India and China: Contest or Friendship of the Century?
Earlier this month the Chinese economy became the second largest economy in the world in terms of GDP. This news was covered and analyzed by most major media outlets in the United States. Most analysts tried to downplay the impact by focusing on the per capita income of China rather than the GDP (the per capita of income of China will not exceed that of United States for at least another 50 years). But by all accounts the United States is the most powerful nation on earth although its per capita income is less than many Western European nations!!
Another subject that was very popular in the past couple of weeks was discussions on the rivalry between India and China. The Economist had an article (India and China: Contest of the Century) that basically outlines the current Western thinking on the relationship between the two countries and the potential stumbling blocks. Only a day earlier the same newspaper had an article titled “India and China: A Himalayan Rivalry”. After reading some of these articles I get the feeling that the West wants such a rivalry although the leaders of both India and China are trying their best to avoid it.
We live in a world that is centered on the concept of money which is why we are so obsessed with indicators like the GDP or per capita income. But most Americans will tell you today that money does not buy happiness, satisfaction or peace of mind. I am sure they would rather have a smaller GDP if it means they can prevent their house or car from being repossessed by the banks. As the American rapper Notorious B.I.G. said “mo money mo problems”!!
India and China are developing rapidly. The strategies used are different but the end goal is the same. The mantra is to maintain a high economic growth rate (Indian GDP grew by almost 8.8% in Q2 of this year) and at the same time clamp down on inflation as much as you can. If we can sustain this mantra for a few decades we will hopefully have a “modern” nation (whatever that means), great infrastructure and high GDP. But there are major pitfalls and the United States is a living example.
Today both India and China are spending billions of dollars arming themselves to the teeth. They are acquiring capabilities that they definitely do not need. It is highly unlikely that India, China or the United States will go to war with each other. So how do we justify such spending? The reasoning is that if we create wealth and have “interests” then we should have the mechanism to protect those interests. It is this mentality that has resulted in the United States having a $650 billion/year defense budget and its soldiers in every nook and corner of this world. India and China should avoid this black hole.
Although India and China share a long border and have a long history of cultural exchange there is no “chemistry” between these two nations. The same holds true between the Chinese and the Americans. In fact I think that there is more chemistry between an Indian and a Pakistani than between an Indian and a Chinese. This is probably because of the shared culture of the Indian sub-continent and the Himalayan Mountains which stands as a formidable barrier between India and China.
India and China should do a better job of opening up our societies to each other. Although the trade between the two nations has reached $60 billion in 2010, travel between the two nations is not very common (tourists from India and China are key players in the worldwide tourist industry but interestingly they do not travel to each other’s country a lot). An Indian tourist is likely to visit Thailand, Malaysia, Singapore or the Middle East rather than take a bus and cross the border into China. There are only one or two direct flights from India to China every week. This is appalling.
Then there is the problem of perception. Most Indians understand the cultural history of China and the economic powerhouse that China is today. But many Indians are also dismayed at the petty politics that China plays. The constant flip flopping over Arunachal Pradesh, issuing separate visas to Indian citizens from Kashmir and the denial of visa to senior Indian military officials does not bode well for a nation that is the second largest economy in the world. But China can very easily assail these concerns.
The idea of a contest between India and China is at this moment largely mythical in nature. As the Indian Prime Minister Manmohan Singh has said there is enough space for India and China in this world. People in these two countries will be very smart not to fall into this rivalry debate but focus more on establishing a strong relationship based on mutual interests, shared history and respect for each other.
“The friend is the man who knows all about you, and still likes you” – Elbert Hubbard
Related posts:
- Pakistani Experience Relevent Against China
- India and Pakistan: Freedom vs. Azad
- Time for India to Rethink its China Policy
- India’s Rich History: Myth vs. Reality
- Great Failed Walls of China
Category: Culture & Religion

