Mentor’s Comment:  China is now the biggest external influence on India’s foreign policy. From border issues to trade and defence, every move is shaped by the “China lens.” Tensions remain high at the LAC since the 2020 Galwan clash. While India stays alert militarily, trade ties continue, showing a paradox—India deters China at the border but relies on it economically.

Today’s editorial explains how China affects India’s foreign policy, especially in areas like trade and border tensions. It highlights how India is trying to manage both security concerns and economic ties with China. This topic is useful for GS Paper 2 (Mains) under International Relations.

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Let’s learn!

Why in the News?

As India and China mark 75 years of ties, their relationship faces border tensions and rivalry, yet offers chances for cooperation, economic links, and shared responsibility in ensuring regional peace.

What are the key challenges in India-China relations, especially regarding borders and strategic rivalry?

• Contested Borders and Military Tensions: The Line of Actual Control (LAC) remains heavily militarized, with both countries having stationed thousands of troops in sensitive regions like Eastern Ladakh. Eg: The 2020 Galwan Valley clash resulted in casualties on both sides and highlighted the vulnerability of the LAC to conflict and miscalculation.
• Historical Border Disputes: The unresolved boundary dispute, particularly over regions like Aksai Chin (claimed by India) and Arunachal Pradesh (claimed by China), continues to strain relations. Eg: The 1962 Sino-Indian War remains a traumatic event in India-China relations, and its legacy still influences border security strategies.
• Strategic Rivalry in South Asia: China’s growing presence in South Asia through infrastructure projects and loans has directly challenged India’s regional influence. Eg: China’s involvement in Sri Lanka’s Hambantota Port and infrastructure projects in Nepal and the Maldives are seen as part of China’s strategic push into India’s traditional sphere of influence.
• Economic Interdependence vs. National Security: Despite military tensions, India remains economically tied to China, particularly in trade, electronics, and pharmaceuticals, creating a paradox between economic cooperation and security concerns. Eg: China is India’s largest trading partner, but India faces a trade imbalance of around $100 billion in favor of China, raising concerns over economic over-dependence.
• China’s Regional Ambitions and Belt and Road Initiative (BRI): China’s Belt and Road Initiative (BRI) and growing influence in neighboring countries challenge India’s leadership role in the region.Eg: China’s infrastructure investments in Pakistan through the China-Pakistan Economic Corridor (CPEC) pass through contested regions like Gilgit-Baltistan, which India claims as part of Jammu and Kashmir.

Why does the “China lens shape India’s foreign policy”?

• Security and Border Infrastructure Concerns: China poses the most significant military threat to India, especially along the Line of Actual Control (LAC), necessitating constant vigilance and preparedness. Eg: The permanent deployment of over 60,000 Indian troops in Eastern Ladakh after the 2020 Galwan clash reflects how China shapes India’s defense planning.
• Economic Dependencies and Trade Imbalance: India relies heavily on Chinese imports for critical sectors such as electronics, pharmaceuticals, and machinery, creating a dilemma between strategic autonomy and economic needs. Eg: In 2024-25, India’s trade deficit with China approached $100 billion, despite efforts to diversify supply chains and ban certain Chinese apps.
• Geopolitical and Strategic Competition in the Region: China’s growing influence in South Asia and its partnerships with India’s neighbors challenge India’s regional leadership and influence. Eg: China’s funding of Pokhara Airport in Nepal and strategic ties with countries like Bangladesh and Maldives push India to recalibrate its diplomacy and regional engagement strategies.

How has India’s approach to China evolved since the 1962 war and the 2020 Galwan clash?

• From Idealism to Realism in Diplomacy: The early vision of Asian solidarity post-1947 has given way to a more cautious and pragmatic approach, shaped by hard security realities. Eg: After the 1962 war, India abandoned Nehruvian idealism and began strengthening its military and forging new alliances.
• Shift from Engagement to Strategic Deterrence: Post-Galwan, India has moved away from soft engagement to a policy of firm deterrence and military preparedness. Eg: Permanent deployment of troops and infrastructure upgrades in Eastern Ladakh reflect a proactive defense posture.
• Emergence of “Competitive Coexistence”: India now balances economic engagement with strategic competition, avoiding full decoupling while safeguarding national interests. Eg: Despite border tensions, India continues trade with China, participates in platforms like SCO and BRICS, and simultaneously deepens ties with the Quad.

How does it balance India’s strategy with economic ties to China?

• Selective Economic Engagement: India continues trade in non-strategic sectors (like consumer goods, raw materials) while restricting Chinese influence in critical infrastructure and tech. Eg: India imports electronics and machinery from China, but bans Chinese apps like TikTok and restricts Huawei from 5G rollout.

• Investment Scrutiny with Trade Continuity:India tightens FDI rules from neighboring countries (especially China) post-Galwan (2020), while not blocking trade outright. Eg: Chinese firms need government approval to invest in Indian startups, but bilateral trade crossed $135 billion in 2023.

• Self-Reliance Push (Atmanirbhar Bharat): India reduces dependence on Chinese imports by incentivizing local manufacturing and diversifying suppliers. Eg: Through the PLI Scheme, India promotes domestic production of electronics, APIs (for pharma), and solar panels.

• Strategic Dialogue + Border Vigilance: India engages diplomatically with China (e.g., 19th Corps Commander-level talks) while reinforcing military presence at LAC. Eg: Border patrol protocols resumed in Jan 2025 in Eastern Ladakh, showing balance between dialogue and deterrence.

• Multilateral Cooperation Without Alignment: India cooperates with China in BRICS and SCO, while counterbalancing through Quad and Indo-Pacific strategies. Eg: India joins China-led New Development Bank, yet also conducts Malabar naval exercises with the U.S., Japan, and Australia.

Way forward: 

• Enhanced Diplomatic Engagement with Strategic Boundaries: India should continue to strengthen diplomatic channels while ensuring border security through regular high-level talks, establishing confidence-building measures to reduce tensions along the LAC.
• Diversification of Economic Partnerships and Technological Independence: India should further reduce economic dependency on China by promoting indigenous industries and exploring alternative trade routes and partnerships with other countries to balance economic growth with national security concerns.

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