Essay On India - China Relationship
Political Relation
The People's Republic of China (PRC) was established on October 1, 1949, and India was the first non-communist country to establish an Embassy in PRC. On April 1, 1950, India and China established diplomatic relations. The two countries also jointly expounded the Panchsheel (Five Principles of Peaceful Co-existence) in 1954. Chinese Premier Zhou Enlai visited India in June 1954 and Prime Minister Nehru visited China in October 1954. Premier Zhou Enlai again visited India in January 1957 and in April 1960.
The India-China conflict in 1962 led to a serious setback in bilateral relations. India and China restored ambassadorial relations in August 1976. Higher political level contacts were revived by the visit of the then External Affairs Minister, A.B. Vajpayee in February 1979. The Chinese Foreign Minister Huang Hua paid a return visit to India in June, 1981.
Prime Minister Rajiv Gandhi visited China in December 1988. During this visit, both sides agreed to develop and expand bilateral relations in all fields. It was also agreed to establish a Joint Working Group (JWG) - to seek fair, reasonable and mutually acceptable solution on the boundary question - and a Joint Economic Group (JEG).
From the Chinese side, Premier Li Peng visited India in December 1991. Prime Minister Narasimha Rao visited China in September 1993. The Agreement on the Maintenance of Peace and Tranquility along the Line of Actual Control (LAC) in the India - China Border Area was signed during this visit, providing for both sides to respect the status quo on the border, clarify the LAC where there are doubts and undertake CBMs.
\President R. Venkataraman paid a state visit to China in May 1992. This was the first Head of State-level visit from India to China. President Jiang Zemin's state visit to India in November 1996 was similarly the first by a PRC Head of State to India. The four agreements signed during his visit included the one on CBMs in the Military Field along the LAC covering adoption of concrete measures between the two militaries to enhance exchanges and to promote cooperation and trust.
After the nuclear tests in May 1998, the relations faced a minor setback. External Affairs Minister Jaswant Singh visited China in June 1999 and both sides reiterated that neither country is a threat to the other. President K.R. Narayanan’s visit to China in May - June 2000 marked a return to high level exchanges. Premier Zhu Rongji visited India in January 2002.
Prime Minister A.B. Vajpayee visited China in June 2003 during which a Declaration on Principles for Relations and Comprehensive Cooperation was signed. This was the first comprehensive document on development of bilateral relations signed at the highest level between India and China. India and China concluded a border trade protocol to add a border crossing between Sikkim and Tibet Autonomous Region. The two Prime Ministers appointed Special Representatives to explore from the political perspective of the overall bilateral relationship the framework of a boundary settlement.
The year 2011 was the Year of China-India Exchange. The strategic and cooperative partnership for peace and prosperity between China and India maintained the momentum of sound and steady growth. Friendly exchanges and cooperation in various fields expanded.
Commercial and Economic Relations
India-China economic relations constitute an important element of the strategic and cooperative partnership between the two countries. Several institutional mechanisms have been established for enhancingand strengthening economic cooperation between the two countries. Besides the India-China Joint Economic Group on Economic Relations and Trade, Science andTechnology (JEG) and the India-China Strategic and Economic Dialogue (SED), a Financial Dialogue has also been taking place between the two countries since 2006.
India and China officially resumed trade in 1978. In 1984, the two sides signed the Most Favoured Nation Agreement. India-China bilateral trade which was as low as US$ 2.92 billion in 2000 and this relationship has seen rapid progress in the last few years. India-China bilateral trade which was as low as US$ 2.92 billion in 2000 reached US$ 41.85 billion in 2008,making China India’s largest trading partner in goods, replacing the United States of America. By 2014, India-China bilateral trade stood at US$ 70.65 billion. India’s exports to China touched US$ 16.41 billion whereas China’s exports were US$ 54.42 billion.
The People's Republic of China (PRC) was established on October 1, 1949, and India was the first non-communist country to establish an Embassy in PRC. On April 1, 1950, India and China established diplomatic relations. The two countries also jointly expounded the Panchsheel (Five Principles of Peaceful Co-existence) in 1954. Chinese Premier Zhou Enlai visited India in June 1954 and Prime Minister Nehru visited China in October 1954. Premier Zhou Enlai again visited India in January 1957 and in April 1960.
