Foreign Policy Watch: India-China

China-India: Facilitating an Asian Century


From UPSC perspective, the following things are important :

Prelims level: NA

Mains level: India-china Trade, development and Bilateral Relations


Central idea

  • China’s recent developments in steady growth, people’s well-being, opening up, and win-win cooperation, as well as its willingness to strengthen communication and coordination with India, can provide new opportunities for all countries in the world, especially neighbouring countries. importance of China-India relations and their role in facilitating an Asian Century.

China’s focus areas of development 

  • Modernization: China is currently advancing modernization in all fronts, based on its practices, and a focus on high-quality development.
  • Overall development: The country aims to modernize its huge population, ensuring common prosperity for all, material and cultural-ethical advancement, harmony between humanity and nature, and peaceful development.
  • New opportunities: China’s development will create new opportunities for all countries, especially neighbouring countries.


The development of China in recent years

  1. Steady Growth:
  • In 2022, China’s economy grew by 3%, and the country added a total of 12.06 million urban jobs.
  • The country’s GDP increased to 121 trillion yuan (approximately $18 trillion), registering an annual growth rate of 5.2% over the past five years and an annual growth of 6.2% over the past decade, with GDP increasing by nearly 70 trillion yuan.
  • China’s economic strength is steadily reaching new heights.
  1. People’s Well-being:
  • China has historically resolved absolute poverty, with the alleviation of close to 100 million rural residents from poverty.
  • Over 70% of the government’s expenditure went toward ensuring people’s well-being.
  • Basic old age insurance covers 1.05 billion people, an increase of 140 million. Living standards continue to witness new improvements.
  1. Opening Up:
  • In 2022, China’s total volume of trade in goods exceeded 40 trillion yuan, registering an annual growth rate of 8.6%.
  • China’s actual use of foreign capital was up by 8%, and the country remained one of the top destinations for foreign investors.
  • The overall tariff level continues to fall, from 9.8% to 7.4%. China’s doors to the outside world are opening even wider.
  1. Win-Win Cooperation
  • In the period 2013-2021, China’s contribution to global economic growth averaged 38.6%, higher than that of G7 countries combined (25.7%).
  • More than 100 countries have expressed their support, and over 60 countries have joined the Group of Friends of the Global Development Initiative (GDI) since Chinese President, Xi Jinping, proposed it in a speech at the United Nations General Assembly in 2021.


China-India Relations

  • Emerged as Representatives: As neighboring and ancient civilizations, China, and India are representatives of developing countries and emerging economies.
  • National rejuvenation: Both countries are currently in the process of national rejuvenation and a crucial period of modernization where challenges need to be overcome and problems need to be solved.
  • Interests than differences: China and India have far more common interests than differences.

China- India Trade

  • China and India are important trading partners, with bilateral trade volume reaching $135.984 billion in 2022.
  • Although there is a trade deficit, India’s import of equipment and materials from China reduces the overall cost of Made-in-India products, benefits Indian downstream industries and consumers, enhances the competitiveness of Indian exports, and in turn facilitates India’s integration into global industrial and supply chains.


Facilitating an Asian Century

  • Chinese Foreign Minister recently stated that the development and revitalization of China and India embody a boost to the force of developing countries, which will change the destiny of a third of the world’s population and have a bearing on the future of Asia and beyond.
  • This echoes what India’s External Affairs Minister S. Jaishankar had expressed in 2022 that the Asian Century will happen when China and India come together.


  • China’s development and its relationship with India are important for the region and the world. Both countries are in the process of modernization and face challenges that need to be overcome. China and India are important trading partners, and their cooperation can facilitate an Asian Century and contribute to peace and stability in the region and beyond.

Mains Question

Q. Provide your insights on the role of China and India in shaping the destiny of the developing countries and their impact on the future of Asia and beyond

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