ECONOMIC ASPECT OF THE GEOPOLITICAL CONFLICT/TENSION BETWEEN INDIA AND CHINA
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India-China geopolitical relations have always been marked by
tension. With a history of border dispute and the 1962 war between the two
powers, China has always been keen on acquiring some of the Indian territory at
the border. India was not prepared in 1962. Nor it was a power at par with
China or one of world’s fastest growing economies at the time. Now, things have
changed quite a bit, but still tensions between China and India remain though
this has assumed a different dynamic.
For a very long time, these tensions between the two superpowers
were not violent. In 2020, amid the coronavirus pandemic, when the world was
still struggling and recovering from the pandemic, stone pelting started from
both sides. Since then, the two nuclear powers have been in constant conflict.
The tension now is not just physical as it is the case with every conflict
nowadays. It is economical, diplomatic and political as well. This has been so
since 2020, when India took steps to weaken China economically by banning 54
Chinese mobile applications, on which major active users were Indians only. The
famous Tik Tok, which was the heart and soul of young Indian population, was
also banned. It was estimated that $6 billion loss was incurred by China
because of India’s ban on TikTok.
India and China have been at
loggerheads since the 2020 conflict and the relations between both have
nosedived thereafter. To resolve this, 15 rounds of talks have so far been held
between the two neighbors though without much positive outcome. Dialogues and
exchanges have taken place between the foreign ministers of two countries. Yi,
the Chinese foreign minister, said “China and India have encountered "some
setbacks" in the bilateral relations in recent years and called for
managing their differences over the boundary issue through equal footing
consultations for a "fair and equitable" settlement. He also said
that some forces have always sought to stoke tensions between China and India.
Obviously, he was referring to the US. The Indian external affairs minister S
Jaishankar has also commented on the same by saying, “The relations between the two are in a very difficult
phase. He said that the state of the border will determine the state of the
relationship. When a large country disregards written commitments, I think it's
an issue of legitimate concern for the entire international community.”
The current Ukraine-Russia conflict has pushed Asian countries to
recharter trade mechanism in order to boost the post-COVID recovery. But still
tensions between India and China remain as India now has developed a feeling
that the ties between two countries cannot move forward unless Beijing ends its
incursion across the Line of Actual Control (LAC). There is no argument against
the fact that Indian policy makers are not looking at words, but actions. There
have been talks but actions were not commensurate to words, so the relations
remain the same.
Despite the geopolitical tensions between the two countries, the
bilateral trade between the two nations crossed a record $125.6 Billion in
2021. To compare it was just 1.83 billion in 2001. But clearly the distrust is
still there as India has closed the door for Chinese 5G companies. The relations between India and
China have for long been in the critical zone. This may well improve as talks
are being held and China’s foreign minister Wang Yi may be visiting India this
month. Both countries would be hoping for positive talks as it would benefit
them both economically and in diplomatic terms.
REFERENCES
https://warontherocks.com/2021/10/india-is-not-sitting-on-the-geopolitical-fence/
http://yris.yira.org/comments/4677
https://en.m.wikipedia.org/wiki/China%E2%80%93India_relations
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