Chapter-1

Introduction

1
India and China are the two most populous countries of the world. Both have

maintained consistently an impressive economic growth since they liberalized their

economies. India gained independence in 1947, while China emerged as a new nation

after the communist revolution in 1949. In 1950’s India supported Chinese

membership of United Nations in place of Taiwan and both raised the slogan of

‘Hindi Chini Bhai-Bhai’ under the Panchsheel agreement signed in 1954. The five

principles of Panchsheel- respect for each other’s, sovereignty and territorial integrity,

non-aggression, non-interference in the internal affairs of each other equality and

mutual benefit and peaceful co-existence. However in late 1950’s difference arose

between the two countries over the status of Tibet. As a large number of Tibetan

refugees came to India and Tibetan exile government was formed in India, China

considered this as an unfriendly act and launched a full scale war against India in

1962.2.

It is true that Indo-china trade has improved in recent years as China has emerged as

the largest trading partners of India. Presently the trade volume between the two

countries has reached to the tune of USD 60. In the past twenty years or so, China has

emerged as a manufacturing hub of the global economy, whereas India has achieved

significant global place in information technology and service sector.

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Both are the leading members of the G-20 grouping, which is emerging as a global

economic management group and is poised to replace rich nation club- G-8. As

members of BRICS (Brazil, Russia, China, India and South Africa) both are predicted

to achieve status of leading global economies by the year 2050, surpassing the US and

European Union In fact, the entire debate on the notion of ‘Rise of Asia’ or Asian

century revolves around the rise of India and China in global affairs. 3

. The diplomatic rivalry in question is not limited to strategic concerns, but is further

fueled by a chronic border dispute. On the other hand, neither Beijing nor New

Delhi can afford to turn a blind eye to the huge benefits that intense economic

cooperation can potentially bring about. Therefore both countries are trying to

capitalize on mutual economic benefits while working hard to contain political

frictions within manageable limits..4The present Indian economic policy of Make

in India suits both India and China as it gives Chinese companies further scope to

enlarge the volume of trade and Indians employment and revenue. The Sino-

Indian ties are complex. The ties need constant monitoring, deft handling and

judicious approach for all minor irritants which may crop up from time to time. If

bilateral talks for solving boundary disputes are held and are fruitful a big

stumbling block in mutual relationship will be removed. 5

3
http://www.preservearticles.com/201103264748/essay-on-indo-china-relations.html

4
Goswami, Ranjit (11 May 2015). "Can Modi Make China India's Natural Ally for Development?". The
Huffington Post.

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developments/
 Chapter-2

Historical Ties

Written records of contacts between India and China date back to at least 2nd century

B.C. Such contacts at the level of people through commerce got a fillip with the advent of

Buddhism into China from India in the first century A.D. under imperial patronage. A

Chinese monk, Fa Xian (Fa-Hsien, AD 399-414), visited India in AD 402, stayed for 10

years, and after his return translated many Sanskrit, Buddhist texts into Chinese. His

record of journeys Fo Guo Ji (Record of Buddhist Kingdoms) is an important historical

source. Kumarajiva, a scholar in Vedas as well as Buddhist Sutras, was born of Chinese

mother and Indian father. His translations of Sanskrit sutras into Chinese are valued even

today. In the 5th Century AD Bodhidharma, a South Indian monk, became the first

patriarch of the Shaolin Monastery in China. Xuan Zang (Hiuen Tsang) visited India

during Harsha Vardhana's reign in the 7th Century AD, in search of Buddhist scriptures.

The decline of Buddhism in India and spread of colonialism in both the countries resulted

in diminished cultural exchanges. Religious and cultural interactions existed between

them during the first few centuries. The Islamic invasion in India made two countries

living as strangers until nineteenth century, when Europeans colonised both.

However, when people of both the countries started searching for new answers to new

questions, old friendship was revived. The respective national struggles for freedom saw

resumption of contacts, mutual interest, and feelings of solidarity. Landmark events of

this period are Kang Youwei's stay in India (1890s), Tagore's visit to China (1924),
setting up of Cheena Bhawan in Viswabharati University by Professor Tan Yunshan under

Tagore's guidance (1937), sending of the Aid China Medical Mission, which included Dr.

