Indo China Relations

3148 WordsApr 26, 201313 Pages
.:: India-China Relations ::. | | | I. Introduction: 1. Rise of India and China Changing Global Balance:According to Singapore's Minister Mentor Lee Kuan Yew, the rise of India and China was changing the global balance. India and China together account for 40 per cent of the world's working age population and 19 per cent of the global economy in PPP (Purchasing Power Parity) terms, according to Mr. Lee. In the next 20 years their collective share of the global economy could match their percentage of the global population. 2. Asian Renaissance will Depend on How India and China Work Together:Mr. Lee stressed that Asia's place in the world would depend on how both India and China work together as they rise and…show more content…
If India grants an MES to China, it would mean that India has accepted the pricing figures supplied by China. This could lead to fears of large-scale dumping of Chinese Products. Although 80 countries have granted the MES to China, none of the large economies like the US, the EU and Japan have done so. G. Chinese Investments Subject to Special Security Clearances:India has blocked China's investment in certain sectors like telecommunications, port development and cargo carriers on the grounds that certain Chinese companies pose a security threat. Subjecting Chinese investments to special security clearances could cast a question mark on the future bilateral economic ties of the two countries, according to analysts. H. Balancing the Economic Ties with Security Issues:The challenge before India and China is to be able to manage the contradictory nature of economic ties with security issues. Balancing both the aspects will have a profound influence on the emerging strategic and security architecture of Asia and the World, according to analysts. I. Managing Bilateral Economic Relations by Minimising Potential Friction and Maximising Mutual Self-Interest:China is all set to emerge as the largest trading partner of India. However, India's exports to China formed only 1.46 per cent of Chinese Imports. India is also
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