India-China Relations: Towards a 'Shared Vision'

Author(s): Alka Acharya

Source: Economic and Political Weekly, Vol. 43, No. 4 (Jan. 26 - Feb. 1, 2008), pp. 10-13
Published by: Economic and Political Weekly
Stable URL: http://www.jstor.org/stable/40277071
Accessed: 05-12-2017 22:27 UTC

JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide
range of content in a trusted digital archive. We use information technology and tools to increase productivity and
facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.

Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at
http://about.jstor.org/terms

Economic and Political Weekly is collaborating with JSTOR to digitize, preserve and extend
access to Economic and Political Weekly

This content downloaded from 200.52.254.249 on Tue, 05 Dec 2017 22:27:41 UTC
All use subject to http://about.jstor.org/terms
 COMMENTARY
India-China Relations:
Towards a c Shared Vision'
ALKA ACHARYA
The recent visit of prime ministertone, tenor and outcome of the
Manmohan Singh to China
covered an entire gamut of issues.
Interestingly, economic ties most
wereself-reflexive
the centrepiece of the visit, ly
while
when juxtaposed against similarleading
the contentious issues were level interactions over the last five years. particularly in manufactured
deliberately kept aside. The two
erable anticipation about the outcome
countries upheld joint efforts each
in marked by a major breakthrough replacement
bringing about a new
sentatives in 2003 (A B Vajpayee's
international political, economic
and energy order.
Alka Acharya (alka.acharya@gmailcom) is
with the Centre for East Asian Studies, Schooltably, a trade target of $60 billion by
of International Studies, Jawaharlal Nehru
University, New Delhi.
10 January 26,
This content downloaded from 200.52.254.249 on Tue, 05 Dec 2017 22:27:41 UTC
^^^^=^^^^^^^^^^^^^^^^^^^^^^^^^^^^^=
ahead of schedule and the revised
target of $40 billion by 2010 is also likely
to be reached two years ahead of sched-
ule. It is surprising that such phenomenal
increases are occurring despite the fact
that the Indian export basket is extremely
narrow. What appears to be a disconcert-
ing fallout, but which could acquire
disturbing dimensions if current trends
recently concluded visit (January
were to continue, is the rising trade deficit
in favour of China. Experts have pointed
13-15) by the Indian prime minister
to be
Manmohan Singh to China appear to a "near
al- monopoly" of Chinese exports
to India in certain "critical sectors",
in character, particular-
high-to a virtual "dependency syn-
drome",
The earlier visits were preceded bygoods. The problem is that this dependen-
consid-
cy isand
arising, not from a competitive
of of these exports from the
trade
sorts - appointment of the special baskets of other countries but by
repre-
displacing
China Indian manufactures. This
visit), the formulation of the 'Political
coupled with other fears of the Indian
Parameters and Guiding Principles' and regarding the opaque pricing
industry
the establishment of a 'Strategic mechanism
and Co- in China and the massive
subsidies
operative Partnership for Peace and Pros- to capital "through huge non-
pefforming
perity' in 2005 (Wen Jaibao's India visit), assets in their banking
and the agreement on a ten-pronged
system" could eventually make the trade
deficit
strategy to provide more substance to theunsustainable.
Strategic and Cooperative PartnershipThatina serious restructuring of India-
China
2006 (Hu Jintao's India visit). This trade relations needs to be under-
visit,
taken urgently has been clear for some
by contrast, seems almost like a contem-
plative pause or an introspective inter-
years now. The Joint Declaration signed
lude - taking cognisance of the miles
duringyet
Vajpayee's June 2003 visit had pro-
vided for the establishment of a Joint
to cover between them, but responding
to similar strategic concerns thatStudy
are in-
Group (jsg) to "examine the poten-
creasingly confronting the two countries.
tial complementarities between India and
China
It was marked by a resolve to get this in expanded trade and economic
cru-
cial equation right because, as Manmohan
cooperation". This jsg had submitted its
Singh said, the rise of India and China
report in March 2005 to their respective
must be seen as a "global publicgovernments.
good" It covers a range of recom-
which will benefit the world - a statement
mendations for comprehensive trade and
which acquires significance in the economic
light ofcooperation (Report of the India-
impending reports of a global economic
China Joint Study Group on Comprehensive
slowdown and the importance of develop-
Trade and Economic Cooperation, External
ing economies such as India and China in Division, Ministry of External
Publicity
cushioning it. Affairs, Government of India, New Delhi,
2005). It clearly addresses the imbalance
Trade Imbalance
in the current trading pattern and high-
Interestingly, economic ties have been the
lights the core competencies and areas of
centrepiece of Manmohan Singh's visit. An of both countries, which should
strength
upward revision of annual targets has
be reflected in the process of restructur-
ceased to generate any surprise anding. There are significant recommenda-
inevi-
tions regarding trade in services, mutual
2010
was announced. The trade target investment
of $20 and joint collaboration on
billion by 2008 was reached twodevelopmental
years projects.
2008 Economic & Political weekly
All use subject to http://about.jstor.org/terms
 The The prime minister exhorted Indian
other busi-
dimension
and tranquillity in the border areas pend-
mic nessmen to think "big" and "out of the
profile of
ing China
final resolution and the special repre-
bal box" and stressed thatagainst
stage economic coopera-
sentatives are continuing the the
discussions
the tion has become the "principal driver"
economic onof centre
their respective frameworks - this ap-
"our" strategic and cooperative partner-
