Chinese Foreign Minister Wang Yi arrived in New Delhi on Friday for talks. Meetings at the highest level since border clashes two years ago have strained diplomatic ties between the nuclear-armed Asian giants.
Below is the current state of affairs in India-China relations:
TROUBLE BORDER, REGIONAL RIVALRY
Thousands of Indian troops remain deployed along India’s remote border with China in the Himalayan snow deserts of Ladakh, where close combat broke out in June 2020.
At least 20 Indian and four Chinese soldiers were killed in a clash in Ladakh’s Galwan Valley – the first deadly encounter between the nuclear-armed neighbors in decades.
Their undefined 3,500 km border has remained largely peaceful since a border war in 1962, with both countries still claiming large swaths of each other’s territory.
After the clash in Galwan, senior officers from both armies held more than a dozen rounds of talks to de-escalate the deadlock in Ladakh, but progress has been limited.
Last February, after multiple military parleys, Indian and Chinese troops completed a withdrawal from a lake area in Ladakh. Days later, Chinese Foreign Minister Wang Yi and his Indian counterpart S. Jaishankar agreed to set up a hotline.
Beijing has repeatedly said that the border crossing does not represent the whole of relations between China and India, while New Delhi has maintained that peace along the border is essential for the two countries to work together.
New Delhi has a host of other concerns about China’s activities in almost all of India’s neighboring countries.
Aside from tensions in the Himalayas, distrust in India stems from Beijing’s support of the old enemy Pakistan, the struggle for influence in Nepal and concerns about China’s economic power in Bangladesh, Myanmar and Sri Lanka.
INVESTMENT AND APP FORBIDDEN
China is India’s largest trading partner and bilateral trade has grown exponentially since the turn of the century to reach $95.02 billion in 2021/22.
Trade continues to tilt sharply in Beijing’s favour. India’s trade deficit with China is the largest with any country, and the imbalance is increasing.
More than 100 Chinese companies, including state-owned companies, operate in India, including electronics manufacturers that have come to dominate the country’s mobile phone market.
However, since 2020, New Delhi has tightened up on Chinese players in Asia’s third-largest economy by tightening controls on investments or imports and banning some mobile apps.
The Indian government had previously withheld billions of investment from Beijing, but said last week that approvals had been approved for 66 proposals from neighboring countries — including China — for a total cost of $1.79 billion.
Last month, India also blocked access to dozens of Chinese apps due to security concerns, bringing the number of such restricted mobile apps to more than 300.
(Except for the headline, this story has not been edited by DailyExpertNews staff and has been published from a syndicated feed.)