It is said that it takes only a minute to rupture a tie, but it takes years to repair them. Recent meetings between India and China’s career diplomats have some progress in normalizing the relationship between two powerful Asian neighbors, born of border disputes and uniform trade balance. Achieved. This was the latest of a series of engagement following the October meeting between Prime Minister Narendra Modi and President Xi Jinping after almost five years. The two countries agree to resume exchanges between people and people as a step to dispel distrust on both sides of the 3,500 km borders.
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Two developments are particularly important. The first is that if the relevant authorities finalize the appropriate framework, direct flights will be resumed. According to media reports, about 500 direct flights were operated every month, linking various cities in the two countries before the border invasion of the Chinese army in 2020, and snapped all airlinks. It is presumed. The second is a signal for China’s Indian sensitivity by agreeing to resume the pilgrimage of Chirashman Salobal. The other two auxiliary contracts -The interaction between the media and the think tanks, and the cooperation of rivers across borders is also important.
An essential thing to step into the relationship is to deal with concerns in the region of economic and trade connections. India has an uneven trade balance with China, and the deficit increases every year. The gap exceeded $ 85 billion from 2023 to 2014, exceeding the previous record, gained notorious as the largest trade deficit to visit all trade partners. Beijing has ignored New Delhi’s concerns for many years, but imposes restrictions on many exports with competitive advantage (active drugs, etc.) and overflow various Chinese products in the Indian market. I am.
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This one -way trade flow has another feature. It lacks the participation of technology transfer to global value chains with investment in the region. For many years, we have demanded China to strengthen Indian direct investment (FDI) to make up for uneven trade. The 2023-24 economic survey also advocated that the two-stage FEINT: import rationalization for China welcomed the FDI.
However, red carpets developed for investment in China need nuances. Indian strategists must strive to invest in high -tech areas, exceeding the limited -edition of the FDI with some sector, sweating and leaving the low value assembly line. The progress of Chinese technology, especially the advances of artificial intelligence (AI) via DeepSeek, has an important lesson for us. India has a long and diverse experience in information technology.
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Ideally, the two countries need to provide a PO -Asian platform to build and develop AI solutions without American or European bias. India and China are also pioneers of Frugal Innovation, and when DeepSeek shakes the west and combines these abilities, you may be able to get new standards for valuable breakthroughs and clean technology of chip technology. Here you need two notes. It is necessary to stop hostility and strengthen trade relationships with China, but India must keep the multifaceted relationship with the United States from being dangerous in the process. And it is important to keep in mind that the relationship between neighbors will never heal completely unless the border problem is completely resolved.
