TERM PAPER

HUM 881

TOPIC:-INDIA-CHINA RELATIONSHIP

SUBMITTED TO:-

SUBMITTED BY:-

ACKNOWLEDGEMENT
The real spirit of achieving is through the way of excellence of austere discipline,
without which I would never have succeeded in finishing it without the co-operation,
encouragement and help provided to me by various personalities. With this deep felt
consent and pleasure, I would like to express my heart felt gratitude to all those who
helped me in preparation of this term paper.

It gives me immense pleasure in expressing my deepest and sincerest gratitude

towards my project guide MR. (lect of HUM881) and for there considerate help,
inspiring guidance throughout this work.

I shall be failing in my duty if I do not thank all the other Quality Personnals and
other friends for source of constant encouragement and co-operation, through out
my term paper.

I would be defying if I do not mention my constant source of inspiration and

vitality, that is, my parents who invested their present for my future and for their
co-operation, support & encouragement without which I could not have seen the
light of the day.

CONTENTS
CHINA-INDIA RELATIONS
ANCIENT PAST RELATION
POLITICAL RELATION
GEOGRAPHICAL RELATION
INDIA-CHINA BOUNDARY RELATION
INDIA-CHINA ECONOMY TRADE RELATION
BORDER RELATION
BIBLIOGRAPHY

CHINA-INDIA RELATIONS
China-Indian relations, also called Sino-Indian relations, is the relations between China and
India. The economic and diplomatic importance of People's Republic of China (PRC) and the
Republic of India, the two most populous states in the world, as emerging economies, has in
recent years increased the significance of their bilateral relationship. The relationship between
Beijing and New Delhi has undergone times of both war and peace. It has been characterized by
both border disputes, resulting in military conflict, and by economic cooperation. Both
countries, in recent years successfully attempted to reignite diplomatic and economic ties, and
consequently, the two countries' relations have become closer.

China and India have had 3 conflicts with each other; the Sino-Indian War of 1962, the Chola
incident in 1967, and the 1987 Sino-Indian skirmish.

ANCIENT PAST RELATION BETWEEN INDIA-CHINA

India and China had relatively little political contact before the 1950s. Despite this, both
countries have had extensive cultural contact since the first century, especially with the
transmission of Buddhism from India to China. Trade relations via the Silk Road acted as
economic contact between the two regions.

China and India have also had some contact before the transmission of Buddhism. References to
a people called the Chinas, now believed to be the Chinese, are found in ancient Indian literature.
The Indian epic Mahabharata contains references to China.

CHINA-INDIA GEOGRAPHICAL RELATION

China and India are separated by the fearable geographical obstacles of the Himalayan mountain
chain. China and India today share a border along the Himalayas and Nepal and Bhutan, two
states lying along the Himalaya range, and acting as buffer states.

Two territories are currently in dispute between the People's Republic of China and India:

Aksai Chin and Arunachal Pradesh. Arunachal Pradesh is located near the far east of India, while
Aksai Chin is located near the northwest corner of India, at the junction of India, Pakistan, and
the PRC. However, all sides in the dispute have agreed to respect the set up.
POLITICAL RELATION AFTER INDEPENDENCE
Jawaharlal Nehru based his vision of "resurgent Asia" on friendship between the two largest
states of Asia, his vision of an internationalist foreign policy governed by the ethics of the
Panchsheel.

