The 71-day standoff between India and China at Doklam was successfully resolved.
Doklam, also called Donglang is located at a tri-junction of India, Tibet and Bhutan and is close to the Nathu La pass, through which China had blocked in 2017 the Kailash Mansoravar yatra.
Doklam is recognised as a Bhutanese territory by India and Bhutan. But, China claims some parts of the Doklam Plateau as part of its “ancient” frontier.
The reason behind the stand-off was the Chinese attempt to build a road in the strategically located Doklam.
Indian troops intervened to block the path of Chinese People’s Liberation Army soldiers engaged in building road-works on the Doklam plateau.
This was the first time that India used troops to protect Bhutan’s territorial interests.
This raised concerns between Bhutan and China.
Bhutan has a written agreement with China that pending the final resolution of the boundary issue, peace and tranquility should be maintained in the area.
India and Bhutan have a Friendship Treaty signed in 2007 according to which, India serves as a virtual security guarantor to Bhutan.
Under the agreement, neither Government shall allow the use of its territory for activities harmful to the national security and interest of the other.
2. India, China ‘clash’ near high-altitude Pangong Lake
The Indian and Chinese armies clashed recently along the Pangong lake in Ladakh when the People’s Liberation Army tried to penetrate into the Indian side.
Pangon lake or Pangong Tso, a 135-km long lake, located in the Himalayas at the height of
approximately 4,350 m, stretches out from India to China.
One-third of water body, its 45 km stretch, is in Indian control while the rest of the 90 km is under Chinese control.
There has been constant strife between the two countries over the region as both assert territorial possession.
The region has been a bone of contention between India and China for long.
In the 1990s, when the Indian side laid claims over the area, the Chinese army built a metal-top road contending that it was part of the Aksai Chin, which is another disputed border area between the two.
The Aksai Chin area falls under Chinese control and is governed as part of Hotan County. However, India also claims it to be a part of the Ladakh region of Jammu and Kashmir.
3. India – China Trade Deficit
India’s trade deficit with China rose to $46.56 billion in 2016.
China’s exports to India totalled $58.33 billion, registering a meagre increase of 0.2% compared to $58.25 billion in 2015.
India’s exports to China dropped 12% from 2015 to $11.76 billion.
India exports less to China (mainly raw materials) and imports more (mainly electronics and other manufactured goods which are in high demand).
China’s exports to India account for only 2% of its total exports. So even if Indians boycott all the goods imported from China, it will not make as big an impact on China.
India imports telecom gear worth over Rs 70,000 crore annually, much of it from Chinese firms like Huawei and ZTE.
Chinese companies dominate the telecom sector in India. India’s pharma sector has critical dependence on Chinese imports used in drugs manufacturing.
Power is another sector where India depends on Chinese imports. In the 12th Plan alone, almost 30% of the generating capacity was imported from China.
Between April 2016 and January 2017, solar equipment from China had a share of 87% in a market pegged at $1.9 billion.