Dwarakanath Kotnis, by the Indian National Congress (1938), and Xu Beihong's visit to

Shantiniketan (1939-40). The early fifties and the Hindi-Chini Bhai Bhai phase of 1950s

witnessed a further strengthening of these ties. Indian films like Awaara, Caravan and Do

Bigha Zameen as well as stars like Raj Kapoor and Nargis left a lasting impression on

Chinese audiences. The resumption of political relations in 1980s has provided an

impetus to cultural exchanges.6

Chapter-3
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China's Hindu temples: A forgotten history. 18 July 2013. Retrieved 16 May 2016 – via YouTube.
 Political Relations

The People's Republic of China (PRC) was established on October 1, 1949, and India

was the first non-communist country to establish an Embassy in PRC. On

April 1, 1950, India and China established diplomatic relations. The two

countries also jointly expounded the Panchsheel (Five Principles of Peaceful

Co-existence) in 1954. Chinese Premier Zhou Enlai visited India in June 1954

and Prime Minister Nehru visited China in October 1954. Premier Zhou Enlai

again visited India in January 1957 and in April 1960. The India-China

conflict in 1962 led to a serious setback in bilateral relations. India and China

restored ambassadorial relations in August 1976. Higher political level

contacts were revived by the visit of the then External Affairs Minister, A.B.

Vajpayee in February 1979. The Chinese Foreign Minister Huang Hua paid a

return visit to India in June, 1981. Prime Minister Rajiv Gandhi visited China

in December 1988. During this visit, both sides agreed to develop and expand

bilateral relations in all fields. It was also agreed to establish a Joint Working

Group (JWG) - to seek fair, reasonable and mutually acceptable solution on

the boundary question - and a Joint Economic Group (JEG). From the Chinese

side, Premier Li Peng visited India in December 1991. Prime Minister

Narasimha Rao visited China in September 1993. The Agreement on the

Maintenance of Peace and Tranquility along the Line of Actual Control (LAC)

in the India - China Border Area was signed during this visit, providing for

both sides to respect the status quo on the border, clarify the LAC where there

are doubts and undertake CBMs. President R. Venkataraman paid a state visit
 to China in May 1992. This was the first Head of State-level visit from India

to China. President Jiang Zemin's state visit to India in November 1996 was

similarly the first by a PRC Head of State to India. The four agreements

signed during his visit included the one on CBMs in the Military Field along

the LAC covering adoption of concrete measures between the two militaries

to enhance exchanges and to promote cooperation and trust. After the nuclear

tests in May 1998, the relations faced a minor setback. External Affairs

Minister Jaswant Singh visited China in June 1999 and both sides reiterated

that neither country is a threat to the other. President K.R. Narayanan’s visit

to China in May - June 2000 marked a return to high level exchanges. Premier

Zhu Rongji visited India in January 2002. Prime Minister A.B. Vajpayee

visited China in June 2003 during which a Declaration on Principles for

Relations and Comprehensive Cooperation was signed. This was the first

comprehensive document on development of bilateral relations signed at the

highest level between India and China. India and China concluded a border

trade protocol to add a border crossing between Sikkim and Tibet

Autonomous Region.. 7

. Mr. Li Keqiang, Premier of the State Council of the People’s Republic of China paid a

State visit to India (Delhi-Mumbai) from 19-21 May 2013. During this visit, the

two sides signed eight agreements and released a Joint Statement. Some of the

significant proposals included in the Joint Statement were the decisions to

designate 2014 as the Year of Friendly Exchanges between India and China and

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 hold the first High Level Media Forum. Vice-President Hon’ble Shri Hamid

Ansari paid a visit to China on 26-20 June 2014. During the visit the Vice

President met with President Xi Jinping, held talks with Vice President Liu

Yuanchao, attended events to mark the 60th anniversary of ‘Panchsheel’, and

visited Xian in Shaanxi Province. Three agreements related to industrial parks,

training of public officials, and exchange of flood season data on the

YarlungZangbu River were signed. The two Vice-Presidents also jointly released

the English and Chinese versions of the Encyclopedia of India-China Cultural

Contacts. Prime Minister Narendra Modi visited China from May 14-16 2015, the

visit was rich in symbolism and substance and it opened up a new chapter in

India-China relations. For the first time, Chinese President Xi Jinping travelled

outside Beijing to receive a foreign leader, in Xi’an in his home province of

Shaanxi. President Xi also accompanied Prime Minister to the Big Wild Goose

Pagoda and organized a grand welcome ceremony at the Xi’an city wall. Premier

Li Keqiang joined Prime Minister at the Yoga-Taichi performance in Beijing on

15 May with the world heritage site of Temple of Heaven as the backdrop, the

first ever such event, which highlighted the cultural connectivity between the two

countries.8

The two countries has maintained a stable and steady relationship in present years ,

witnessed constant growth in trade and commerce. However the situation currently is in

state of turmoil due to military standoff between the armies of the two nations in Doklam

at the tri junction of India, China and Bhutan. Both the states has mobalised its army to

