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acquire and deploy capabilities which will make any aggressive military move by China a two ways to deal

risky proposition
with power Historically, India and China have had relations for more than 2,000 years, but the modern relationship
asymmetry began in 1950
enmesh oneself more tightly in the U.S.-led countervailing coalition targeting China

India was among the first countries to end formal ties with the Republic of China (Taiwan) and recognize
the People's Republic of China (PRC) as the legitimate government of Mainland China
China and India have specialized interests on issues like Afghanistan, Central Asia and Introduction
counterterrorism.
China and India are the two most populous countries and fastest growing major economies in the world.
Both India and China have been the victims of terrorism. Internationally both countries
have increased cooperation in terrorism The Silk Road served as a major trade route between India and China, and is credited for facilitating the
spread of Buddhism from India to East Asia
China and India have cooperated in the multilateral realm, including on issues like trade
and climate change Issues of common Interest China’s GDP is nearly five times bigger than that of India and its defence spending is four times larger

Both are supportive of funds from the developed countries for increase in technology
support to deal with climate change Relations between contemporary China and India have been characterised by border disputes
Maritime security in the Pacific and Indian Oceans is vital for both countries resulting in three military conflicts - the Sino-lndian War of 1 962, the Chola incident in 1 967, and the 1 987
Sino-lndian skirmish
peace and stability in West Asia and Gulf are essential for the energy security
India faces trade imbalance heavily in favour of China.
China is faced with a complex and deteriorating political and security situation in Asia-Pacific
Indian media outlets have repeatedly reported Chinese military incursions into Indian territory
negative arbitration award against China over its claim to the South China Sea by a tribunal
constituted under UNCLOS is a major setback for Beijing India remains wary about China's strong strategic bilateral relations with Pakistan

Its relations with ASEAN are now under unprecedented strain China's technical hold on the listing of Masood Azhar, the Jaish-e-Mohammad leader, as a terrorist at the
Hurdles in the United Nations
deployment of the THAAD anti-missile defence system by the U.S. in South Korea Relation and
concern for India Chinese activities in Pakistan-occupied Kashmir (PoK) under its One Belt, One Road (OBOR) initiative
U.S. and Japan continue to be perceived as major security threats to China Growing concern for China
China would want to keep its western periphery with India relatively stable and benign
anxiety that India may move closer to the U.S. and participate in security arrangements
challenging China in the South China Sea
shielding Pakistan from international pressures consequent upon its use of cross-border terrorism
Pakistan has so far been important to China as a low-cost and effective proxy against India
At WTO, China has been fighting for receiving "market economy” status, which the U.S. is
opposing on grounds of Beijing's alleged dumping practices
China is reported to be encouraging the Pakistan Army to take charge of implementing the
China-Pakistan Economic Corridor (CPEC)
U.S. has assessed China’s economic and military competitiveness to be a long-term threat,
and wants to limit its rise
The military nexus that began with China's support for Pakistan's nuclear programme continues
India-China Relations
China's reluctance to support India’s permanent membership of the UN Security Council
Besides looking to sell end products to Chinese consumers, there is a need to market
India as an investment destination
increasing dependence on China for active pharmaceuticals ingredients (APIs).
Urge Chinese companies to set up their manufacturing facilities in India
if China decides to stop exports to India, the pharma industry's output would be zero
China’s strength in the manufacturing sector. India's strength in services and certain
Economy In 1 991, Chinese ingredients accounted for only 0.3% of the bulk drug imports, by 2012 it was 47.61 %.
manufacturing sectors, which can benefit China
The latest figures show almost 66%
India and China have a significant role to play in the success of New Development
Bank(NDB) and Asian Infrastructure and Investment Bank(AIIB) India's strength lies in formulation production, or processing bulk drugs into finished products, but the
production of active ingredients has not received enough attention
China's expertise and investment in Modernisation of Indian infrastructure
Health Security At Stake overdependence on China for APIs threatens India's dominance in generic medicines
Through BRICS, the BASIC Countries, G20 and other joint associations like SCO, China measures to arrest
and India should pursue effective cooperation and protect the rights of developing International the downward slide
countries domestic production of APIs should be encouraged

revive closed units of enterprises like the Indian Drugs and Pharmaceutical
Liberalized visas for students (visa for researchers has already been ways to Limited (IDPL)
liberalized) overcome the
reliance on R&D measures to fulfill their needs for ingredients
Spreading historical and cultural importance through school curriculum in both People to people contact China
the countries diversification of sources of imports should be seriously explored
Frequent exchange of Chinese and bollywood films addressing data discrepancy

both should intensify cooperation on the shared challenges of energy security, including joint
development of renewable energy resources The great Himalayan Divide between India and China was evident following the Chinese refusal to
support India's case for entry into the Nuclear Suppliers Group
China has significant experience of urbanisation and India should seek solutions in dealing with the
physical, social, environmental and human challenges of mobility and urbanisation With India-US nuclear deal in 2005, followed by the NSG waiver of 2008, the perception was that the
US was providing India with this special privilege as a means to counter-balance China

safeguarding the Indian interest by building even closer relations with like-minded democracies like NSG issue The increasing strategic proximity between the US and India - including India’s consent to the
logistics and communications agreement, seems to have convinced the Xi regime of India beginning
the United States and Japan, while consolidating internal strength and resilience
to play a hedging role
further enhance strategic and defence cooperation with these countries
India's joint statement with the US on South China Sea dispute, and common strategic vision for the
Conclusion Asia-Pacific and Indian Ocean Region
fulfilling the promise of the India-U.S. civilian nuclear cooperation agreement in an expeditious
manner
Beijing’s failure to get into groups like the Missile Technology Control Regime (MTCR), reflects its
dialogue mechanisms and trade and economic linkages with China should continue to be frustrations on India gaining greater recognition in NGT, despite being a non-NPT state
maintained at an even pace

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