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'India, China can reshape world order'

Globescan by M. P. Muttiah


Indian Prime Minister Dr. Manmohan Singh with Chinese Premier Wen Jiabao - AFP

Relations between two giant neighbours, India and China took a new turn last week with the visit of Chinese Premier Wen Jiabao to New Delhi. Both countries have signed a series of agreements including the most important Agreement on Political Parameters and Guiding Principles for the Settlement of the India-China Boundary Question.

Indian Prime Minister Dr. Manmohan Singh said: "India and China can together reshape the world order." Chinese Premier Wen Jiabao said: "India and China could convert the boundary between them into a zone of peace, if they demonstrated sincerity, patience and perseverance in settling the border dispute."

The Five Principles of Panchsheel, seemed finally becoming the guiding pillars of inter-state relations amongst China and South Asia. The new positive formulation of Chinese Premier Wen Jiabao clearly reflected Beijing's new understanding and focus on South Asia.

Panchsheel or the Five Principles of Peaceful Co-existence, were first formally enunciated in the Agreement on Trade and Inter-course between the Tibet region of China and India on April 29, 1954. Two months later during the visit to India of Premier Chou En Lai, he and Indian Prime Minister Jawaharlal Nehru issued a joint statement on June 28, 1954, that elaborated their vision of Panchsheel as the framework not only for relations between the two countries, but also for their relations with all others, so that a solid foundation could be laid for peace and security in the world.

Although India and China had many things in common, their relations were not smooth sailing. With the Tibetan rebellion in 1959, and the Sino-Indian border dispute from late 1950s and Sino-Indian border war in 1962, China-Indian relations gradually worsened.

However, the normalisation of Sino-Indian relations started and was realised during the rule of Indira Gandhi, Janata Party and Rajiv Gandhi, in the changing global circumstances. Rajiv Gandhi's visit to Beijing opened up new vistas in the relations between the two countries. While maintaining traditional friendship with Pakistan, China also began to adjust its position on the Kashmir issue.

Until 1980, China had strongly supported Pakistan's claim. China clearly described Kashmir as a bilateral dispute between India and Pakistan and urged both sides to resolve it through dialogue. In 1991, during his visit to India, Chinese Premier Li Peng approved that both countries should resolve the Kashmir dispute under the framework of Simla Agreement, through negotiations. This marked a significant change in China's policy towards India.

China believes that friendly Sino-Pak, Sino-Indian relations could facilitate and promote the normalisation process between India and Pakistan and stability and peace in South Asia. With this in mind, Chinese leaders continuously persuaded Pakistan leaders to change the option of war brinkmanship and go back to peaceful efforts. Weekend talks between Pakistan President Pervez Musharaaf and Indian Prime Minister Manmohan Singh could be seen from this prism.

The most important fact is that the 3,400-kilometre long land border between China and India has largely remained tranquil over the last 25 years. Last week, both countries have agreed on the modalities to implement the confidence-building measures along the Line of Actual Control (LAC). Both sides said that they were convinced of an early settlement of the boundary question in the context of their overall and long term interests.

They agreed differences on the boundary question should not be allowed to affect overall development of bilateral relations and assured that both sides will resolve the boundary question through peaceful and friendly consultations. India and China reiterated that the final solution of the boundary issue will significantly promote good neighbourly and friendly relations between them.

Recent years have seen a phenomenal increase in economic engagement between them. This heightened economic interaction has been generating profound effects on Sino-Indian relations as a whole. In 1820, China accounted for 30 per cent of the global economy, India's share was 15 per cent while the United States contributed 2 per cent. But, by 1950s, the United States was in a dominant position, while China and India was only 4 per cent.

Now both these countries share 20 per cent. The working age population of China and India put together is 40 per cent of the world population. Last year trade between them was 13.6 billion dollars and they hoped to increase it to 20 billion dollars in 2008. Therefore both sides agreed that increasing trade would help raise the living standards of their people.

They have agreed to have regular exchange of views on World Trade Organisation and co-operate with each other. Indian Prime Minister Manmohan Singh and Chinese Premier Wen Jiabao agreed to jointly work for reforming the United Nations. China attached great importance to the status of India in international relations.

The Chinese Premier said that his country understood and supported India's aspirations to play an active role in the United Nations and international affairs. Analysts say that improvement in the relations between India and China would be beneficial not only to South Asia but also to peace and security in the world.

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