INDIA-CHINA RELATIONS: A COMPLEX LANDSCAPE
“ N AV I G AT I N G D Y N A M I C S I N T H E A S I A N C E N T U RY ”
A PRESENTATION BY :-
ANANYA KUMAR, ADITYA SINGH KUNWAR, ANURAG KUMAR, AMAN KHAN, ANJALI GUPTA,
ASAV VERMA, ABBAS NAQVI
SECTION D BALLB 2023
PRESENTED TO – MRS. SWATI SAXENA
REGARDS.
OVERVIEW OF INDIA-CHINA RELATIONS
• The relationship between India and China is complex, characterized by historical interactions,
geopolitical dynamics, economic cooperation, and occasional tensions. Despite shared cultural
heritage and economic interdependence, both countries navigate a delicate balance of
competition and cooperation in the contemporary global landscape.
• India and China have been friends and sometimes not-so-friendly neighbors for a really long
time. Way back in history, they traded goods and ideas along the Silk Road. But things got a
bit rocky in modern times because they couldn't agree on where their borders should be. This
led to a war in 1962. Since then, they've tried to make up and work together, especially on
business stuff, but the border issue still causes tension between them.
IMPORTANCE OF RELATIONS IN GLOBAL GEOPOLITICS:-
• The significance of India-China relations in global geopolitics cannot be overstated, as the
interaction between these two populous and rapidly developing nations shapes regional
dynamics, influences international institutions, and impacts global security and economic
stability.
• India and China are super important in the big picture of the world. Their relationship affects
not just them but everyone else too. When they get along, it helps keep things peaceful in
Asia, which is good for everyone. But if they're not happy with each other, it can cause
problems, like making other countries choose sides or causing tension in the world. So, how
they deal with each other really matters for how the whole world works together.
HISTORICAL BACKGROUND OF INDIA-CHINA
RELATIONS:-
• India and China are among the oldest civilizations of the world
and have had one of the longest uninterrupted continuations as
nations in world history. In the 21st century, both countries are
only examples of large demography, geography that has retained
the sense of continuity with their ancient past.
• How have foreign policies affected relations between these two
nations?
HOW HAVE FOREIGN POLICIES AFFECTED RELATIONS?
FOUR MAJOR FOREIGN POLICIES OF CHINA :-
One China Policy
Economic Power
World should be multipolar
Dominance in Asia
HISTORICAL BACKGROUND OF INDIA-CHINA
1) Before 1949 there was a democratic government in china just like UK and USA. People
elect their representative who make policy for them but after a civil war in 1949
communist government came to power under the leadership of MAO.
2) India was the first non-socialist country who recognize china as a independent nation
3) 1954- Panchseel agreement
4) 1958 China issued a distorted map which includes Aksai chin and Arunachal Pradesh.
5) In 1959 China occupied Tibet and Dalai lama who was a spiritual leader came to India for shelter.
6) In 1962 china attacked India.
7) The war with china in 1962 not only exposed china devious approach to India but also
highlighted the need of military importance to protect the borders. After this along with
increasing military capabilities India almost double the deployment of troops along the
border. However efforts were made by India to improve relation with China even during this
period, although a positive response was also receive from China but the war of 1962 had
made it clear that the friendly policy of China could not be trusted.
8) Again in 1967 there was a conflict between the Army of two countries over the Nathula
Pass although it is not termed as fulfilled war as it was a military standoff and only a War like
situation had arisen.
ECONOMIC RELATIONS:-
• Less than a decade ago, economic ties between India and China were strengthening. China
became India’s largest trading partner, and when Xi Jinping visited India in 2014, Chinese
officials were talking about the large investments in India to come. Today, however, Indian
scrutiny and restrictions on a range of Chinese activities have increased, and geopolitical
differences have exacerbated economic friction.
Trade Deficit
◦ Trade Volume: India and China are among each other's largest trading partners. Bilateral trade
between the two countries has grown significantly over the years, reaching billions of dollars
annually.
◦ Trade Imbalance: However, there exists a significant trade imbalance in favor of China, with India
importing far more goods from China than it exports. This trade deficit has been a point of concern for
India, leading to efforts to address market access issues and promote exports to China.
Bilateral Investment
• Growth in bilateral investment has not kept pace with the expansion in trading volumes
between the two countries. While both countries have emerged as top investment
destinations for the rest of the world, mutual investment flows are yet to catch up.
• According to the Ministry of Commerce of China, Chinese investments to India in the year of
2021 was USD 63.18 million down 68.3% year on year and the cumulative Chinese investment
to India by the end of 2021 amounted to USD 5.403 billion. Indian investment into China for
the year 2021 was USD 6.32 million declining by 47.4% year on year and the cumulative Indian
investment to China by the end of 2021 reached USD 943.96 million.
