INTRODUCTION
India & China share a terse and tumultuous relationship. However, the groundwork for the same has been laid for over several decades of border disputes, policy conflicts and Chinese hostility. Historically, India was the first non-socialist country that shook the hand of China by way of according it diplomatic recognition, on April 1, 1950. China & India began bilateral relations on a friendly note, with erstwhile Prime Minister Jawaharlal Nehru paying a visit to China in the month of October, 1954. The sudden betrayal of China by way of being the aggressor of the India-China border conflict in the year of 1962 led to immense losses to India, and also strained India-China relations. While various attempts at revival have been made since, relations continue to remain stiff, with a recent LAC clash between India-China at Tawang, Arunachal Pradesh.
In this article, Team YLCC brings you an overview of the India-China relations in 2022. Read on!
BILATERAL RELATIONS
Political Relations: India and China have strained political relations, mostly owing to the border conflict that originated in the year of 1962 and has been persisting ever since. After breaking ambassadorial relations post the war of 1962, in which India experienced a humiliating defeat, China and India restored ambassadorial ties in 1976, moving towards normalization in 1988.
However, 2022 has been ominous for the progression of India-China relations, with the promulgation of Beijing’s new land border law, providing People’s Liberation Army (PLA) full responsibility to take steps against any invasion, encroachment or provocation, in order to safeguard Chinese territory. As of 2022, the 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.
Border Relations: The omnipresent tension that pervades India-China affects its relations in all other dimensions. In 2022, China began construction about 40 km away from the LAC area, at Pangong Tso, which is another area of contention between India and China. Further, Indian Army had a decisive victory at the clash that recently created havoc at Tawang, Arunachal Pradesh, reporting over 40 injured from the Chinese side. However, skirmishes and confrontations over Ladakh, Arunachal Pradesh, and Tibet continue to be areas of grave concern that lead to diplomatic peril for both the countries involved.
International Relations: Concerns have been expressed over China’s close strategic ties to Pakistan and other nearby nations like Nepal and Bhutan, which serve as buffer states, and sometimes impede or hamper India’s strategic ambitions and interests. Furthermore, Beijing has not responded in kind, or by favor, to New Delhi’s support for China on international matters. China, for example, rejected India’s application for the National Security Guard and permanent membership in the UN Security Council. India’s military and commercial activities in the contentious South China Sea have alarmed China. India is also worried about the expansion of Chinese activity in the Indian Ocean.
The year 2020 marked and commemorated the beginning of diplomatic ties between China and India, which date back 70 years. The two countries have agreed to organize 70 celebrations as part of the Year of Cultural and People-to-People Exchanges between China and India.
Economic Relations: In recent years, the trade and economic ties between China and India have rapidly expanded. In the year of 2000, when the 21st century was just getting started, there was $3 billion worth of trade between the two nations. China surpassed the United States as India’s top “Goods Trading Partner” in 2008, when bilateral trade reached $51.8 billion USD. Bilateral trade increased to an all-time high of $73.9 billion in 2011.
India was the 27th largest exporter to China in 2016 and the 7th largest export destination for Chinese goods, according to the Ministry of External Affairs. Further, according to latest data available by Ministry of External Affairs, in the first eight months of 2017, commerce between India and China surged by 18.34% year over year to reach US$ 55.11 billion. India’s exports to China were $10.60 billion, up 40.69% over the previous year.
However, the year 2022 has been instrumental in progressing India-China trade, and according to trade figures issued by Chinese customs authorities, bilateral trade grew rapidly, surpassing over $100 billion for the second consecutive year in the first nine months of 2022, while India’s trade deficit increased to over $75 billion. The overall bilateral commerce increased to USD 103.63 billion during the military standoff in eastern Ladakh, representing a 14.6% growth over the same period previous year. In FY22, India sent $422.2 billion worth of goods abroad. In this case, more than 5% of all Indian exports come from China. China accounted for 15.4% of all imports into India in FY22. India brought in $613.2 billion worth of commodities from around the globe, including $94.2 billion from China alone. Thus, it can be stated without doubt that political tensions have not dented the trade relations between the two nations.
Commercial Relations: In China, there is a branch or representative office for seven Indian banks, demarcating India’s commercial presence in the Republic of China. Mumbai is the location of ICBC’s only branch in India. Data from the Chinese Ministry of Commerce indicates that between January and March 2017, China invested US$ 73 million in India & Indian Entities. Until March 2017, India had received a total of $4.91 billion in investments. Up to March 2017, India had invested a total of US$ 705 million in China. To attract more business travellers from China to India, the e-business visa was implemented in April 2017.
Through many mechanisms for interaction, for instance, Joint Economic Group, Strategic Economic Dialogue, Development Research Center Dialogue, and Financial Dialogue are all led by ministers of commerce, the economic and commercial relations between China and India are shaped.
Cultural Relations: Cultural connections between India and China go back many millennia, and there is some evidence of conceptual and linguistic exchanges between the two countries between the historic ages of 1500 and 1000 B.C. Additionally, Bollywood films from India were well-liked in China in the 1960s and 1970s, and this popularity has recently returned, notably in 2020-2022. In China, the popularity of yoga is rising. The UN Resolution declaring June 21 as the International Day of Yoga also saw support of China as one of its co-sponsors. Premier Li Keqiang and Prime Minister Narendra Modi attended a Yoga-Taichi performance in the Temple of Heaven, a World Heritage Site, during the Prime Minister’s visit to China in May 2015. An agreement to create a Yoga College in Kunming, Yunnan Province, was reached during the same visit. Thus, it can be stated that when viewed from the lens of cultural and social relations, India-China fare well and bode well for each other.
CONCLUSION
Current achievements of India-China relations embodies the herculean efforts of several generations, made on both sides. Both the countries must reach consensus and guide the direction of the development of bilateral relations under the guidance of leaders from both nations, further transmitting the leaders’ consensus to all levels and translate it into tangible outcomes, by way of going beyond the mode of managing differences, shaping bilateral relations actively and accumulate positive momentum. At this critical juncture of 2022, it is particularly important to revisit the original aspirations of establishing diplomatic relations envisioned over 70 years ago and carry forward the spirit of good neighborliness and friendship, unity and cooperation, that once pervaded India and China. If this happens, South Asia will truly be considered a global powerhouse.
YLCC would like to thank its Content Team for their valuable insights in this article.
