Economic Ties between India and China Fails to Resolve Border Issues

Economic Ties between India and China Fails to Resolve Border Issues

India and China

Recently, India and China have gotten into an economic brotherhood even after all the issues alongside the disputed border territories. The trade relations between the two countries are somewhat jittery along with foreign ties being the priority for both the nations. Trade between both the countries have escalated and even went down the track giving rise to concerns regarding the foreign trade policies of both the counties due to border issues. The main role in this dispute is also played by the South China Sea as 80% of the crude oil is used by other nations such as Taiwan, South Korea, and Japan.

Investments and Trade So Far

According to data revealed by China, until September 2016, China invested US$4.75 billion into India, whereas India invested US$0.689 billion into China. According to data released by the General Administration of Customs, the overall bilateral trade between India and China was valued at US$70.8 billion in 2016, registering a decline of 2.1%. China still ruling on the trade grounds, increased its exports by 02% in 2016 reaching US$58.33 billion in the same year in comparison to 2015’s US$58.25 billion.

Border Issues Highlights

Even after the recent economic ties of India with China, there does not seem to be an end to the border feud between the two countries. According to a report by the Pentagon, both nations are still accusing each other of frequent intrusions and military set-ups alongside the borderline territories. These tensions have intensified in the recent years. The Pentagon further said that China has used force in the matter of territorial disputes in various forms throughout the history of the border disputes between the two countries. The tension persists along the uncertain areas of the Sino-Indian border. This area is patrolled by both the counties with armed personnel.