Question:

“Border dispute and trade are the bases of current India-China relation.” Review the statement.

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When analyzing bilateral relations like India-China, it is effective to use a 'cooperation and conflict' framework. Identify the key areas where the countries clash (border, strategic influence) and where they cooperate (trade, climate change). This provides a structured and balanced analysis.
Updated On: Sep 26, 2025
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Solution and Explanation

Step 1: Understanding the Concept:
The statement suggests that the contemporary relationship between India and China is defined by two primary, yet contrasting, pillars: conflict arising from border disputes and cooperation driven by trade. This review requires an analysis of both these aspects to determine the statement's validity.
Step 2: Detailed Explanation:
The statement is largely accurate as it captures the dualistic and complex nature of the India-China relationship.
1. Border Dispute as a Basis of Conflict:
The unresolved border dispute is the most significant source of contention and mistrust between the two nations.


Historical Context: The dispute stems from the 1962 Sino-Indian War and differing perceptions of the border, particularly along the McMahon Line in the east and the Aksai Chin region in the west.

Ongoing Tensions: The border has remained a live issue, leading to frequent stand-offs and military confrontations. The Doklam standoff in 2017 and the violent clashes in the Galwan Valley in 2020 are recent examples that have severely strained relations and led to a military build-up on both sides.

Impact: The border dispute overshadows all other aspects of the relationship, creating strategic competition and preventing the normalization of ties. It remains the primary driver of political and military friction.

2. Trade as a Basis of Cooperation and Interdependence:
Despite the political tensions, economic engagement has been a key component of the relationship for the past few decades.


Economic Growth: Bilateral trade between India and China has grown exponentially, making China one of India's largest trading partners. This economic interdependence has created a strong incentive for both countries to manage their disputes and avoid a full-scale conflict.

Trade Imbalance: However, the trade relationship is heavily skewed in China's favour, with India having a massive trade deficit. This has become a point of concern for India, which is trying to reduce its dependence on Chinese imports.

Pragmatic Engagement: Trade has served as a stabilizing factor, forcing the two countries to maintain channels of communication. It represents the pragmatic side of the relationship, where economic interests often coexist with strategic rivalry.

Step 3: Final Answer:
In review, the statement is valid. The India-China relationship is a complex balancing act. The unresolved border dispute acts as a constant source of friction and potential conflict, defining the strategic rivalry. Simultaneously, the substantial trade relationship acts as a binding factor, creating economic interdependence and compelling a degree of pragmatic cooperation. These two pillars—one of conflict and one of cooperation—are indeed the primary bases of the current relationship.
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