The India-China conflict in 1962 led to a serious setback in bilateral relations. India and China restored ambassadorial relations in August 1976. Higher political level contacts were revived by the visit of the then External Affairs Minister, A.B. Vajpayee in February 1979. The Chinese Foreign Minister Huang Hua paid a return visit to India in June, 1981.
Prime Minister Rajiv Gandhi visited China in December 1988. During this visit, both sides agreed to develop and expand bilateral relations in all fields. It was also agreed to establish a Joint Working Group (JWG) - to seek fair, reasonable and mutually acceptable solution on the boundary question - and a Joint Economic Group (JEG).
From the Chinese side, Premier Li Peng visited India in December 1991. Prime Minister Narasimha Rao visited China in September 1993. The Agreement on the Maintenance of Peace and Tranquility along the Line of Actual Control (LAC) in the India - China Border Area was signed during this visit, providing for both sides to respect the status quo on the border, clarify the LAC where there are doubts and undertake CBMs.
\President R. Venkataraman paid a state visit to China in May 1992. This was the first Head of State-level visit from India to China. President Jiang Zemin's state visit to India in November 1996 was similarly the first by a PRC Head of State to India. The four agreements signed during his visit included the one on CBMs in the Military Field along the LAC covering adoption of concrete measures between the two militaries to enhance exchanges and to promote cooperation and trust.
After the nuclear tests in May 1998, the relations faced a minor setback. External Affairs Minister Jaswant Singh visited China in June 1999 and both sides reiterated that neither country is a threat to the other. President K.R. Narayanan’s visit to China in May - June 2000 marked a return to high level exchanges. Premier Zhu Rongji visited India in January 2002.
Prime Minister A.B. Vajpayee visited China in June 2003 during which a Declaration on Principles for Relations and Comprehensive Cooperation was signed. This was the first comprehensive document on development of bilateral relations signed at the highest level between India and China. India and China concluded a border trade protocol to add a border crossing between Sikkim and Tibet Autonomous Region. The two Prime Ministers appointed Special Representatives to explore from the political perspective of the overall bilateral relationship the framework of a boundary settlement.
The year 2011 was the Year of China-India Exchange. The strategic and cooperative partnership for peace and prosperity between China and India maintained the momentum of sound and steady growth. Friendly exchanges and cooperation in various fields expanded.
Commercial and Economic Relations
India-China economic relations constitute an important element of the strategic and cooperative partnership between the two countries. Several institutional mechanisms have been established for enhancingand strengthening economic cooperation between the two countries. Besides the India-China Joint Economic Group on Economic Relations and Trade, Science andTechnology (JEG) and the India-China Strategic and Economic Dialogue (SED), a Financial Dialogue has also been taking place between the two countries since 2006.
India and China officially resumed trade in 1978. In 1984, the two sides signed the Most Favoured Nation Agreement. India-China bilateral trade which was as low as US$ 2.92 billion in 2000 and this relationship has seen rapid progress in the last few years. India-China bilateral trade which was as low as US$ 2.92 billion in 2000 reached US$ 41.85 billion in 2008,making China India’s largest trading partner in goods, replacing the United States of America. By 2014, India-China bilateral trade stood at US$ 70.65 billion. India’s exports to China touched US$ 16.41 billion whereas China’s exports were US$ 54.42 billion.
However, India still faces a growing trade deficit vis-a-vis China. In 2014 trade deficit stood at US$ 37.8 billion. Apart from trade, India is also one of the largest markets for project exports from China. Currently, projects under execution are estimated at over US$ 60 billion. As per Chinese figures, cumulative Chinese investments into India till September 2014 stood at US$ 2.63 billion while Indian investments into China were US$ 0.55 billion.
Some key points
♦ Iron Ores, cotton & yarn, fabric, copper, precious stones, organic chemicals, plastic, salt, sulfur, earth & stone, machinery, reactors, boilers continued to dominate the Indian export basket.
♦ Among the products exported from India to China, iron ores, slag and ash (HS 26) constituted a dominant share of 49% though the export declined by 10% y-o-y. The share of cotton, yarn and fabrics in the total exports from India to China stood at 10% for the period Jan-Oct, 2011.
