India and China have long had a complex relationship, characterised by both cooperation and conflict. Whether it is tensions over border disputes or disagreements over trade deficits, there are many key issues that continue to shape this relationship.
One major challenge that has arisen in recent years is China’s unwillingness to settle border disputes with India. Both countries have competing claims on certain territories along their shared borders, leading to frequent clashes and military build-ups. This unresolved tension poses a significant threat to peace and stability in the region.
Another issue of concern is China’s strategy to limit India’s influence in the global arena. From increasing its economic ties with neighbouring countries like Pakistan to blocking India’s bid for permanent membership on the UN Security Council, China has sought to undermine India’s position on the world stage.
Yet another key factor shaping India-China relations is the complex relationship between China, India, and the United States. While all three countries have sought to deepen cooperation in recent years, there are also ongoing tensions due to geopolitical rivalries and differing perspectives on various global issues.
Overall, despite some areas of cooperation, there are a number of critical issues that continue to shape India-China relations. Whether it is tensions over border disputes or disagreements over trade deficits, these challenges will undoubtedly play an important role in determining the future trajectory of this important relationship.
China’s Unwillingness To Settle Border Disputes
India believed that China was sensible and down-to-earth under Deng Xiaoping, who had contacted India’s foreign minister Vajpayee (who later became prime minister) and Indira Gandhi.
India assumed this meant that China would be inclined to compromise on a boundary settlement, willing to maintain peace through confidence-building measures and show greater respect for Indian territory. Furthermore, India thought maybe the partnership between China and Pakistan wouldn’t be as strong.
To pursue these objectives, India has taken a number of steps, including reducing rhetoric, resuming summit-level and other political exchanges, reopening trade and commercial exchanges, relaxing restrictions on people-to-people contacts, confidence-building measures in the border areas, normalising military-to-military relations, and greater cooperation in multilateral areas.
In the next few years, India experienced a number of positive outcomes from its interactions with China. These included the formal Chinese acceptance of Sikkim as part of India, important peace agreements in 1993 and 1996, the Agreement on Political Parameters and Guiding Principles for the Settlement of the India-China Boundary Question in 2005, reduced support to insurgent groups operating near northeastern India, and increased business growth.
However, China was unwilling to negotiate the border issue in light of existing conditions. Concern rose after 2000 over China’s rapid infrastructure development along the LAC and in Tibet; it made no fundamental changes in its position on Kashmir; and the supply of deadly weapons to Pakistan continued apace.
Worsening Trade Deficits
By the mid-2000s, the widening trade deficit was becoming a problem. India has a trade deficit with China, which has grown over time: from $38.7 billion in 2012-13 to $51 billion in 2016-17.
One of the causes of the high deficit is Chinese trade barriers, such as import quotas and non-tariff measures, which prevent Indian products from entering into China. Indian pharmaceutical exports have struggled to break into the Chinese market because of these restrictions.
Chinese foreign direct investment was proposed as a solution to India’s growing trade gap. However, there were no talks about whether that investment would be for manufacturing or assembly work.
China’s Strategy to Limit India’s Influence
Across the region, China’s suspected strategy of building military bases near India (known as a “string of pearls”) is seen by New Delhi as an attempt to limit its South Asian sphere influence and authority over smaller neighbours.
China has also sought to increase its connectivity with South Asia through the expansion of its Belt and Road initiative, which several regional countries have embraced.
Other countries in the region, particularly Pakistan and Nepal, are attempting to use China’s generosity against India by taking advantage of Beijing’s largess to counterbalance India’s regional dominance.
Additionally, China has been accused of using economic leverage to bully smaller countries into building strategic ports and airports that could potentially be used by the Chinese military.
On a broader level, the idea that China is concentrating its energies on securing military and economic control of Asia because Chinese officials understand that it will be many decades before they can rival the US as a superpower still holds water.
With both sides continuing to enhance their military arsenals—such as India testing an Agni V with China in mind at the end of 2021, and China developing hypersonic missiles—the risk of confrontations between the two enemies escalates.
Additionally, both countries are independently developing guided missile destroyers and submarines, which exacerbates tensions further.
China-Pakistan Relations
The China-Pakistan ties were built in the wake of the 1962 Sino-Indian clash. Yet, Beijing never embraced the relationship. But by the mid-2000s, two factors made Pakistan a critical partner for China: The shift in the US-India ties and China’s own global ambitions.
The bond between China and Pakistan was built in the wake of the 1962 Sino-Indian clash.. However, Beijing never displayed much enthusiasm for the relationship. That all changed by mid-2000 when two very significant factors arose that made Pakistan a critical partner for China: The readjustment in alliance between the US and India, as well as China’s own global aspirations.
The ever-growing bond between China and Pakistan not only strengthens their own capabilities, but also heightens the threat to India.
The two countries’ interests have been solidified by CPEC. This project has given China a strategic foothold in South Asia, while ramping up its influence over Pakistan.
With the Chinese military’s advance into Pakistan, China effectively straddles India, with its armed forces stationed on our northern, eastern and western borders. This not only raises the genuine risk of a “two-front” war, but also puts China in position to intervene in Kashmir and the area.
India-US-China Triangle
China has long regarded India-US ties with suspicion, particularly because of the perceived Indo-US collaboration on Tibet, and it has worked to counteract them using Pakistan, US antipathy toward the Soviet Union, and other available tools.
Today, the Indo-US relationship is stronger than ever. This poses a significant challenge for China, which must balance its own strategic interests with its rivalry with the US. At the heart of the India-US-China triangle is competition for influence and power in Asia and beyond.
While the United States has traditionally held strong interest in expanding its global influence, India and China are also vying for dominance.Within this dynamic,
The US-India relationship is becoming increasingly strategic, and the two countries are working together to counterbalance China’s rise.
The Indo-Pacific congruence between India and the United States is growing, as is military collaboration and interoperability. The United States is an important ally in India’s transformation.
While India-US ties may not develop into a formal alliance, they will increasingly take on the characteristics of an alliance short of a mutual defense commitment that neither side appears ready to give at present.
Final Words
The India-China relations are complex, and there are many issues that still need to be resolved. The two countries have a long history of conflict, and their interests continue to clash.
Tensions between the two nations are escalating, and the risk of military confrontation is growing. Additionally, China’s relationship with Pakistan poses a significant threat to India.
The US-India relationship is also becoming increasingly strategic. As both India and the United States work to counterbalance China’s rise, the Indo-Pacific congruence between the two countries is growing.