global peace. They highlighted the need to view their relationship from a “strategic and long-term perspective,” enhancing communication between their countries. 

The 2020 Standoff

The India-China border standoff that started in eastern Ladakh in 2020 severely impacted bilateral relations, tensions reached a peak during the violent Galwan Valley clashes, which resulted in casualties on both sides. 

Recently an agreement between India and China was finalized to resume regular patrolling along the Line of Actual Control (LAC) in eastern Ladakh. With the resumption of patrolling in critical areas like Depsang and Demchok, the agreement also signals India’s ability to return to its pre-standoff patrolling stations.

India-China Relations

The diplomatic relations between the two nations started after India’s independence in 1947. India was one of the first non-communist nations to formally recognize the People’s Republic of China (PRC) in 1950. 

The relationship faced a setback with the Sino-Indian War of 1962, mainly due to disputes over the alignment of their border in Ladakh and Arunachal Pradesh, a conflict that still remains unresolved, this war affected trust and established an ongoing border dispute that impacts relations to this day.

Political Relations

India and China, are the world’s largest countries with distinct political systems, have developed a complex relationship shaped by both collaboration and rivalry. 

They participate together in several multilateral organizations like BRICS, the Shanghai Cooperation Organization (SCO), and the Asian Infrastructure Investment Bank (AIIB), promoting common interests in regional and global governance. 

Multilateral platforms enable the two countries to interact and work on issues of shared concern, such as development finance, regional security, and economic growth, aligning as voices of the Global South against Western dominance in global politics. However, their political relationship has been continuously challenged by territorial disputes.

Economic Relations

China is India’s biggest trading partner, with bilateral trade reaching $135.98 billion in 2022-23. 

India’s imports from China including electronics, machinery, and pharmaceuticals, creating a substantial trade deficit. In 2022-23, India’s trade deficit with China was approximately $83.2 billion, raising concerns about economic dependence. 

India’s exports to China are mostly raw materials like iron ore and cotton, a relatively small component of the total trade. To address this imbalance, India has been promoting initiatives such as Make in India and Atmanirbhar Bharat (Self-Reliant India), particularly in electronics and pharmaceuticals, and to boost domestic production capacities. 

Why is India Significant for China?

India’s extended market is crucial for Chinese exports, aiding China’s export-driven economy. 

India’s dependence on Chinese goods provides China with influence, strengthening its economic power in the region.

Engaging with India in multilateral forums like BRICS and SCO allows China to project its influence in South Asia and counterbalance Western powers. 

India’s participation strengthens the collective voice of developing nations, frequently referred to as the Global South, challenging Western-led structures in international governance. 

Why is China significant for India?

Economic ties with China play a significant role in India’s growth, given the large volume of trade and availability of affordable goods.

China’s technology and manufacturing capabilities, if correctly addressed, can complement India’s domestic industries.

Stable relations with China are essential for regional security, especially with India’s immediate neighbors. Cooperation with China on global issues like climate change, healthcare, and trade policy bolsters India’s position in the international arena. 

Challenges

The unresolved border dispute along the Line of Actual Control (LAC) is a significant challenge. Despite recent agreements to border patrolling, the underlying territorial claims remain unresolved.

"String of Pearls" strategy of China aims to establish a network of military and commercial facilities in the Indian Ocean to encircle India. Ports in Pakistan, Sri Lanka, Myanmar, and other countries are part of this strategy.

China's proactive and often aggressive diplomatic style, known as Wolf Warrior Diplomacy, has strained relations with several countries, including India.

China's gradual encroachment strategy, known as Salami Slicing, involves making small, incremental moves to change the status quo along the border without provoking a full-scale conflict.

The Digital Silk Road, part of China's Belt and Road Initiative (BRI), aims to improve digital connectivity and infrastructure across Asia, this has implications for cybersecurity and digital sovereignty.

Way Forward

Regular high-level dialogues are essential to address and manage border disputes. Confidence-building measures and clear communication channels can help prevent misunderstandings and reduce the risk of conflict.

India should continue to diversify its trade partners and reduce dependency on Chinese imports. Supporting domestic industries and promoting exports can help address the trade imbalance.

Expanding military confidence-building measures, such as regular border personnel meetings and hotlines, can help reduce the risk of conflict and build trust. India and China have implemented several Military Confidence-Building Measures (CBMs), such as border personnel meetings, hotlines, and agreements on troop disengagement, to reduce the risk of conflict.    

India and China should work towards a comprehensive solution that addresses not just the demarcation of the LAC but also other controversial issues like troop deployments and infrastructure development.

India's Act East Policy aims to strengthen economic and strategic ties with Southeast Asian countries, partially as a counterbalance to China's influence in the region. This includes enhancing connectivity, trade, and cultural exchanges with ASEAN nations.

India should utilize platforms like BRICS, the Shanghai Cooperation Organization (SCO), and the Asian Infrastructure Investment Bank (AIIB) to promote cooperation on global issues such as climate change, counter-terrorism, and economic development.

India should maintain its strategic autonomy by balancing its relationships with major powers. Engaging in regional initiatives like the Indo-Pacific Economic Framework (IPEF) can provide a counterbalance to China's influence.

Must Read Articles: 

INDIA-CHINA BORDER TALKS

INDIA CHINA TRADE RELATIONS

INDIA-CHINA BORDER DISPUTE

INDIA HAS A SPECIAL CHINA PROBLEM ABOVE WORLD’S GENERAL CHINA PROBLEM

CHINA TAIWAN ISSUE AND INDIA

Source: 

Financial Express

The Diplomats

Wikipedia

PRACTICE QUESTION

Q.In the context of the ongoing border disputes and military standoffs, what confidence-building measures can India and China implement to ensure long-term peace and stability along the Line of Actual Control (LAC)? (150 words)