Why in the News?

On April 1, China and India celebrated 75 years of diplomatic relations. Despite some challenges, their bond has kept growing, just like the Yangtze and Ganges rivers.

What are the key factors that have influenced China-India relations over the past 75 years?

• Strategic Leadership & Diplomatic Initiatives: Leaders have played a pivotal role in shaping ties at critical junctures. Example: In 1950, Nehru and Mao established diplomatic relations, and in 1988, Rajiv Gandhi’s visit to China helped normalize relations after the 1962 war.
• Border Disputes & Security Concerns: The unresolved boundary issue has been a major friction point. Example: The 1962 India-China War and recent tensions in Ladakh (Galwan clash, 2020) highlight ongoing territorial disputes.
• Economic Engagement & Trade Relations: Bilateral trade has expanded significantly, despite political tensions. Example: Trade increased from under $3 billion in 2000 to $138.5 billion in 2024, making China India’s largest trading partner.
• Multilateral Cooperation & Global Governance: Both nations collaborate in international forums but also compete for regional influence. Example: India and China work together in BRICS, SCO, and G-20 but differ in strategies for regional dominance (e.g., Indo-Pacific and BRI).
• Cultural & People-to-People Ties: Historical and civilizational ties continue to foster mutual understanding. Example: The influence of scholars like Rabindranath Tagore and the contribution of Dr. Kotnis in China during WWII symbolize enduring cultural bonds.

How have the leaders of China and India guided their bilateral relations during critical historical junctures?

• Establishment of Diplomatic Ties (1950): Prime Minister Jawaharlal Nehru and Chairman Mao Zedong formalized relations, making India the first non-socialist country to recognize the People’s Republic of China.
• Normalization Post-1962 War (1988): Prime Minister Rajiv Gandhi’s visit to China marked a turning point, leading to agreements on peace and cooperation, setting the stage for improved ties.
• Economic & Strategic Engagement (2003-2013): Under Atal Bihari Vajpayee and Hu Jintao, India recognized Tibet as part of China, and China acknowledged Sikkim as part of India, fostering trade and diplomatic ties.
• Informal Summits for Stability (2018-2019): Prime Minister Narendra Modi and President Xi Jinping held informal summits in Wuhan (2018) and Mamallapuram (2019) to ease tensions and enhance strategic trust.
• Crisis Management & Recent Diplomatic Talks (2023-2024): Amid border tensions, diplomatic channels, such as the Special Representatives’ talks and Foreign Minister-level dialogues helped maintain stability and explore solutions.

How can China and India promote a multipolar world and protect developing countries’ interests?

• Strengthening Multilateral Organizations: Both nations actively contribute to BRICS, the Shanghai Cooperation Organisation (SCO), and the G-20 to ensure developing countries have a greater voice in global governance.
• Advocating for Fair Trade and Economic Policies: They push for reforms in the World Trade Organization (WTO) and International Monetary Fund (IMF) to make global trade and financial systems more inclusive and equitable.
• Enhancing South-South Cooperation: Initiatives like China’s Belt and Road Initiative (BRI) and India’s Development Partnership Administration (DPA) can support infrastructure, healthcare, and education in Africa, Latin America, and Asia.
• Promoting an Inclusive Global Order: China and India have called for United Nations (UN) Security Council reforms to give more representation to emerging economies, ensuring a balanced global power structure.
• Joint Climate and Sustainable Development InitiativesThey collaborate in forums like the International Solar Alliance (ISA) and advocate for climate justice, ensuring fair access to green technology and funding for developing nations.

What steps can China and India take to strengthen their bilateral economic and trade cooperation? (Way forward)

• Enhancing Trade Facilitation and Reducing Barriers: Both nations can work towards reducing tariffs and non-tariff barriers to improve market access. Example: Streamlining customs procedures and regulatory harmonization can facilitate smoother trade in key sectors like pharmaceuticals, electronics, and textiles.

• Boosting Investments and Joint Ventures: Encouraging mutual investments in infrastructure, manufacturing, and technology sectors to foster economic interdependence. Example: China’s investment in India’s mobile phone sector (e.g., Xiaomi and Oppo factories in India) can be expanded to other industries like renewable energy and automobile manufacturing.

• Strengthening Supply Chain Resilience: Both countries can collaborate to create diversified supply chains and reduce overdependence on Western markets. Example: Joint production and R&D in semiconductor manufacturing to reduce dependency on third-party nations.

• Promoting Digital and Financial Cooperation: Expanding digital economy collaboration, including fintech, e-commerce, and AI-driven solutions. Example: Enabling regulated entry of Indian fintech firms into China’s market and vice versa, similar to how Chinese tech firms like Alibaba and Tencent have invested in Indian startups.

• Expanding Multilateral and Regional Cooperation: Strengthening collaboration in platforms like BRICS, SCO, and RCEP to enhance economic integration. Example: Coordinating policies on global trade issues like WTO reforms, climate finance, and digital trade governance to promote shared economic interests.

Mains question for practice:

Question: ‘Quadrilateral Security Dialogue (Quad)’ is transforming itself into a trade bloc from a military alliance, in present times – Discuss. [UPSC 2020]

Linkage: Quad, a strategic dialogue involving India, the US, Japan, and Australia, which is widely seen as a counter to China’s growing influence in the Indo-Pacific. Understanding the Quad’s evolving nature is crucial for analyzing India’s strategic choices in relation to China.

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