Sino-Indian border dispute bogs down Asian economies

By Luv Poori

During the recent economic downturn, many have heralded the accelerated rise of the
Asian giants — India and China — while others have expressed skepticism about the
ascendancy of these non-Western powers.

At the same time, renewed fears of a Sino-Indian confrontation have surfaced, especially
in the disputed Kashmir region. Kashmir is a lingering reminder of the painful partition
that India and Pakistan experienced in 1947.

Pangong Tso is a lake divided between India and China. Photo: Luv Puri

China and India have often been portrayed as the major drivers of the future. Ties
between the two Asian giants have deep historical roots, and in the recent economic
meltdown each has proved its economic worth.

But quite apart from grand economic plans and new global alignments, a different reality
is taking shape in both India and China (which are both nuclear-armed). The Chinese and
Indian strategic communities are stoking fears about each other, which may hold back
economic success by diverting state resources to perceived military threats.

Both countries have demonstrated their resilience and self-reliance. These two countries
constitute the bulk of the increasingly powerful BRIC group (Brazil, Russia, India and
China). The BRIC heads of state met recently in Russia, indicating their rising ambition
to leverage their enhanced economic clout and influence geopolitics.

But in May, India sent three army divisions — 60,000 soldiers — to its northeastern
border with China. India is also strengthening its presence along the Chinese border, in
the Ladakh region of Jammu and Kashmir. Last November, India decided to reactivate an
important air strip last used in the 1962 Indo-China war. Indian military officers
described this as an attempt to “match” the Chinese.

In December 2007, Indian Defense Minister A.K. Antony visited the Indo-China border
and stated that he would “vigorously” pursue steps to develop the frontier areas. He said,
“It is an eye-opener for me. There is no comparison between the two sides. Infrastructure
on the Chinese side is far superior. They have gone far in developing their infrastructure.”
The Chinese swear that they have no evil designs against India, and that their policy is
defined by the desire for peaceful co-existence. In Ladakh, Chinese officials stated that
the main purpose of building a major road was to improve transport and communication
within its territory, as the area connects the Chinese states of Tibet and Xinjiang. An
editorial in the China-based “Global Times” stated:

India’s current course can only lead to a rivalry between the two countries. India needs to
consider whether or not it can afford the consequences of a potential confrontation with
China.

Indian soldiers in Ladakh next to the Line of Actual Control. Photo: Luv Puri

China and India are still embroiled in the same boundary dispute that set off the war
between the two countries in 1962. The two countries share a border of more than 2200
miles, but ever since the war, they have followed a policy of non-confrontation. High-
level diplomatic ties were restored with Indian Prime Minister’s Rajiv Gandhi visit to
China in 1988.

However, other thorny issues between the two countries remain intractable. China claims
ownership over the Indian state of Arunachal Pradesh and refers to the area as part of
south Tibet. While India describes Arunachal as integral to its territorial sovereignty,
China rationalizes its claim by emphasizing the Sino-Tibetan ethnic origins of the people
there.

The Sino-Indian Joint Working Group (JWG) was formed in 2003 to resolve the various
issues relating to the border disputes, but little progress has been seen.

Trade between the two countries has increased exponentially over the years. Last year,
trade grew by 33 percent. But if the Asian economic miracle is truly going to
materialize, the two countries will have to manage their border disputes and geo-strategic
insecurities.

June 24, 2009,World Focus