RELATION WITH CHINA.
RELATION AND STRATEGY
SYMBIOSIS CENTRE FOR MANAGEMENT
political relation between India and china
for choosing this topic
motivating factors for choosing this topic are several some of them are
1. Curiosity in the subject
2. Lack of knowledge of china
3. Lack of knowledge of trade relations
4. Curiosity to learn more about the
5. Curiosity to learn more about the
bilateral relation between Pakistan and China
I am hoping to learn more about the importance of
geopolitical relations especially between two countries with a lot of
I am also wanting to understand the reasons for the border
The origin of Geo-Political relation between India and China
started in the second century BC through the “Silk Road” the silk road played a vital role as historical network
of trade routes started by the Han Dynasty.
This led to India and china prospering in trade between each
other since ancient times. Silk road also played an important role in the
spread of Buddhism as well as certain Chinese cultures in India.
Both china and India had signed a “Panchsheel Treaty” which is a non- interference treaty. This treaty
has 5 main principles which both the parties involved should adhere by
respect for each other’s territorial integrity and sovereignty.
non-interference in each other’s internal affairs.
and cooperation for mutual benefit.
The Indo-China War, also known as the Sino-Indian Border
Conflict, was a war between China and India that occurred in 1962. A disputed
Himalayan border was the main pretext for war, but other issues played a role.
There had been a series of violent border incidents after the 1959 Tibetan
uprising, when India had granted asylum to the Dalai lama. Under a Forward
Policy, India placed outposts along the border, including several north of the
Mac Mahon Line, the eastern portion of a Line of actual Control proclaimed by
Chinese Premier Zhou Enlai in 1959.
The Chinese launched simultaneous offensives in Ladakh and
across the McMahon Line on 20 October 1962, coinciding with the Cuban missile
crises. Chinese troops advanced over Indian forces in both theaters, capturing Rezang
la in Chushul in the western theater, as well as Tawang in the eastern theater.
The war ended when the Chinese declared a ceasefire on 20 November 1962, and
later withdrew from the disputed area.
The Sino-Indian War is notable for the harsh conditions under
which much of the fighting took place, resulting in a large-scale combat at
altitudes of over 4,250 meters (14,000 feet). This presented enormous logistics
problems for both sides. The Sino-Indian War was also noted for the
non-deployment of navy or air force by either the Chinese and Indian sides.
China as the longest land border in the world, with 22,000 km
border shared with 14 different countries, North Korea, Russia, India, Nepal
just to name a few.
China’s quest for national security and then expansion has
bought the country right to the battel field. It is important to note that not
all border disputes are about demarcation of the line itself, it could have to
do with resource extraction, trade or exported labor etc.
India’s Export to china in FY 2012-13 was Rs. 73,529 crores. which
in year 2016-17 declined to Rs. 68,417 crores. India’s total export in FY
2012-13 was Rs. 16,34,318 crores. it increased to Rs. 18,52,399 crores in FY
India’s export over previous year has increased by 7.92% in FY
2016-17. China’s export constituted only 3.69 % of total export bill.
India’s Import from china in year 2012-13 was Rs. 2,84,384
crores. In FY 2016-17 It has been 4,11,124 Crores. India’s Total Import in FY
2012-13 was Rs. 22,29,161 Crores. India’s total Import increased to Rs.
25,77,421 in FY 2016-17.
India’s IMPORT over previous year has increased by 3.50% in
FY 2016-17. Import from China constituted whopping 15.95 % of total export
Total trade between India and China in 2012-13 was Rs.
3,57,914 Crores which increased to Rs. 4,79,542 in FY 2016-17. India’s total
trade in FY 2012-13 was Rs. 43,03,480 and it increased to Rs. 44,29,761.
India’s Total Trade has increased by 5.3 % over previous Financial year.
India is having negative trade balance with china since
2012-13, in 2012-13 it was Rs. -10,34,843 crores. In 2016-17 India’s trade
balance with china is Rs. -7,25,081crores.
Over the course of completing my assignment I have gained a
lot of knowledge in relevance to the geopolitical relationship between India
and China. These are a few key points I found interesting.
1. India and
China share an ancient relationship since the early 200 BC.
2. Trade has
been taking place between India and China since the discovery of the silk route.
3. Silk route
played a vital role for China for trade of goods, ideas, human resource as well
4. India suffers
a trade deficit of over 45 Billion US Dollars which should be of concern for
the Indian economy.
5. There are continuous border disputes even
after both the countries signed the “Panchsheel Treaty”.
6. China is
currently building their naval base on 2 of the islands bought from Srilanka,
even after India’s order.
7. China uses their resources very strategically to
boost their economic supremacy
a’s relation with Pakistan and Srilanka.
8. There are
no advancements towards a free trade agreement between India and China.
for the future
India should work on several aspects to better compete with a
nation such as China. I have mentioned a few points that I personally feel India
should work towards.
1. Firstly, India
should try and balance the trade deficit we suffer with China.
2. This can be
achieved be importing fewer goods, investments and services form china and in turn
start increasing the exports strategically.
3. Next key
aspect is the border issues, India and China should reach a clear term with
respect to the border issues and China should respects India’s wishes regarding
the naval base construction near Srilanka.
4. Both India
and China should come together to form a free trade agreement.
5. This will benefit
both the countries as India can provide raw materials and China can provide
India with the necessary technology.
6. Chinas growth
model isn’t the most stable growth market meaning if China would stop exporting
and manufacturing in the current rate the Chinses economy will burst like a