India-China Relations

Syllabus: India and its Neighborhood- Relations(GS2)
Source: The Hindu – 28/10/2023

Content

Historical Ties

• Written records of contact between India and China date back to at least the 2nd century B.C.
• The Silk Road played a crucial role, serving as a major trade route between the two nations. Buddhism spread from India to East Asia via these trade routes.
• Fa Xian (Fa-Hsien), a Chinese monk, visited India in AD 402, stayed for a decade, and translated many Sanskrit Buddhist texts into Chinese.
• In the 5th century AD, Bodhidharma, a South Indian monk, became the first patriarch of the Shaolin Monastery in China.
• Xuan Zang (Hiuen Tsang) visited India during Harsha Vardhana’s reign in the 7th century AD, seeking Buddhist scriptures.

Strategic Importance of China

• Geopolitical Neighbor: China shares a long border with India(around 3488 km ), making it a direct neighbor. This proximity influences regional stability, security, and economic ties.
• Balancing Power: India views China as a balancing power in the region. China’s rise has prompted India to strengthen its own capabilities and seek strategic partnerships.
• Economic Relations: China is India’s second largest trading partner, and economic ties impact both nations’ growth and stability. Bilateral trade, investment, and technology exchange are crucial.
• Border Disputes: The unresolved border issues create tensions. Managing these disputes is essential for regional peace.
• Strategic Encirclement: China’s influence in South Asia through the Belt and Road Initiative (BRI) raises concerns for India. BRI projects in Pakistan and Sri Lanka affect India’s security interests.
• Indian Ocean Dynamics: China’s naval presence in the Indian Ocean challenges India’s traditional dominance. The “String of Pearls” strategy involves Chinese bases and infrastructure in the region.
• Water Security: China’s control over the upper reaches of several major rivers (eg: Brahmaputra) impacts India’s water security. Cooperation or conflict over water resources is a critical concern.
• Cybersecurity Challenges: China is a major player in cyber warfare. India faces cybersecurity threats from state-sponsored actors and must enhance its defenses.
• Tibetan Issue: The Dalai Lama’s presence in India and the Tibetan refugee community strain Sino-Indian relations. Balancing humanitarian concerns with diplomatic sensitivities is essential.
• Trade Imbalance: India’s trade deficit with China remains significant. Addressing this imbalance and promoting fair trade practices are crucial for economic stability.Eg:India, with the third-largest pharma industry by volume, relies heavily on China for APIs.India imports around 70% of its total APIs (Active Pharmaceutical Ingredients)from China.

Political Relations-Timeline

1950	India became the first non-socialist bloc country to establish diplomatic relations with the People’s Republic of China.
1954	India and China sign the Panchsheel document, emphasizing mutual respect for territorial sovereignty.
1959	The Dalai Lama escaped to India from Lhasa. Beijing objects to India’s decision to grant him asylum.
1962	Sino-Indian War
2017	India admitted to the Shanghai Cooperation Organisation (SCO) as full-member
2018	First India-China informal summit at Wuhan
2019	Second India-China Informal Summit at Mamallapuram

Commercial and Economic Relations

• Largest trading partner: China is the second largest trading partner of India as of 2023( after US). China was India’s top trading partner from 2013-14 till 2017-18 and also in 2020-21.
• Impressive Growth: From 2015 to 2022, India-China bilateral trade expanded by 90.14%, reflecting an average yearly growth of 12.87%.
• Record High in 2022: In 2022, the overall trade between the two countries reached a remarkable USD 136.26 billion, surpassing the USD 100 billion mark for the second consecutive year.

• Trade Deficit: Despite this growth, India faced a substantial trade deficit. The trade deficit stood at USD 101.28 billion in 2022, primarily due to a surge in imports from China, which increased by 118.77% to reach USD 118.77 billion.

• Decline in Exports: Conversely, India’s exports to China experienced a decline of 37.59% year-on-year, reaching USD 17.49 billion in 2022, compared to the previous year’s net exports of USD 28.03 billion.

Cultural Relations

• India-China cultural exchanges date back to many centuries and there is some evidence that conceptual and linguistic exchanges existed in 1500-1000 B.C. between the Shang-Zhou civilization and the ancient Vedic civilization
• During the first, second and third centuries A.D., Several Buddhist pilgrims and scholars traveled to China on the historic “silk route”.
• Ancient Indian monk-scholars such as Kumarajiva, Bodhidharma and Dharmakshema contributed to the spread of Buddhism in China.
• Chinese pilgrims also undertook journeys to India, the most famous among them being Fa Xian and Xuan Zang.
• Several Cultural artifacts serve as a testament to the historical exchange between China and India. Eg: Cheenavala, Cheenachatti and Cheenabharani in Kerala (where ‘cheen’ indicates china)
• Indian movies were popular in China in the 1960s and 1970s and the popularity is being rekindled in recent times again Eg: Dangal,RRR, Baahubali etc
• Yoga is becoming increasingly popular in China. China was one of the co-sponsors to the UN resolution designating June 21 as the International Day of Yoga.
• To promote Indian art and culture, the Swami Vivekananda Cultural Centre of Embassy of India, Beijing runs Music, Dance and Yoga classes and regularly organizes a variety of cultural activities.

