INDIA AND CHINA
EMBARK ON A PATH OF COOPERATION
S.
Sethuraman*
The Prime Minister’s
six-day landmark visit to China has opened up new vistas of many-sided cooperation
between the world’s two largest and most populous developing countries
in the political, economic and cultural fields on a long-term
basis which would make for a "qualitatively new relationship"
for the two Asian giants. The "common interests" of
the two countries, in bilateral and global affairs, are underlined
in the Declaration issued during Shri Atal Bihari Vajpayee’s visit
(June 22 to 27, 2003). The important concern of a settlement of
the border question has to be viewed in the perspective of the
comprehensive agenda of enhanced cooperation as outlined in the
Declaration.
It is customary to
judge the outcome of such high-level visits in terms of positive
gains for each country. Hence the assessments by experts and commentators,
drawing their own inferences, often tend to vary. What is germane
is to determine whether results belied expectations from the visit,
keeping in view the historical background of Sino-Indian relations,
which suffered badly after the l962 border war and the subsequent
halting moves toward normalization of relations. In this sense,
the visit may be regarded as highly successful.
Boundary Settlement
The settlement of
border issue is still pending. The process of clarification of
the Line of Actual Control (LAC) was delayed due to differences
of perception of the LAC and this, in turn, deferred the exchange
of maps in the western sector. Nevertheless, peace and tranquility
has been maintained by the two sides in the border areas as per
the 1993 accord reached during the former Prime Minister Narsimha
Rao’s China visit.
Significantly, in
the light of Shri Vajpayee’s talks with his Chinese counterpart,
Mr Wen Jiabao and other leaders, the two countries have agreed
to nominate a Special Representative each to explore, from the
"political perspective" of the overall bilateral relationship,
"the framework for a boundary settlement". India has
named the National Security Adviser, Shri Brajesh Mishra, for
this purpose and the Prime Minister indicated on his return to
New Delhi on January 27 that the special representatives would
begin their work immediately and "the effort would be to
resolve the border problem as early as possible".
This represents
an advance over what looked like a frozen situation, and Shri
Vajpayee feels this new initiative would help to speed up progress
toward finding a solution on the border issue. The Declaration
expressed the readiness of the two countries to seek a "fair,
reasonable and mutually acceptable solution through consultations
on an equal footing". It is also agreed to continue implementation
of earlier agreements including the clarification of the 4000-km
Line of Control. Hopefully, these steps would proceed in a way
as to impart substance to the new road map of friendship embodied
in the Declaration.
Border Trade
Of immediate importance
is the opening up of border trade between the two countries. Here
again, the non-recognition by China of Sikkim’s status as a State
of the Indian Union since l974 had been one of the factors in
the bedevilled relationship thus far. In the context of
promoting friendly relations, the two countries have now signed
a memorandum on border trade, which will facilitate exchange of
goods between a venue in Sikkim (Changgu) and Renqinggang of the
Tibetan Autonomous Region. The Nathula Pass will be the point
of entry and exit of persons, transport and commodities.
There is some criticism
that while India has recognized the Tibet Autonomous Region as
part of China, the latter has not come up with explicit recognition
of Sikkim as a part of India. Shri Vajpayee has pointed
out that the Tibet Autonomous Region, created in 1965 had always
been referred to by New Delhi as part of China and as such there
is no inconsistency in India’s position as stated in the Declaration,
namely, "The Indian side recognizes that the Tibet Autonomous
Region is part of the territory of the People’s Republic of China".
Meanwhile, for Sikkim, the new protocol generates greater opportunities
for movement of goods and gives a boost to development activity
in the State.
Though recognition
of Sikkim as part of India is lacking in the Document, Shri Vajpayee
believes that a formal recognition by China would follow "early".
The Chinese official indications are that it would take "some
time" to address India’s concerns on Sikkim. On the
other hand, the Chinese Government has noted with appreciation
India’s position on Tibet Autonmous Region as part of China as
well as the reiteration that it "does not allow Tibetans
to engage in anti-China political activities". This certainly
does not, and cannot, affect the asylum that India gave to the
Dalai Lama who came to India when the Chinese overran Tibet in
the late l950s.
