Towards lasting ties

Visiting Chinese President Hu Jintao proposes extensive cooperation between India and China to create a win-win situation.

THE four-day visit of Chinese President Hu Jintao to India in the third week of November was billed as one of the most important events in New Delhi's diplomatic calendar for 2006. It was the first visit by a Chinese head of state in a decade. Since the mid-1980s, China has attached great importance to strengthening ties with India. Hu emphasised this point when he told Prime Minister Manmohan Singh during their stalks. "Friendship with India will be a priority. Our relationship has a global significance," he said.

Indian officials said the focus of the visit was to take "small positive steps" to build a lasting relationship with a firm footing and to address the "trust deficit" that existed between the two countries. They do not hesitate to describe the relationship with China as complex, with many issues remaining to be resolved.

Both countries have not formally given up their claims on much of the disputed territories, although China has, for all practical purposes, recognised Sikkim as an integral part of India. However, Beijing has for some time now made it clear that it is only interested in Tawang in Arunachal Pradesh situated near the border with Tibet. The Tawang monastery is considered by Tibetan Buddhists as the second holiest shrine after the one in Lhasa.

China has been seeking a "package deal" with India to resolve the border issue. It has indicated on several occasions that it is willing to give concessions on other sectors if India reciprocates similarly in the eastern sector. Manmohan Singh is said to have raised the border issue briefly during a one-to-one session. Both sides agreed that no timeframe should be fixed and that the "Guiding Principles" agreed upon by the two countries should be adhered to. Both sides have restated their respective positions on the border issue, insisting at the same time that the resolution of the border problem continues to be a priority.

Hu and Manmohan Singh agreed that an early settlement of the boundary question would advance the "basic interests" of both the countries and that it should be pursued as a "strategic objective". In a Joint Statement released at the end of the talks, both the countries agreed to "complete the process of exchanging maps, indicating their respective perceptions of the entire alignment of the LAC [Line of Actual Control] on the basis of already agreed parameters [Guiding Principles] as soon as possible". It is clear from the statement that no timeframe has been set for settling the border issue.

Before Hu arrived in New Delhi, there was the expected carping from the usual suspects about China's policies in the region. Old wounds were sought to be reopened. A passing comment by Chinese Ambassador Sun Yuxi to a television channel that China had not given up its claims on Arunachal Pradesh was turned into a minor controversy. The Bharatiya Janata Party (BJP), during its stint in government, had played a constructive role in forging bilateral relations. As an Opposition party, it has reverted back to type. It has decided to raise the issue of China's stand on the eastern border in both Houses of Parliament.

The other important issue that figured during the talks related to trade and economic ties. With both the economies showing dramatic growth rates, there has been an effort in sections of the international and domestic community to paint the two countries as rivals. Although trade and economic links between the two countries have grown significantly, the Chinese officials opined that the Indian authorities were not giving China a level playing field. They complained that Chinese professionals and businessmen were given only short-term visas, Chinese companies were barred from bidding in many important projects on the grounds that national security would be compromised, and the Indian government took more than six months to grant approval for Chinese investments.

Senior Indian officials had indicated recently that the visa norms for Chinese visitors would be relaxed. They maintained that Chinese firms would be allowed to bid for all projects, except in sectors where the defence forces operated in close proximity. Until recently, Chinese companies were not allowed even in the telecommunications sector, citing national security as a reason. The Communist Party of India (Marxist) said the blocking of Chinese companies from participating in India was more as a result of "paranoia than security concerns".

The two countries have agreed, for the first time, to promote cooperation in the field of civilian nuclear energy. The joint declaration stated that "international civilian nuclear cooperation should be advanced through innovative and forward-looking approaches". Both sides agreed to double bilateral trade to $40 billion by the end of the decade. Bilateral trade has already reached $20 billion this year. Many analysts are of the view that there is still considerable scope for improvement. India's trade with the European Union and the United States is much more than its trade with its immediate neighbour. Both sides believe that strengthened economic relations will smoothen the way for the resolution of the political problems that still act as irritants in bilateral relations.

