India and China share a complex and multi-dimensional relationship marked by several disputes. The most significant issue is the territorial dispute, particularly over the regions of Aksai Chin and Arunachal Pradesh. Aksai Chin is administered by China but claimed by India, while Arunachal Pradesh is claimed by China as part of its Tibet Autonomous Region. This dispute has led to military conflicts, notably the 1962 Sino-Indian War, and has created long-standing tensions.
Another issue is economic competition and trade imbalances. India’s trade deficit with China is substantial, as India imports far more than it exports to China, creating economic strain. The growing Chinese economic influence in India’s neighborhood, especially through the Belt and Road Initiative (BRI), has also raised concerns over India’s strategic space, particularly in countries like Pakistan and Sri Lanka. China's involvement in Pakistan, notably the China-Pakistan Economic Corridor (CPEC), has heightened India's security concerns.
To resolve these disputes, India and China must engage in continuous, high-level diplomatic dialogue, focusing on mutual trust-building. Both nations should prioritize confidence-building measures, such as military disengagement and establishing a robust communication framework along the border. The trade imbalance should be addressed by diversifying trade relations and seeking greater market access for Indian goods in China. Additionally, both countries should focus on regional cooperation, ensuring that their geopolitical interests do not lead to unnecessary rivalry.