♦ Spectacular rise was seen in the exports of copper and articles thereof (HS 74), plastic (HS 39), food waste (HS 23) and miscellaneous chemical products (HS 38) recording increases of 164%, 71%, 64% and 63% y-o-y respectively.
Cultural RelationsIn 1955, the first Indian cultural delegation headed by then Deputy Minister of External Affairs Mr. A. K. Chanda visited China. Since 1988 both countries are bringing their people together through structured Cultural Exchange Programmes.
The broad contours of the India-China cultural cooperation were laid down in the Agreement on Cultural Cooperation signed in May 1988, which provides for an executive Cultural Exchange Programme (CEP) for implementation. The latest CEP signed in October 2013 during the visit of Prime Minister Manmohan Singh to China provides for cooperation in a gamut of cultural fields including exchanges of visits of performing artists, officials, writers, archivists and archaeologists, organizing cultural festivals, film festivals and exchanges in the field of mass media, youth affairs and sports.
In 2003, Prime Minister Vajpayee had committed to build an Indian style Buddhist temple in Luoyang, Henan province and President Pratibha Devisingh Patil inaugurated the temple during her visit to China in May 2010. In February 2007, the Xuanzhang memorial was inaugurated at Nalanda. In June 2008, joint stamps were released, one stamp depicting the Mahabodhi temple at Bodhgaya and the other depicting the White Horse temple at Luoyang. A Centre for Indian studies was set up in Peking University in 2003. Chairs of Indian Studies have also been established in Shenzhen University, Jinan University, Fudan University, Guangdong University and in Shanghai International Studies University. India has also set up six ‘Chairs’ in various universities in China. This includes the ‘Hindi Chair’ set up at Peking University in 2003 during the visit of former Prime Minister Shri A.B. Vajpayee. The other ‘Chairs’ are in universities in Shanghai (Fudan University), Shenzhen, Kunming and Guangzhou. The 60th anniversary of the establishment of India-China diplomatic relations was celebrated with much fanfare in both countries in 2010.
In March 2012, during President Hu Jintao’s visit to India for the BRICS Summit, leaders of both sides decided to celebrate 2012 as the "The Year of Friendship and Cooperation" and both countries resolved to further strengthen cultural exchanges between our peoples. Youth exchanges have also been encouraged. While young China expresses great desire to know Buddhism, Bollywood and Yoga, young India admires the Chinese economic miracle. Exchange of Youth delegation between Indian and China has been continuing since 2007. During the visit of Chinese President Hu Jintao to India in November 2006, the two sides had agreed to launch a five year programme for mutual exchange of youth delegation. In this context, the China had invited five hundred youth from India over the next five years. Later, during the visit Chinese Premier Wen Jiabao to India in December 2010, the two sides agreed to continue youth exchange activities in next five years. Further, as part of the “Year of India-China Exchanges-2011”, China also invited 500 Indian youth to visit China within the year 2011. Reciprocal visits were also paid by the Chinese side each year.
During the visit of Prime Minister Dr Manmohan Singh and Premier Li Keqiang in 2013 the leaders designated 2014 as the Year of Friendly Exchanges between India and China. To mark this special year, Glimpses of India Festival is being organized in twelve cities across China through 2014 showcasing Indian performing arts, exhibitions of modern Indian arts, depictions of Buddhism links between the two countries, food and film festivals. As part of the festival Kalashetra & Sangeet Natak Akademi visited China. Sangeet Natak Akademi performed at the Reception Marking the 60thAnniversary of the Five Principles of Peaceful Coexistence at the Great Hall of People. Food Festival were also organised in cities like Beijing, Qingdao, Shanghai, Hong Kong to give the local people a taste of authentic Indian cuisine. Yoga Festivals were organized in the month of July, 2014 in Beijing, Shanghai and Dali in partnership with Department of AYUSH, Government of India.
During the visit of Chinese Premier Wen Jiabao to India in December 2010, the leaders of India and China agreed on a project involving compilation of an Encyclopedia of India-China Cultural Contacts. The Encyclopedia of India-China Cultural Contacts was released in both English and Chinese versions during Hon’ble Vice President Md. Hamid Ansari’s visit to China on June 30, 2014 in Beijing. The Encyclopedia features over 700 entries, encapsulating the rich history of contacts and exchanges between the two countries in the trade, economic, literary, cultural and philosophical spheres.
