China and India: relationship By Yoshina Hurgobin.

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Presentation transcript:

China and India: relationship By Yoshina Hurgobin

Qualitative Change in Relationship  India (9 th ) among top 10 Asian trading partners of China  Chinese exports to India : $ billion (increase of 77.3%)  2004 – Chinese imports from India: $ 7.67 billion (increase of 80.6%)  India-China annual trade: $13.6 billion (2003)

G7 Meeting Feb 4 & 5, 2005  Opening session: summit on investment prospects of India and China  G7 under pressure to recognize economic growth of China and India  G7 may be group of richest countries but not necessarily most dynamic ones

Rivals …(I)  Foreign Direct Investment China ($40 billion) India ($ 3 billion)  Democracy (India) vs Communism (China)  China quoted as “larger, richer and armed with a nuclear arsenal many times the size of India's”

Rivals (II)  Both countries bidding to invest in oil fields (Angola, Burma, Russia)  Thirsty countries China imports more than 40% of its oil India imports more than 70% of its oil

Tense Relations  1962 war between the two countries Disputed area  Chinese Northeastern part: Aksai Chin  Indian South West: Ladakh  Both are Nuclear Powers  China selling arms to Pakistan

Relations warming up….  Chinese Foreign Minister Li Zhaoxing "willing to unswervingly push forward" its ties with India  Energy Cooperation Discussion to ‘ensure a stable equitably priced energy supply for Asia’ Teaming up to cut better price deal from OPEC

Relations warming up…. (II)  Strategic talks held in January 2005 Boundaries issues 2003 – India recognized Tibet as part of PRC PRC started border trade North East Indian state of Sikkim