Foreign Policy Watch: India-China

The long and winding road of India-China relations

Note4Students

From UPSC perspective, the following things are important :

Mains level: India-China relation;

Why in the News?

India’s Foreign Secretary Vikram Misri visited China in January 2025, where both countries made important announcements about their future relationship.

What are the latest diplomatic discussions between India and China?

  • Resumption of Direct Air Services: After nearly five years, both nations agreed to restart direct flights, aiming to enhance connectivity and facilitate people-to-people exchanges.
  • Facilitation of Journalist Exchanges: The two countries decided to ease the process for journalists to operate in each other’s territories, promoting better mutual understanding and media cooperation.
  • Revival of the Kailash Mansarovar Yatra: Plans were made to resume the annual pilgrimage to Mount Kailash in Tibet, a significant site for Hindu devotees, which had been suspended since 2020 due to the pandemic and border tensions.
  • Addressing Economic and Trade Issues: Both sides discussed specific concerns in economic and trade areas, aiming to resolve issues and promote long-term policy transparency and predictability.
  • Commitment to Strengthening Bilateral Relations: High-level meetings underscored the importance of mutual support and understanding, with both nations expressing a desire to move beyond past disputes and enhance cooperation across various sectors.

What are the challenges between India and China? 

  • Border Disputes and Military Standoff: The unresolved Line of Actual Control (LAC) dispute remains a major flashpoint. Example: The 2020 Galwan Valley clash led to casualties on both sides and heightened tensions, leading to prolonged military deployments in Ladakh.
  • Trade Imbalance and Economic Restrictions: India faces a significant trade deficit with China, as it imports more than it exports. Example: In 2023, India’s trade deficit with China exceeded $100 billion, prompting India to impose restrictions on Chinese investments and apps.
  • Geopolitical Rivalry and Strategic Alliances: Both countries compete for influence in South Asia, the Indian Ocean, and global institutions. Example: China’s Belt and Road Initiative (BRI), which India opposes, includes projects in Pakistan and Sri Lanka, challenging India’s regional influence.
  • China’s Support to Pakistan and India’s Response: China’s close ties with Pakistan, including military and economic aid, pose security concerns for India. Example: China’s role in developing Gwadar Port in Pakistan and supplying weapons to Pakistan’s military affects India’s security calculus.
  • Tensions in Multilateral Forums: India and China often clash diplomatically in international organizations. Example: China has blocked India’s bid for UNSC permanent membership and has repeatedly blocked India’s attempts to list Pakistan-based terrorists in the UN.

What measures has the Indian government taken after the Galwan clash?

  • Strengthening Military Presence and Infrastructure at LAC: India rapidly deployed additional troops, upgraded surveillance, and enhanced military infrastructure along the Line of Actual Control (LAC).
    • Example: India constructed all-weather roads, bridges, and airstrips, such as the Darbuk-Shyok-Daulat Beg Oldi (DSDBO) road in Ladakh, to improve troop movement.
  • Ban on Chinese Apps and Economic Restrictions: The government banned over 300 Chinese apps, citing security concerns and took steps to reduce economic dependence on China.
    • Example: TikTok, PUBG Mobile, WeChat, and AliExpress were among the banned apps, impacting China’s digital market in India.
  • Increased Focus on Atmanirbhar Bharat (Self-Reliant India): India pushed for domestic manufacturing in defense, telecom, and electronics to reduce reliance on Chinese imports.
    • Example: The government placed restrictions on Chinese firms participating in 5G trials, and promoted Indian alternatives in the telecom sector.
  • Diplomatic and Strategic Realignments: India strengthened partnerships with like-minded countries to counterbalance China’s influence.
    • Example: India reinforced ties with the Quad alliance (U.S., Japan, Australia, India), holding Malabar naval exercises to enhance security cooperation.
  • Revised Foreign Direct Investment (FDI) Policies: India introduced stricter FDI regulations, requiring government approval for investments from China and other neighboring countries.
    • Example: The new FDI rules in 2020 prevented automatic approvals for Chinese investments in Indian startups and infrastructure projects.

Way forward: 

  • Strengthening Diplomatic and Strategic Engagement: India and China should prioritize sustained diplomatic dialogue and confidence-building measures to prevent conflicts and enhance cooperation in multilateral forums.
    • Example: Establishing a structured mechanism for LAC dispute resolution and expanding bilateral trade dialogues to address economic concerns.
  • Enhancing Economic and Technological Self-Reliance: India should continue efforts toward Atmanirbhar Bharat by boosting domestic manufacturing, diversifying supply chains, and strengthening critical sectors like semiconductors and defence.
    • Example: Expanding the Production Linked Incentive (PLI) scheme to reduce dependency on Chinese imports and developing strategic alliances for tech collaborations.

Mains PYQ:

Q Critically examine the aims and objectives of SCO. What importance does it hold for India? (UPSC IAS/2021)

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