Introduction

India and China, representing over one-third of humanity, are ancient civilizations and modern nation-states that have walked parallel yet diverging paths in the last century. While their relationship has been shaped by shared colonial experiences and aspirations of Asian solidarity, it has also been scarred by wars, border disputes, and strategic rivalries. 

At the same time, economic interdependence and multilateral cooperation bind them together. Understanding India–China relations thus requires examining their historical roots, phases of cooperation, persistent challenges, and evolving trajectories in the 21st century.

Historical and Colonial Context

Both nations suffered long under foreign domination. India was colonized by the British, while China endured its “Century of Humiliation” under foreign incursions and unequal treaties. 

The independence of India in 1947 and the founding of the People’s Republic of China in 1949 marked a new beginning, infused with anti-colonial solidarity and aspirations of Asian leadership. Leaders like Jawaharlal Nehru and Zhou Enlai envisioned a new Asian order based on cooperation, peace, and non-alignment.

Nehru’s Period and the Panchsheel Ideal

India was one of the first non-communist countries to recognize the PRC (1950). In 1954, the Panchsheel Agreement was signed, emphasizing five principles: mutual respect for territorial integrity, non-aggression, non-interference, equality, and peaceful coexistence. The slogan “Hindi-Chini Bhai Bhai” reflected optimism about Asian solidarity.

However, the optimism was short-lived. China’s annexation of Tibet (1950–51) altered the strategic landscape. The Dalai Lama’s flight to India in 1959 and asylum grant by New Delhi triggered Beijing’s suspicion. Nehru’s policy of friendship gave way to a rude awakening when China questioned borders inherited from colonial times.

Wars and Military Clashes

• Triggered by border disputes in Aksai Chin (western sector) and Arunachal Pradesh (eastern sector). India, militarily unprepared, suffered defeat, losing ~38,000 sq km in Aksai Chin. The war destroyed trust and ended Nehru’s China policy on a bitter note.
  
• 1967 Nathu La and Cho La Clashes:
  
  In Sikkim, Indian troops successfully repelled Chinese forces. This marked India’s improved military preparedness after 1962.
  
• 1962 Sino-Indian War:
  
  
• 1987 Sumdorong Chu Crisis:
  
  A standoff in Arunachal Pradesh, resolved diplomatically, but it revealed fragility in border management and the risk of escalation.
  
• 2020 Galwan Valley Clash:
  
  First fatalities in 45 years (20 Indian soldiers killed). It triggered a deep rupture, undermining decades of confidence-building measures. Even after disengagement at Galwan, Pangong Tso, and Gogra, friction points remain at Depsang and Charding-Ninglung Nala.
  

Diplomatic Re-engagement (1988 Onwards)

After decades of hostility, Rajiv Gandhi’s 1988 visit to Beijing revived engagement. This led to the formation of the Joint Working Group (JWG) on the boundary issue.

• 1993 Border Peace and Tranquillity Agreement (BPTA): Committed both sides to resolve disputes peacefully, respect the Line of Actual Control (LAC), and reduce troop presence.
  
• 1996 CBM Agreement: Expanded measures, banning large-scale exercises near the LAC, restricting heavy weapons, and committing to exchange maps.
  
• 2003: India recognized Tibet as part of China; China acknowledged Sikkim as part of India.
  
• 2005 Agreement on Political Parameters: Provided a framework for boundary settlement.
  
• WMCC (2012 onwards): Institutionalized dialogue on border affairs.
  
• 2025: The 33rd WMCC prepared ground for Special Representatives’ dialogue, showing continued engagement despite tensions.
  

Economic Engagement and Interdependence

Trade and Investment

• Bilateral trade reached USD 118.4 billion in 2023–24, making China one of India’s largest trading partners.
  
• India’s exports: iron ore, cotton, organic chemicals.
  
• India’s imports: telecom equipment, APIs, electronics, EV batteries, solar panels.
  
• Trade deficit: USD 85 billion (2023–24), reflecting asymmetry.
  
• Chinese investments: By 2020, 18 Indian unicorns received over USD 3.5 billion in Chinese venture capital.
  

Structural Issues

• India’s export basket remains low-value (raw materials), while imports from China are high-value (manufactured goods, technology).
  
• This deepens dependency and undermines India’s Atmanirbhar Bharat goals.
  

Cultural, Civilisational, and People-to-People Ties

• Ancient Linkages: Xuanzang and Faxian traveled to India, while Bodhidharma carried Buddhism to China.
  
• Tagore’s Visit (1924): Sparked cultural dialogue; in 2025, Visva-Bharati University celebrated its centenary with Chinese scholars.
  
• Soft Power Exchange: Growing Chinese interest in Yoga, Ayurveda, and Indian arts.
  
• Educational & Tourism Links: Resumption of direct flights and visa facilitation post-pandemic revitalized exchanges.
  

Expanded Section: Multilateral Cooperation

India and China, despite their bilateral tensions, cooperate in a wide range of regional and global fora, reflecting both their status as rising powers and shared interests as voices of the Global South.