Education Relations
India and China signed Education Exchange Programme (EEP) in 2006, which is an umbrella agreement for educational cooperation between the two countries. Under this agreement, government scholarships are awarded to 25 students, by both sides, in recognized institutions of higher learning in each other’s country. The 25 scholarships awarded by India are offered by Indian Council for Cultural Relations (ICCR) to pursue a 1-year certificate course in Hindi. Apart from this, Chinese students are also annually awarded scholarships to study Hindi at the Kendriya Hindi Sansthan, Agra to learn Hindi. For the year 2014-15, 6 scholarships have been offered under this scheme.
In 2010, it was decided to introduce Mandarin Chinese as a foreign language in the Central Board of Secondary Education (CBSE) syllabus. A Memorandum of Understanding was signed in August 2012, between Central CBSE and Confucius Institute, where both signatories agreed to exchange academic staff, teachers and trainees as well as exchange information on the system and structure of teaching Mandarin Chinese as a second language in schools in India. As a part of this MoU, the first batch of 22 Chinese teachers is teaching in select CBSE schools for one year, since early 2014.
The cooperation in the education sector between the two sides has resulted in an increase in the number of Indian students in China. As on 2013, there were 10237 Indian students studying in various Universities in China in various disciplines. Similarly, around 2000 Chinese students are studying in various educational institutions in India.
INDIA CHINA BILATERAL DEFENCE COOPERATION
Bilateral defence interaction between India and China has been steadily growing in consonance with other aspects of the bilateral relationship. There have been regular high level exchanges at the level of Defence Ministers and Service Chiefs, functional level exchanges and military education exchanges between India and China. Ships of the Navies of both countries have regularly made port calls, enhancing bilateral defence cooperation. India and China hold an Annual Defence Dialogue to discuss security and defence cooperation issues between the two countries. The 7th Annual Defence and Security Dialogue was held at Beijing on 10 April 2015. Peace and tranquility in the border areas is being maintained in accordance with the various mechanisms and agreements between the two countries, including the ‘Working Mechanism for Consultations and Coordination of India-China Border Affairs’ and the signing of the ‘Border Defence Cooperation Agreement’.
The year 2014 was an eventful year for India-China bilateral defence cooperation. The Chairman, Chiefs of Staff Committee visited China in June 2014. The Political Commissar of China’s Chengdu Military Region and India’s Eastern Army Commander led reciprocal delegations to each other’s Command/ Military Region in the months of September and November 2014 respectively. In addition to other high level and functional level exchanges, the 4th edition of Exercise HAND IN HAND, the joint anti-terrorism training exercise was conducted at Aundh, Pune, India. The Indian Naval Ship INS Shivalikparticipated in the multi-lateral maritime exercise held at Qingdao, China in April 2014.
In recent development As PM Narendra Modi leaves on a crucial visit to China, Lets analys what key points which will be confronted by both.
India Wants
♦ Peace, stability on the LAC; no further Chinese incursions
♦ Roadmap towards solving border issues.
♦ Strong economic ties, greater Chinese investment in Indian infrastructure.
♦ To work with Beijing to make his pet ‘Make in India’ project a success.
♦ Greater balance in bilateral trade
The broad contours of the India-China cultural cooperation were laid down in the Agreement on Cultural Cooperation signed in May 1988, which provides for an executive Cultural Exchange Programme (CEP) for implementation. The latest CEP signed in October 2013 during the visit of Prime Minister Manmohan Singh to China provides for cooperation in a gamut of cultural fields including exchanges of visits of performing artists, officials, writers, archivists and archaeologists, organizing cultural festivals, film festivals and exchanges in the field of mass media, youth affairs and sports.
In 2003, Prime Minister Vajpayee had committed to build an Indian style Buddhist temple in Luoyang, Henan province and President Pratibha Devisingh Patil inaugurated the temple during her visit to China in May 2010. In February 2007, the Xuanzhang memorial was inaugurated at Nalanda. In June 2008, joint stamps were released, one stamp depicting the Mahabodhi temple at Bodhgaya and the other depicting the White Horse temple at Luoyang. A Centre for Indian studies was set up in Peking University in 2003. Chairs of Indian Studies have also been established in Shenzhen University, Jinan University, Fudan University, Guangdong University and in Shanghai International Studies University. India has also set up six ‘Chairs’ in various universities in China. This includes the ‘Hindi Chair’ set up at Peking University in 2003 during the visit of former Prime Minister Shri A.B. Vajpayee. The other ‘Chairs’ are in universities in Shanghai (Fudan University), Shenzhen, Kunming and Guangzhou. The 60th anniversary of the establishment of India-China diplomatic relations was celebrated with much fanfare in both countries in 2010.
