Indo-China Relations

The three day visit of Indian Prime Minister, Manmohan Singh to China from 13th to 15th Jan. 2008, marks a further push in the ongoing process of strengthening bilateral relations between the two countries. In the past twenty years or so both the countries have come to realise that the bilateral problem of boundary issue should not come in the way of strengthening bilateral and multilateral relations in other areas between the two countries. This visit helps in consolidating economic relations between the two countries.

During the visit, the Indian PM Manmohan Singh and the Chinese Premier signed a joint statement titled ‘A Shared Vision for the 21st Century’ at the Great Hall of People in Beijing on 14th Jan. 2008. However, the joint statement could not indicate any breakthrough on the most intractable boundary issue between the two countries. There was a reiteration of the official position of both sides to seek a fair, reasonable and mutually acceptable solution to the boundary issue on the basis of the political parameters and guiding principles announced in 2005. Yet the shared vision for 21st century contains some new issues such as bilateral cooperation in civil nuclear energy, Chinese support for India’s desire to play a greater role in the United Nations Security Council and the possibility of commencing discussion on a Regional Trade Agreement.

On civil nuclear cooperation, the ‘Shared vision’ statement mentions that the two sides pledge to promote bilateral cooperation in civil nuclear energy, consistent with their respective international commitments, which will contribute to energy security and to dealing with risks associated with climate change. In fact, this statement is more advanced in comparison to the joint declaration made by two countries in this regard during the India visit of Chinese President Hu Jintao in Nov. 2006. It should be noted that China is a member of the Nuclear Suppliers Group (NSG) and therefore, in view of the above development, China is likely to support Indo-US nuclear deal as and when it comes before the meeting of the NSG.

The second important issue contained in the shared vision statement is the possible Chinese support to India on the issue of Security Council membership. For the first time, the joint statement mentions that “the Chinese side understands and supports India’s aspiration to play a greater role in the United Nations, including the Security Council”. The inclusion of security Council is an important development as far as Chinese support to Indian claim for Security Council membership is concerned.

On trade, the two sides announced a new trade target of $ 60b by 2010 as the earlier target of $ 40b of bilateral trade was met at the end of 2007. It was agreed by both sides that the Regional Trade Agreement between the two countries was mutually advantageous. Though joint feasibility study was concluded in this respect, the agreement was not finalised due to strong opposition from Indian Industry. However, both countries agreed to explore the possibility of commencing discussion on the Regional Trade Agreement (RTA) through the mechanism of joint economic group. It was also decided to establish a business leaders forum to give feedback to the government on ways in which to strengthen the economic engagement. The ‘Shared Vision for the 21st Century’ document also states the common position that the two countries share on a range of issues including the trade talks at the World Trade Organisation and talks on climate change. In these two international issues, both China and India hold common ground along with other developing countries vis-a-vis developed countries.

In addition to the Shared vision declaration, both countries also signed 10 other bilateral agreements for co-operation in diverse fields such as railway, housing, land resources, cultural exchanges, geo-sciences, traditional medicines, agriculture and export of Indian tobacco to China. Dr. Manmohan Singh described his talks with the Chinese Premier as constructive and forward looking.