General Studies Paper-2

Context

• Prime Minister Narendra Modi and Chinese President Xi Jinping met on the sidelines of the SCO summit in Tianjin.

Key Outcomes of SCO Summit

• High-level Engagements: Both leaders met and welcomed the positive momentum in their ties.
  • Reaffirmed they are development partners, not rivals; differences must not turn into disputes.
• Border Issues: Leaders noted successful border disengagement in 2024 and maintenance of peace since then.
• People-to-People Ties: Agreed to expand exchanges through direct flights, visa facilitation.
  • Building on the Kailash Manasarovar Yatra resumption and tourist visas.
• Economic & Trade Cooperation: Recognized their economies’ role in stabilizing world trade.
• Multilateral Engagements: PM supported China’s SCO Presidency and Tianjin Summit.
  • Invited President Xi to India’s BRICS Summit 2026.

India-China Relations

• 2025 marks 75 Years of India-China diplomatic ties.
• Historical Tensions:
  • Strained since the 1962 Sino-Indian war, deepened by recent clashes and mistrust.
  • 2020: Post Galwan Valley clashes, India restricted Chinese investments, banned Chinese apps (e.g., TikTok), and halted flights to China.
• Trade Relations: China was India’s second-largest trading partner in FY2024–25. Out of total bilateral trade worth US$131.84 billion, India’s trade deficit increased to US$99.2bn.
• Ongoing Mechanisms: Despite tensions, mechanisms like the Special Representatives (SR) and Working Mechanism for Consultation and Coordination (WMCC) have been in place to address the boundary issue.
• Recent Developments:
  • 2024 Disengagement: India and China announced successful disengagement in eastern Ladakh.
  • 2024 BRICS Meeting: PM Modi and President Xi Jinping emphasized “mutual trust, mutual respect, and mutual sensitivity.”

Areas of Concern

• Ongoing Border Tensions:
  • The unresolved border dispute spans over 2,000 miles, marked by frequent clashes.
  • Incidents in Doklam (2017), Galwan Valley (2020), and northeastern states (Sikkim, Arunachal Pradesh).
• Military Infrastructure: Both countries have heavily fortified their border with roads, railways, and airstrips for rapid troop mobilization.
• Belt and Road Initiative (BRI): India has expressed reservations about China’s Belt and Road Initiative, especially regarding the China-Pakistan Economic Corridor (CPEC), which passes through the territory of India.
• Trade imbalance: While politically desirable, reducing trade dependence is complicated by China’s economic influence and India’s need for foreign investment.
• China’s growing presence in the Neighbouring Region:
  • Sri Lanka: China’s presence at Hambantota Port and investments in an oil refinery raise concerns in India.
  • Nepal: China’s investments in infrastructure (e.g., Pokhara airport) challenge India’s strategic position.
  • Bangladesh: China’s growing influence, including loan agreements, threatens India’s regional influence.
  • Myanmar: China’s deepening ties with Myanmar, including the China-Myanmar Economic Corridor, strengthen its presence in India’s backyard.

Way Ahead

• The Tianjin meeting reflects measured progress in restoring stability along the LAC since the 2020 Galwan clash.
• As India and China look to build mutual trust, sustained dialogue will be essential to better align India’s and China’s intentions vis-à-vis the Asian security order.