China and India: relationship

By Yoshina Hurgobin

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)

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

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”

Rivals (II)

Both countries bidding to invest in oil fields (Angola, Burma, Russia)

Thirsty countriesChina imports more than 40% of its

oilIndia imports more than 70% of its oil

Tense Relations

1962 war between the two countriesDisputed area

Chinese Northeastern part: Aksai Chin

Indian South West: Ladakh Both are Nuclear Powers China selling arms to Pakistan

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

Relations warming up…. (II)

Strategic talks held in January 2005Boundaries issues2003 – India recognized Tibet as

part of PRCPRC started border trade North

East Indian state of Sikkim