ABSTRACT

This chapter explores the historical overview of China-India political relations since their respective independence. It highlights the reasons why they became closer in the 1950s and the 1960s, grew apart between the 1970s and 1990s, and now are trying to re-establish mutual responsible cooperation despite the persistent obstacles and hidden concerns. The chapter presents how the rush for growth and industrialization is opening up new paths of cooperation and competition between the two countries. It examines why the reopening of the Nathula border pass in July 2006 was nothing more than a symbolic gesture from the two countries in that in that it has no concrete implications in terms of bilateral trade. The chapter discusses the rationale behind China's and India's signing of Free Trade Agreements (FTAs) with the Association of Southeast Asian Nations (ASEAN) and between themselves together with the obstacles that are currently impeding progress in this regard.