India- China Relationship Official PDF
The present situation of the India-China relationship
- Troops in Ladakh: We have been on tenterhooks since the sanguinary Galwan clash of 2020, and have borne a heavy cost for the “mirror-deployment” of 50,000-60,000 additional troops in Ladakh.
- LAC negotiations: Sino-Indian diplomatic parleys having been suspended, the task of LAC negotiations has been foisted on local military commanders.
- Truce for SCO: The 16th successive commanders’ meeting would have seen yet another futile conclusion, but for compulsions of the impending Shanghai Cooperative Organisation, which apparently led to a modest breakthrough. Consequently, the third round of troop disengagement and the creation of another buffer zone has taken place in Siachen, this time in the area of Gogra-Hot Springs.
- Bilateral Trade: The India-China trade is on course to cross USD 100 billion for the second consecutive year as it has gone up to USD 67.08 billion in the first half of this year amid a big surge of Chinese exports.
- “According to the statistics of Chinese competent authorities, bilateral trade volume between China and India stood at USD 125.66 billion in 2021. China remains its largest trade partner of India and for the first time, the bilateral trade exceeded USD 100 billion in 2021.
- India and China established diplomatic relations on 1st April 1950.
- India was the first non-socialist country to establish relations with the People’s Republic of China and the catchphrase ‘Hindi Chini Bhai Bhai’ became famous.
- Both countries attended the Asian-African Conference in which 29 countries participated in Bandung, Indonesia and jointly advocated the Bandung Spirit of solidarity, friendship and cooperation.
- It has led to the decolonisation of the whole of Asia and Africa and to the formation of a Non-Aligned Movement as the third Way between the Two Blocs of Superpowers.
- The First NAM Summit Conference took place in Belgrade, Yugoslavia, in September 1961.
- The border conflict led to a serious setback in bilateral relations.
- China and India restored ambassadorial relations and bilateral ties improved gradually.
- Indian Prime Minister Rajiv Gandhi visited China, initiating the process of normalization of bilateral relations.
- The two sides agreed to look forward and develop bilateral relations actively in other fields while seeking a mutually acceptable solution to boundary questions.
What are the long-standing issues?
- Border issue – It is rooted in the disputed status of the McMahon Line, which defines the border between India and Tibet.
- There has not been remarkable progress in resolving the border dispute between the two sides due to the importance of Aksai Chin to China and Arunachal Pradesh to India.
- Dalai Lama – The presence of more than 1,00,000 Tibetan refugees in India and India’s continued willingness to provide shelter to the Dalai Lama is a continued source of irritation in China-India relations.
- NSG – China is well-established within the global nuclear order with a veto power for granting memberships in the nuclear supplier’s group.
- India certainly faces an uneven playing field on the issue of NSG membership.
- Masood Azhar – When India raised its concerns in UNSC, China was the only country among the 15 members to have opposed the ban on Jaish-e-Mohammad chief Masood Azhar
- BRI – China considers the CPEC projects planned in Pakistan-occupied Kashmir for Gilgit-Baltistan as a part of the Belt and Road initiative due to concerns over the “sovereignty” of India.
- Doklam – China attempted to build a road construction by bringing in earthmovers and construction machines in the Doklam area of Bhutan.
- The Indian Army had asked the PLA to stop the road construction activity that has resulted in a stand-off.
- Territorial distress – Recent intrusions by the PLA of china into Indian borders near J&K, Uttarakhand, and Arunachal Pradesh are also creating distress on the Indian side.
- Neighbourhood ties – China is strengthening its trade and defence ties with countries which are strategically important to India, it poses security threats to India.
Areas of Cooperation
- In 1993, the Agreement on the Maintenance of Peace and Tranquility along the Line of Actual Control (LAC) on the India-China Border Areas was signed to bring stability and substance to bilateral ties.
- In 2008, the two countries have also extended their strategic and military relations.
- MoU was signed to open an additional route for Kailash Mansarovar Yatra through Nathu La.
- India and China have also established a High-Level Dialogue Mechanism on Counter-Terrorism and Security
- To facilitate exchanges between Indian states and Chinese provinces, the States/Provincial Leaders Forum was established
Commercial and Economic Relations
- China will establish two Industrial Parks in India and expressed its intention to enhance Chinese investment in India
- India extended e-visa facility to Chinese nationals
- Trade and Economic Relationships are shaped through various dialogue mechanism
- Joint Economic Group led by the Commerce Ministers of both sides
- Strategic Economic Dialogues led by the Vice Chairman of NITI Aayog and the Chairman of the National Development and Reform Commission of China
- India and China have entered into an agreement on the co-production of movies
- Yoga is becoming increasingly popular in China. China was one of the co-sponsors of the UN resolution designating June 21 as the International Day of Yoga
- India and China signed Education Exchange Programme (EEP), which is an umbrella agreement for educational cooperation between the two countries.
- Chinese students are also annually awarded scholarships to study Hindi at Kendriya Hindi Sansthan, to learn Hindi
- Presently around 35,500 Indians are staying in China, and students and working professionals form a major part of it.
- PICFA” Pondicherry India China friendship association is an NGO dedicated to developing people-to-people relations between India and China in areas of education, culture and tourism.
Issue of concerns in India-China relations
- Belt Road Initiative: India has objected to this, since its inception on grounds of violating its sovereignty pointing to China Pakistan Economic Corridor.
- India’s support to China on global issues has not led to Beijing’s reciprocation for instance: China opposed India’s permanent membership to UN Security Council and entry into NSG.
- India faces a trade imbalance heavily in favour of China. In 2017-18, the trade deficit has gone wide to US$62.9 billion in China’s favour.
- Two countries failed to resolve their border dispute and steadily established military infrastructure along border areas Indian media outlets have repeatedly reported Chinese military incursions into Indian territory
- China has expressed concerns about Indian military and economic activities in the disputed South China Sea. In the same way, India is also concerned about rising Chinese activities in the Indian Ocean.
- China’s strong strategic bilateral relations with Pakistan and other neighbouring countries like Nepal and Bhutan are the cause of concern as these countries act as buffer states.
- The two countries are standing at a crossroads, and this might be the final chance to take the path to the coexistence of cooperation and competition. If not, a new phase of antagonistic rivalry may be starting, with the countries sliding into possible confrontation as the strategic periphery of China collides with the strategic backyard of India in the Indian Ocean region.