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counter any war like situation. It is the longest military standoff between these two

Asiatic giants since 1962 Sino-China war

Chapter-4

Economic and Commercial Realtions

Introduction

India and China officially resumed trade in 1978. In 1984, the two sides signed the

Most Favoured Nation Agreement. India-China economic relations constitute an

important element of the strategic and cooperative partnership between the two

countries. Several institutional mechanisms have been established for enhancing and

strengthening economic cooperation between the two countries. Besides the India-

China Joint Economic Group on Economic Relations and Trade, Science and

Technology (JEG) and the India-China Strategic and Economic Dialogue (SED), a

Financial Dialogue has also been taking place between the two countries since 2006.

India-China bilateral trade which was as low as US$ 2.92 billion in 2000 and this

relationship has seen rapid progress in the last few years. India-China bilateral trade

which was as low as US$ 2.92 billion in 2000 reached US$ 41.85 billion in

2008,making China India’s largest trading partner in goods, replacing the United

States of America. By 2014, India-China bilateral trade stood at US$ 70.65 billion.

India’s exports to China touched US$ 16.41 billion whereas China’s exports were

US$ 54.42 billion. Trade volume between the two countries in the beginning of the

century, year 2000, stood at US$ 3 billion. In 2008, bilateral trade reached US$ 51.8
billion with China replacing the United States as India’s largest “Goods trading partner.”

In 2011 bilateral trade reached an all-time high of US$ 73.9 billion.

Current State of Play

According to recently released data by Chinese Customs, India-China trade in 2016

decreased by 0.67% year-on-year to US$ 71.18 billion. India’s exports to China

decreased by 12.29% year-on-year to US$ 11.748 billion while India’s imports from

China saw a year-on-year growth of 2.01% to US$ 59.428 billion. The Indian trade

deficit with China further increased by 6.28% year-on-year to US$ 47.68 billion. In 2016,

India was the 7th largest export destination for Chinese products, and the 27th largest

exporter to China.India-China trade in the first four months of 2017 increased by 19.92%

year-on-year to US$ 26.02 billion. India’s exports to China increased by 45.29% year-on-

year to US$ 5.57 billion while India’s imports from China saw a year-on-year growth of

14.48 % to US$ 20.45 billion. The Indian trade deficit with China further increased by

6.07% year-on-year to US$ 14.883 billion.9

Composition of Bilateral Trade

In 2016, India’s top exports to China included diamonds, cotton yarn, iron ore, copper

and organic chemicals. Indian exports of diamonds grew 28.48% and amounted to US$

2.47 billion. India was the second largest exporter of diamonds (worked/not worked) to

China (with a share of 31.81%). India’s cotton (including yarn and woven fabric) exports

to China showed a decline of 44.1% to reach US$ 1.27 billion, although India was the

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second largest exporter of cotton to China with 16.43% market share. In 2016, Indian

exports of iron ore registered an increase of over 700% to reach US$ 844 million.

In 2016, China exports of electrical machinery and equipment saw an increase of

26.83%to US$ 16.98 billion. India was the largest export destination of Fertilizers

exports from China. China exported 23.48% of its total Fertilizers (worth US$ 1.54

billion) to India. India was the largest export destination for Chinese Antibiotics worth

US$ 711 million in 2016, with a share of 23.55%. India was the second largest export

destination for Chinese organic chemicals, worth US$5.68 billion in 2016. However,

India still faces a growing trade deficit vis-a-vis China. In 2014 trade deficit stood at

US$ 37.8 billion. Apart from trade, India is also one of the largest markets for project

exports from China. Currently, projects under execution are estimated at over US$ 60

billion. As per Chinese figures, cumulative Chinese investments into India till

September 2014 stood at US$ 2.63 billion while Indian investments into China were

US$ 0.55 billion. 10

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 Chapter-5

Cultural Relations

India and China are not mere societies; they are civilizations. We do not know exactly

when and how they started exchanging their cultural elements, but we do know

that they grew in parallel and shared their cultural traits since the beginning of

human history and this tradition of sharing has continued ever since. Even before

the advent of Buddhism, the Shang-Zhou civilization and the ancient Vedic

civilization in 1500-1000 B.C. showed some evidence of conceptual and linguistic

exchanges. For instance,"wumingzhi" (nameless finger) in Chinese is called

"anamika" (nameless) in Sanskrit and in Pali. Similarly, some ancient Indian

literature mentions "chinas" referring to the Chinese people. The Mahabharata of

the fifth century B.C. contains reference to China.

