News / Asia

    Experts: China-India Relationship Will Need More Than Economic Bliss

    Indian Prime Minister Narendra Modi (L) shakes hands with Chinese President Xi Jinping during the BRICS summit in Fortaleza, Brazil, In this photograph received from the Press Information Bureau (PIB) and taken on July 14, 2014,
    Indian Prime Minister Narendra Modi (L) shakes hands with Chinese President Xi Jinping during the BRICS summit in Fortaleza, Brazil, In this photograph received from the Press Information Bureau (PIB) and taken on July 14, 2014,

    The recent meeting between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping on the sidelines of the BRICS summit in Fortaleza, Brazil pointed to promising signs in bilateral relations. 

    The two countries appeared ready to move beyond border issues to create positive momentum in a more important arena – economic cooperation. But analysts interviewed by VOA suggest future relations between the two neighbors will depend on more than economic bliss.

    A key sign of the desire for closer ties coming out of Fortaleza was Xi’s invitation for Modi to attend the Asia-Pacific Economic Cooperation (APEC) meeting in China in November. While membership is voted on by the entire APEC group, Xi's invitation is seen a courting India on a global scale. Xi has already accepted an invitation from Modi to travel to India in September.

    Border issue

    The border issue, over which China and India fought a brief war in 1962, still erupts in occassional  border skirmishes, and is still an important issue to resolve -- especially for India. At the Fortaleza meeting, Modi said negotiating an agreement on their border differences would set an example for the world on conflict resolution. 

    Xi, however, was more intent on sending another message.

    “China and India are long-lasting strategic and cooperative partners, rather than rivals,” Xi said, according to Xinhua. As the two largest nations in the world, he argued China and India could have more influence combined than they currently have separately. 

    “If the two countries speak in one voice, the whole world will attentively listen,” the Chinese leader was quoted.

    Financial cooperation

    With the United States standing as the protector of much of East Asia in China’s disputes in the South China Sea, having India as a partner would give China some balance. In terms of specifics, however, the focus remains largely on economic cooperation.

    “The Chinese government [has] openly said that the China-India relationship in the 21st century would be the most vibrant, the relationship with the biggest potential,” said Haiyan Wang, managing partner of the China India Institute.

    China overtook the United States to become India’s largest trading partner this year, according to a study by the PHD Chamber of Commerce, an Indian trade group in New Delhi.

    “The China dream and the India dream are essentially in some way a common dream, to become richer, more prosperous,” said Wang. “[The] common pursuit of a common dream requires a peaceful coexistence and becoming a lot more pragmatic in finding ways to cooperate rather than just focus on the rivalry.”

    If the issue is economics, then one obstacle frequently cited by analysts is the perception that India’s trade deficit with China is too high. 

    However, Anil Gupta, professor at the Smith School of Business at the University of Maryland, believes this isn’t the case.

    “It’s not high because ultimately you cannot expect trade to be balanced with every country,” said Gupta.

    India’s trade deficit with China was $31 billion in 2013, which constituted only 20 percent of India’s total trade deficit.

    “If India is concerned about its trade deficit, which it must be, the problem isn’t China,” Gupta said.

    While the Indian government would like to see an increase in Chinese investments, some analysts argue that that China should look toward the Association of Southeast Asian Nations (ASEAN), for trade and investment opportunities as opposed to the Indian market.

    Forging trust

    But Girija Pande, of Apex Avalon Consulting, a consulting firm that looks at business in Asia Pacific markets, believes that India’s market is more attractive because of its size compared to ASEAN markets.

    “They [China] thought they would go into Vietnam or Thailand or Indonesia or many of the ASEAN countries. Now all of them are smaller markets and they are also export markets so they don’t have a home market which is large enough,” Pande said.

    Wang, from the China India Institute, believes that the more fundamental issue of trust and knowledge deficit between China and India must be overcome in order for economic relations to grow.

    Kerry Brown, a Professor of Chinese Politics at the University of Sydney, agrees. Writing recently in The Diplomat, Brown said the solution to better relations requires more than just increasing trade.

    They often act like they don’t really understand the relevance they have for each other beyond narrow border issues, nor do they speak a common geopolitical language,” said Brown. “For two countries that pride themselves on being ancient civilizations … these days China and India look like fumbling, nervous youngsters meeting on a first date.”

    The interesting question, according to Brown, is how the world is going to respond to their warming relationship – and whether it’s going to last.

    You May Like

    Video Russia's Expat Community Shrinking

    Russia's troubled economy, tensions with West have led hundreds of thousands of foreigners to leave for better opportunities

    Accelerating the Push Against Islamic State: What Will Work?

    Experts stress need to step up military action, address root causes of Muslims' disaffection, counter IS social media messages in a massive way

    Experts: N. Korean Abductions Sought to Halt Brain Drain

    Pyongyang abducted about 3,800 South Koreans and more than a dozen Japanese nationals in late 1970s

    This forum has been closed.
    Comment Sorting
    Comments
         
    by: Wangchuk from: NY
    July 25, 2014 10:50 AM
    Ever since the PRC invaded & occupied Tibet, the border with India has been tense and relations w/ China (at least since 1962) have been fraught w/ problems. China's "peaceful rise" will bring it in conflict w/ rising India (as well as other Asian neighbors). India and Tibet have never had a conflict. A free & independent Tibet will stabilize the border w/ India and improve relations between the two Asian giants.
    In Response

    by: Lt.Col.(Retd) JC JOSHI from: BANGALORE
    July 31, 2014 12:56 AM
    Thank you.

