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Boundary
Settlement
The settlement of
border issue is still pending. The process of clarification of the
Line of Actual Control (LAC) was delayed due to differences of
perception of the LAC and this, in turn, deferred the exchange of
maps in the western sector. Nevertheless, peace and tranquility has
been maintained by the two sides in the border areas as per the 1993
accord reached during the former Prime Minister Narsimha Rao’s China
visit.
Significantly, in
the light of Shri Vajpayee’s talks with his Chinese counterpart, Mr
Wen Jiabao and other leaders, the two countries have agreed to
nominate a Special Representative each to explore, from the
"political perspective" of the overall bilateral relationship, "the
framework for a boundary settlement". India has named the National
Security Adviser, Shri Brajesh Mishra, for this purpose and the
Prime Minister indicated on his return to New Delhi on January 27
that the special representatives would begin their work immediately
and "the effort would be to resolve the border problem as early as
possible".
This represents an
advance over what looked like a frozen situation, and Shri Vajpayee
feels this new initiative would help to speed up progress toward
finding a solution on the border issue. The Declaration expressed
the readiness of the two countries to seek a "fair, reasonable and
mutually acceptable solution through consultations on an equal
footing". It is also agreed to continue implementation of earlier
agreements including the clarification of the 4000-km Line of
Control. Hopefully, these steps would proceed in a way as to impart
substance to the new road map of friendship embodied in the
Declaration.
Border Trade
Of immediate
importance is the opening up of border trade between the two
countries. Here again, the non-recognition by China of Sikkim’s
status as a State of the Indian Union since l974 had been one of the
factors in the bedevilled relationship thus far. In the context of
promoting friendly relations, the two countries have now signed a
memorandum on border trade, which will facilitate exchange of goods
between a venue in Sikkim (Changgu) and Renqinggang of the Tibetan
Autonomous Region. The Nathula Pass will be the point of entry and
exit of persons, transport and commodities.
There is some
criticism that while India has recognized the Tibet Autonomous
Region as part of China, the latter has not come up with explicit
recognition of Sikkim as a part of India. Shri Vajpayee has pointed
out that the Tibet Autonomous Region, created in 1965 had always
been referred to by New Delhi as part of China and as such there is
no inconsistency in India’s position as stated in the Declaration,
namely, "The Indian side recognizes that the Tibet Autonomous Region
is part of the territory of the People’s Republic of China".
Meanwhile, for Sikkim, the new protocol generates greater
opportunities for movement of goods and gives a boost to development
activity in the State.
Though recognition
of Sikkim as part of India is lacking in the Document, Shri Vajpayee
believes that a formal recognition by China would follow "early".
The Chinese official indications are that it would take "some time"
to address India’s concerns on Sikkim. On the other hand, the
Chinese Government has noted with appreciation India’s position on
Tibet Autonmous Region as part of China as well as the reiteration
that it "does not allow Tibetans to engage in anti-China political
activities". This certainly does not, and cannot, affect the asylum
that India gave to the Dalai Lama who came to India when the Chinese
overran Tibet in the late l950s.
Common
Interests
The Vajpayee visit
has to be seen in the broader context of developments in the
subcontinent as well as the world over in the decade since Shri
Narasimha Rao went to Beijing in 1993. Both countries are
increasingly responding to the demands of globalisation. Trade
between the two countries has lately been growing rapidly in recent
years and both are among the fastest growing economies in the world.
As Shri .Vajpayee
said before leaving for Beijing, there is "compelling geographical,
political and economic logic for closer relations’ between India and
China, a view finding strong resonance with the new leadership at
the helm of China. They have both common interests in deepening
bilateral relations as well as coordinating their positions on
ensuring "peace, stability and prosperity not only in Asia but also
in the whole world".
Cooperation at the
international level is needed, as the Declaration noted, to
strengthen multipolarity, enhance the positive factors of
globalisation and help shape a new international economic order. The
important role of the UN and efforts to strengthen the UN system
including reform with greater representation for developing
countries are also emphasized.
India and China
share common perceptions in a number of areas including multilateral
arms control and disarmament, equal security for all at
progressively lower levels of armament and global negotiations aimed
at nuclear disarmament and elimination of atomic weapons. The
Foreign Ministers of the two countries will hold annual meetings to
enhance mutual understanding and expand bilateral relations. Putting
the past behind, the Declaration says the two countries are not a
threat to each other and neither side shall use or threaten to use
force against the other.
Economic
Dimension
The economic
dimension of the Prime Minister’s visit gained considerable
importance and trade and economic cooperation is set to predominate
India-China relations. Their bilateral trade in 2002 had reached a
record 4.92 billion dollars. The two countries now consider it
feasible to double their trade to 10 billion dollars by 2005. Tariff
concessions on scores of items are being exchanged to boost the
trade ties. The Commerce Minister, Shri Arun Jaitley, who
accompanied Shri Vajpayee, held talks with the Chinese Trade
Minister on stepping up the two-way trade. The next meeting of the
Joint Economic Group at ministerial level would be held later this
year.
A highly
significant understanding has also been reached for the two
countries to coordinate their strategies in support of developing
countries in the tough global trade negotiations (Doha Round). They
will consult and adopt a common stand on major issues affecting
developing nations in the ongoing negotiations in Geneva ahead of
the WTO Ministerial Meeting at Cancun, Mexico, in September.
Potential
complementarities for expanded trade and economic cooperation
between the two countries would be gone into by a Joint Study Group
comprising officials and economists. It would report to the two
Governments by June 2004. China announced during Shri Vajpayee’s
visit that it would make enhanced investments in India for which it
has set apart a corpus of 500 million dollars. The series of
agreements signed on the occasion related to several areas including
simplification of visa procedures, scientific and technological and
cultural matters.
Shri Vajpayee
proposed during his visit to China’s financial capital, Shanghai, an
effective alliance in the information technology sector given their
established strengths in hardware (China) and software (India). It
is in this area that great possibilities exist for focussed
cooperation reinforcing their competitive strengths vis-à-vis the
rest of the world. The largest business delegation ever to accompany
the Prime Minister would surely have noted the immense scope for
investment and industrial collaboration with China
Overall, the China
visit of Prime Minister Vajpayee has unfolded new paths for the two
great nations to build on their existing strengths and co-operate in
promoting their own socio-economic development as well as in
tackling the challenges to development arising out of external
factors. While both countries would do their best to remain
internationally competitive, the visit should help bring them
together as partners and not as rivals in the dynamic Asian region.
China is no doubt
far ahead of India in certain respects of development. It is the
fifth largest economy and is seen as an industrial powerhouse. Its
growth over the last two decades has pushed its GDP to over one
trillion dollars against India’s 480 billion dollars but India,
sustaining its own development momentum, is hopeful of narrowing the
distance and become a developed nation by 2020.
Summing up his
visit realistically, the Prime Minister says, "The road ahead is
long but a good beginning has been made."
(PIB Features) | 