In sixth century B.C., the birth of Confucius and Sakyamuni heralded a new period of

exchanges between the two civilizations. Emperor Ashoka’s propagation of

Buddhism after his conversion in 256 B.C. brought both civilizations even closer.

Ashoka’s bilingual (Kharoshti and Greek) edict points at extension of Buddhism

in the direction of China and Central Asia. The trend continued in first century

A.D. during emperor Kanishka’s period. His empire, with its capital at Purushpura

(now Peshawar in Pakistan), enabled Buddhist pilgrims and scholars to travel on

the historic “silk route”.KashyapaMatanga and Dharmaratna made the White

Horse monastery at Luoyang their abode. Along the silk route, Khotan Turpan and

Kucha became prominent centers of Buddhism and India-China exchanges. The

 great scholar Kumarajiva initiated efforts to collect and translate important

Buddhist texts at a great Buddhist conclave in Chang’an (present Xi’an) where

he stayed until his death in 413 A.D. and managed to have 98 major Buddhist

canonical works translated into Chinese. He is widely believed to be responsible

for bringing in Mahayana Buddhism and Madhyamika doctrine into Chinese

philosophy. In the beginning of the fifth century A.D., Dharmakshema, an Indian

Buddhist scholar came to China bringing with him the “Mahaparinirvana Sutra”

which was translated into Chinese about the year 415 A.D. Meanwhile, the

Chinese Pilgrim Fa Hein visited India along the Silk Route in 405 A.D. Batuo

(464-495 A.D.) and Bodhidharma visited China; Xuan Zhang (604A.D.) and I

Ching were students at the prestigious Nalanda University. All along, there is

ample evidence of India-China cultural, commercial and technological

exchange.11

Exchanges between India and China continued during the days of India’s struggle for

selfgovernance. In early 20th century, Nobel laureate Rabindranath Tagore visited

China twice, in 1924 and in 1929. Since 1911, Chinese scholars and intellectuals

have been visiting and revisiting Tagore’s life, works and philosophy. Both India

and China began their journey of independent governance almost at the same

time, India in 1947 and the People’s Republic of China in 1949. In 1955, the first

Indian cultural delegation headed by then Deputy Minister of External Affairs Mr.

A. K. Chanda visited China which was warmly received by the Chinese leaders

and people during their tour. In the 1960s and 1970s Bollywood movies such as

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 Do BighaZameen, Awara and Sree 420 of Raj Kapoor and Noorie struck an

emotional chord in the hearts and minds of the Chinese people. Even today,

people on the street hum the tunes of the songs of these films. Movies like ‘pk’ , 3

Idiots and The Life of Pi have been well received in recent times12.

Since 1988 both countries are bringing their people together through structured Cultural

Exchange Programmes. The latest CEP signed in October 2013 during the visit of

then Prime Minister Manmohan Singh’s to China, provides for cooperation in a

gamut of cultural fields including exchanges of visits of performing artists,

officials, writers, archivists and archaeologists, organizing cultural festivals, film

festivals and exchanges in the field of mass media, youth affairs and sports. Both

India and China have vibrant cultures and vibrant people. Buddhism, Xuan

Zhang, Tagore, Dr. Kotnis, Nalanda, Yoga and Cinema are only symbols of our

long tradition of exchanges. They are testimonies of our shared heritage. The

momentum has been set and the pace can only increase in the 21st century. 13

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p.76 ISBN 978-8176487986

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 Chapter-6

Educational Relations

India and China signed Education Exchange Programme (EEP) in 2006, which is an

umbrella agreement for educational cooperation between the two countries.

Under this agreement, government scholarships are awarded to 25 students, by

both sides, in recognized institutions of higher learning in each other’s country.

