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India-China Relationship

1. Doklam Dispute23-42-26-dokla

  • 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 Lake23-41-46-The-sunny-day-at-Pangong-Lake.jpg

  • 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 Deficitmoney-card-business-credit-card-50987.jpeg

  • 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.

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