China-India Relations
Two nuclear-powered neighbours
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Background explainers, news and analysis on relations between China and India, the second and seventh largest economies in the world, covering trade, military, border issues and tensions between Beijing and New Delhi.
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From G20 to Brics, the more the West seeks to weaken the India-China axis crucial to regional cooperation, the more Asia’s statesmen must stand together.
In a world ravaged by deadly heatwaves, scorching fires and flash floods that destroyed homes and pushed up food prices, Asia’s major economies need to quickly set a green pathway.
Even the most India-positive forecasts expect it to spend half a century to overtake the US economically, to take second place behind China. But with reforms, India it can still be a huge driver in the global economy.
New Delhi is displacing Beijing in the American hierarchy of bilateral relations as the White House reverses decades of Sino-US engagement.
The media frenzy around India overtaking China as the world’s most populous country has led to questions about what it means for the global agricultural market. The confluence of four distinct factors suggests India’s trade trajectory will diverge and that China’s standing is likely to remain unmatched.
India never had a revolution, so its old power structures continue to shackle economic change. This, coupled with a lack of investment in education, health and social welfare, means India will continue to lag behind China
It was a feat to get China, the world’s largest bilateral creditor, to agree with its geopolitical rivals in the Paris Club and India. But is this a one-off or a permanent shift for China?
The warm embrace Lula da Silva received in China is the latest sign of relations that could speed up moves within the BRICS countries to create a new global economic architecture, creating greater distance for the Global South from the influence of the IMF and the World Bank.
Australia and other US allies looking for potential trade and investment partners to reduce their reliance on China are knocking on India’s door. But India’s modest economic size, challenging investment environment and substandard infrastructure are major deterrents to fruitful collaboration.
A strategic focus on the India-China border leads to added pressure for local communities, particularly in the northwest Himalayan region, says Abhishek Sharma.
The spectacular rise of Adani Group has helped to power India’s energy transition and provided a riposte to China’s Belt and Road project. But the recent stock rout in Adani shares highlights the economic risks of creating a domestic giant.
Revelations that this month’s violent clash in the Himalayas is just one of many in the past two years indicate a change from previous disputes.
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