Mansi, Jeanette and Akash

Introduction

The 75 years of China and India’s diplomatic ties have been a complex relation, shaped by long lasting border disputes, historical complexities, trade and diplomatic relations. They both have influence in their regions; India in South Asia and China in East Asia, the two emerging countries both regionally and globally, have been rivalries for decades, however, they are gradually working towards mending their relations. They interact at a bilateral level and multilateral level to join force in order to address common issues. Recently, December 2024, there was a high-level dialogue in Beijing where foreign ministers of the two countries met to address both bilateral, regional, and global matters of mutual interests. The highlight of the dialogue, Six-points consensus, are pivotal to trust and fostering cooperation between the two rivalries. They underscored the importance of stable and predictable relations for ensuring peace and prosperity in the region and beyond. (Times of India, 2024)India, China agree on peace roadmap, six-point consensus to boost ties | India News – The Times of India. At multilateral level, the two states are member states of UN, BRICS, WTO, G20 and SCO, these are the platforms where they both coordinate with other countries to address transnational issues such as trade, climate change, and international security.

The borders of India were fundamentally shaped by colonial powers, with India and Bangladesh being notable exceptions. This clearly illustrates the core values that define the borders; we have used several measures like political, cultural, and physical geography to define it. The border was essential to defining the state governed by the government and their policy of maintenance, while in the context of India and China, the border marked in the 1914 Shimla agreement was one of the reasons that created future war and dispute between the two states. From 1962 to 2020, one war and several conflicts occurred between India and China The territorial dispute traces back to the British colonial period. During the 19th and early 20th centuries, British India and Qing China engaged in conflicting territorial claims, particularly regarding areas in the Himalayas. A significant point of contention was the McMahon Line (1914). India accepted the McMahon Line as the boundary, but China rejected it, claiming that Tibet was under Chinese suzerainty at the time. After India’s independence in 1947, the relationship with China initially seemed promising, with both countries emphasizing peace and non-alignment. However, the border issue quickly resurfaced, especially with China’s occupation of Tibet in 1950, which heightened Indian concerns. By 1962, these tensions culminated in a brief but intense border war, primarily over the disputed regions of Aksai Chin (in the western sector) and Arunachal Pradesh (in the eastern sector). Both these areas are still active zones of conflict. India and China have made multiple attempts at diplomacy, but the territorial issues remain unresolved. Aksai Chin continues to be controlled by China, while India claims sovereignty over it. In contrast, China disputes India’s control over Arunachal Pradesh, a region rich in cultural and strategic significance. The relationship was further tested by the Galwan Valley clash in 2020, where violent skirmishes resulted in casualties on both sides. This marked the first deadly confrontation in decades and underscored the continuing volatility along the border.

Cooperation between India and China

India-China, this terminology given by the MP Jayaram Ramesh for India and China cooperation, is used to describe the economic, political, and strategic relationship between the two largest and fastest-growing countries in Asia. It highlights their growing importance on the global stage, both as individual powers and about each other. Economically, China is the world’s second-largest economy, and India is rapidly growing as an economy. China is a specialization in manufacturing and infrastructure, while India dominates in services and technology, particularly in IT. The combined economic output of these nations creates a global market. Geopolitically, India-China refers to the complex relationship between two countries with significant influence in Asia and beyond both are in strategic competition. While both cooperate in areas like trade and climate change, their relationship is also shaped by rivalry. They share a contested border, with longstanding disputes over territories like Aksai Chin and Arunachal Pradesh, which led to the 1962 Sino-Indian war. The term also encompasses their strategic roles in regional and global security, as both nations compete for influence in South Asia, the Indo-Pacific, and with major powers like the U.S. and Russia. India-China represents both cooperation and competition, reflecting the balance in their relationship for the future the relevance of India-China is vital for the whole world; competition creates instability, and cooperation gives stability.

India and China and their Bilateral relations

India and China realized the need to bolster their economies and lead economic reforms. Those reforms made a significant impact to date, where India emerged as a major market for China. In FY24 alone, India imported 7,521 commodities from China, with imports totaling US$ 101.74 billion. Key imports included organic chemicals (US$ 11.49 billion), electrical machinery and equipment (US$ 31.35 billion), plastic and articles (US$ 5.66 billion), among others. India’s major exports to China in FY24 stood at US$ 16.65 billion, up from US$ 15.30 billion in FY23. Notable exports included iron ore (US$ 3.63 billion) and petroleum products (US$ 1.16 billion). Exploring India China Trade and Economic Relations | IBEF

India and China have also decided to invest in renewable energy sources for energy generation. Although several meetings and summits have been held to discuss climate change, only paperwork has been completed so far. In addition to renewable energies, India and China demonstrate significant cooperation in investments and trade. For example, the Adani Group recently announced plans to set up an integrated Photovoltaic (PV) industrial park in the Mundra Special Economic Zone (SEZ) in a joint venture with Chinese green energy major Golden Concord Holdings, a deal valued at approximately USD 3 billion. (Energy Security and Climate Change: Prospects for Cooperation between India and China) https://www.jstor.org/stable/resrep09398.6

India and China in Multilateral Institution

India and China, despite their bilateral tensions, actively engage in various multilateral institutions to address common global challenges and their interests. Their cooperation is crucial in shaping global governance, economic stability, and regional security.

1. BRICS: Both countries are key members of BRICS (Brazil, Russia, India, China, and South Africa), where they collaborate on economic reforms, development, and global governance. They promote reforms in international financial institutions like the IMF and World Bank and work on issues such as climate change, sustainable development, and poverty alleviation.
2. Shanghai Cooperation Organization (SCO): In the SCO, a regional security body, India and China cooperate on counterterrorism, regional stability, and economic connectivity despite their strategic rivalry. The SCO offers both countries a platform for security dialogue and cooperation in Central Asia, focusing on regional issues and collaborative initiatives.
3. United Nations (UN): India and China are active in the UN, with China holding a permanent Security Council seat and India seeking one. They cooperate on multilateral issues such as global health, development, and climate change while also advocating for the reform of the UN to better represent emerging economies.
4. World Trade Organization (WTO): Both countries work within the WTO to push for reforms that favor developing nations, promoting trade liberalization and resolving disputes related to market access and tariffs. Their engagement in these multilateral forums helps foster cooperation, though they continue to have differing perspectives on certain global issues.

India and China Cooperation for Developing State

India’s Global South and China’s Global Development Initiative both have the same motive, but to achieve this, they followed different approaches due to the policy of competition both countries have the capacity and resources to work for the third world or Global South the major flaw that faced by the SDG goal have been the cooperation we used to call in realpolitik that the international system is an anarchy in nature where cooperation words have special importance India and China are pivotal players in the development of the Global South, driving growth, innovation, and infrastructure. Through initiatives like China’s global development Initiative combined with BRI and India’s development aid programs and recent approaches to the global south, with a global south forum in 2023, both countries contributed significantly to improving infrastructure, trade, and access to technology across Africa, Asia, and Latin America to some extent. Both this state offers affordable financing and resource-sharing, which are grown and tested and used for sustainable development. Their economic growth models provide opportunities for developing nations with new and affordable technology and investment, making India and China central pillars for the development of the Global South.

Conclusion

Though the two countries have not been seeing eye to eye for the past years, they have worked towards mending relations for sake of creating a sustainable Asian continent conducive for development of not just themselves but for their neighbouring countries as well. Expectations are the two countries should bury the past, work towards maintaining peaceful collaborations, diplomatic talks and multilateral cooperation in the next coming years.

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Exploring India China Trade and Economic Relations | IBEF

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