India-China Relations
China is India's largest trading partner. Both countries aim to raise bilateral trade to $100 billion by 2015. In 2010, bilateral trade was $61.74 billion, with a trade deficit of $20.02 billion. By 2011, bilateral trade grew to $73.9 billion, with the deficit increasing to $27.08 billion. India and China aim to deepen cooperation through trade and investment. Both countries are working towards sustainable development.
Cooperation Areas
India and China have made significant strides in areas like oil and gas exploration and infrastructure development, focusing on shared benefits.
Agni-V Missile Impact
- Agni-V is India's first intercontinental ballistic missile.
- China has downplayed its effect, emphasizing cooperation.
- Chinese media called Agni-V a "political missile" aimed at China.
- China already has ballistic missiles like Dongfeng DF-31.
Key Diplomatic Visits
- The Indian President visited China, discussing Tibet as part of China and ensuring no anti-China actions from Indian soil.
- Chinese Prime Minister Wen Jiabao visited India, suggesting a Free Trade Agreement (FTA).
- Both countries receive large amounts of Foreign Direct Investment (FDI).
Problems Between India and China
- China is building strategic ports and increasing missile forces around India.
- India's trade deficit with China reached $24-25 billion in 2010.
- China opposes India’s bid for a permanent seat on the UN Security Council.
- Disputes over Arunachal Pradesh and Chinese investments in Pakistan-controlled Kashmir continue.
Border Dispute Talks
From 1981 to 1985, India and China held multiple rounds of talks to resolve border disputes, but no final solution was reached.
India-China Relations---Bilateral Talks
Mechanism for Consultation on India-China Border Affairs
India and China established a mechanism to consult on border issues. The mechanism is headed by high-level officials. The goal is to resolve issues and maintain peace along the Line of Actual Control (LAC). A 15th meeting was postponed due to China's objections in 2011.
Bilateral Relations
Both nations agreed to increase trade, targeting $60 billion by 2010. The "Shared Vision for the 21st Century" aims for cooperation and global prosperity.
Positive Outcomes
- China supports India's stance on nuclear issues.
- China recognizes India’s role in the UN Security Council.
- Both nations aim to expand bilateral trade and consider a Regional Trade Agreement (RTA).
Border Talks
Several rounds of talks have occurred without resolving key disputes. Both sides agree to maintain peace while searching for solutions.
Economic Cooperation
Trade between the two countries has grown significantly, with China becoming India's largest trading partner. Chinese companies contribute to India's power and infrastructure projects.
Memorandums of Understanding (MoUs)
Agreements include cooperation in finance, power, and green technology.
Challenges and Limitations
There has been little progress in resolving border disputes. China has yet to support India’s permanent seat at the UN Security Council.