In the early 1950s, China and India enjoyed amicable contacts. The two countries established
diplomatic relations on 1 April 1950 and India is the first out of the non-socialist countries to
establish diplomatic relations with China. In 1954, Chinese Premier Zhou Enlai and Indian Prime
Minister Jawahar Lal Nehru exchanged visits. The two leaders jointly initiated the famous Five
Principles of Peaceful Coexistence. Premier Zhou paid another visit to India in 1956. In the mid
1950s, a slogan "Hidi-Chini Bhai Bhai", which means the Indian and Chinese peoples were
brothers, was known to every household.
In 1959, India supported and took in the Tibetan rebels and created bloodshed in the border areas
between the two countries. In 1960, Premier Zhou went to New Delhi to meet with Prime
Minister Nehru to discuss the boundary dispute. In 1962, India launched an all-out offensive
armed attack against China along the Sino-Indian border areas, China was forced to fight back
for self-defense. This led to a cold period of bilateral relations.
In 1976, China and India resumed designating ambassadors to each other. In 1979, Indian
Minister of External Affairs, Mr. Vajpayee, paid a visit to China, and Chinese Vice Premier cum
Foreign Minister, Mr. Huang Hua, visited India in 1981. In 1984, the two sides signed a trade
agreement. The end of 1988 saw the visit of Indian Prime Minister Rajiv Gandhi to China, which
brought the relations of the two countries into a new stage of development. The two sides agreed
that pending the solution of the boundary questions, the two countries would maintain peace and
tranquillity in the areas along the Line of Actual Control (LAC), and make efforts to improve
and develop bilateral relations. The two countries also decided to establish joint working group
on boundary questions, joint committees on economics & trade and science & technology. The
two sides also signed the agreements of cooperation on science and technology and on civil
aviation.
During Premier Li Peng's visit to India in December 1991, the two countries signed the consular
treaty, agreement on resuming establishment of consulate-generals, Memorandum on resuming
border trade and MOU on cooperation in science and technology for the peaceful use of outer
space. This visit, having promoted an all-round improvement and development of the Sino-
Indian relations, was followed by successive exchanges of high-level visits. The Chinese
Consulate General in Mumbai (Bombay) and the Indian Consulate General in Shanghai were
reopened respectively at the end of 1992 and early 1993. The Indian side also abrogated the
discriminative and restricted laws and regulations against the Chinese nationals in India in 1992.
In September 1993, Indian Prime Minister Narasimha Rao visited China. The two countries
signed the agreement on the maintenance of peace and tranquillity along the LAC in the Sino-
Indian border areas, agreements of cooperation in environment, in radio and television and
protocol on opening more border trade points, which have added new contexts to the friendly
cooperation between the two countries. In the same year, Mr. Li Ruihuan, Chairman of the
National Committee of the Chinese People's Political Consultative Conference (CPPCC) visited
India. In 1994, Indian Vice President K. R. Narayanan paid a visit to China and Mr. Qian
Qichen, Chinese vice Premier cum Foreign Minister, visited India. The two countries signed
agreements on avoiding double taxation, agreements of cooperation on health and medical
science, MOUs on simplifying the procedure for visa application and on banking cooperation
between the two countries. In 1995, Mr. Qiao Shi, Chairman of the Standing Committee of the
National People's Congress (NPC), visited India and had extensive contacts with Indian leaders.
The visit has further promoted the bilateral relations.
At the end of November 1996, President Jiang Zemin paid a state visit to India, which was the
first of its kind paid by the head of state from China to India since the establishment of the Sino-
Indian diplomatic relations. During the visit, leaders of the two countries had fruitful talks and
decided to establish a constructive partnership of cooperation on the basis of Five Principles of
Peaceful Coexistence towards the 21st century. They also reached broad convergence on
maintaining high-level contacts between the two sides, promoting the economic & trade
cooperation of the two countries and strengthening mutual support on international issues. The
visit to India of Mr. Wei Jianxing, member of the Standing Committee of the Politburo of the
Central Committee of the Communist Party of China and Secretary of the CPC Central
Committee Secretariat, at the end of 1997, maintained the momentum of high-level dialogues
between the two countries.
In May 1998, India carried out nuclear tests and made unwarranted accusations against China
under the pretext of the "China threat" that seriously frustrated the Sino-Indian relations. Mr.
Jaswant Singh, Indian Minister of External Affairs, visited China in June 1999. During the talks,
the two sides affirmed that the premise of developing the Sino-Indian relations should be that
each side does not treat the other as a threat and the basis should be the Five Principles of
Peaceful Coexistence jointly initiated by the two countries. Sino-Indian relations thus entered
into the process of improvement and development. In March 2000, officials from Foreign
Ministries of the two countries, held the first round of security dialogue. April 1 saw the fiftieth
anniversary of the establishment of diplomatic relations between the two countries. Both sides
celebrated the occasion in number of befitting functions. In late May, at the invitation of
President Jiang Zemin, Indian President paid a state visit to China. The two sides reached broad
consensus on furthering bilateral relations including the enlargement of exchanges of personnel
and economic and commercial cooperation, strengthening cooperation and coordination on
international and regional affairs and properly handling issues left over by history. In July,
Foreign Minister Tang Jiaxuan visited India in carrying out the consensus reached by the two
leaders.
In January 2001, Mr. Li Peng, Chairman of the Standing Committee of NPC, paid an official
goodwill visit to India, which is the first visit by a Chinese leader since 1998 setback of bilateral
relations. Chairman Li Peng held talks or met with Indian President, Prime Minister, Chairman
of Rajha Sabha and Speaker of Lok Sabha and reached broad consensus through in-depth
exchanges of views on bilateral relations and regional and international issues of common
concern. Chairman Li Peng also conveyed to the Indian side important message that China is
willing to establish long term stable relations of friendship and cooperation with India. The
Indian side responded positively. Sino-Indian relations thus entered into the track of all-round
improvement and development.

