China and India Relations
First Published: November 26, 2009 ADawnJournal.com
As time has gone on there have also been many developments in the India China economy, some of which are worth writing home about. Even though there were always fears that China was going to overrun India, it can be reported that the best thing that happened is the growth of bilateral trade between these two neighbouring economic giants. For the last few years, it has emerged that a balance of sorts is actually developing and both trade partners are happy with the progress so far.
With all these positive developments, there are still some small quarters that have the feeling that it may be too early to completely open up the Indian Market for the giant China. It happens that inmost cases, there is a competition from the two manufacturing nations that cuts across an almost similar range of products. This quarters that are skeptical about the advantage that India will be getting when it clearly emerges that import tariffs become higher locally as compared to their competitor, which to them is a real disadvantage. There has been a growing feeling that due consideration was not taken when their government signed FTAs with China. To them more needed to have been done in order to remove the current confusion that seems to exist in the current market.
Actually, ever since the two countries established diplomatic ties in the year 1950, there has been a tremendous progressive growth that has resulted in warm relationships despite the differences in their national ideological thinking. The two neighbouring nation’s leaders must have long realized the importance of cordial relationships and for that reason their bilateral trade has continued to grow unhindered over time. Any challenges that are experienced any time are easily solved in an amicable way solutions are mutually beneficial, even when it comes to sensitive and potentially explosive issues like border disputes.
India and China have for a long time had bilateral agreements on important areas such as technology and aviation, two items which are a the bedrock of modern trade tendencies and for this reason it on known that they regularly hold consultations in order to update themselves on any progress or challenges that need to be attended to for their mutual benefit. And with the direct air links they have had for a long time now, travel and cultural exchanges are things that are a common agenda among the citizenry.
Studies seem to indicate that there may be a need to put more focus on future investments or trade in sectors that have been left behind in the past. These sectors include traditional manufacturing but most important are knowledge based sectors so that India especially can reap a big bargain in some of these areas. Even though there are many products India can export to China, currently the greatest of them is iron but a lot more can still be done with stuff like chemicals, plastic, rubber and much more. But when they are put together, China and India can build a formidable force and develop areas that have great potential such as biotechnology, education, health, and tourism and information technology.