India-China Relations

India gained independence in 1947, meanwhile, China came to be known & rose as the People’s Republic of China on 1st October 1949. India became the 1st non-communist country to establish an embassy in China. Since 1950, both India & China have had diplomatic relations. The Panchsheel Agreement (Five Principles of Peaceful Coexistence) was established by India & China jointly in 1954. Annually, India & China celebrate the 1^st of April as the establishment of diplomatic relations which began in 1950.

India-China Relations

Current Status of India-China Relations

India- China relations took a severe toll especially in 2020, after the clash between the Indian & Chinese troops, in the Galwan Valley.

At present, China looks forward in maintaining a cordial relationship with India, apart from contentious issues like the unresolved border dispute. China conducts business, diplomacy & commerce with India. However Chinese leaders view India as an over-sized middle power. Recently, Beijing views New Delhi as a major threat to national security & as an obstacle in China being the dominant Asian power.

1. Political Relations

India became the 2nd non- socialist & the 1st country in South Asia to recognize the People’s Republic of China (PRC). To ensure stability & to bring in substance to bilateral ties between the two nations, the Agreement on the Maintenance of Peace & Tranquility along the Line of Actual Control (LAC) on the India-China Border Areas was signed. Peaceful cultural exchange is there along with a political exchange in the form of the Panchsheel Treaty. 

In September 2014, President Xi Jinping visited India, this was seen as a new face of the bilateral engagement between India- China. They were seen as close partners for growth & development. MoU was signed to facilitate exchanges between Indian states and Chinese provinces. A High-Level Dialogue Mechanism on Counter-Terrorism & Security has been organised along with 20 Inter-parliamentary friendship groups, between India-China.

2. Commercial & Economic Relations

In the global supply chain, China has a major role to play. India heavily depends on Chinese imports. India-China trade went up to over $67 billion in the first half of 2022. In 2019, the trade volume between China & India was $92.68 billion. China accounted for over 5% of India’s total exports in the financial year 2019-20 & more than 14% of imports.

The Silk Road was a major trade route between India & China during ancient times. Historically, we have seen China’s involvement in the opium trade with the East India Company, which exported opium grown in India.

Data from the General Administration of Customs of the People’s Republic of China (GACC) shows that from January to November 2023, India’s trade deficit with China was $90.27 billion — lower than 2022. Indian exports to China rose to $16.99 billion in January-November 2023 from $16.25 billion in the same period in 2022 — a 4.6 percent increase. While, Chinese exports to India fell to $107.27 billion in January-November 2023 from $108.69 billion in the same period in 2022 — a 1.3 percent decrease.

3. Military Relations

Two areas which see conflict & require cooperation between India- China are: Defence cooperation & military engagement. The two countries have extended their strategic & military relations.

• The Hand-in-Hand Joint Anti-terrorists Training by China-India began in December 2008 at Belgaum, Karnataka. The joint military exercise was carried out as per the Memorandum of Understanding for Exchange & Cooperation in the Field of Defence signed in 2006.

• India has moved in additional divisions, tanks and artillery across the LAC to match Chinese deployments.

• Further, India has approved the purchase of 33 Russian fighter jets and upgrades to 59 war planes at a cost of Rs. 18,148 crore.

4. Cultural Relations

Dating back to centuries, cultural exchanges have been there between India & China. Evidence is there about the conceptual & linguistic exchanges between the Shang-Zhou civilization & the ancient Vedic civilization between 1500 & 1000 B.C.

• During the 1st three centuries AD, several Buddhist pilgrims & scholars traveled to China via the historic “silk route” .

• The Buddhist temple built inside the White Horse Temple complex in Luoyang, Henan Province by India is a reflection of the historical civilizational contact between India & China. It was said it was built to honour the Indian monks, Kashyapa Matanga & Dharmaratna.

• Buddhism is one of the major cultural ties which shapes India & China’s relations over the years.

• Both countries have agreed on co-producing movies.

• China was one of the co-sponsors of the UN resolution which made 21st June as International Day of Yoga.

• The two countries have established pairs of sister cities & provinces. Examples: Fujian Province, Tamil Nadu State, Quanzhou City & Chennai City.

5. Technological Relations

India & China have held Joint Research workshops on Science & Technological innovation. They have helped each other in the fields of emerging technology & Chinese tech giants have invested billions of dollars into India’s biggest startups. 

China’s smartphone makers dominate the country’s market. Indian companies have set up IT corridors in China. China having supremacy in electric vehicles & lithium batteries, could make & sell more electric cars in India than any other manufacturer in the short run.

In Bengaluru, the R&D center of Huawei’s is the largest in the world. Chinese manufacturer Haier has plants in Pune & Noida. Oppo, a Chinese smartphone maker has its 110-acre super-factory in Noida. Shanghai tops the total investment from India & is also home to IT majors, including TCS, Infosys & NIIT.