THE CHINA-INDIA BOUNDARY RELATION

The borderline between China and India totaled about 2,000 kilometers, which is divided into the
eastern, middle and western sectors. The disputed areas are about 125,000 square kms, with the
eastern sector about 90,000, the middle about 2,000 and the western about 33,000. At present,
India controls the whole eastern and middle sectors. While the western sector is under the control
of China.
The Sino-Indian boundary question is a complicated question left over from the history. At
eastern sector, British colonialists concocted the unlawful McMahon Line in 1914, which has
never been recognized by the successive Chinese governments. After its independence in 1947,
India not only inherited Britain's occupation of parts of Chinese territories, but also further
encroached northward and pushed its borderline to the McMahon Line in 1953, as a result,
invaded and occupied 90,000 square kms of Chinese territories. At western sector, in 1959, India
voiced its claim to the Aksai Chin areas, counted 33,000 s.kms, of Xinjiang Uygur Autonomous
Region of China. In April 1960, Chinese Premier Zhou Enlai went to New Delhi to hold talks
with Indian Prime Minister Nehru, no agreements were reached due to India's insistence on its
unreasonable stand. The ensuing meetings between the officials of the two countries also
produced no results. In October 1962, India launched all-out armed attacks against China in the
border areas, China was forced to fight back in self-defense and withdrew its troops to the
Chinese side of 7 November 1959 LAC immediately after the self-defensive counter attack.
Since then, the border areas between the two countries have remained quiet on the whole for
quite a long period.
In February 1987, India established the so-called Arunachal Pradesh in its illegally occupied
Chinese territories south of the McMahon Line. The Chinese side made solemn statements on
many occasions that China never recognizes the illegal McMahon Line and the so-called
Arunachal Pradesh.
In December 1988, Indian Prime Minister Rajiv Gandhi visited China. The Prime Ministers of
the two countries agreed to settle the boundary questions through the guiding principle of
"Mutual Understanding and Accommodation and Mutual Adjustment". Agreement also reached
that while seeking for the mutually acceptable solution to the boundary questions, the two
countries should develop their relations in other fields and make efforts to create the atmosphere
and conditions conducive to the settlement of the boundary questions. The two sides agreed to
establish a Joint Working Group (JWG) on the boundary questions at the Vice-Foreign
Ministerial level.
Up to now, the Vice-Ministerial JWG has held 12 rounds of talks on the boundary questions. The
two sides have reached a consensus that the boundary questions should not become obstacles to
the development of the bilateral relations in other fields and should be settled through peaceful
negotiations. In 1993, the two governments signed the Agreement on the Maintenance of Peace
and Tranquillity along the Line of Actual Control in the China-India Border Areas, and
established an expert group to discuss the ways and means of implement of the agreement. And
some progress has already been achieved. In November 1995, the two sides dismantled the guard
posts in close proximity to each other along the borderline in Wangdong area, making the
situation in the border areas more stable. During President Jiang Zemin's visit to India at the end
of November 1996, the Governments of China and India signed the Agreement on Confidence
Building Measures in the Military Field along the Line of Actual Control in the China-India
Border Areas, which is an important step for the building of mutual trust between the two
countries. The signing and implementation of the agreements would be conducive to the better
maintenance of peace and tranquillity along the LAC in the China-Indian border areas and to the
creation of a congenial for the ultimate settlement of the boundary questions.

