Future of Indo-China Relations

Scholars of economic interdependence argue that economic trade will diminish the longstanding disputes and rivalry, if any, leading nations to closer cooperation. However, this argument has failed to exhibit any validity in the case of Indo-China relations. Historically, the Sino-India relationship has been based as a love-hate relationship. Liberal scholars and reputable economists predict that the future of their relationship will be based on cooperation. But in reality, such a relationship has failed to manifest. Instead, both nations— despite the friendly rhetoric —view each other as rivals, if not enemies. This thesis will concentrate on exploring whether the economic interdependence argument holds true. To support their increasing bilateral economic cooperation, I used sources from India, China, and international economic institutions. I examine whether the increasing economic cooperation in the form of bilateral trade has reduced the undying border disputes and enduring rivalry associated with such disputes. After studying the unresolved border disputes, increase in the military buildup by both the sides, and misperception of each other in their actions, one can argue that Sino-India relations have the case of enduring rivalry, and it has never ended despite the increasingly closer economic cooperation. For that purpose, I explore the substantial literature from the Western, Indian and Chinese research institutions and academic scholars. Further, I research the perception of the leadership and strategic community in both India and China. Furthermore, both the nations have developed strategies to contain the influence of each other in their respective regions. Thus, bilateral trade between them has neither created closer cooperation as one might expect, nor reduced the security dilemma associated with power politics. Considering such a condition, this work expects that the future of Indo-China cooperation will more likely an enduring rivalry and be characterized by a security dilemma negating any influence of economic cooperation. In other words, the outlook of their relationship will more likely be conflictual based on power politics.