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The improvement in China-India (Bharat) relations at various points in history has been driven by strategic, economic, and geopolitical factors. While tensions still exist, there have been periods of cooperation and diplomatic engagement. The real reasons behind better relations can be understood in the following ways:
1. Economic Interdependence
China is India’s largest trading partner, and despite political tensions, bilateral trade has continued to grow, crossing $100 billion in recent years.
Indian businesses rely on Chinese electronics, machinery, and APIs (active pharmaceutical ingredients), while China sees India as a major market for its goods.
Investment from Chinese tech firms in Indian startups (such as Alibaba and Tencent in Paytm, Ola, etc.) has fostered economic linkages.
2. Strategic Stability & Border Management
Although the two countries have border disputes (especially in Ladakh and Arunachal Pradesh), they have managed tensions through diplomatic talks and military confidence-building measures.
Mechanisms like Special Representatives Dialogue and military-level talks have helped de-escalate conflicts, even after clashes like the 2020 Galwan Valley incident.
3. Shared Interests in a Multipolar World
Both countries advocate for a multipolar world order rather than a U.S.-led system.
As members of BRICS and the Shanghai Cooperation Organization (SCO), they coordinate on economic and security issues.
They oppose Western interference in internal matters and often align on global governance issues like climate change and trade.
4. Infrastructure & Connectivity Initiatives
India is part of the Asian Infrastructure Investment Bank (AIIB), a China-led initiative to fund infrastructure projects.
While India has reservations about China’s Belt and Road Initiative (BRI), both countries have discussed potential cooperation in regional connectivity projects.
5. Cultural & Historical Ties
Ancient trade routes, Buddhism, and exchanges between scholars (like Xuanzang visiting India in the 7th century) create a historical foundation for ties.
China has promoted cultural diplomacy, such as increasing people-to-people exchanges and tourism between the two countries.
6. Pragmatism in Foreign Policy
Despite border disputes and military standoffs, both countries recognize that outright conflict would be economically and politically costly.
They maintain diplomatic channels and occasionally cooperate in global forums to balance Western dominance.
Challenges That Still Exist
Border Disputes: Military tensions in Ladakh and Arunachal Pradesh remain unresolved.
Trade Imbalance: India has a large trade deficit with China, leading to calls for reduced dependence.
Geopolitical Rivalry: India’s closer ties with the U.S., QUAD (with Japan, Australia, U.S.), and China’s support for Pakistan create friction.
The Bottom Line
Better China-India relations are driven by economic necessity, global positioning, and diplomatic pragmatism. While deep-rooted tensions remain, both nations engage in dialogue to prevent full-scale conflicts and explore cooperation where beneficial.