INDIA-CHINA ECONOMY – TRADE RELATION

Among the most encouraging recent developments in India China Economy and India-China
ties is the rapid increase in bilateral trade. A few years ago, India Inc had a fear of being
swamped by Chinese imports. Today, India enjoys a positive balance of trade with China.In
2004, India's total trade to China crossed US $13.6 billion, with Indian exports to China touching
$ 7677.43 million and imports from china at US $ 5926.67 million. Indian industry's
ambivalence over the proposed Indo-China FTA stems from concerns over previous FTAs
signed by the government. There's a feeling that some of these FTAs were signed in haste, and
without adequate homework. Result: There has been confusion about the country of origin issue
as well as the items to be put in the early harvest lists.

Rajiv Gandhi signed bilateral agreements on science and technology cooperation, on civil
aviation to establish direct air links, and on cultural exchanges. The two sides also agreed to hold
annual diplomatic consultations between foreign ministers, and to set up a joint ministerial
committee on economic and scientific cooperation and a joint working group on the boundary
issue. The latter group was to be led by the Indian foreign secretary and the Chinese vice
minister of foreign affairs. As the mid-1990s approached, slow but steady improvement in
relations with China was visible. Top-level dialogue continued with the December 1991 visit of
Chinese premier Li Peng to India and the May 1992 visit to China of Indian president
Ramaswami Venkataraman.
Border trade resumed in July 1992 after a hiatus of more than thirty years, consulates reopened
in Bombay (or Mumbai in the Marathi language) and Shanghai in December 1992, and, in June
1993, the two sides agreed to open an additional border trading post. Though, Rajiv Gandhi's
visit to China in December 1988 is usually identified as a turning point and break-through in
India-China relations, it should also be noted that many years of previous effort had a
contribution to it.. In 1976, the two countries decided to restore ambassadorial-level diplomatic
ties after a gap of 15 years. The next major step was foreign minister Vajpayee's visit to China in
February 1979 -

The first high-level visit between the two countries since 1960. In 1984 India & China signed a
Trade Agreement, providing for Most Favoured Nation Treatment. In 1994 the two countries
signed the agreements on avoiding double taxation. Agreements for cooperation on health and
medical science, MOUs on simplifying the procedure for visa application and on banking
cooperation between the two countries have also been signed.

The Chinese economy was decentralized in 1978 and major economic reforms were introduced
which created conditions for rapid economic growth and structural changes in China. In 1980,
China's share in world trade was less than one percent, and it started permitting foreign direct
investment (FDI). In 1999, China had grown to become the world's second largest economy after
US in terms of GDP. The high growth rate of China is attributed to high levels of trade and
greater investment effort. Strong exports growth from China has helped push China's economy to
9.1% growth rate in 2003-2004. China is the world's second largest recipient for FDI with total
FDI inflows crossing US $ 53 billion in 2003. Growth in Special Economic Zones (SEZ) has
also helped China increase its productivity.

Recently Chinese premier Wen Jiabao visited India, where he said that India and China must
take their trade to $30 billion level by 2010. Seeing the whopping growth in Sino-Indian trade,
China outlined a five-point agenda, including reducing rade barriers and enhancing multilateral
cooperation to boost bilateral trade.

