Abstract

This chapter examines the state of India–China relations by outlining the Chinese and Indian perspectives of each other and the historical, economic and strategic determinants of India's China policy. It focuses on the strategies and tools available to Indian policy-makers to cope with China's rise. From the Chinese point of view, India is seen as an emerging South Asian ‘regional power’ rather than a potential global player. The Chinese are concerned that the United States–India nuclear deal and related agreements—if implemented—would bring about a major shift in the balance of power in South Asia that is presently tilted in China’s favour. Indian military officials routinely express anxiety regarding China’s efforts to modernise its military and supply arms to India’s neighbouring countries. Several commentaries in Chinese language sources confirm a shift towards a tougher Chinese stance on the territorial dispute with India. China is the only major power that is lukewarm to India regaining access to the international nuclear energy market.

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