Common Interests
The Vajpayee visit
has to be seen in the broader context of developments in the subcontinent
as well as the world over in the decade since Shri Narasimha Rao
went to Beijing in 1993. Both countries are increasingly responding
to the demands of globalisation. Trade between the two countries
has lately been growing rapidly in recent years and both are among
the fastest growing economies in the world.
As Shri .Vajpayee
said before leaving for Beijing, there is "compelling geographical,
political and economic logic for closer relations’ between India
and China, a view finding strong resonance with the new leadership
at the helm of China. They have both common interests in deepening
bilateral relations as well as coordinating their positions on
ensuring "peace, stability and prosperity not only in Asia
but also in the whole world".
Cooperation at the
international level is needed, as the Declaration noted, to strengthen
multipolarity, enhance the positive factors of globalisation and
help shape a new international economic order. The important role
of the UN and efforts to strengthen the UN system including reform
with greater representation for developing countries are also
emphasized.
India and China share
common perceptions in a number of areas including multilateral
arms control and disarmament, equal security for all at progressively
lower levels of armament and global negotiations aimed at nuclear
disarmament and elimination of atomic weapons. The Foreign Ministers
of the two countries will hold annual meetings to enhance mutual
understanding and expand bilateral relations. Putting the past
behind, the Declaration says the two countries are not a threat
to each other and neither side shall use or threaten to use force
against the other.
Economic Dimension
The economic dimension
of the Prime Minister’s visit gained considerable importance and
trade and economic cooperation is set to predominate India-China
relations. Their bilateral trade in 2002 had reached a record
4.92 billion dollars. The two countries now consider it feasible
to double their trade to 10 billion dollars by 2005. Tariff concessions
on scores of items are being exchanged to boost the trade ties.
The Commerce Minister, Shri Arun Jaitley, who accompanied Shri
Vajpayee, held talks with the Chinese Trade Minister on stepping
up the two-way trade. The next meeting of the Joint Economic Group
at ministerial level would be held later this year.
A highly significant
understanding has also been reached for the two countries to coordinate
their strategies in support of developing countries in the tough
global trade negotiations (Doha Round). They will consult and
adopt a common stand on major issues affecting developing nations
in the ongoing negotiations in Geneva ahead of the WTO Ministerial
Meeting at Cancun, Mexico, in September.
Potential complementarities
for expanded trade and economic cooperation between the two countries
would be gone into by a Joint Study Group comprising officials
and economists. It would report to the two Governments by June
2004. China announced during Shri Vajpayee’s visit that it would
make enhanced investments in India for which it has set apart
a corpus of 500 million dollars. The series of agreements signed
on the occasion related to several areas including simplification
of visa procedures, scientific and technological and cultural
matters.
Shri Vajpayee proposed
during his visit to China’s financial capital, Shanghai, an effective
alliance in the information technology sector given their established
strengths in hardware (China) and software (India). It is in this
area that great possibilities exist for focussed cooperation
reinforcing their competitive strengths vis-à-vis the rest
of the world. The largest business delegation ever to accompany
the Prime Minister would surely have noted the immense scope for
investment and industrial collaboration with China
Overall, the
China visit of Prime Minister Vajpayee has unfolded new paths
for the two great nations to build on their existing strengths
and co-operate in promoting their own socio-economic development
as well as in tackling the challenges to development arising out
of external factors. While both countries would do their best
to remain internationally competitive, the visit should help bring
them together as partners and not as rivals in the dynamic Asian
region.
China is no
doubt far ahead of India in certain respects of development. It
is the fifth largest economy and is seen as an industrial powerhouse.
Its growth over the last two decades has pushed its GDP to over
one trillion dollars against India’s 480 billion dollars but India,
sustaining its own development momentum, is hopeful of narrowing
the distance and become a developed nation by 2020.
Summing up his visit
realistically, the Prime Minister says, "The road ahead is
long but a good beginning has been made."(PIB Features)
*A
Senior Journalist
