By Mahima Kumar
Recent years have seen the relationship between India and China worsen and their cooperation diminish. Yet, the two countries ought to look beyond their differences and forge strong bilateral relations for mutual benefit.
Bones of contention
Of late, India exhibited its resentment against China’s investment in Pakistan by boycotting the One Border One Road (OBOR) summit held in China. This conflict is rooted in the China-Pakistan Economic Corridor, cutting through Pakistan-occupied Kashmir, threatening Indias sovereignty.
China, on the other hand, was displeased with Indias decision to host the Dalai Lama in Arunachal Pradesh, in spite of its objections. The Chinese government sees the Dalai Lama as an instigator of anti-China separatist activities and considers Arunachal Pradesh as a part of their territory. These decisions along with other disagreements have left the two nations at crossheads.
Looking beyond differences
Indian and Chinese representatives met at the BRICS conference to improve their relations and discussed their common values. During the conference, the Chinese foreign minister, Wang Yi emphasised on the need for the nations to stand together in their fight against terrorism. V.K. Singh, the Indian Minister of State for Foreign Affairs, stated during a bilateral meeting with Wang that India looks forward to strengthening and deepening its strategic partnership with China.
The countries have also been involved in several joint projects to enhance the flow of information and trade. On 14th September 2014, India and China signed a Memorandum of Understanding between the Indian Space Research Organisation and China National Space Administration on Cooperation in the Peaceful use of Space, for better utilisation of the commercial benefits of the space economy. Furthermore, during PM Modis visit to China in 2015, the two nations agreed to broaden their cooperation in the South Asian Association for Regional Cooperation (SAARC). This collaboration could lead to progress in the bidirectional flow of trade, research, and health care.
In 2014, China and India signed a five-year Trade and Economic Development Plan to improve the trade balance between the nations. India had a 36.2 billion USD goods trade deficit with China during the 2014 fiscal year. This agreement envisions a 20 billion USD Chinese investment into India. With an inflow of investments and an increase in Indian exports, the trade deficit would decrease greatly. China will benefit by gaining access to information technology-related services, where India holds an advantage.
When China endorsed cooperation
PM Modi and President Xi met on 8th June 2017 during Indias instatement into the Shanghai Cooperation Organization (SCO). The latter iterated his wish for progress in the Bangladesh-China-India-Myanmar Economic Corridor (BCIMEC). Endorsed on 18th December 2013, the BCIMEC is an initiative to connect the BCIM region by building a corridor between the nations.
This corridor will facilitate trade by providing better access to the flow of goods, services and energy. It is also slated to increase investment in infrastructural development and assist in joint exploration and development efforts of mineral, water, and other natural resources in the region.
What does India stand to gain?
India would benefit from the investments and resources flowing from China in their joint development projects like the BCIMEC. It’s trade options will expand as a result of gaining access to South-east Asian markets. The corridor would improve transportation infrastructure, connecting the countries through a combination of road, rail, water and air transportation. Since China is willing to invest 124 billion USD into its OBOR initiative, it will undoubtedly raise funds for development of the BCIM corridor.
Indias entry into SCO gives it the opportunity to hold more talks to resolve border disputes with Pakistan and China. The SCO is a Eurasian organisation that allows member states to collaborate on military activities and security, economic and cultural cooperation. Interaction with other nations will facilitate the development of beneficial trade agreements and enable India to restart stalled projects like the Iran-Pakistan-India (IPI) pipeline. By forging deeper ties with the founding members of the SCO-China, Russia, Kyrgyzstan, Kazakhstan and Tajikistan, India can expect more investments and resources to uplift the economy.
These benefits depend on cooperation in the absence of which India will lose out on lucrative trade and infrastructure development deals. Half-hearted attempts at collaboration will leave the nations in their current state, tip-toeing around each other in the name of diplomacy, with no changes on the ground.
Extending the olive branch
The cooperation efforts could begin with neutralisation of the impact of the boycott of OBOR summit. It should be indicated to China that India is open to making reasonable efforts for mutual benefits without making any concessions regarding its national interest.
For China, cooperation from India will yield the benefits of a larger market to exhaust its production potential. India will receive the benefits of investment and resources in return. The mutual benefit lies in focusing on common economic interests and the potential for growth through collaboration, without having to concede on the fronts that define their sovereignty.
Featured Image Credits: Visual Hunt