The historical relationship between India and China has been ambivalent at best. Plagued by border disputes and economic competition, the countries have long fostered feelings of animosity towards one another. Recently however, both sides have made concerted efforts to improve relations recognizing that coöperation offers economic and political advantages. In May, Indian and Chinese officials issued a joint statement affirming their resolve to further improve their relations through increased economic and cultural exchanges (Bagri). In addition however, India has also called on China to lower their non-tariff-barriers in order to enable India to reduce its growing trade deficit to China (Dasgupta). Although China and India have many conflicting interests, the interests that they share are the ones that can facilitate mutually beneficial coöperation (Principle #1 Morrow). The countries’ perception of one another is also critical to brokering an agreement and ultimately how they perceive one another will be the determinate of whether or not coöperation is feasible (Principle #4 Morrow). China and India clearly have some interests in conflict. For one, both would like access to disputed territory, located in the Himalayan Mountains, that both countries have claimed rightfully belongs to them. Additionally, the states’ hold conflicting ideologies (Democracy v. Communism) that both would like to promote and also differ in that each would like to gain as much as possible from trade, regardless of how detrimental it would be to the other state. Finally, the states’, and more specifically their leaders, have political incentives to protect domestic industries and workers because although doing so may impede the maximum efficiency poss... ... middle of paper ... ...09. Web. 18 Nov. 2013. . Mishra, Pankaj. "When the Best and Brightest Leave India and China." Bloomberg.com. Bloomberg, 20 Oct. 2013. Web. 17 Nov. 2013. . Morrow, James D. Understanding World Politics. 3rd ed. Vol. 1. Upper Saddle River: Pearson, 2013. Print. Mumbai. "Friend, Enemy, Rival, Investor." The Economist. The Economist, 30 June 2012. Web. 17 Nov. 2013. . Sedghi, Ami. "India's Trade: Full List of Exports, Imports and Partner Countries." The Guardian. The Guardian, 22 Feb. 2013. Web. 17 Nov. 2013. .
Many developed and developing countries want to protect their own industries such as India who is still reluctant to give foreign firms greater access to its economy, as shown by the political row over its much delayed decision to open up the supermarket sector to global giants
Moreover, economic interdependence promotes peaceful trade between countries since it is beneficial and avoids war at all cost. For example, “China’s economy is thoroughly integrated in this complex interdependence global economy,” thus it would be suicidal for China to start war (Wong, The Rise of Great Powers, Nov.18). China free trades with the Association of Southeast Asian Nations (ASEAN) and has developed a profitable relationship that led to trade surplus (Kaplan, pg.3). As a result, starting conflicts with the ASEAN will threaten the Chinese economy because it will drastically impact free trade and will cause a downfall in profits. The possibility of war between China and United States is remote because China would rather benefit from resources such as, security, technology, and market that United States provides (Wong, The Rise of Great Powers, Nov.18). Although economic power shifts to China, United States provides security because it has always been the dominant hegemony; therefore, it has a better and powerful economy (Green, pg.34). It is evident that China’s economy is rapidly increasing, but it still has no interest in being the head hegemony and therefore does not challenge United States. That being said, countries choose to avoid conflicts with United States or their trading partners since it will negatively impact their markets and investments.
A. The "International Politics" Essay, International Business St. Louis University, 1996. Mosier, Mike. A great idea. The Self as I See It.
Secondly, the existence of merchant may maintain the stability in border areas (South-East). And the oversea trade is also an extremely part of the tribute system that can display China’s powerfulness. Lastly，the author calls for lax of business environment and tax policy with the expectation of trade
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Wadwha, Vivek. (2007). Seeing Through Preconceptions: A Deeper Look at China and India. Issues in science and technology online. Retrieved (2010, March 11) from http://www.issues.org/23.3/wadhwa.html
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To sum up, the future trend of the Sino-US relation is to cooperate through competition, which is the “competitive coexistence”. China is growing, which is the reality that the U.S has to accept, and the interdependence between China and the U.S is stronger than ever before both politically and economically. Therefore, just as Robert (2013) pointed out in his article “the explore of a new type of great-power relationship would not only help the most two powerful countries to avoid the Thucydides trap, but also allow the world to become more vibrant and invigorated”. In other words, cooperate bring more benefits to the U.S. rather than compete with the rising China.
In realising that foreign investments are the key source of the nation’s economic rise, the Chinese government has given special preferences to foreign investors (Financial Express, 2006). This is mostly done through reduction of most favoured nation (MFN) tariff rate. In India, on the other hand, fair competition exists between domestic and foreign investors. Although the Indian government states that it aims to reduce its MFN tariff rate, which currently doubles the rate in China, to other ASEAN country levels, it is in reality a big challenge because a large portion of the nation’s tax revenue comes from customs tariffs (Henley, 2004).
From the beginning of their establishment, the bilateral relations between the United States of America and China have changed throughout the time. The bilateral relations between the two countries emerged in the 1970’s with the ‘Ping-Pong’ diplomacy and there have been many pauses in their mutual relations. The US and China enjoyed cooperation in economic and military spheres and the mutual relations grew massively during until the end of 1990’s. The heads of the two states began visiting each other’s countries and the economic ties were tightening year by year. However, the issues of human rights and free speech declined mutual Sino-American relations.
Kegley, Charles W., and Eugene R. Wittkopf. World Politics Trend and Transformation. New York: St. Martin's, 1981. Print.
China has also expanded their trading industries with countries such as South Korea, Japan, Taiwan, ASEAN, India, Russia and Hong Kong. This has not satisfied the Chinese greed for income as they also export and import goods to American countries, name...