Online Learning Portal
DAILY NEWS ANALYSIS
01 April, 2020
17 Min Read
Part of: GS Prelims and GS-III- Economy terms
India and China mark the 1st of April 2020 as the 70th anniversary of the establishment of diplomatic relations between them starting in 1950 till now.
Facts and Figures on China-India Cooperation
The Progressing Relations
After the Doklam issue of 2017 & the Chumar issue of 2014 the relationship between the two countries suffered from mistrust and border issues, but the Astana Consensus and the Wuhan spirit changed the entire chemistry between the two nations.
Astana Consensus
Wuhan Summit
The enhanced interaction between the two nations in the past 5 years, in the form of 9-10 bilateral meetings has paved the way in eliminating their differences and clearing the misgivings & doubts.
Challenges in the Path of Progress
The two countries convened their first Informal Summit in central China’s Wuhan in April 2018, where they exchanged views on issues of global and bilateral significance.
What are Informal Summits?
2nd India-China Informal Summit
Here are five big takeaways:
Trade
One of the main issues between India and China is trade. During this summit, Modi and Xi reinforced their commitment to improving trade relations. This was one of the key agreements of the Wuhan summit. The leaders agreed to a new set up new mechanisms to achieve this goal.
The High-Level Economic and Trade Dialogue mechanism will look into achieving enhanced trade and commercial relations. It will also seek to address the trade deficit and issues related to investment. It seeks to build a 'manufacturing partnership' between India and China.
The takeaway: China is one of India's largest trading partners. A Reuters report stated that the bilateral trade between the two nations reached $95.54 billion in 2018, but the trade deficit was at $53 billion in China’s favour. This is the biggest India has with any country, it added.
This assurance from China comes at a time when there is a lot of opposition to India joining the China-backed RCEP deal. This deal seeks to form a free trade zone among the ASEAN members - China, Australia, New Zealand and India.
India - which has a FTA with most of these nations - has a trade deficit with most of these nations, and the fear is that this deal might flood the domestic market with more imports, while exports might not increase at the same manner.
Working together on international issues
Modi and Xi agreed that there must be a rules-based and inclusive international order, the MEA statement said. They agreed that there must be reforms that reflect the new realities of the 21st century.
They also agreed that rules-based multilateral trading systems must be supported and strengthened. The nations also reinforced their commitment to work together for open and inclusive trade arrangements that will benefit all countries. They also made a commitment to address global developmental challenges, including climate change and meet the Sustainable Development Goals.
The takeaway: India and China have many similar interests at the World Trade Organisation and at the UN. Both nations have been under stress because of US President Donald Trump's trade war and due to the rising tensions in West Asia. If they can come together and effect meaning change to resolve these issues, then other emerging economies will also stand to benefit.
India has trying to exert its influence on the global stage for a while now. China has blocked India's entry in the Nuclear Suppliers Group and has been slow to accept reforms in the United Nations. It seems unlikely that China will allow any major reform or change that doesn't serve its national interest, although India must push for it.
People to people contact
To celebrate the 70th year of diplomatic relations between the two nations, the year 2020 will be designated as Year of India-China Cultural and People to People Exchanges, the MEA said. To mark the occasion, many events will be planned, it added.
To celebrate the civilisational ties between the nations, the MEA said that the two leaders have decided to form a 'Sister-state relationship' between Tamil Nadu and Fujian Province. There is also a proposal to set up an academy to study these links.
Takeaway: The focus on tourism and contact among the people of both nations will not only boost trade, but it will help in building trust between them. Establishing such confidence-building measures can help integrating the people by removing stereotypes.
Chennai connect
In his address at the delegation-level talks, Modi said that the summit had set the path for future discussions. He said that they discussed bilateral and global matters. "The Wuhan spirit has given our relations new momentum and trust. Today, our Chennai vision will begin a new age in relations between our two countries," Modi said.
Xi said that he was happy with the welcome he received and said that invited Modi for another round of discussion China next year. The two leaders also made a commitment to manage differences in such a way that they would "not allow differences on any issue to become disputes", the MEA statement said.