BRICS (Brazil, Russia, India, China, South Africa)

• China and India are founding members and see BRICS as a platform for financial reform, development finance, and multipolarity.
  
• Institutions like the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) strengthen cooperation.
  
• In 2024, both nations endorsed Global South solidarity within BRICS, even while competing for influence.
  

Shanghai Cooperation Organisation (SCO)

• Both countries are full members since 2017 (India joined along with Pakistan).
  
• The SCO provides a forum for counter-terrorism, regional connectivity, and energy cooperation.
  
• Despite differences, India and China endorse Afghanistan stabilization, Eurasian security, and multipolar order under SCO.
  

G-20

• As major emerging economies, both nations push for reform of Bretton Woods institutions, debt relief for developing nations, and sustainable growth.
  
• At the 2023 Delhi G-20 Summit, despite border tensions, China supported Global South themes emphasized by India.
  

United Nations (UN)

• Both contribute to UN Peacekeeping operations.
  
• They share concerns on climate change, global governance reforms, and multilateralism — although differences remain on India’s UNSC bid.
  

Asian Infrastructure Investment Bank (AIIB) & NDB

• China leads the AIIB, while India is its second-largest shareholder and top borrower.
  
• Both countries use AIIB and NDB for funding connectivity, energy, and sustainable infrastructure projects in Asia.
  

Climate and Energy Platforms

• India and China are central to Paris Climate Agreement negotiations.
  
• Both coordinate in International Solar Alliance (ISA), renewable energy initiatives, and global energy transition financing.
  

Other Regional Groupings

• RCEP (Regional Comprehensive Economic Partnership): India withdrew in 2019 due to China’s dominance, but engagement continues indirectly.
  
• East Asia Summit (EAS): Both nations discuss maritime security, trade, and regional connectivity.
  
• ASEAN-led Forums: India and China participate in ARF (ASEAN Regional Forum) and ADMM+ (ASEAN Defence Ministers’ Meeting Plus), where maritime and cyber issues are discussed.
  

Why This Matters

• Multilateral cooperation provides a cushion against bilateral tensions by allowing India and China to work on shared concerns like climate, finance, global governance, and development.
  
• Yet, these forums are also arenas of competition for influence in Asia and the Global South.
  

Connectivity and Water Issues

• Connectivity:
  
  • India rejects China’s Belt and Road Initiative (BRI) due to sovereignty concerns over China–Pakistan Economic Corridor (CPEC) in PoK.
    
  • India promotes alternatives like India–Middle East–Europe Corridor (IMEC) and SAGAR strategy to lead regional connectivity.
    
• Water Security:
  
  • China controls the upper reaches of the Brahmaputra and Sutlej.
    
  • It resumed hydrological data sharing in 2024, aiding flood warnings.
    
  • But mega-dams like Medog and Zangmu raise concerns about water diversion and ecological impact.
    

Major Challenges

• Border Disputes: Undefined 3,488 km LAC, salami-slicing tactics, and dual-use border villages.
  
• Trust Deficit: 1962 war and 2020 Galwan clash continue to undermine confidence.
  
• Economic Imbalance: India’s huge trade deficit and reliance on Chinese imports in electronics, APIs, and solar panels.
  
• Technological Dependence: Chinese firms dominate 75% of India’s smartphone market; telecom and EV sectors remain reliant.
  
• Cybersecurity Risks: Chinese-linked hackers have targeted India’s power and healthcare sectors.
  
• China–Pakistan Nexus: CPEC through PoK, military cooperation, and nuclear support to Pakistan threaten India’s security.
  
• Maritime Competition: China’s String of Pearls in Sri Lanka, Maldives, Myanmar challenges India’s SAGAR strategy.
  
• Global Obstruction: Beijing blocks India’s NSG membership and UNSC permanent seat, while shielding Pakistan-based terrorists at UN.
  

Economic Growth and Strategic Implications

• China’s Rise: Post-1978 reforms made China the world’s second-largest economy, with huge investments in technology, infrastructure, and military modernization.
  
• India’s Growth: Since 1991 liberalization, India has emerged as the world’s fastest-growing large economy, but remains behind China in manufacturing depth and trade leverage.
  
• Strategic Competition: As two rising Asian powers, their rivalry is structural — balancing competition with cooperation is the key challenge.
  

Conclusion

India–China relations are a paradox of deep economic integration and sharp political-military rivalry. From Nehru’s idealism and the 1962 rupture, through the 1993–96 confidence-building agreements, to the Galwan shock of 2020, ties have oscillated between engagement and estrangement. While culture and trade foster cooperation, border disputes, trust deficit, and China’s Pakistan nexus fuel contestation.

Going forward, India’s strategy must focus on robust border management, economic diversification, technological self-reliance, and active diplomacy in multilateral fora. For both nations, managing competition without conflict is essential, not just for bilateral stability, but also for shaping the future of the Asian century.