In March 2012, during President Hu Jintao’s visit to India for the BRICS Summit, leaders of both sides decided to celebrate 2012 as the "The Year of Friendship and Cooperation" and both countries resolved to further strengthen cultural exchanges between our peoples. Youth exchanges have also been encouraged. While young China expresses great desire to know Buddhism, Bollywood and Yoga, young India admires the Chinese economic miracle. Exchange of Youth delegation between Indian and China has been continuing since 2007. During the visit of Chinese President Hu Jintao to India in November 2006, the two sides had agreed to launch a five year programme for mutual exchange of youth delegation. In this context, the China had invited five hundred youth from India over the next five years. Later, during the visit Chinese Premier Wen Jiabao to India in December 2010, the two sides agreed to continue youth exchange activities in next five years. Further, as part of the “Year of India-China Exchanges-2011”, China also invited 500 Indian youth to visit China within the year 2011. Reciprocal visits were also paid by the Chinese side each year.
During the visit of Prime Minister Dr Manmohan Singh and Premier Li Keqiang in 2013 the leaders designated 2014 as the Year of Friendly Exchanges between India and China. To mark this special year, Glimpses of India Festival is being organized in twelve cities across China through 2014 showcasing Indian performing arts, exhibitions of modern Indian arts, depictions of Buddhism links between the two countries, food and film festivals. As part of the festival Kalashetra & Sangeet Natak Akademi visited China. Sangeet Natak Akademi performed at the Reception Marking the 60thAnniversary of the Five Principles of Peaceful Coexistence at the Great Hall of People. Food Festival were also organised in cities like Beijing, Qingdao, Shanghai, Hong Kong to give the local people a taste of authentic Indian cuisine. Yoga Festivals were organized in the month of July, 2014 in Beijing, Shanghai and Dali in partnership with Department of AYUSH, Government of India.
During the visit of Chinese Premier Wen Jiabao to India in December 2010, the leaders of India and China agreed on a project involving compilation of an Encyclopedia of India-China Cultural Contacts. The Encyclopedia of India-China Cultural Contacts was released in both English and Chinese versions during Hon’ble Vice President Md. Hamid Ansari’s visit to China on June 30, 2014 in Beijing. The Encyclopedia features over 700 entries, encapsulating the rich history of contacts and exchanges between the two countries in the trade, economic, literary, cultural and philosophical spheres.
Education Relations
India and China signed Education Exchange Programme (EEP) in 2006, which is an umbrella agreement for educational cooperation between the two countries. Under this agreement, government scholarships are awarded to 25 students, by both sides, in recognized institutions of higher learning in each other’s country. The 25 scholarships awarded by India are offered by Indian Council for Cultural Relations (ICCR) to pursue a 1-year certificate course in Hindi. Apart from this, Chinese students are also annually awarded scholarships to study Hindi at the Kendriya Hindi Sansthan, Agra to learn Hindi. For the year 2014-15, 6 scholarships have been offered under this scheme.
In 2010, it was decided to introduce Mandarin Chinese as a foreign language in the Central Board of Secondary Education (CBSE) syllabus. A Memorandum of Understanding was signed in August 2012, between Central CBSE and Confucius Institute, where both signatories agreed to exchange academic staff, teachers and trainees as well as exchange information on the system and structure of teaching Mandarin Chinese as a second language in schools in India. As a part of this MoU, the first batch of 22 Chinese teachers is teaching in select CBSE schools for one year, since early 2014.
The cooperation in the education sector between the two sides has resulted in an increase in the number of Indian students in China. As on 2013, there were 10237 Indian students studying in various Universities in China in various disciplines. Similarly, around 2000 Chinese students are studying in various educational institutions in India.
