Date: 17/03/2023
Relevance: GS-2: Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests; Effect of Policies and Politics of Developed and Developing Countries on India’s interests.
Key Phrases: China-India, G-20, Shanghai Cooperation Organisation (SCO), Modernization, Samarkand Declaration, Secure and Stable, Trade Relations, Constructivist Approach, Indian Ocean Region, Emerging Economies, Global Development Initiative, Group of Friends.
Context:
- As two neighboring and ancient civilisations, with a combined population
of 2.8 billion, China and India are representatives of developing
countries and emerging economies.
- China and India have far more common interests than differences.
Key Highlights:
- The year 2023 marks an important step in India’s diplomacy, with its presidentship of the Shanghai Cooperation Organisation (SCO) and the G-20.
- The focus is also on China which held “two sessions” recently: the annual sessions of the National People’s Congress of the People’s Republic of China and the National Committee of the Chinese People’s Political Consultative Conference.
Development of China at a Glance:
- Steady Economic Growth:
- China’s economic strength is steadily reaching new heights.
- In 2022, China’s economy grew by 3% with a total of 12.06 million urban jobs added.
- China’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.
- People’s well-being:
- As a result of continued efforts of the past eight years, 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.
- Living standards continue to witness new improvements in China.
- Opening up to the World:
- 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.
- 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%).
- Ever since China proposed the Global Development Initiative (GDI) in 2021, more than 100 countries have expressed their support and over 60 countries have joined the Group of Friends of the GDI.
China-India Trade Relations:
- China and India are important trading partners, with bilateral trade volume reaching $135.984 billion in 2022.
- Though there is a trade deficit, India’s import of equipment and materials from China does reduce the overall cost of “Made-in-India” products.
- It 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.
- Investments by Chinese enterprises have created a large number of jobs for the Indian people and contributed to India’s economic development.
Shanghai Cooperation Organization
- About:
- The Shanghai Cooperation Organization (SCO) is a Eurasian political, economic, and security organization that includes China, Russia, Tajikistan, Kazakhstan, Uzbekistan, Kyrgyzstan, India, Pakistan, and Iran.
- It was founded on 15 June 2001 and is headquartered in Beijing, China.
- India and Pakistan joined SCO in 2017 and Iran was admitted as the 9th member of SCO in the 21st annual summit in 2021.
- It is the world's largest regional organization in terms of geographic scope and population, covering approximately 60% of the area of Eurasia, 40% of the world population, and more than 30% of the global GDP.
- India takes over SCO rotating presidency, to host SCO summit of 2023.
- Samarkand Declaration:
- The Samarkand declaration was adopted by the council of heads of government of the SCO.
- It pointed out the series of challenges and headwinds to be
faced by humanity in the 21st century.
- It mentioned Climate change, Terrorism, Technological disruptions, Global reduction in investment flows, Instability in the supply chain, Increased protectionist measures, and Other barriers to international trade.
Way Forward:
- China is advancing modernisation on all fronts :
- The path to modernisation is based on China’s practices with a focus on high-quality development.
- It means the modernisation of a huge population, where there is common prosperity for all, material and cultural-ethical advancement, harmony between humanity and nature, and peaceful development.
- This will spell new opportunities to all countries in the world, especially neighboring countries.
- India and China are both in the process of national rejuvenation and a crucial period of modernisation where challenges need to be overcome and problems need to be solved.
Conclusion:
- The development and revitalisation of China and India embody a boost
to the force of developing countries.
- It is one that will change the destiny of a third of the world’s population and having bearing on the future of Asia and beyond
Source: The Hindu
Mains Question:
Q. “China and India have far more common interests than differences.” Critically analyze the statement. (250 Words).
