China- India relations aren’t black and white
This year marks an eventful time in China- India relations. At the beginning of the year, India media collectively criticized the Chinese government, alleging China adopted double standards against terrorism. In June, India suffered a setback in its bid to join the Nuclear Suppliers Group ( NSG) after the group’s members, including China, opposed the bid but India has singled out China for barring membership. In July, India refused to renew visas for three journalists working for China’s official Xinhua News Agency following concerns from Indian intelligence agencies. The move was seen by some as revenge against China over the NSG veto. This series of negative events has caused some observers to assess China- India relations as simply black and white.
In reality, ties between big nations have always been complex and require a multi- dimensional perspective. Viewed in this more rounded way, the conclusion on China- India relations becomes quite different.
In terms of economic and trade relations, while trade volume between China and India is less than that between China and Vietnam, China is actually India’s largest trading partner. On a global level, close collaboration between the two nations drives bilateral relations where the two economies are complementary. But at the regional level, India and China are competitors.
The changes in the landscape of global economic governance bring similar external challenges to both China and India and such a situation also prompts a development based around extensive common interests.
The US- initiated Trans- Pacific Partnership ( TPP) and Transatlantic Trade and Investment Partnership ( TTIP) as well as the China- proposed Free Trade Area of the Asia Pacific ( FTAAP) and negotiations for Regional Comprehensive Economic Partnership ( RCEP) are presently reshaping the regional economic landscape. However, India is not only being excluded from TPP, but is also not a member of the Asia- Pacific Economic Cooperation ( APEC). Thus, India and China, are equally motivated to promote a fair, reasonable and new international economic order, where they share similar interests and goals. Additionally, the launch of a bilateral consultative mechanism on WTO- related issues is a positive move which enhances collaboration between the two nations. India had also been actively involved in preparations toward establishing the China- initiated Asian Investment Infrastructure Bank ( AIIB) and the multilateral development bank initiated by BRICS nations, the New Development Bank ( NDB).
However, at the regional level, China and India face competition against each other. China’s One Belt, One Road initiative aims to promote multidimensional connectivity in finance, infrastructure and other areas and open up markets in the East and West. This has been viewed by many observers as a challenge to India’s ambition in the South Asia region. At the same time, India proposed its own integrative plans with countries in the region including the regional bloc BBIN ( Bangladesh, Bhutan, India and Nepal), Project Mausam and Link West. This competition also spills over to Southeast and Central Asia, the Persian Gulf and Indian Ocean.
Yet, the two economies are quite complementary where the scope for further economic cooperation is continuously expanding. The two countries can align China’s “Made in China 2025” and “Internet Plus” with India’s “Make in India” and “Digital India.” They can also tap potential for practical cooperation in fields such as railways and industrial capacity.
As such, it is irrational and impractical to define China- India relations in black and white terms. A multi- dimensional perspective does not contradict the crux of the bilateral relationship. Back in 2014 when Chinese President Xi Jinping proposed that they should become closer partners for development as they jointly pursue national renewal and that they should be global partners in strategic coordination of a just and equal international order. The two countries agreed to build a closer partnership as the foundation of their bilateral relations during Prime Minister Narendra Modi’s visit to China in 2015. This change in the two countries’ relationship reflects the renewed recognition of a bilateral relationship by both leaders and reshapes the expectation for the development of bilateral ties in the future.
In reality, ties between big nations have always been complex and require a multi- dimensional perspective.