India China relations remain opaque The Excelsior 16 Mar 2025
Addressing his annual press conference in Beijing last Friday, the Chinese foreign minister, Wang Yi, on being questioned on Indo-China ties, mentioned, ‘We should never allow bilateral relations to be defined by the boundary question or specific differences to affect the overall picture of our bilateral ties.’ He added, ‘China always believes that the two should be partners that contribute to each other’s success. A cooperative pas de deux of the dragon and the elephant is the only right choice for both sides.’ This was China’s latest outreach to India.
Jaishankar had last met his Chinese counterpart on the sidelines of a G20 foreign ministers meet in Johannesburg last month. Later, speaking at the Japan-India-Africa business forum, Jaishankar, in a veiled attack on China, mentioned, ‘Unlike extractive models, India prioritizes capacity-building, skill development and technology transfer, ensuring that African nations not only benefit from investments but also develop self-sustaining growth ecosystems.’ It is known that China extracts resources of countries which fail to repay its dues.
Countering Jaishankar, the Chinese government mouthpiece, The Global Times, in an editorial stated, ‘India’s criticism of China’s investments in Africa is nothing more than a case of sour grapes.’ It added, ‘some hardline, anti-China voices in India take China’s investments in Africa as part of so-called rivalry for leadership over the Global South.’
Striking a conciliatory note, the Chinese ambassador, Xu Feihong, mentioned in a recent event in New Delhi, ‘The China-India relationship is one of the most important bilateral relationships in the world.’ The Chinese military spokesperson commented in Beijing, ‘Chinese and Indian militaries are implementing resolutions related to border areas in a compressive and effective manner.’
China continues hinting that it is time to move forward setting aside ongoing tensions along the LAC. The Indian army chief, General Upendra Dwivedi, has repeatedly stated that the situation along the LAC remains ‘sensitive but stable’ and that the army deployment is ‘balanced and robust.’
Neither China nor India have shown any inclination to reduce troops along the LAC. On the contrary both nations are enhancing infrastructure conveying that the current phase of peace is only temporary.
The global scenario is also changing. Trade wars are likely to be the future with Trump promising reciprocal tariffs on all nations, impacting both China and India, with China facing the brunt. With Zelensky back on track on talks for peace, Trump’s possible meeting and reproachment with Putin could change Russia-China ties.
Russia has been forced, due to western actions, to partner with China, an alliance of necessity rather than ideology. Russia has major concerns regarding China, which it has been compelled to ignore, including Beijing’s growing influence in Central Asian nations as also its illegal immigration into Eastern Russia, impacting demography. Xi, hoping to keep the alliance alive, spoke to Putin on the third anniversary of the Ukraine war.
PM Modi will be present in Moscow in May to attend the ‘80th anniversary of Victory in the Great Patriotic War,’ a growing sign of Indo-Russia ties. An Indian army contingent is also expected to participate. While India’s allies are on the rise, Chinese remain limited. India conducts military exercises with a host of nations, while China with very few.
Simultaneously, the new US administration comprises of China Hawks while being strongly pro-India. The current US Secretary of State, Marc Rubio, has been sanctioned twice by China and is still not permitted to enter the country. The Secretary of Defence, Pete Hegseth, mentioned in Europe that the US’s main rival is China and it desires to concentrate its efforts to counter China.
Washington has also removed a sentence mentioning, ‘we do not support Taiwan independence’ from its Taiwan ‘factsheet.’ On the contrary it added a line, ‘will support Taiwan’s membership in international organisations, where applicable.’ China objected to the same and its spokesperson commented that the position of the US on Taiwan-related issues has ‘seriously regressed.’
The EU has imposed 35% tariffs on Chinese Electronic Vehicles, further hurting the Chinese economy. The Chinese economy is slowing down, with record FDI outflows, and it needs nations where it can invest as also markets where it does not face tariffs. Hence, India is an opportunity it cannot let go.
China also holds the rotating Presidency of the SCO (Shanghai Cooperation Organization) which it dominates as most members are beholden to China being participants of the BRI (Belt Road Initiative). India’s attendance gives the organization global legitimacy and hence Beijing would pull all stops to ensure the presence of PM Modi for the annual summit. Thus, there is sweet talk as also an intent to remove differences and restore normalcy in ties.
At the same time, fearing the Indian economic challenge, China is placing blocks on move of manufacturing to India. Beijing blocked export of specialised manufacturing equipment for making iPhones to India. It also stopped FoxConn’s Chinese employees from visiting factories in India while recalling those that were already in India.
China placed similar restrictions on export of German Tunnel Boring Machines, being manufactured in China. These machines are essential for construction of metro’s, railway tunnels and development of infrastructure along the LAC. This was offset when the German manufacturer, Herrenknecht, began assembling/ manufacturing the same in Chennai.
On one side China seeks to enhance ties with India, while on the other, it plays a double game. This conveys that China fears the west shifting manufacturing from China. With unemployment at alarming levels, Chinese actions are a display of concern of global manufacturing shifting base to India.
India, on its part, has neither lifted its ban on Chinese mobile Apps, nor on Chinese investments in local companies nor permitted Chinese press representatives within. Even on direct flights, while India has agreed in principle, it has yet to implement the same. Simultaneously, India continues with infrastructure development and enhanced deployment along the LAC, sending the message that it will not bend but challenge China.
While China sweet talks on enhancing of ties, its actions are contrary and negative. For Beijing, India is a competitor it must suppress. Further, militarily it is aware that India will always be a force to reckon with. India has understood the Chinese game and is playing tough, aware that this is the time to extract the maximum from China.