Zhejiang & Jiangsu are home to manufacturing units, including Dr. Reddy’s Laboratories, Mahindra & Mahindra, Laxmi Machine Works, Tata Jaguar Land Rover & Sundram Fasteners.

6. Educational Relations

• The Education Exchange Programme (EEP) in 2006 was signed between India & China for educational cooperation, in which both sides will award government scholarships to 25 students attending recognized institutions of higher learning in each other’s country.

• For Chinese students studying Hindi at the Kendriya Hindi Sansthan in Agra, scholarships are granted annually.

• Also a lot of medical students from India study in China.

Relations between India and China

Type of Relation	Description
1. Political Relations	The Agreement on the Maintenance of Peace & Tranquility along the Line of Actual Control (LAC) on the India-China Border Areas was signed to bring stability & substance to bilateral ties.  Peaceful cultural exchange is there along with a political exchange in the form of the Panchsheel Treaty.
2. Commercial & Economic Relations	China having a significant role in the global supply chain & India heavily depends on Chinese imports.
3. Military Relations	Two areas which see conflict & require cooperation between India- China are: Defence cooperation & military engagement. The two countries have extended their strategic & military relations.
4. Cultural Relations	Buddhism & the Silk Route are major factors which form cultural ties between India & China. They have also agreed on co-producing movies.
5. Technological Relations	In the field of Science & Technology, there have been a lot of investments from both the sides. IT companies & mobile-manufacturing companies in India & China provide a technological edge.
6. Educational Relations	Chinese students receive scholarship from India, & vice-versa. Large no. of Indian students study medicine in China.

Indian Community in China

Many Indian nationals/expatriates live in mainland China as of 2015, they are mostly students, traders & professionals who work in Indian IT companies & banks.

Some of the Indians in China are migrants from India to China & their descendants. Historically, Indians have played a role in disseminating Buddhism in China & influencing Taoism indirectly.

There is a large community of Indians living in Hong Kong. Majority of Indians are East Indian Bengali, Bihari as well as a high proportion of North Indians (including Rajputs, Marathas & Punjabis) who live in China.

What is the near-term outlook for the relationship?

Both nations, keeping in mind the historical & cultural ties they share, must engage with each other in a better manner when it come to bilateral relations by increasing trust & confidence. India-China together, must look for a pragmatic solution for the existing problems between them. Its upon them to maintain stability in South Asia, which is beneficial for the people. 

India-China should adhere to the Panchsheel (Five Principles of Peaceful Coexistence) & must strengthen coordination on international & regional affairs by more regular & high-level political engagement. They must go ahead with the spirit of being good neighbours, friendship, unity & cooperation.

Conclusion

China & India continue to have a volatile relationship. The seeds of distrust & suspicion have cast a dark shadow over Beijing-New Delhi ties for six decades — since the 1962 border war. These differences continue to exist & have been reinforced by the recent border disputes. In the past, Sino-Indian tensions were largely confined to geographical boundaries, mainly the land borders but now it has expanded to the maritime realm as well in the Indian Ocean region & beyond. Moreover, both China & India compete for influence, power, dominion & status on the global stage, majorly for leading the Global South countries. Bilateral relations between India & China are constantly in the limelight.

FAQs on India-China Relations

Define Indo-China relations.

India- China Relations or the Sino-Indian Relations refers to the bilateral relationship between the People’s Republic of China (PRC) & the Republic of India. Both the countries today play an essential role in the entire world. 

How does Beijing view New Delhi as, at present?

At present, China aims at establishing a cordial relationship with India, setting aside contentious issues such as the unresolved border dispute. China conducts business-as-usual diplomacy & commerce with India. Its leaders perceive India as an over-sized middle power with great power pretentions. Recently, Beijing sees New Delhi as a major threat to national security & as an obstacle in China being the dominant Asian power.

What is the border between India & China known as?

India & China’s border is called the McMahon Line. The then, foreign secretary of the British-run Government of India & the chief negotiator of the convention at Shimla, Sir Henry McMahon drew the McMahon line.

Define China’s Belt & Road initiative.

China’s Belt & Road Initiative (BRI) is a strategy initiated by the People’s Republic of China which aims to connect Asia with Africa & Europe via land & maritime networks. This will improve regional integration, increase trade & stimulate economic growth. India-China bilateral relationship have suffered setbacks due to this as well.

What are the areas of concern between Indo-China?

There are several issues of concern between India & China’s relations. Since the beginning, India has opposed the Belt Road Initiative, citing the China-Pakistan Economic Corridor on the grounds & with proof, that it violates its sovereignty. China is not in favour of India being a permanent member in the NSG & the UN Security Council. It has opposed this. India has a significant trade imbalance with China. India’s military & commercial activities in the South China Sea have alarmed China. The increasing Chinese actions in the Indian Ocean, have also been a constant source of worry for India. Overall, these issues of conflict between India-China can be solved through dialogue & discussion & mutual cooperation.