Manmohan pears to be the point at which matters
Singh pu
century, Asia
ship. But it was also apparent that the stand.
In- may
Few, if any, reliable (officially con- w
than dian and Chinese
50 per firmed)
approaches to some of
cent details of the discussionsof
are in
investment and financial transactions of the big issues are poles apart - the ques-
the public realm. The national sensitivities
ontoboth sides regarding this issue and
the world" (Manmohan Singh, India and tion of granting market economy status
China in the 21st Century', Speech at the China and the Chinese proposal for a free
their potential to vitiate relations become
Chinese Academy of Social Sciences, trade area: In fact, on both these issues
apparent every now and then. The devel-
Beijing, January 15, 2008). Between them,the Indian business community has for opments
the of 2003 and particularly the
India and China have a population of 2.5 present taken a negative stance - it was
Guiding Principles of 2005 had generated
billion, three-fifths of humanity, whoseclearly among the reasons, which added
some optimism regarding an early settle-
ment. But what had appeared reachable
"creative energies" are being unshackledto the postponing of the visit, originally
and only a cooperative relationship would scheduled for the last quarter of 2007. It
barely a year ago now seems to be reced-
ensure that both could benefit from the has been argued that granting market
ing further into the distance. The issue
Asian economic resurgence. It is against economy status (mes) to China at this
appears to be stuck on account of Tawang
this background that one needs to study point, before the us, eu qr Japan do and
so, the apparent shift on the part of
the speech delivered by Manmohan Singh and before China would automatically get
the Chinese with regard to the clause con-
cerning
to the huge audience attending the China- it around 2015-16, would be a more signifi- settled populations in the
India Economic, Trade and Investment cant gesture. Further, it would have mini-
Guiding Principles and Political Para-
Cooperation Summit organised by the mal impact on China's actual trade bal-meters. The process can only be described
as incremental and some comfort can
China Council for the Promotion of Inter- ance (as the Sino-us trade shows). Further,
national Trade. It outlined a "three- granting the mes would not take away be
thedrawn from the fact that it is highly
improbable that force would be used to
right to file anti-dumping cases, if neces-
pronged strategy" for restructuring trade
and in the process made it amply clear settle this dispute. This is unlikely to
sary (Anil K Gupta, 'The Future of India-
convince certain sections of the strategic
China Trade', The Economic Times, New
that sound, mutually beneficial, "win-win"
Delhi, January 14, 2008). The grant of and
bilateral economic ties must necessarily mes defence community and perceptions
be regarded as a strategic objective. here
has possibly more of a symbolic value and (as also at the general level to
some extent) will continue to be shaped
what the Indian political and economic
Commerce to the Fore by suspicions regarding China's relations
elite have to assess is whether at this point
Consider the road map charted out by it with our neighbours and a perceived
could become a useful quid pro quo. In-
the
dian businessmen are also demurringinability
prime minister: One, preparing a "long- on of India to take a strong line
vis-a-vis China.
the proposed free trade agreement as well,
term strategic perspective", which would
which has now been referred for expert
factor in future challenges and opportuni-
feedback, and which has been strongly Normalising
ties, two, developing "profitable business fa- Relations
The commitment at the highest level to
voured by the Chinese. The Indian prime
models" keeping in mind the "complemen-
tarities and competitive strengths and minister
the normalise relations has helped, even as
was probably reflecting a some-
what conservative stance when he spoke
special needs" of Indian and Chinese mar- the relationship has weathered a fair share
of a level-playing field and the need of
kets, and three, embarking on a learning forstorms. In retrospect, it has been these
high level meetings that have provided the
both governments to put in place an "ena-
process of "each other's markets, business
customs and managerial styles... the occasion to iron out differences and re-
bling environment". But some "thinking
regulatory regimes..." move misunderstandings - not to mention
out of the box" here could be the proverbi-
al shot in the arm and possibly providethe
Taken as a whole, this speech identifies In-opportunity to develop personal rap-
dia some useful leverage.
the necessary framework and measures port - as was displayed between Wen
required to address the existing anomalies Jiabao and Manmohan Singh during this
The Contentious Border visit. There must therefore be a regular
in what is clearly the most dynamic fea-
After
ture of India-China relations at present exchange at the highest level, which would
- a considerable gap, the contentious
border has taken the back seat during
trade and commerce and thereby ensure a its own stabilising role in the process
play
of normalisation. Thus the Indian external
high-level visit - not entirely unsurpris-
that they do not end up as serious obsta-
ingly
cles to continued growth. In the process, it affairs
or even without reason. It is now minister would visit China in the
definitely underscores the significancefairly
of evident that the border issue is first
not half of 2008 and the Chinese foreign
only complex, but also very complicated.
the "economic" in tandem with the "politi- minister would come to India in the latter
cal", as the critical twin dimensionsEach
of side is fully cognisant of the other's
half. The Indian president is expected to
visit China in 2009 and the Chinese
stand, both have agreed to maintain peace
India's long-term strategy vis-a-vis China.

