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India and China relation UPSC NOTE

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  Complex Relationship Between India and China India and China have a fraught relationship, marked by historical territorial disputes along ...

 Complex Relationship Between India and China

  • India and China have a fraught relationship, marked by historical territorial disputes along the Line of Actual Control (LAC), leading to military stand-offs and a lack of trust.

  • Recent discussions suggest some progress in disengagement talks, but major issues like the militarization of the border remain unresolved.

  • High-level meetings, such as those between India’s NSA Ajit Doval and Chinese officials, indicate attempts to resolve tensions, but outcomes remain uncertain.

  • India is grappling with whether to accept the altered status quo established by China, which could have long-term implications for border security.

  • China's behavior suggests a strategy of attrition, expecting India to gradually accept new realities rather than addressing core issues first.

Recent Border Disputes, Economic Ties, and Implications of Chinese FDI

  • India faces significant challenges from a growing trade deficit with China, which reached over $105 billion in 2023, complicating economic relations

  • While some suggest increasing Chinese foreign direct investment (FDI) to integrate with supply chains, this poses risks to India’s security and economic independence.

  • Analysts warn that Chinese investments may not lead to reduced import dependence and could result in low-value additions in critical industries

  • In dialogues, China has pushed for a level playing field for its companies in India, emphasizing issues like visa facilitation and resuming direct flights, which India views as symptomatic of deeper problems.

  • Both China and the West are increasingly "securitizing" their economies, making it essential for India to navigate its position carefully.

  • Historically, Chinese investments in other countries have not significantly enhanced local manufacturing capabilities, raising concerns about their impact on India's industrialization.

  • India should adopt a cautious approach to Chinese investments, selectively allowing FDI in sectors aligned with its national security and industrial goals 

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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: India and China relation UPSC NOTE
India and China relation UPSC NOTE
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