India China Economy have also agreed to work together in energy security and at the multilateral
level at the WTO to support an "open, fair, equitable and transparent rule-based multilateral trade
system", the joint statement signed by Prime Minister Manmohan Singh and Wen said. Wen also
offered to cooperate with New Delhi in its infrastructure programme.

TRADE PATTERN (value in USD millions)

Year China's Exports to India China's Imoprts from India

2000 1560.75 1353.48
 2001 1896.27 1699.97
Percent Growth 21.5 25.6
2002 2617.73 2274.18
Percent Growth 40.9 33.8
2003 3343.59 4251.49
Percent Growth 22.2 87
2004 5926.67 7677.43
Percent Growth 77.3 80.6

According to a CII study, special focus on investments and trade in services and knowledge-based sectors,
besides traditional manufacturing, must be given, in view of the dynamic comparative advantage of India.
Indian companies could enter the $615 billion Chinese domestic market by using it as a production base.

Presently, Iron ore constitutes about 53% of India's total exports to China. Among the potential
exports to China, marine products, oil seeds, salt, inorganic chemicals, plastic, rubber, optical
and medical equipment and dairy products are the important ones. The study said that services
and knowledge trade between India and China have significant potential for growth in areas like
biotechnology, IT and ITES, health, education, tourism and financial sector.

Value added items dominate Chinese exports to India, especially machinery, including electrical
machinery, which together constitute about 36% of exports from that country. The top 15
Chinese exports to India have recorded growth between 29% (organic chemicals) and 219.89%
(iron and steel).

