India–China relations: issues and emerging trends

Abstract

‘Flowering relations’ between India and China in the early 1950s were based on peaceful co‐existence. But these withered and faded in an atmosphere of mutual hostility following the 1962 war between the two countries. A new phase of improved ties began with Indian Prime Minister Rajiv Gandhi's visit to China in December 1988, resulting in the setting up of a Joint Working Group to defuse tension and ensure peace and tranquillity on the borders. Since the end of the Cold War and the demise of the Soviet Union, India–China relations have not only steadily improved, but have strengthened in diverse fields of mutual interest. Apart from this, the contentious boundary issue has registered substantial progress, although uncertainty looms large as to when it will be finally resolved. Despite divergences in the perceptions and approaches of New Delhi and Beijing on issues such as Sino‐Pakistani military and strategic ties and India's Tibet policy, both countries have enormous potential and opportunities to expand and deepen their economic and trade ties in their mutual interest. Emerging trends indicate that both India and China would remain highly competitive in the global and regional trade and economic domain, and would continue to compete for status and influence in the Asian region in general, and in South Asia in particular.