Economic & Political weekly January 26, 2008 ^

This content downloaded from 200.52.254.249 on Tue, 05 Dec 2017 22:27:41 UTC
All use subject to http://about.jstor.org/terms
 COMMENTARY = - ^

reflected in some departures

premier has from thepost-cold warbeen
environment to have multi- i
a suitable date. The Chinese National earlier formulations. dimensional engagements with all major
People's Congress president would come powers. This inevitably generates complex-
to India in 2008. The Vision Statement ities, which will need to be handled in a
Admittedly, a closer comparison ofstraightforward
the and open-minded manner.
Reactions to the Visit
Manmohan Singh's address at the
2006 joint declaration with that signed
during Manmohan Singh's visit doesChinese
There have been two interesting reactions not Academy of Social Sciences (cass)
in the aftermath of Manmohan Singh's covered similar ground. Titled 'India and
reveal major changes. But, there is a men-
China in the 21st Century', it dwelt on the
tion of the Security Council for the first
visit; one, a more direct sort from the dif-
same
time in the context of China's support
ferent political parties in India, indicative to set of issues, from the global and re-
of the strengthening of the consensusIndia's
re- "aspirations to play a greatergional
role to the bilateral. One could not help
garding India's China policy and indeed
in the United Nations" as also a more thinking
spe- that there could have been some
in reference to cooperation in the more
cific
generally upholding the current trends civil- philosophy, erudition and sense of
ian nuclear energy sector "which will history
this relationship. Following the conclusion con- and the future than the somewhat
of the visit, the Bharatiya Janata Party
tribute to energy security and to dealing
prosaic and predictable listing of what had
leader L K Advani, for instance, whilewith and what needed to be done. The scholarly
ad- risks associated with climate change"
dressing a meeting on "Democracy (A
and audience
Shared Vision for the 21st Century of the at cass could possibly have done
Conflict Resolution in Asia" referred to Republic
the without hearing about India's growth,
of India and the People's Republic
planning
of China, signed on the occasion of
global dimension of India- China relations. the targets, developmental priori-
"Fully normalised good-neighbourly rela- ties,
visit of prime minister Manmohan Singh to foreign policy, and above all, about
tions between the two great nations of January 14, 2008) . The Vision State-
China, how the boundary is peaceful and that the
Guiding Principles were in place. The
ment also saw the reiteration of the long-
Asia can become a reliable factor of peace,
stability and progress both in the region visionary dimension was completely over-
standing official Indian policy commitment
to "one-China" - this we were told was
and globally", he said. Going a step shadowed by a set of prescriptions - albeit
further he advocated that the Sino -Indian
done on the request of the Chinese, keep-necessary - calling for bridging the know-
strategy of keeping contentious issues
ing in view certain sensitivities (Tibet andledge gap, expanding cooperation and har-
Taiwan) on their part at this point in time. nessing complementarities and synergies.
aside and strengthening the relationship
could be usefully applied to the India- On balance, this is a positive document,
Need of the Hour
Pakistan scenario. The left parties, which
and its significance stems from its categor-
in any case have always strongly been ical foregrounding of the regional and glo-What seems to be the need of the hour is
bal dimensions of India-China relations.
in favour of improvement of Sino-Indian firm action to implement the scores of
ties, also came out categoricallyAppropriately
in therefore, it was not titled a memoranda of understanding (mous) for
appreciation of the visit. joint statement but constitutes a vision cooperation in an impressive range of are-