INDIA CHINA BILATERAL DEFENCE COOPERATION
Bilateral defence interaction between India and China has been steadily growing in consonance with other aspects of the bilateral relationship. There have been regular high level exchanges at the level of Defence Ministers and Service Chiefs, functional level exchanges and military education exchanges between India and China. Ships of the Navies of both countries have regularly made port calls, enhancing bilateral defence cooperation. India and China hold an Annual Defence Dialogue to discuss security and defence cooperation issues between the two countries. The 7th Annual Defence and Security Dialogue was held at Beijing on 10 April 2015. Peace and tranquility in the border areas is being maintained in accordance with the various mechanisms and agreements between the two countries, including the ‘Working Mechanism for Consultations and Coordination of India-China Border Affairs’ and the signing of the ‘Border Defence Cooperation Agreement’.
The year 2014 was an eventful year for India-China bilateral defence cooperation. The Chairman, Chiefs of Staff Committee visited China in June 2014. The Political Commissar of China’s Chengdu Military Region and India’s Eastern Army Commander led reciprocal delegations to each other’s Command/ Military Region in the months of September and November 2014 respectively. In addition to other high level and functional level exchanges, the 4th edition of Exercise HAND IN HAND, the joint anti-terrorism training exercise was conducted at Aundh, Pune, India. The Indian Naval Ship INS Shivalikparticipated in the multi-lateral maritime exercise held at Qingdao, China in April 2014.
In recent development As PM Narendra Modi leaves on a crucial visit to China, Lets analys what key points which will be confronted by both.
India Wants
♦ Peace, stability on the LAC; no further Chinese incursions
♦ Roadmap towards solving border issues.
♦ Strong economic ties, greater Chinese investment in Indian infrastructure.
♦ To work with Beijing to make his pet ‘Make in India’ project a success.
♦ Greater balance in bilateral trade
China Seeks
♦ Solution to border issue
♦ Eased rules for Chinese investment in India.
♦ To involve India in his ‘Belt and Road’ vision for the New Silk Route.
♦ To keep New Delhi from forming a strategic anti-China alliance with US.
♦ To integrate India into new China-led global economic infrastructure, viz. BRICS Bank, AIIB
♦ Solution to border issue
♦ Eased rules for Chinese investment in India.
♦ To involve India in his ‘Belt and Road’ vision for the New Silk Route.
♦ To keep New Delhi from forming a strategic anti-China alliance with US.
♦ To integrate India into new China-led global economic infrastructure, viz. BRICS Bank, AIIB
Where current relation stands
Where they stand Border Dispute
18 rounds of talks between SRs since 2003 have made limited progress. No maps of LAC have been exchanged except in the least contentious Central Sector. Notions of LAC differ, neither side is willing to show their hand easily, and selling a compromise to domestic constituencies remain difficult for both. Beijing does not seem likely to give up its claim over Arunachal Pradesh, and no Indian government will find it easy to surrender the claim over all of Jammu & Kashmir.
Skewed Bilateral Trade
Countries gave each other MFN status in 1984, and signed a double taxation avoidance agreement in 1994. Bilateral trade reached $ 18.7 billion in 2005, and $ 72.4 billion in 2014-15. India’s exports in 2014-15 was, however, only $ 12 billion; imports $ 60.4 billion — a trade deficit to over $ 48 billion.
Wary of Each Other
A Pew poll in 2014 showed 72% Indians have strong concerns on territorial disputes with China. 31% Indians viewed China favourably; 30% Chinese viewed India favourably.
Where they stand Border Dispute
18 rounds of talks between SRs since 2003 have made limited progress. No maps of LAC have been exchanged except in the least contentious Central Sector. Notions of LAC differ, neither side is willing to show their hand easily, and selling a compromise to domestic constituencies remain difficult for both. Beijing does not seem likely to give up its claim over Arunachal Pradesh, and no Indian government will find it easy to surrender the claim over all of Jammu & Kashmir.
Skewed Bilateral Trade
Countries gave each other MFN status in 1984, and signed a double taxation avoidance agreement in 1994. Bilateral trade reached $ 18.7 billion in 2005, and $ 72.4 billion in 2014-15. India’s exports in 2014-15 was, however, only $ 12 billion; imports $ 60.4 billion — a trade deficit to over $ 48 billion.
Wary of Each Other
A Pew poll in 2014 showed 72% Indians have strong concerns on territorial disputes with China. 31% Indians viewed China favourably; 30% Chinese viewed India favourably.
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