India-China Comparison

Indicators	🇮🇳	🇨🇳
Population (2023)	1,428,627,663 (142.86 Crores)	1,425,671,352 (142.56 Crores)
Area(sq km)	Approximately 3.29 million sq km	Approximately 9.6 million sq km
Official Languages	Hindi, English	Mandarin Chinese
GDP(nominal)	Around $3.2 trillion (2023 estimate)	Approximately $17.6 trillion (2023 estimate)
GDP(PPP)( WB data,2022,in millions)	11,874,582	30,327,320
GDP per Capita (US$, WB data,2022 )	2388.6	12,720.2
Literacy Rate (As per World Population Review,data year-2015)	72.23%	96.36%
Urban population as % of total population (World Bank data,2022)	36%	64%
Life Expectancy (2020)	70.15	78.08
Major Religions	Hinduism,Islam, Christianity	Recognises Buddhism,Taoism

India-China Common Platforms

Tensions between India and China

• Border Dispute: The root cause of tension lies in the ill-defined, long disputed border between the two nations. Both countries are also competing to build infrastructure along this border, known as the Line of Actual Control (LAC).

• India’s Close Ties with the United States: India and the United States share a robust strategic partnership based on shared democratic values and mutual interests. This is seen as an inclination towards western ideology by China.
• Tibet Issue: The presence of the exiled Dalai Lama in India keeps this issue alive.
• Criticism of BRI by India: India has consistently criticized China’s Belt and Road Initiative (BRI) and this has provoked China.
• Support to  Pakistan by China: China has been a staunch supporter of Pakistan on various fronts. This is not seen as a positive sign by India.
• Economic Dumping by China: China has faced criticism for practices like dumping cheap products into Indian markets.

People to People Ties

Indians in China:

• The Indian community in China is growing, estimated to be around 35,500.
• A significant portion consists of students(over 18,000) pursuing courses in Chinese universities.
• Many Indians and Persons of Indian Origin (PIOs) work as professionals in multinational and Indian companies.

China Town in India (Tiretta Bazaar):

•  Located near Lalbazar in Central Kolkata, it is also known as Chinatown or Old China Market.
• Historically, it was home to 20,000 ethnic Chinese Indian nationals, but the population has now decreased to approximately 2,000.
• The area was known for its tanning industry and Chinese restaurants serving both traditional Chinese and Indian Chinese cuisine.

Chindians:

• Chindian  is an informal term used to refer to a person of mixed Chinese and Indian ancestry.
• Considerable numbers of Chindians are found in Malaysia and Singapore.

Need of Cooperation between India and China

Trade and Investment:

• China and India can enhance trade relations by reducing trade barriers, promoting fair practices, and exploring new areas of economic cooperation.
• Increased bilateral investments and joint ventures can stimulate economic growth and create employment opportunities in both countries.

Infrastructure Development:

• Collaboration in infrastructure projects, such as transportation, energy, and telecommunications, can foster economic growth and connectivity.
• Joint investments in initiatives like the Belt and Road Initiative (BRI) and the International North-South Transport Corridor (INSTC) can create synergies and facilitate regional trade.

Technology and Innovation:

• Joint research and development initiatives, exchange programs for scientists, and collaboration in emerging sectors like artificial intelligence, renewable energy, and digital technologies can drive innovation.

Manufacturing and Supply Chains:

• Collaboration in manufacturing and supply chains can enhance the competitiveness of both countries.

 Climate Resilience:

• Cooperation in disaster management, early warning systems, and climate adaptation strategies can enhance resilience against extreme weather events.

Way Forward

• Adherence to Panchsheel Principles:The Panchsheel (Five Principles of Peaceful Coexistence) is a foundational framework for diplomatic relations. India and China should recommit to these principles, emphasizing mutual respect, non-interference, and cooperation.
• Resolving Border Issues Amicably: The unresolved border dispute between India and China has been a longstanding challenge. Both countries must engage in sincere negotiations to find a peaceful resolution.
• People-to-People Ties Through Language:Cultural exchanges play a crucial role in fostering understanding between nations.Promoting language learning programs, student exchanges, and cultural festivals can enhance ties between Indian and Chinese citizens.
• Leveraging subnational diplomacy:India and China can leverage their regional governments to enhance economic cooperation, trade partnerships, and cultural exchanges. Sister city agreements, business forums, and joint ventures at the subnational level can strengthen bilateral ties.

Practice Question: “China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia.” In light of this statement, discuss its impact on India as her neighbor.

Reference:

• https://www.eoibeijing.gov.in/eoibejing_pages/MjI
• India’s dependence on China for APIs exposes vulnerabilities in pharma
• India-China Bilateral Relations