Long and Winding Road of India-China Relations

Syllabus: GS2/International Relation

Context

• India and China, two of the world’s most populous and influential nations, share a complex and multifaceted relationship. Over the years, their interactions have been marked by cooperation, competition, and conflict.

India-China Relation: Historical Background

• After India’s Independence: India was among the first countries to recognize the People’s Republic of China in 1950, formally establishing diplomatic ties on April 1, 1950.
  • It was exemplified by the Panchsheel Agreement (1954), which laid the foundation for peaceful coexistence, and slogan ‘Hindi-Chini Bhai-Bhai’ (Indians and Chinese are brothers) symbolized the early optimism.
  • However, tensions emerged over territorial disputes, particularly in Aksai Chin and Arunachal Pradesh (Sino-Indian War of 1962).
• Cold War and Strategic Divergences (1962–1990s): China aligned itself with Pakistan and the United States, while India deepened ties with the Soviet Union.
  • Border skirmishes continued, most notably in 1967 (Nathu La and Cho La clashes) and 1987 (Sumdorong Chu Standoff).
  • India established a Joint Working Group on the boundary issue and paved the way for improved diplomatic engagement in 1988 after Prime Minister Rajiv Gandhi’s visit to China.
• Era of Engagement and Economic Cooperation (1990s–2010s):
  • 1993 & 1996: Agreements on the Maintenance of Peace and Tranquility and Confidence-Building Measures along the Line of Actual Control (LAC).
  • 2005: Political Parameters and Guiding Principles for Border Settlements; Strategic and Cooperative Partnership
  • Trade relations flourished, with China becoming India’s largest trading partner. Economic engagement peaked with initiatives like the BRICS alliance and participation in regional forums such as the Shanghai Cooperation Organization (SCO).
• Rising Tensions and Border Confrontations (2010s–Present): 
  • 2013: Depsang standoff, and Border Defence Co-operation Agreement;
  • 2014: Chumar incident during President Xi Jinping’s visit to India.
  • 2017: Doklam standoff, where Indian and Chinese troops faced off for 73 days.
  • 2020: Galwan Valley clash, the deadliest confrontation in decades, leading to casualties on both sides. Military tensions remain high along the LAC, despite multiple rounds of talks.

Current Dynamics: Key Areas of Conflict

• Economic Ties: Despite tensions, bilateral trade remains significant, with China being India’s largest source of imports(bilateral trade crossed $125 billion in 2024, with 1.9% year-on-year growth).
  • However, the trade imbalance remains a concern for India.
  • India has imposed restrictions on Chinese investments and apps due to security concerns.
• Geopolitical Rivalry: Competition in the Indo-Pacific, China’s ties with Pakistan, expansion in the Indian Ocean, and Belt and Road Initiative (BRI) challenge India’s strategic interests.
• Border Disputes: The LAC remains a flashpoint, with frequent skirmishes and military build-ups. Ongoing tensions in Ladakh, Arunachal Pradesh, and Sikkim.
  • Efforts to resolve the border issue through diplomatic and military channels continue, but progress has been slow, and border tensions persist.

Pathways for the Future

• Economic Diversification: Both countries can benefit from deeper engagement in sectors such as renewable energy, digital technology, and infrastructure development.
  • India must reduce dependency on Chinese imports while promoting domestic industries.
  • Trade agreements addressing the imbalance can foster stronger economic bonds.
• Military Preparedness: Strengthening border infrastructure and strategic partnerships with allies.
  • Sustained military and diplomatic talks are crucial for preventing conflicts.
  • Confidence-building measures (CBMs) along the border can enhance trust.
  • Working Mechanism for Consultation & Coordination (WMCC) and Corps Commander-level talks have been key platforms for negotiations.
• Regional and Global Cooperation: Climate change, trade, and counter-terrorism offer potential areas of collaboration.
  • Regular summits and diplomatic dialogues are crucial.
• Cultural and Educational Exchanges: Encouraging student exchanges, tourism, and academic collaboration can improve people-to-people relations.

Conclusion

• India-China relations remain complex, marked by both cooperation and conflict. While economic ties provide a foundation for engagement, border tensions and strategic competition continue to shape the trajectory of their relationship.
• Managing this relationship requires careful diplomacy, strategic foresight, and pragmatic decision-making.

Source: TH