Secondly, and somewhat indirectly, document
the of sorts. It runs through the en- as, already signed over the years, to which
di- gamut of issues and fears on both the have been added another ten - coopera-
projection of the visit and indeed of thetire
rection of this relationship in the mediaconventional and non-traditional threats tion between the planning commission of
generally has been on the whole positive.to security, emphatically endorses theIndia and the Reform Commission of Chi-
While it would be premature to declare processes of regional integration and thena, cooperation in the railways sector,
positive
this as a change of heart, it is certainly in- view of each other's participation housing and urban poverty alleviation,
in these processes and upholds joint effortsland resource management, cultural ex-,
dicative of "incremental" change. The
in bringing about a new international changes, geological surveys and geo-sci-
focus now appears to be on how to ensure
political, economic and energy order. It ences, health and family welfare, and ag-
that what is clearly an inescapable engage-
ment is managed without detriment toappears
our to flesh out the Strategic and Co- ricultural banks. As we survey the long list
interests. Some more comfort can be operative Partnership for Peace and Pros- of memoranda of understanding, it is clear
drawn from the continuation of the India-perity and thus attempts to address some that if purposively activated and set in mo-

of the concerns and questions regardingtion, they would add a new meaning and a
China Defence Dialogue and the holding
of the second round of Joint Military
the substance of the Strategic Partnershiptremendously vitalising dimension to the
Exercises some time in 2008. Another arising in recent years, though at times the India-China relations. For long academics
manifestation of this reaction is the some-
sheer range of themes encompassed seemhave been stressing the importance of
what less emphasis on a perfunctory overwhelming. How, given the current sce-comparative studies on the developmental
nario, is the vision to be realised? It needs experiences of the two Asian neighbours,
listing of the bilateral gains and losses
from the visit. Mutual assurance on not to be kept in mind that both India and China particularly as they proceed on £he uncertain
constituting a threat to the other or in-are also simultaneously involved in theroad of market reforms. This comparative
tending to be part of any containment orprocess of diversifying their relationships,exercise, which has to be a learning experi-
encircling strategies has been obviouslyexpanding their options, and taking advan-ence as well would benefit enormously
communicated to either side, which istage of the flexibility afforded by thefrom the institutional and structural

12 January 26, 2008 Economic & Political weekly

This content downloaded from 200.52.254.249 on Tue, 05 Dec 2017 22:27:41 UTC
All use subject to http://about.jstor.org/terms
 ========== =========^^ COMMENTARY

linkages, which
If we take the above aspectwould emerge
along with engagement grounded in ancient civilisa- fr
mous. In the stress laid by both leaders onit
addition the im- would
tional and historical interlinkages
provide at one
portunityportance
for of people-to-people
the exchanges,
exchange of
end and sharing a vision in looking to the hu
sources, technological and
promotion of tourism, the necessity of cul- future, at other
the other, drawing on the energies em
data and information and above all valua- tural interaction and greater understanding and experiences of 2.5 billion people. But
ble experiences in these crucial areas, of each other's problems and challenges, the present will require a degree of creati-
leading to the enrichment and refining of then we actually have the contours of an vity, clarity and commitment that could
each other's developmental strategies. extremely comprehensive architecture of prove to be the biggest challenge yet.