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    German Artists to Memorialize Refugees With Life Jacket Exhibiti
    X
    Hamada Elsaram
    February 05, 2016 4:30 PM
    Sold in every kind of shop in some Turkish port towns, life jackets have become a symbol of the refugee crisis that brought a million people to Europe in 2015.  On the shores of Lesbos, Greece, German artists collect discarded life jackets as they prepare an art installation they plan to display in Germany.  For VOA, Hamada Elrasam has this report from Lesbos, Greece.
    Video

    Video German Artists to Memorialize Refugees With Life Jacket Exhibit

    Sold in every kind of shop in some Turkish port towns, life jackets have become a symbol of the refugee crisis that brought a million people to Europe in 2015.  On the shores of Lesbos, Greece, German artists collect discarded life jackets as they prepare an art installation they plan to display in Germany.  For VOA, Hamada Elrasam has this report from Lesbos, Greece.
    Video

    Video E-readers Help Ease Africa's Book Shortage

    Millions of people in Africa can't read, and there's a chronic shortage of books. A non-profit organization called Worldreader is trying to help change all that one e-reader at a time. VOA’s Deborah Block tells us about a girls' school in Nairobi, Kenya where Worldreader is making a difference.
    Video

    Video Genius Lets World Share Its Knowledge

    Inspired by crowdsourcing companies like Wikipedia, Genius allows anyone to edit anything on the web, using its web annotation tool
    Video

    Video Former Drug CEO Martin Shkreli Angers US Lawmakers

    A former U.S. pharmaceutical business executive has angered lawmakers by refusing to explain why he raised the price of a life-saving pill by 5,000 percent. Martin Shkreli was removed from a congressional hearing on Thursday after citing his Fifth Amendment right to stay silent. Zlatica Hoke has more.
    Video

    Video Super Bowl TV Commercials are Super Business for Advertisers

    The Super Bowl, the championship clash between the two top teams in American Football, is the most-watched sporting event of the year, and advertisers are lining up and paying big bucks to get their commercials on the air. In fact, the TV commercials during the Super Bowl have become one of the most anticipated and popular features of the event. VOA's Brian Allen has a sneak peek of what you can expect to see when the big game goes to commercial break, and the real entertainment begins.
    Video

    Video In Philippines, Mixed Feelings About Greater US Military Presence

    In the Philippines, some who will be directly affected by a recent Supreme Court decision clearing the way for more United States troop visits are having mixed reactions.  The increased rotations come at a time when the Philippines is trying to build up its military in the face of growing maritime assertiveness from China.  From Bahile, Palawan on the coast of the South China Sea, Simone Orendain has this story.
    Video

    Video Microcephaly's Connection to Zika: Guilty Until Proven Innocent

    The Zika virus rarely causes problems for the people who get it, but it seems to be having a devastating impact on babies whose mothers are infected with Zika. VOA's Carol Pearson has more.
    Video

    Video Solar Innovation Provides Cheap, Clean Energy to Kenya Residents

    In Kenya, a company called M-Kopa Solar is providing clean energy to more than 300,000 homes across East Africa by allowing customers to "pay-as-you-go" via their cell phones. As Lenny Ruvaga reports from Kangemi, customers pay a small deposit for a solar unit and then pay less than a dollar a day to get clean energy to light up their homes or businesses.
    Video

    Video Stunning Artworks Attract Record Crowds, Thanks to Social Media

    A new exhibit at the oldest art museum in America is shattering attendance records. Thousands of visitors are lining up to see nine giant works of art that have gotten a much-deserved shot of viral marketing. The 150-year-old Smithsonian American Art Museum has never had a response quite like this. VOA's Julie Taboh reports.
    Video

    Video Apprenticeships Put Americans on Path Back to Work

    Trying to get more people into the U.S. workforce, the Obama administration last year announced $175 million in grants towards apprenticeship programs. VOA White House correspondent Aru Pande went inside one training center outside of Washington that has gained national recognition for helping put people on the path to employment.
    Video

    Video New Material May Reduce Concussion Effects

    As the 2016 National Football League season reaches its summit at the Super Bowl this coming Sunday (2/7), scientists are trying to learn how to more effectively protect football players from dangerous and damaging concussions. Researchers at Cardiff and Cambridge Universities say their origami-based material may solve the problem. VOA’s George Putic reports.
    Video

    Video Saudi Arabian Women's Sports Chip Away at Stereotypes

    Saudi Arabian female athletes say that sports are on the front line of busting traditions that quash women’s voices, both locally and internationally. In their hometown of Jeddah, a group of basketball players say that by connecting sports to health issues, they are encouraging women and girls to get out of their homes and participate in public life. VOA’s Heather Murdock reports.
    Video

    Video A Year Later, Fortunes Mixed for Syrians Forging New Lives in Berlin

    In April of last year, VOA followed the progress of six young Syrian refugees -- four brothers and their two friends -- as they made their way from Libya to Italy by boat, and eventually to Germany. Reporter Henry Ridgwell caught up with the refugees again in Berlin, as they struggle to forge new lives amid the turmoil of Europe's refugee crisis.
    Video

    Video Zika Virus May be Hard to Stop

    With the Zika virus spreading rapidly, the World Health Organization Monday declared Zika a global health emergency. As Alberto Pimienta reports, for many governments and experts, the worst is yet to come.