•In recent years, trade between India and China has been in China's favor. China is India's
largest trading partner in goods, while India is China's largest trading partner in South Asia.
• In 2020, the total bilateral trade between India and China was around $77 billion, with a
trade deficit of approximately $48.66 billion in China's favor.
BORDER ISSUES:-
Areas of disagreement: There are two main regions where India and China have conflicting
territorial claims:-
• Aksai Chin: India claims Aksai Chin as part of its territory, citing historical and legal grounds.
According to India, the region was part of the princely state of Jammu and Kashmir and thus
should rightfully belong to India.
China, however, asserts its sovereignty over Aksai Chin, arguing that it has historical and
administrative control over the region. China considers Aksai Chin as an integral part of its
Xinjiang Autonomous Region.
• Arunachal Pradesh: China claims Arunachal Pradesh as part of its territory, referring to it as
"South Tibet." China's claim is based on historical assertions of suzerainty over Tibet and
disputes over the alignment of the McMahon Line, which forms the de facto border between
India and China in the region.
India rejects China's claims and asserts its sovereignty over Arunachal Pradesh, citing
historical, cultural, and administrative grounds. India maintains that Arunachal Pradesh is an
integral part of its territory and an essential component of its federal structure.
The root of the dispute lies in differing historical interpretations and unclear border
demarcation during colonial times.
LAC: Line of Actual Control (LAC):
◦ The Line of Actual Control serves as the de facto border between India and China in the disputed
regions of Ladakh, Arunachal Pradesh, and Sikkim. However, the line is not formally demarcated,
leading to differing perceptions of its alignment by both countries.
◦ Incursions and standoffs along the LAC are not uncommon, with both Indian and Chinese troops
patrolling areas claimed by the other side. These incidents have occasionally escalated into tense
standoffs, such as the Doklam standoff in 2017 and the Galwan Valley clash in 2020.
MUTUAL INTERESTS OF INDIA AND CHINA
• India and China are supporting multi-polar world order diminishing US
hegemony as one polar world.
•India and China are members of BRICS, a regional grouping to support
developing countries by forming the New Development Bank (NDB).
•Both countries have a similar stand on trade dispute and WTO
negotiations.
•India’s induction into Shanghai Cooperation Organization (SCO), a
Eurasian regional group of political, economic and security alliance.
•India is also a member of China-backed AIIB (Asian Infrastructure
Investment Bank) that provides loan for building infrastructure in the
Asia-Pacific region.
CHALLENGES AND OPPORTUNITIES
India-China relations present both challenges and opportunities across various domains.
CHALLENGES:-
Border Disputes: Persistent unresolved border issues, particularly in regions like Aksai Chin and
Arunachal Pradesh, continue to strain bilateral relations and occasionally lead to military standoffs.
Strategic Rivalry: Both countries vie for influence in the region, leading to strategic competition and
occasional geopolitical tensions, especially in areas like the Indian Ocean and the South China Sea.
Economic Competition: Despite significant trade relations, there's a persistent trade imbalance in
China's favor, which raises concerns in India about protecting its domestic industries and employment.
Security Concerns: China's close relationship with Pakistan, including military and economic
cooperation, is viewed with suspicion in India and contributes to security challenges, particularly in the
context of the India-Pakistan conflict.
OPPORTUNITIES:-
Economic Cooperation: Both India and China recognize the potential for economic cooperation and have
engaged in various initiatives such as the BRICS grouping, the Asian Infrastructure Investment Bank
(AIIB), and the Shanghai Cooperation Organization (SCO).
Multilateral Forums: Participation in multilateral forums like BRICS, SCO, and G20 provides platforms for
India and China to engage on global issues, promoting dialogue and cooperation on shared challenges
such as climate change and sustainable development.
Cultural Exchanges: Enhancing people-to-people ties through cultural exchanges, tourism, and
educational collaborations can foster mutual understanding and trust between the two nations.
Belt and Road Initiative (BRI): While India has expressed concerns about certain aspects of the BRI, there's
potential for collaboration in connectivity and infrastructure projects that align with India's
developmental goals and respect its sovereignty.
TO CONCLUDE:-
In conclusion, India-China relations encapsulate a complex interplay of historical, geopolitical,
economic, and strategic dynamics. While the relationship between these two Asian giants has
witnessed periods of cooperation and mutual benefit, it has also been marked by challenges
and occasional tensions.
The unresolved border disputes, strategic competition, and economic imbalances represent
significant hurdles that both countries must address to foster a more stable and constructive
relationship. However, amidst these challenges lie numerous opportunities for collaboration
and partnership.
As two major emerging powers, India and China have the potential to shape the trajectory of
the Asian century and influence global affairs profoundly. By embracing dialogue,
cooperation, and a spirit of mutual respect, both nations can work towards building a
relationship that promotes peace, stability, and prosperity in the region and beyond.
THANK YOU
