The Relationship between China and India within the Framework of Asian Economic Integration

Abstract

For numerous historical, political and economic reasons, economic relations between China and India have been at a standstill for a long time. With the deepening of Asian economic integration and the rapid economic development of both countries, Sino-Indian relations have been put on the global agenda. Strengthened Sino-Indian cooperation would bring a wide range of common benefits to both countries, but nonetheless various factors restrict the two countries in the development of further cooperation. This chapter argues that China and India have ended their long history of self-imposed isolation from each other and that cooperation between the two countries can and should be expected to develop progressively and continually. However, the depth and extent of the cooperation should generally be termed as ‘being good neighbours’, in that China and India will cooperate at regional and international levels and on specific issues. Generally speaking, the likelihood is not great that, in the short term, China and India will establish a bilateral free-trade area or form an overall strategic alliance within the most probable global scenario.