CHINA-INDIA: AN UNSOLVED BORDER RELATION

June 23, 2009

When two countries have gone to war over an unresolved border and one of these announces the
deployment of 50,000-60,000 troops and nuclear-capable combat planes along this border. This
is exactly what happened over the last month between India and China. In response to India’s
military buildup, China has published two scathing articles, one in English and the other in
Chinese, lambasting India’s move.
In early June, former Indian Army Chief and current governor of Arunachal Pradesh General J.J.
Singh announced that between 50,000 and 60,000 troops will be deployed along the Line of
Actual Control on top of future infrastructure and road development projects. In addition to the
infantry placements, the Indian Air Force will also open a newly refurbished airbase in Tezpur
near Assam. Four nuclear-capable Sukhoi-30 MKI fighter jets arrived there June 13, with plans
to increase this to squadron strength of 18 aircraft.
From the Indian perspective, this bolstering of defenses along the border is in response to well-
established Chinese fortifications on the other side, including transport infrastructure. In April
2008, Indian Defense Minister A K Antony visited the region and expressed surprise at the
sophistication of Chinese military structures within the area.
On June 9, the Chinese Global Times published an editorial entitled “India’s Unwise Military
Moves,” which denounced India’s troop deployment. A thinly veiled warning was explicit
within the article: “India’s current course can only lead to a rivalry between the two countries.
India needs to consider whether or not it can afford the consequences of a potential confrontation
with China.” An affiliate of the People’s Daily published a Chinese language article on June 12
which translates to “India is a paper tiger and its use of use will be trounced, say experts.” It is a
provocative article, even referring to India as a paper tiger is a throwback to the language of
Mao.
However, Chinese Foreign Ministry spokesman Qin Gang was much more conciliatory, saying
on June 11, “China and India have never demarcated their border. To resolve the border issues at
an early date is one of the ten strategies of developing China-India relations set by leaders of
both countries. We are willing to pursue a fair and reasonable solution through negotiations with
India.” President Hu and Prime Minister Singh met last week on the sidelines of the SCO and
BRIC summits at Yekaterinburg, Russia. Indian officials then announced that “the next meeting
of the Special Representatives tasked with resolving the boundary question was slated for August
7 and 8 in New Delhi.”
After fighting a brief border war in 1962, the demarcation of the 3500km border between China
and India remains unsolved. China came out in a better position after the confrontation, due in
part to superior forces and supply lines. Of the 14 countries that China borders, it is only with
India that the issue of territorial demarcation remains unresolved.
In particular, Arunachal Pradesh province in northeastern India has continued to be a bone of
significant contention with increased rhetoric from both sides over the past year. Last January,
Indian Prime Minister Manmohan Singh had a very successful three day visit to China. Yet,
later that month, Singh went on a two day visit to Arunachal Pradesh and publicly stated that
Arunachal Pradesh is part of India. This drew strong protests from Beijing, where the Chinese
Foreign Ministry lodged an official complaint with the Indian Embassy.
Still, the likelihood of a military border confrontation between India and China remains a low,
but existential, possibility. Human error or a misreading of events could be the unintentional
trigger for confrontation. An Indian military transport plane crashed very near the Chinese line
of control, resulting in thirteen fatalities, on June 10; to date this crash has been reported as an
accident.
Bilateral trade between the two countries has shown dramatic growth over the past eight years.
In 2000, China exported approximately $1.5 billion worth of goods to India; in 2008 that figure
was $32 billion. India’s exports to China in 2000 totaled only $760 million, but by 2008, this
figure had grown to over $20 billion. Both countries classify themselves as developing, and both
will become more relevant in global affairs as their economies continue to grow.
Yet, there are notable elements of distrust between the two countries, which will need to be
carefully managed in the future. Both traditional and non-traditional security threats – climate
change, water resources and energy needs – pose obstacles to bilateral relations.
South Asia has enough problems and does not need a military confrontation between India and
China added to that list. China has successfully negotiated border boundaries with former Soviet
states; earlier this year, Vietnam and China agreed upon the final demarcation of their land
border. This unresolved border dispute between China and India is an unnecessary impediment
to furthering ties between the two states.
China and India combined have over one third of the world’s population living within their
borders; it is for the benefit of these people that the leaders of both countries must resolve the
border question. The status quo has existed for over 45 years, and it is difficult to understand
why two leading states like China and India cannot negotiate and agree on a political resolution
to this matter. Bilateral relations will dramatically improve, as will economic ties, once these
two determine the international boundary that separates them. In the current scenario there are
two losers, China and India, and this need not be the case.

COOPERATION BETWEEN TWO COUNTRIES IN

INTERNATIONAL AFFAIRS
Facing with the complicated and rapidly changing international situation, China and India hold
similar or identical views towards major international issues and bilateral cooperation on
international and regional affairs have been strengthened continuously. As two biggest
developing countries in the world, China and India enjoy broad convergence on vindicating the
legitimate interests of developing countries and establishing a just and reasonable international
political and economic order. A stable, normal and friendly Sino-Indian relations are beneficial
to the peace, stability and development of Asia and the world as a whole.

IMPORTANT BILATERAL DOCUMENTS BETWEEN INDIA-

CHINA

Trade Agreement between the Government of the People's Republic of China and the
Government of the Republic of India
(signed in August 1984)
Agreement on Cultural Cooperation between the Government of the People's Republic of China
and the Government of the Republic of India
(signed in May 1988)
Agreement between the Government of the People's Republic of China and the Government of
the Republic of India on Maintenance Peace and Tranquillity along the Line of Actual Control in
the China-India Border Areas
(signed in September 1993)
Agreement between the Government of the People's Republic of China and the Government of
the Republic of India on Confidence Building Measures in the Military Field along the Line of
Actual Control in the China-India Border Areas
(signed in November 1996)

BIBLIOGRAPHY
* www.indiaexpress.com/indepth/newshtml/cat1/indextp65-1.html

* www.indiaonweb.com/Content-95/INDIA+VS+CHINA.html

* www.southasiaanalysis.org/%5Cpapers2%5Cpaper172.htm

* www.acus.org/new_atlanticist/china-india-relations-unresolved-

border-and-60000-military-personnel-deployed