The 25 scholarships awarded by India are offered by Indian Council for Cultural

Relations (ICCR). During the visit of Prime Minister Sh. Narendra Modi to

China, both the countries have signed fresh Education Exchange Programme

(EEP) on May 15, 2015. The same provides for enhanced cooperation between

institutions in the field of vocational education; collaboration between Institutes

of higher learning, etc. Apart from this, Chinese students are also annually

awarded scholarships to study Hindi at the Kendriya Hindi Sansthan, Agra to

learn Hindi. For the year 2016-17, 4 Chinese students have been selected to study

in Agra under this scheme.14

In 2010, it was decided to introduce Mandarin Chinese as a foreign language in the

Central Board of Secondary Education (CBSE) syllabus. A Memorandum of

Understanding was signed in August 2012, between Central CBSE and Confucius

Institute, where both signatories agreed to exchange academic staff, teachers and

14
Diplomacy, and Trade: The Realignment of India-China Relations, 600-1400, p.44ISBN 978-
1442254725
 trainees as well as exchange information on the system and structure of teaching

Mandarin Chinese as a second language in schools in India. The cooperation in

the education sector between the two sides has resulted in an increase in the

number of Indian students in China. During the Academic Year 2016-17 there

were 18171 Indian students studying in various universities in China in various

disciplines. Similarly, around 2000 Chinese students are studying in various

educational institutions in India.15

The Embassy maintains regular communication with MoE in China as well as all

universities where there are a sizeable number of Indian students. Further,

Embassy officials also visit universities to not only establish direct contact with

university authorities but also to interact with the Indian students. Students are

encouraged to approach the Embassy in case they are faced with serious

problems. For this purpose, the mobile number and email address of Minister

(Education/Consular) and email address of Second Secretary (Education) is

provided on the Embassy website. The Mission has also launched a social media

account on Wechat for Indian students, with the objective to make it easy for them

to reach out to the Embassy as well as to link them to other fellow Indian students

studying in different cities of China.16

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 Conclusion

India-China relations today have to evolve in a substantially altered environment. In the

current era comprehensive national power is a factor of economic growth and

potential. In this China is way ahead of the rest and forging ahead rapidly. The

border issue easily heads any list and is also the most urgent. Even though no shot

has been fired in anger across the Line of Actual Control since the last twenty six

years, an unresolved border can no longer be ‘left to the next generation’ to

resolve. There is no scope for mistakes. Two large nations that are simultaneously

reemerging at a rapid pace, thus this relationship has to be based on carefully

balanced enlightened self interests. To achieve this will call for delicate

negotiations based on our respective genius, taking account of our differences, yet

accommodating the genuine concerns and interests of both. Copious blood has

already been shed over this The border issue easily heads any list and is also the

most urgent. Indeed, India and China has lived close to each other throughout

history, as different civilizations, with distinct identities and simultaneously as

leading global powers. Yet, it has no history of either permanent animosity or of

conflict. That is a lesson from history that we need to replicate. It may be argued

that in the intensely globalizing world and diminishing distance there is today a

fundamental difference. Yet, our civilizational experience has also taught us to

settle our differences through carefully balancing each other’s concerns and
 interests and through that process ensuring a peaceful strategic environment in

Asia and the world.

References

Books

1. A History of Sino-Indian Relations: 1st Century A.D. to 7th Century A.D. by Yukteshwar Kumar.

Journals

1. Goswami, Ranjit (11 May 2015). "Can Modi Make China India's Natural Ally for Development?". The
Huffington Post.

2. China's Hindu temples: A forgotten history. 18 July 2013. Retrieved 16 May 2016 – via YouTube.

3. IOSR Journal Of Humanities And Social Science (IOSR-JHSS) Volume 15, Issue 5 (Sep. - Oct. 2013),
PP 01-05

4. A History of Sino-Indian Relations: 1st Century A.D. to 7th Century A.D. by Yukteshwar Kumar.
p.76 ISBN 978-8176487986

5. Diplomacy, and Trade: The Realignment of India-China Relations, 600-1400, p.44ISBN 978-
1442254725

Websites

1. https://www.ukessays.com/essays/history/brief-history-of-india-china-relations-history-essay.php

2. http://www.preservearticles.com/201103264748/essay-on-indo-china-relations.html

3. http://www.indiandefencereview.com/news/sino-indian-relations-an-approach-for-21st-century-
developments/

4. http://www.drishtiias.com/upsc-exam-gs-resources-INDIA-CHINA-Relationship
5. https://www.slideshare.net/akashabsl/indias-relations-with-china.PDF

6. http://in.boell.org/sites/default/files/downloads/India-China_Relations_-_Abhilash_10.10.pdf

7. http://www.ipcs.org/pdf_file/issue/IB160-Banerjee-India-China.pdf

8. http://www.shareyouressays.com/84013/essay-on-sino-indian-relations