Indo China Relations

Topics: Manmohan Singh, Hu Jintao, Sino-Indian War Pages: 9 (3148 words) Published: April 26, 2013
.:: India-China Relations ::.|
I. Introduction:
1. Rise of India and China Changing Global Balance:According to Singapore's Minister Mentor Lee Kuan Yew, the rise of India and China was changing the global balance. India and China together account for 40 per cent of the world's working age population and 19 per cent of the global economy in PPP (Purchasing Power Parity) terms, according to Mr. Lee. In the next 20 years their collective share of the global economy could match their percentage of the global population.

2. Asian Renaissance will Depend on How India and China Work Together:Mr. Lee stressed that Asia's place in the world would depend on how both India and China work together as they rise and actively set out to avoid ending up in opposing camps.

3. Need for India and China to Understand Each Other:It was vital that India and China understand where they stand vis-a-vis each other, according to Mr. Lee. He opined that the two countries must not be paranoid and suspicious of each other. Instead they can cooperate and compete economically, and each improves its performance by using the other's progress as benchmarks.

4. Major Shift in China's Assessment of India: According to Chinese experts on international relations, there is a major shift in China's assessment of India. The assessment is based on the following: * China Looks at India as a Comprehensive National Power: India rapid economic growth combined with its growing importance in international affairs has led to China looking at India as a "comprehensive national power."  * Highest Priority to Relations with India: China accords highest priority for relations with India, according to Chinese experts. It is pointed out that India falls into each of the four major categories of countries that is in China's foreign policy objective to focus diplomatic energies on. The four categories are: developing countries, neighbouring countries, rising powers, and influential players in the international arena. * Realisation that Relations with India will be the Key to Stability in Asia: Chinese foreign experts point out that China has realised that relations with India will be the key to stability in Asia. Given the troubled history of the relationship, it is realised that the relationship requires personal care at the highest level. 5. Sino-Indian Ties Poised to Enter a Vibrant and Dynamic Phase:India's Prime Minister Manmohan Singh said that bilateral relations between India and China were poised to enter a vibrant and dynamic phase, based on a common recognition that the growth and development of both India and China would make positive and long-term contributions to regional and global peace, security and stability.

6. India and China in the Process of Giving Substantive Content to Their Bilateral Relations: On the eve of his maiden visit to China, Dr. Singh stated that both India and China were in the process of giving substantive content to their bilateral relations through a comprehensive economic engagement and developing mutually beneficial cooperation. Issues relating to the boundary and cooperation in trans-boundary rivers would be discussed with the Chinese leadership. 7. China the Focal Point of India's "Look East" Policy:The Prime Minister pointed out that China was the focal point of India's "Look East" policy. India and China had established a Strategic and Cooperative Partnership for Peace and Prosperity during the Chinese Premier Wen Jiabao's visit to India in 2005. During the Chinese President Hu Jintao's visit to India in 2006 a 10-point strategy to qualitatively upgrade the bilateral relations was put in place.

8. Economic Ties: 
A. Large Increase in Bilateral Trade:Sino-Indian bilateral trade for 2007 was worth $38.6 billion, a large increase from $25 billion in 2006.

B. India's Concern's - Widening Trade Deficit and Composition of Exports:India's trade deficit increased from $4.12 billion in 2006...
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