Goodbye Socialism
A few days later, Buddhadeb Bhattach-
arya fleshed out Basu's arguments in con-
crete terms while addressing the 22nd state
conference of the West Bengal cpi(m).
SUMANTA BANERJEE
Explaining his government's industrial pro-
gramme, he came out with major policy
is an apocryphal joke about
At the January 14-16 conference decisions. "Let industry grow", he said,
Mao Zedong. When he took Nixon "on its own momentum". He added
of the Communist Party of India
for a drive in the Chinese country- reassuringly: "There is no need for any
(Marxism's West Bengal state
side in 1972, the car reached an inter- political interference in the process of
committee, the one-point agenda
section, and the chauffeur turned to Mao industrialisation". He was reported to have
of industrialisation with the and asked: "Comrade Chairman, do we stated that decisions regarding where and
market in command took thetake the left or the right turn?" With a what type of industries should come up
side-long glance at Nixon and a twinkle in and which investors should be allowed to
centre stage. Does this indicate
his eyes, Mao said: "Give the left signal, set up bases in West Bengal, should be kept
a fundamental change in the
but turn right!" Did the warhorse have an out of the domain of either Writers' Build-

party's approach to economic

inkling of the course that his successors ing (the state's administrative headquarters)
were to take after his departure? or Alimuddin Street (where the cpi(m)'s
reforms, or a temporary
In Mao's car, the left-hand indicator at party headquarters is situated). The deci-
stratagem in the implementation
least still blinked. But in the Tata Nano of sions should be left to the investors. But
of its original programme? politics that the Communist Party of India then - following the cue from his guru Jyoti
(Marxist) (cpi(m)) is driving today, even Basu - according to press reports, Bhatta-
that seems to have been switched off, as charya also sought to assuage the fears of
apparent from the latest utterance by the his party's working class followers by add-
party's octogenarian patriarch Jyoti Basu, ing the usual caveat: "The only sphere in
followed by policy announcements made which the party's involvement is needed is
by his successor in West Bengal, chief to ensure that corporate social responsibil-
minister Buddhadeb Bhattacharya, at his ity is being carried out properly" (Indian
party's state conference in Kolkata. Express, January 18, 2008).
"Socialism is not possible now", Jyoti Basu
was reported to have said at a recent press A Paradigm Shift?
conference in Kolkata, adding: "We had Do these statements and utterances indi-
spoken about building a classless society, cate a fundamental change in the cpi(m)'s
but that was a long time ago." Hastening approach to economic reforms, or a tempo-
to reassure his followers of his continuing rary stratagem in the implementation of its
commitment to the cause, he said: "Social- original programme? To seek answers, we
ism is our political agenda and was men- have to go back to a long simmering ideo-
tioned in our party document, but capital- logical debate that had marked the cheq-
ism will continue to be the compulsion for uered history of the Indian left ever since
the future" (Indian Express, January 6, 1957, when for the first time the commu-
2008). As an afterthought as it were, while nists came to power in Kerala through par-
inviting both foreign and domestic capital, liamentary elections. Jyoti Basu and Bud-
Sumanta Banerjee (suman5ban@yah00.com) he added the caveat: "But we have to take dhadeb Bhattacharya have stoked - unwit-
is best known for his book In the Wake of care of each other's interests and also tingly though - the embers of that debate.
Naxaïbari: A History of the Naxalite Movement safeguard workers' interests" (The Hindu, The Kerala event threw up a number of
in India (1980).
January 6, 2008). questions before communist activists like

Economic & Political weekly January 26, 2008 *3

This content downloaded from 200.52.254.249 on Tue, 05 Dec 2017 22:27:41 UTC
All use subject to http://about.jstor.org/terms