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Picture Courtesy: THE HINDU
At the Shanghai Cooperation Organisation (SCO) summit in September 2025, Indian Prime Minister and Chinese President agreed to resume trade and air travel, emphasizing the need for border tranquility despite lingering unresolved issues.
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Read all about: India China Trade Problem l US-China Relations Impact on India l Brahmaputra Dams: India-China Tensions l India's Strategic Autonomy in a Multipolar World l Chindia |
India-China Relations: From Panchsheel to Galwan
Panchsheel and Post-1962 Relations
The 1954 Panchsheel Agreement laid the foundation for peaceful coexistence through mutual non-aggression, respect for sovereignty, and equality. However, the 1962 war shattered trust, leaving a legacy of suspicion that has influenced subsequent diplomacy.
1988 Normalization Initiative
During Rajiv Gandhi’s visit to Beijing, India and China agreed to:
This "delinkage" model, reinforced through 1993 and 1996 agreements, allowed cooperation despite overlapping claims in Ladakh, Arunachal Pradesh, and other regions.
2020 Galwan Clash
The Galwan incident highlighted the fragility of the delinkage model:
The incident reinforced that trust deficits can unravel decades of cooperation, making the boundary dispute a non-negotiable strategic concern.
Recent Developments2024 Border Patrol Agreement
Restored Indian patrolling in Depsang and Demchok via cross-patrolled buffer zones.
Viewed by India as a tactical victory, reclaiming access without conceding sovereignty.
China frames it as mutual disengagement, preserving their claims.
India-China 2025 SCO Dialogue
Restarted direct flights and trade (suspended since 2020)
Reaffirmed peace and tranquility along the LAC.
Reasserted that differences should not become disputes.
Historical Example
1988–2020: Sectoral engagement delivered economic and technological growth despite unresolved borders.
Delinkage enabled focus on shared interests, including climate action, counter-terrorism, and multilateral initiatives
Risks
China shows “no interest” in a final settlement, leveraging ambiguity to assert dominance
SR talks historically stalled over specific claims (Arunachal as “South Tibet”)
Infrastructure asymmetry: China’s LAC airfields, roads, and communications enable rapid troop mobilization, forcing India to match expenditures
Can India normalize ties without addressing the LAC dispute?
Proponents argue for compartmentalization to unlock economic gains and regional collaboration.
Critics warn that overlooking the boundary invites strategic vulnerabilities, especially given China’s growing assertiveness and military buildup.
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Pros |
Cons |
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Unlocks trade, FDI, and technology transfers |
Risks strategic vulnerability and miscalculations |
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Multilateral cooperation via SCO, BRICS |
LAC incursions remain possible |
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Cultural exchanges and confidence-building |
Perpetuates asymmetric power balance |
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Short-term diplomatic gains |
Weakens leverage in future negotiations |
Strengthen Deterrence
Accelerate LAC infrastructure (BRO roads, forward logistics).
Enhance defense modernization (artillery, UAV surveillance, rapid response units).
Deploy satellite imagery, AI-driven surveillance, and real-time monitoring to preempt incursions.
Diplomatic Push
Revive strategic talks with timelines and accountability.
Utilize SCO, BRICS, and UN forums for confidence-building.
Economic Safeguards
Diversify imports via Production-Linked Incentive (PLI) schemes, Make-in-India incentives.
Reduce overdependence on Chinese critical minerals by sourcing from Australia, Africa, and Latin America.
Climate and Environmental Diplomacy
Engage China on Himalayan glacial preservation, river management, and transboundary ecological projects, leveraging shared environmental interests.
People-Centric Diplomacy
Promote academic, cultural, and business exchanges to foster long-term trust, mitigating the militarized narrative.
Strategic Autonomy Principle
Normalize engagement without compromising India’s independent decision-making, maintaining defense, trade, and diplomatic sovereignty.
India cannot overlook boundary issues entirely. Historical delinkage models facilitated growth but failed at Galwan, demonstrating that peace is prerequisite, not substitute, for resolution.
A dual-track approach, balancing cooperation and security, offers the most realistic path:
Source: THE HINDU
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PRACTICE QUESTION Q. The term 'Salami Slicing' is associated with China's strategy. What does it mean? A) The division of a country into smaller administrative units for easier governance. B) A strategy of gradually taking small, incremental actions to achieve a larger goal. C) A method of economic warfare involving trade sanctions and embargoes. D) A policy of promoting cultural exchange to build soft power influence. Answer: B Explanation: 'Salami slicing' refers to a strategy of using small, covert, military or diplomatic actions that are individually insignificant but accumulate to create a significant strategic advantage over time. This is a tactic China has been accused of using along the LAC. |
In FY25, India's trade deficit with China reached $99.2 billion. China contributes to approximately 35% of India's total merchandise trade deficit.
Growth in bilateral investment has not kept pace with the expansion in trade. According to Indian data, cumulative Chinese FDI into India till March 2025 was $2.5 billion.
The term 'Chindia' emerged in the early 2000s to represent the idea of a synergistic partnership between China and India, driven by their rapid economic growth.
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