“India–China relations oscillate between cooperation and contestation. In this context, critically examine the significance of their relationship for global governance. (15M, 250 words)

India–China, the world’s two most populous nations (together 2.8 billion people) and fastest-growing economies, share a 3,488 km boundary and an evolving relationship of both partnership and rivalry. From the civilizational connect of Buddhism to the modern strategic challenges at Galwan (2020), ties have been marked by convergence and divergences.

Significance of India–China Relations for Global Governance

Economic Significance

• Bilateral trade stood at $127.7 billion in FY 2024–25 (China is India’s 2nd largest trading partner).
• India depends heavily on China for critical tech inputs such as electronics (97%), solar modules (80%), and APIs (pharmaceutical raw materials).
• A stable relationship ensures smooth global supply chains and boosts South-South trade.

Geostrategic Significance:

·        Both nations are nuclear powers and major Asian players. Their cooperation reduces the risk of conflict in the Himalayas and Indo-Pacific, impacting global stability.

• Their engagements shape regional platforms like BRICS, SCO, G20, and affect ASEAN, Indian Ocean, and South Asia.

Voice for the Global South

• Both countries advocate multipolarity and multilateralism, pressing for reforms in UN, WTO, IMF, and World Bank.
• For example, BRICS 2023 Johannesburg Declaration pushed for Global South financing, energy equity, and digital inclusion.
• At COP climate summits, they coordinate on climate finance and CBDR (Common but Differentiated Responsibilities).

Addressing Global Challenges

• Cooperation in areas like:
  • Climate change (International Solar Alliance; Renewable supply chains).
  • Global health (COVID-19 lessons on vaccine supply chains).
  • Energy & food security (both being top global consumers).

Civilizational Significance:

• Historical connect via Silk Road, Buddhism, and scholars like Fa Xian, Xuan Zang, Bodhidharma.
• Current exchanges: student mobility, Buddhist circuits, Kailash Mansarovar Yatra.
• Soft power can reinforce political and economic engagement.

Challenges in the Relationship

1. Border Disputes:
   1. Unresolved LAC disputes in Aksai Chin & Arunachal Pradesh.
   1. Galwan clash (2020) resulted in 20 Indian soldiers’ deaths, eroding trust.
2. Trade Imbalance
   1. India’s trade deficit with China grew to $99.2 billion in 2024–25, 35% of India’s total deficit.
   1. Overdependence on Chinese imports in strategic sectors.
3. Strategic Rivalry
   1. China’s all-weather ties with Pakistan (CPEC in PoK) challenge India’s sovereignty.
   1. China’s “String of Pearls” in the Indian Ocean vs. India’s “Necklace of Diamonds” counter-strategy.
4. Geopolitical Alignments
   1. India’s alignment with US, Quad, IPEF vs. China’s closeness with Russia and Pakistan.
   1. Strategic trust deficit persists.

Way Forward:

• Border Peace as Foundation
  • Institutionalize hotlines, disengagement verification & crisis-management protocols.
  • Ensure peace along the LAC to allow other areas of cooperation.
• Balanced Economic Engagement
  • Reduce dependence by diversifying supply chains under PLI (Production Linked Incentive).
  • Selectively allow low-risk Chinese investment in non-strategic sectors.
• Strengthening Multilateral Cooperation
  • Use BRICS, SCO, and G20 to push common agendas (climate finance, digital equity, health security).
  • Present a united Global South voice in institutions.

Conclusion: A calibrated approach — engaging where possible (economy, climate, global governance) while deterring where necessary (border security, sovereignty) — can be followed. Their ability to manage differences will determine not just Asian security, but the future trajectory of the global order.

+1 Value Addition:

Recent developments in the relationship:

• LAC Disengagement (2024–25): Troop pullbacks at Depsang & Demchok.
• Border Trade: Nathu La trade route reopened in 2024.
• Connectivity: Direct flights, visas for businesspersons, journalist exchanges resumed.
• Hydro-Diplomacy: China resumed Brahmaputra & Sutlej flood data sharing.
• People-to-People: Kailash Manasarovar Yatra resumed (2025).

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