China and India: relationship

1
China and India relationship

• By Yoshina Hurgobin

2
Qualitative Change in Relationship

• India (9th) among top 10 Asian trading partners
  of China
• 2004 - Chinese exports to India 5.926 billion
  (increase of 77.3)
• 2004 Chinese imports from India 7.67 billion
  (increase of 80.6)
• India-China annual trade 13.6 billion (2003)

3
G7 Meeting Feb 4 5, 2005

• Opening session summit on investment prospects
  of India and China
• G7 under pressure to recognize economic growth of
  China and India
• G7 may be group of richest countries but not
  necessarily most dynamic ones

4
Rivals (I)

• Foreign Direct Investment
• China (40 billion)
• India ( 3 billion)
• Democracy (India) vs Communism (China)
• China quoted as
• larger, richer and armed with a nuclear arsenal
  many times the size of India's

5
Rivals (II)

• Both countries bidding to invest in oil fields
  (Angola, Burma, Russia)
• Thirsty countries
• China imports more than 40 of its oil
• India imports more than 70 of its oil

6
Tense Relations

• 1962 war between the two countries
• Disputed area
• Chinese Northeastern part Aksai Chin
• Indian South West Ladakh
• Both are Nuclear Powers
• China selling arms to Pakistan

7
Relations warming up.

• Chinese Foreign Minister Li Zhaoxing
• "willing to unswervingly push forward" its ties
  with India
• Energy Cooperation
• Discussion to ensure a stable equitably priced
  energy supply for Asia
• Teaming up to cut better price deal from OPEC

8
Relations warming up. (II)

• Strategic talks held in January 2005
• Boundaries issues
• 2003 India recognized Tibet as part of PRC
• PRC started border trade North East Indian state
  of Sikkim