Economics & Politics in China-India Relations: New Developments and Emerging Issues

This paper traces the trajectory of a variety of complicated economic and political developments between China and India - the world's most ancient civilizations connected by rich history. These recent developments, which are heavily acrimonious and include military clashes involving loss of lives, have greatly damaged bilateral relations. The paper examines the reasons behind the bilateral relations dipping to new lows. Aside from specific bilateral disputes like outstanding border problems, China-India relations have been affected by global and regional developments. The paper identifies rising tensions between the U.S. and China, the evolution of the Belt and Road Initiative, and the growth of the Indo-Pacific construct, as the reasons that have expanded distance and mistrust between the two countries. Both China and India are now part of country coalitions aiming to marginalize each other's strategic influences. The paper argues that such efforts by them are going to impact countries in their neighbourhood - such as in Central Asia - by forcing them to make complex choices in the areas of trade engagement and technological development.