Indo – China Relations

• Introduction:
• Relations date back to ancient times
Transmission of Buddhism
• Trade relations via Silk Route Since 1950s -
Border disputes,
• now resolved China is India’s largest trading
partner
• Positive demography is where China is lagging
• Tibet & The Border Issue:
• 1949 – Nehru declared control over Aksai Chin
1950 – Chinese People’s Liberation Army
invaded Tibet
• 1956 – Chinese Premier, Zhou Enlai stated no
claims over Indian controlled territory Later
argued that Aksai Chin was alreayunder
ChineseJurisdiction
• Tibet & The Border Issue:
• Tibet & The Border Issue 8 China did not
regard the region as “Indian Controlled”
• China regarded The MacDonald Line as the
relevant border 1956 – 67 Chinese extended
their influence by building a road
• India protested against these moves & look for
political solution to ensure stable borders
• Sino - Indian War 10 Date - 20 October to 21
November 1962 Location - South Xinjiang
(Aksai Chin) and Arunachal Pradesh (South
Tibet, North-East Frontier Agency) Result -
Chinese military victory.
• Territorial Changes - China controls Tibet and
area of Aksai China; India controls North East
area of Arunachal Pradesh
• Also known as Sino-Indian Border Conflict Cause
– Dispute over Aksai Chin & A.P. border region
• Aksai Chin claimed by India to belong to Kashmir
& claimed by China to be a part of Xinjiang
Arunachal Pradesh also claimed by both nations
Started with short border wars Notable for the
harsh conditions Cease – fire on 21 st Nov
Entered 20Km beyond its restricted line of control
• Events in the last Decade:
• Events in the last Decade 2000 Indian President K. R.
Narayanan visited China Gradual re-engagement of
Indian and Chinese diplomacy 2002 Chinese Premier
Zhu Rongji visited India Focus on economic issues
Events in the last Decade 2003 Prime Minister, Atal
Bihari Vajpayee visited China
• Both nations moved towards resolving their border
disputes 2004 Surpassed $10 billion mark for the first
time Milestone in China-India bilateral trade
• Events in the last Decade:
2005 Chinese Premier Wen Jiabao visited Bangalore Push
for increased China - India cooperation in high-tech
industries
• Wen stated 21 st century will be “Asian Century for IT
industry 2006 Chinese President, Hu Jintao visited India –
declared “A year of friendship”
• July 6, Opening up of Nathula and Jelepla Passes in Sikkim
benefited both nations
Events in the last Decade 2007 In December, China & India
held their 1 st ever joint war games Sign “To build trust”
100 soldiers from both sides participated in the drill –
lasted for 9 days Held in China’s Yunnan Province
• Events in the last Decade:
• Events in the last Decade 2008 In January, Prime Minister
Manmohan Singh visited China Met with President Hu Jintao and
Premier Wen Jiabao Bilateral discussions related to trade,
commerce, defense , military, and various other issues Milestone in
China India bilateral trade, surpassing the $37 billion
• Events in the last Decade 19 2008 During Sichuan earthquake, India
offered aid to help the earthquake victims
• 2010 Chinese premier Wen Jiabao met Indian Prime Minister
Manmohan Singh in Hanoi Wen stated that China is willing to give
full play to bilateral economics and trade cooperation
• Using the big Indian market – to dump their products Killing the Indian
units Example Last year during Diwali , china made crackers were sold
in the Indian market. These crackers reportedly contained Sulphur .
• Sulphur is more harmful than Nitrate. Since the Chinese crackers were
cheaper than the Indian crackers, so they managed to attract innocent
Indian lot. As a result the Indian cracker industry saw a decline in the
revenue .
Due to cheaper prices of Chinese products – popular among the Indian
masses negative effect on our own manufacturing units
• For instance Data reveals that 60% of the Industrial units in the region
of Thane and Bhivandi near Mumbai have been closed down. (Indian
cottage industries i.e. handicraft)
• Due to its cheap labor China offers low – priced imports also affected
Indian export market
• China replaced Indian goods in the foreign market Due to being cheaply
produced fact to be noted: China manufactures both low as well as high
quality products
• Eg : the manufacturing of Apple iPhone, Nokia Handset etc. But India only
imports cheap product
• China is ruling in many markets India is the hub of diverse business
opportunities Slowly yet steadily, Chinese products are dominating similar
Indian products Eg : Electronics , crackers, statues, apparels, etc
• Eg : In 2010, flooding of the Indian markets with Chinese made statues -
welcomed with open arms by the Indian consumers
• ndia’s Strengths:
• India’s Strengths Strong science and engineering capabilities centred in chemical and software areas Is becoming worlds service centre for software development and back office offshore
outsourcing Is also becoming centre of innovation for MNCs Jumped from growth rate of 2-3% to 6-8% last decade Has large critical mass of educated, skilled, and knowledgeable workers
Has network of successful Indians in US and Europe providing links to markets, technology, and finance
•

• Future Expectations
•
PowerPoint Presentation:
• 52
•
Facts on Indian Economy:
• Facts on Indian Economy 53 India would achieve a growth rate of 10% says Economist, Mr. Kaushik Basu who is now Chief Economic Advisor Indian economy growing at 7.9% which is
internationally superb Very few economies have recovered so fast Growth of 7.5% - 8% is in the books 9% – 10% growth within India’s reach according to the finance minister Within 5
years, India’s growth rate crossing over China’s, according to him SOURCE: http://www.in.com/videos/watchvideo-pm-speaks-on-indiachina-relations-5339527.html
•
Conclusion:
• Conclusion 54 India & China together constitute 1/3 rd of the total world population and 1/4 th of world’s skilled labour force. They are two future economies to reckon with! For
sustainable trade relationship between the two nations, its imperative that they move from competition to cooperation. As 20 th century was US century, 21 st century would be Asian
century where the two nations would lead SO, IT COULD BE CHINA & INDIA IN THE FUTURE, NOT CHINA v/s INDIA
•
PowerPoint Presentation:
• 55
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• China’s Strengths:
• China’s Strengths Very high economic growth,
large internal market Very large supply of excess
labour will continue to give it low wage
advantage Becoming world’s manufacturing base
Very high savings and investment rate M oving
rapidly up from labour intensive to more
technology intensive exports Critical mass in
R&D, decreases its competitiveness Strong
investments in education and training
•
Facts on Indian Economy:
• Facts on Indian Economy 53 India would achieve a growth rate of 10% says
Economist, Mr. Kaushik Basu who is now Chief Economic Advisor Indian
economy growing at 7.9% which is internationally superb Very few
economies have recovered so fast Growth of 7.5% - 8% is in the books 9%
– 10% growth within India’s reach according to the finance minister Within
5 years, India’s growth rate crossing over China’s, according to him
Conclusion:
• Conclusion 54 India & China together constitute 1/3 rd of the total world
population and 1/4 th of world’s skilled labour force. They are two future
economies to reckon with! For sustainable trade relationship between the
two nations, its imperative that they move from competition to
cooperation. As 20 th century was US century, 21 st century would be
Asian century where the two nations would lead SO, IT COULD BE CHINA &
INDIA IN THE FUTURE,