country risk analysis
Growing Trends between
India & China
Contents
Table of contents 2
India & China in early 50’s 3 - 6
India’s current relationship with China 7
Major elements of the relationship between India & China 8 - 9
China and India as Drivers of Regional Growth 10
China hints at civilian nuclear cooperation with India 11
India China Economic Relations 12
Bilateral Investment 13
India – China on the right track 14 - 17
Growing economic interaction 18 – 19
Travel & Tourism 20
Major Issues in Indo-China Relations: Political/Security 21
Major Issues in Indo-China Relations: Economic 22
Opposition to closer Sino-Indian ties 23
Conclusion 24
India & China in early 50’s:
Although India and China had relatively little political contact before the 1950s, both countries have had extensive cultural contact since the first century A.D., especially with the transmission of Buddhism from India to China. Although Nehru based his vision of "resurgent Asia" on friendship between the two largest states of Asia, the two countries had a conflict of interest in Tibet (which later became China's Xizang Autonomous Region), a geographical and political buffer zone where India had inherited special privileges from the British colonial government. At the end of its civil war in 1949, China wanted to reassert control over Tibet and to "liberate" the Tibetan people from Lamaism (Tibetan Buddhism) and feudalism, which it did by force of arms in 1950. To avoid antagonizing China, Nehru informed Chinese leaders that India had neither political nor territorial ambitions, nor did it seek special privileges in Tibet, but that traditional trading rights must continue. With Indian support, Tibetan delegates signed an agreement in May 1951 recognizing Chinese sovereignty and control but guaranteeing that the existing political and social
India & China
Contents
Table of contents 2
India & China in early 50’s 3 - 6
India’s current relationship with China 7
Major elements of the relationship between India & China 8 - 9
China and India as Drivers of Regional Growth 10
China hints at civilian nuclear cooperation with India 11
India China Economic Relations 12
Bilateral Investment 13
India – China on the right track 14 - 17
Growing economic interaction 18 – 19
Travel & Tourism 20
Major Issues in Indo-China Relations: Political/Security 21
Major Issues in Indo-China Relations: Economic 22
Opposition to closer Sino-Indian ties 23
Conclusion 24
India & China in early 50’s:
Although India and China had relatively little political contact before the 1950s, both countries have had extensive cultural contact since the first century A.D., especially with the transmission of Buddhism from India to China. Although Nehru based his vision of "resurgent Asia" on friendship between the two largest states of Asia, the two countries had a conflict of interest in Tibet (which later became China's Xizang Autonomous Region), a geographical and political buffer zone where India had inherited special privileges from the British colonial government. At the end of its civil war in 1949, China wanted to reassert control over Tibet and to "liberate" the Tibetan people from Lamaism (Tibetan Buddhism) and feudalism, which it did by force of arms in 1950. To avoid antagonizing China, Nehru informed Chinese leaders that India had neither political nor territorial ambitions, nor did it seek special privileges in Tibet, but that traditional trading rights must continue. With Indian support, Tibetan delegates signed an agreement in May 1951 recognizing Chinese sovereignty and control but guaranteeing that the existing political and social