The Joint Statement said both sides "hold the view that there exist bright prospects for their common development, that they are not rivals or competitors but are partners for mutual benefit. They agree that there is enough space for them to grow together, and play their respective roles in the region and beyond, while remaining sensitive to each other's concerns and aspirations".

Indian officials are of the opinion that China will not stand in the way of India's "nuclear deal" with the U.S. As a member of the Nuclear Suppliers Group (NSG), China can scupper the deal if it wants to, joining hands with countries known for their tough stance on nuclear proliferation. External Affairs Minister Pranab Mukherjee told a television channel that China had "endorsed" the India-U.S. "nuclear deal" and that the Indian government would have no objections if China offered a similar deal to Pakistan. At the same time, he chose to describe Hu's visit as only "reasonably satisfactory", reflecting the Indian side's disappointment at the slow movement to resolve the border tangle.

For the record, the Chinese side has neither publicly endorsed the Indo-U.S. nuclear deal nor talked about embarking on joint civilian nuclear projects with India.

The Joint Statement also reiterates India's commitment to a "One China" policy and New Delhi's recognition of the Tibet Autonomous Region as a part of China. It clearly states that the Tibetan exile groups in India will not be allowed "to engage in anti-China political activities in India". In the weeks prior to Hu's visit, Tibetan exiles staged protests in full media glare. During Chinese Premier Wen Jiabao's visit two years ago, Tibetan activists had created an embarrassing diplomatic incident. The Indian security agencies were successful in ensuring that a similar situation did not occur this time. The Tibetans were allowed to stage small protests in Delhi and Mumbai during Hu's visit.

The Chinese President said he viewed India's economic growth "as an opportunity, not as a threat". He also talked about the importance of enlarging the areas of interaction between the two countries and furthering people-to-people contact. He said China was happy with Manmohan Singh's statement in 2005 that India would not be part of "any containment strategy against China".

Beijing has reason to be apprehensive about the close strategic and military links between the U.S. and India following the signing of the "nuclear deal". Washington's game plan for the region is becoming clearer by the day. It wants to have a string of China's neighbours as its potential allies in the new "Cold War", which many experts predict will break out in the next 20 years. Japan, South Korea and Taiwan are already close allies of the U.S.

The U.S. has been trying to play on the fears and phobias of countries such as India and Vietnam to bring them into the putative anti-China alliance. Sections of the Indian establishment are also wary of the close links China has with Myanmar and Pakistan, where it is involved in big infrastructural development projects. India's tacit support for the U.S.' anti-missile programmes and the Proliferation Security Initiative (PSI) are seen as growing evidence of an anti-China alliance.

Hu said China "would not stand in the way" of India's quest for a seat in the restructured United Nations Security Council and that China supported India's aspirations to play a "greater role in the United Nations". Beijing is known to be unhappy about India teaming up with Japan in the joint quest for a permanent seat.

President Hu said China's "strategic partnership" with India was dictated by the reality of global politics and not by matters of "political expediency". Both countries reiterated their resolve to work together as partners. With this goal in view, the two sides agreed to adopt a "10-point strategy", which includes holding annual summits, establishing consulates (in Kolkata in India and Guangzhou in China) and new trading posts and allowing more people-to-people contact. China has also accepted the Indian proposal to set up an expert-level mechanism to address issues relating to the rivers that flow through the two countries.

Speaking to the business community in Mumbai during a one-day trip to the metropolis, the Chinese leader said if India and China cooperated more extensively, it would lead to a "win-win" situation for both countries. He said that given the size and potential of the two countries, bilateral trade was far too low. "This is incompatible with the size of our economies, but it also means that there is a great potential to be tapped." He proposed an increase in border trade to further widen the bilateral trading avenues.

Hu said leading Chinese companies would be doing more business in India and invited Indian companies to China. He also proposed that the two countries further coordinate their activities in fora such as the World Trade Organisation to "uphold the legitimate rights of developing countries".