Question

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

Hint:

When answering questions on India-China relations, always use recent, specific examples like the Galwan Valley clash (for border dispute) and the banning of Chinese apps (for trade/economic friction) to show that your knowledge is current and well-informed.

Answer 1

Step 1: Understanding the Concept:
The India-China relationship is complex and multifaceted, often described as a mix of cooperation and competition. This question asks to review the argument that this entire relationship is primarily defined by two key issues: the long-standing border dispute and the significant trade volume.
Step 2: Detailed Review:
The statement can be reviewed by examining the role of each component:
1. The Border Dispute as a Basis of Conflict:
- Historical Context: The unresolved border, primarily along the Line of Actual Control (LAC), is a legacy of the 1962 Sino-Indian War. China illegally occupies Aksai Chin and claims Arunachal Pradesh as 'South Tibet'.
- Source of Mistrust: This dispute is the single biggest source of friction and strategic mistrust between the two nations. It prevents the relationship from being fully normalized.
- Recent Escalations: Periodic military stand-offs, such as the Doklam crisis in 2017 and the violent clashes in the Galwan Valley in 2020, demonstrate that the border issue remains a dangerous flashpoint that can escalate quickly, derailing all other aspects of the relationship.
2. Trade as a Basis of Interdependence:
- Economic Scale: China is one of India's largest trading partners. Bilateral trade has grown exponentially over the last two decades, exceeding \$100 billion. This creates a powerful economic link and a degree of interdependence.
- Nature of Trade: The trade relationship is heavily skewed in China's favor. India imports vast quantities of finished goods, electronics, and machinery, while its exports to China are mainly raw materials. This has resulted in a massive and persistent trade deficit for India.
- A Double-Edged Sword: While trade acts as a stabilizing factor, preventing a complete breakdown of relations, the trade deficit and India's dependence on Chinese imports are also sources of strategic concern and friction for New Delhi.
Step 3: Synthesis and Conclusion:
While other factors like geopolitical competition in South Asia, Tibet, and cooperation in multilateral forums (like BRICS) exist, the border and trade remain the two dominant axes around which the relationship revolves. The border dispute sets the negative, conflictual tone, while trade provides the positive, cooperative, albeit contentious, engagement. The tension between these two "bases" defines the current state of India-China relations: a precarious balance between strategic rivalry and economic compulsion.
Step 4: Final Answer:
The review confirms that the border dispute and bilateral trade are indeed the two most critical and foundational elements shaping the current India-China relationship. The former dictates the level of strategic competition and mistrust, while the latter defines the extent of their economic engagement and interdependence.