Asia’s two largest countries, China and India after intertwining themselves with various conflict now finally started looking new way to improve relationship. Chinese policy makers urged New Delhi to work together with matters of common interest primarily in economic and infrastructure development, similarly India’s policy advisory institutions are suggesting to put aside the conflicting issues and recognize the potential of working together in common issues.
Chinese Communist Party Newspaper Global Times said that the first India-China strategic dialogue is expected to be held next week in Beijing. The author of the report thinks this would serve as a prime opportunity for the two countries to make a change in its diplomatic strategy. As competition grows the function of economic ties as a buffer to alleviate trade friction between the countries is weakened, which requires the two neighbors to deal with a complicated political situation more carefully.
Now the question is which should be field of cooperation between the two countries? Will this co-operation be in the form of increasing mutual trade, or will it be in the form of investment in infrastructure or maybe in joint initiatives of creating global financial institutions. These two giant already made good progress of cooperation in the last-mentioned aspect which is likely to move further ahead. China and India is the main initiators of Infrastructure and the Asian Development Bank (AEDB) as well as New Development Bank (NDB) which is known as alternative to World Bank. Plus, China has participated in Indiaâ€™s infrastructure development both in National and state level. China has a huge surplus fund India has the need of massive infrastructure development.
China repeatedly urging India to take part in their new silk road project. Beijing is trying get India involved in BCIM Economic Corridor in turn going forward with the overall proposal. However, the doubt remains on how much the co-operation effort will be successful despite these two countries being trade partners in international market. Prime reason for this is Indiaâ€™s all out policy of making a strong base for domestic Industry.
In this context, China’s Global Times said, the most effective way to increase confidence in the China-India relationship is via economic cooperation. China has a relatively low industrial complementarity with India compared with other South Asian countries, resulting in intense competition in the global market for products made in the two nations. As more economic competition is expected, greater uncertainty is likely to be present in future Sino-Indian relations.
A report from the Chinese Academy of Social Sciences (CASS) tends to challenge the idea that key elements for Sino-Indian ties are more complementary than competitive in economics and trade. The idea that China and India are highly complementary should be abandoned in order to restore trust and promote economic cooperation. The competitive trend underlined in the CASS report is expected to become more visible in the coming years as India pursues its Make in India strategy, which calls for a rethinking of bilateral economic ties.
India has become the second-largest source of trade remedy probes against Chinese goods as an increasing homogeneity in the two countries’ economic structures creates friction. Additionally, the two countries are also engaged in a fierce competition in exploiting overseas markets in the South Asian region.
How mutual trust can be built and how sound interaction can be developed between the two countries deserve careful consideration and thought.
Although it is not easy to put China and India out of contention in the economic and trade area, dissolving strategic mistrust between the two countries may be more difficult to do. As bilateral ties between the two emerging Asian powers grow increasingly complicated, economic complementarity should be enhanced by encouraging Chinese firms to invest more in India’s infrastructure. Shoring up cooperation is the most effective way to promote mutual trust. Sino-Indian relations are experiencing severe tests after a female “parliamentary” delegation from Taiwan paid a visit to India. Such issues should be handled much more carefully in the future.
Aspirants of improved China-India relations thinks that a lot of issues between China and India is not now including the border conflict. Despite that both parties have progressed a lot whenever they were able to side step those problems for greater goal. And a great example is organizations like NDB and AIDB. The objections that India has with CPEC can be settled through mutual discussion. For this, Delhi should consider a proposal by, Mehbooba Mufti Chief Minister of Jammu and Kashmir. If both parties can come together with common interest of development than security concerns and the risk of wasting of resources on deadly weapon competitions can be reduced to a great extent.