The takeaway: The 'Chennai connect' sets the tone for future discussions. Here, the two leaders agreed to set up a new mechanism to have better cooperation in trade and defence. In a statement, the MEA said that the two leaders engaged in an "in-depth exchange of views in a friendly atmosphere."
It also reinforced that this 'informal meet' concept works in the India-China context. It also set the ball rolling for more people to people contact.
Jammu and Kashmir
The discussion, or the lack of it, is the reason for Jammu and Kashmir to figure in this list.
In August, India scrapped Article 370, which gave special status to the state. This irked China, which has several interests in the state (they have invested in PoK, and claim a portion of the state). They lent their support to their "all-weather friend" Pakistan, when the latter raised this in multiple international forums, including the UNSC. However, India had responded to them saying that the matter was an internal one and the move was done to improve the lives of the people of the state, and most nations sided with India on this matter. This issue happened right before the summit, and many believed that India should raise this matter with China. But it was not even a part of the discussion.
The takeaway: The takeaway from this is that India was firm on its viewpoint, and didn't allow another nation to talk about the nation's internal affairs. Would China allow India to raise the protest in Hong Kong? No.
The lack of Kashmir in the talks also shows that both nations are willing to look beyond, at least at the leadership level
Chronology
|
Way Forward
At this moment, it is particularly important to revisit the original aspiration of establishing diplomatic relations 70 years ago and carry forward the spirit of good neighborliness and friendship, unity and cooperation.
Conclusion
Past has revealed that whenever the global opportunities have demanded the positive Sino-Indian relations, both the nations have tried to tackle their problems in a mature fashion and leave aside the differences. The best example of this could be seen in China’s recognition of bottom-up cultural people to people interaction while granting visas to Indian Mansarovar pilgrims. China needs to take into consideration the ground realities while looking at India-Pakistan relations in order to bring regional peace.
The balance of power is changing both domestically & regionally, the world in general and China in specific needs to understand that India has a cartographic position along Line of Actual Control & there are disputes still in place, but that all forms the part of internal matters of India. During this period of economic slowdown, India can bring more structural reforms in order to attract and enhance foreign Chinese capital inflow.
The need for the positive role of the two nations: The geo-political dynamics have changed in the recent past. It has been said that this century is Asia’s century, so in the light of this perception, both countries need to focus their energies more on domestic socio-economic development rather than frittering it away militarily. The greater responsibility lies on China’s shoulder to engineer greater trust and to stop creating obstacles in the path of progress on India, be it on India’s entry into the Nuclear Suppliers Group (NSG), or designating Masood Azhar as the global terrorist.
China’s dominating role simultaneously demands India to stay prepared on all fronts, i.e, militarily, economically, or diplomatically. The reorganization of the state of J&K opens the door for resolving the border dispute along LAC with China. Synergizing the efforts in order to resolve the existing conflicts is the need of the hour for mutual progress and harmony.
Jai Hind Jai Bharat
Source: TH/MoEA
Recently, Prime Minister announced Pradhan Mantri Suryodaya Yojana under which 1 crore households will get rooftop solar power systems. India’s Status of Current Solar Capacity India currently stands at 4th place globally in solar power capacity. As per Ministry of New an
The Foreign Contribution Regulation Act, 2010 (FCRA) registration of two prominent non-governmental organisations (NGOs) — Centre for Policy Research (CPR) and World Vision India (WVI) have been cancelled this month. What is FCRA? Key provisions of FCRA, 2010 Key aspects Description
Voice clone fraud has been on the rise in India. AI voice cloning – It is the process of creating a synthetic replica of a person’s voice through machine learning and speech synthesis technology.It is called as voice deepfakesor audio deepfakes. Objective – To achieve a high level of na
Steps taken by India to promote Science Communication Publications and Information Directorate (PID) - An organisation under Council of Science and Industrial Research (CSIR) established in 1951 for publishing and disseminating scientific information in India. National science magazines- The PI
Universal Basic Income (UBI) can strengthen welfare architecture and unlock the nation’s latent demographic potential. UBI - It is an income support mechanism typically intended to reach all or a very large portion of the population regardless of their earnings or employment status. Objective- To provide enough to co
Our Popular Courses
Module wise Prelims Batches
Mains Batches
Test Series