Implications of India - China Dispute


The two major powers of Asia are fighting on border issues near the Galwan Valley. Both the nations, India and China are capable enough of inflicting death and destruction unacceptable to the other in these times. Hence, the law of deterrence works here. There are a number of implications of these skirmishes for both of the countries. Let us look at those implications.  

1. Economic Impacts

India and China disputes have economic implications for both nations. But undoubtedly, China will suffer from a great loss than India. This dispute is good in the sense that it has invoked crores of Indians to boycott Chinese products and companies. This will definitely result in a rise in the profits of Indian companies and salaries of Indian labour. 

Moreover, Indian Railways has reverted back its decision of signing a contract with a Chinese firm worth Rs.471 crores. This will impact the Chinese firm in a negative manner. Even other public sector enterprises like BSNL, etc have terminated their collaborations with Chinese firms. 

In today’s time, wallet power is much more effective than bullet power, especially for countries like China, which are dependent on multilateral trade a lot. Keeping in mind this sentiment, the Indian government has banned 59 Chinese apps in India. This is in fact a bold move and will weaken China’s position at the international fora.  

However, it must be noted that it will have negative consequences for our country, as we are also very much dependent on China for an ample number of products. But yes, the Make in India project has received a positive boost due to this anti-China sentiment. 

2. Diplomatic Relations

Diplomacy is crucial nowadays and determines a country’s position at the global stage. Diplomatic relations of a country are determined by a number of factors which include a country’s trade position, ideological support, military collaborations, etc. 

As we all are aware, China is on the radar of a number of countries including the most powerful countries like the USA, India, etc, to name a few. These relations have an impact on China’s stand at the international fora. Mostly all the countries are nuclear powers now. So, the law of deterrence starts working which prevents a full-fledged war between the states. Hence, diplomacy is very important.

India is having strong relations with a good number of countries and this will help India a lot in its decision-making process against China. President Trump has even asked India, Australia, South Korea, and Russia to join the G-7 group of countries. This is indeed a great compliment for our nation India. 

After the Galwan Valley dispute, it has been observed that China is willing to settle the matter on the table. A couple of commander level meeting between India and China have also taken place in the recent past. 

3. India’s Power Display

The recent skirmishes between the two countries have clearly displayed the world that India is not a recessive country. India has a trained military in the world. India has a wide variety of weapons to retaliate any attack. 

India lost the war in 1962 with China. But it must be noted, today’s India is entirely different from that one. Our country has progressed at a rapid pace and is also progressing at a rapid pace. No country will risk a war with India. 

Indians are working with prestigious institutions across the world and they are employed at good positions in those companies. Sundar Pichai is the CEO of Google, Satya Nadela is the CEO of Microsoft, etc. The position of India is strong in the international scenario. 

After the end of the cold war in 1991, the USA emerged as the sole superpower creating a unipolar world. But, today, we are living in a multipolar world. Many countries have emerged powerful in these times. The rivalry between the USA and USSR can be now shown as the rivalry between China and several other countries like India, the USA and many other countries. This is in favour of India’s stance with China. For the people of the country, I will request them to do their best in their respective fields so that they can help our nation to reach zenith. 

Written by -  Vaibhav Sharma

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