India-China Relations: Exploring the Recent Thaw and Cooperation

Prime Minister Modi advocates for constructive competition between India and China, emphasizing dialogue over discord in light of improved relations since his meeting with President Xi Jinping. The global trade climate necessitates collaboration, as underscored by Chinese Foreign Minister Wang Yi. Both nations recognize their interdependence amidst historical tensions, pushing for mutual growth while remaining cautious about trust and border peace.

Prime Minister Narendra Modi has emphasized the importance of a productive competition between India and China, advocating for management of differences to prevent disputes. The historical ties between these two nations further underscore a need for ongoing dialogue rather than discord. Modi’s conciliatory remarks appear to coincide with a thaw in relations following his meeting with President Xi Jinping at the recent BRICS Summit.

Reflecting on historical conflicts like the 2020 border standoff, PM Modi expressed optimism about the future, citing improvements since his discussions with President Xi. Modi stated, “After my meeting with President Xi, we have seen a return to normalcy at the border. We are working to restore conditions to how they were before 2020.” He affirmed that competition could be beneficial, provided it does not escalate into conflict.

The Chinese media, including the Global Times, acknowledged Modi’s initiative to mend relations while calling for cooperation despite previous strains. Experts interpret Modi’s statements as a pragmatic approach towards India-China affairs, indicating a dual existence of competition and cooperation. Qian Feng, director at Tsinghua University, noted that both nations had made significant strides since the Kazan meeting by adopting mutual understandings and enhancing practical cooperation.

The rationale for improving ties extends beyond diplomacy; global trade tensions have made cooperation increasingly essential. Chinese Foreign Minister Wang Yi underscored the mutual benefits of collaboration, stating that both nations, being the largest developing countries, should support each other’s progress. According to Wang, “a cooperative pas de deux of the dragon and the elephant is the only right choice for both sides,” advocating for unity over rivalry.

Efforts to enhance bilateral relations have been ongoing, with national security and foreign policy dialogues occurring recently. These engagements aim to consolidate military disengagement agreements and underpin the resumption of traditional pilgrimages like the Kailash Mansarovar Yatra. India’s reliance on Chinese imports remains an issue, with an escalating trade deficit standing at $85.1 billion for the fiscal year 2024.

The Economic Survey of 2024 cautions about the challenges stemming from India’s dependence on Chinese goods, particularly in vital sectors such as renewable energy. To mitigate this challenge, it suggests promoting Chinese foreign direct investment (FDI) to bolster India’s export capabilities. The survey indicates that integrating into China’s supply chain or seeking FDI might aid in addressing these economic disparities, particularly as seen in successful strategies by East Asian economies.

Nevertheless, India continues to exercise caution in affirming ties with China. Foreign Minister S. Jaishankar highlighted the necessity of rebuilding mutual trust and ensuring border peace during recent discussions with his Chinese counterpart. The evolving dynamics between India and China reflect a complex interplay of cooperation, competition, and economic interdependence in a globally shifting landscape.

In summary, Prime Minister Narendra Modi’s recent discourse reveals a commitment to fostering a constructive and competitive relationship with China while addressing past tensions. The emphasis on dialogue, mutual cooperation, and the economic interdependence between the two nations highlights the practical realities of modern geopolitics. As both countries navigate trade challenges and historical conflicts, the pursuit of mutual development remains a critical objective for stable bilateral relations.

Original Source: m.economictimes.com