The trade between the two countries has been increasing since the 1990s and has reached $67 billion in the current fiscal. Because of this , many people who are directly and indirectly involved in the trade have benefitted . Mainly the export of primary articles like agricultural products have benefitted the marginal farmers. Globalisation has helped offset the losses incurred during reduced domestic demand and also because of higher profit margins in the international market.
MULTI POLAR WORLD:
The importance of developing and industrialized countries after the globalization have increased their bargaining power in the international arena like climate change conferences, reforms in the U.N, reform of quota allocation in the IMF which were dominated by the developed world before.. In all these stages, India and China have acted together against the stance of developed countries and have helped other small countries and island nations collectively put forth their obligations.
Free movement of labour , capital and enterprise across the world demands better universalized security infrastucture.Both India and SCO are against the three security related problems-terrorism, extremism and separatism. India wants to use the Regional Anti-terrorism Structure of the Beijing dominated-Shanghai Cooperation Organisation . Also China can make use of the Indias banking sector for their proposed SCO banking structure. As both countries are interesred in Afghanistans mineral reserves, there is a need for both countries to chart out an emergency plan for dealing with civil war like situation after the exit of US and NATO in 2014. Both countries are also involved in maritime security in the Indian ocean and gulf area to protect their trade ships in the high seas from Somali pirates. All this has reduced the importance of territorial border problems in the dialogue between the two countries which is now dominated by concentration on areas with mutual interests.
BALANCE OF TRADE: Though the trade between the two countries has been increasing, it is highly skewed in favour of China. The trade deficit has reached a high of $27 billion this fiscal. Also many of the sectors like pharmaceutical and micro and small industries are not allowed to do business in China. The fruits of globalization is not being shared equally by all the sectors since it resorts to trade barriers and provision of cheap subsidy to its electronics sector which unfavourably helps them in the international market.
Though there is less border related issues as such, globalization and foreign investments increases the territorial problem in the other areas like high seas. Investment by an Indian company in partnership with Vietnam in the south China Sea has resulted in regional territorial clashes among China, Vietnam, Philippines, Brunei, Malaysia and Taiwan.
The vulnerability of the state and the people to cyber terrorism and cyber espionage has increased due to the presence of Multi national companies. Recently Huawei and ZTE have been prevented from entering countries like US and Australia due to their indulging in cyber state-sponsored espionage. The security of the India is compromised due to the libealization and globalization. Both should ensure eachother of all possible security related measures during the defence ministers dialogue. Though Globalization has negative ramifications, it has turned the relations between India and China from negative to positive and has made them cooperate and coordinate on various fields and sectors.The opurtunites provided by new leadership change should be made use of by India to strengthen its interests and relations with China. . As skepticists say, both political and economic considerations are important and both should mutually drive India China relations to the benefit of both sides.