The Indicator from Planet Money

Are China and India BFFs now?

Key Takeaways

  • U.S. trade policies are fostering closer economic ties between historically tense India and China.
  • An India-China partnership, representing one-third of humanity, could significantly shift global economic dynamics.
  • Despite recent warming, the long-term viability of India-China friendship is uncertain due to historical disputes.
  • Current improved relations are largely viewed as a temporary "marriage of convenience" driven by shared external pressures.

Deep Dive

  • In June 2020, at least 20 Indian soldiers were killed in armed skirmishes with Chinese troops in the Gulwan Valley.
  • Reports indicated Chinese soldiers used brutal tactics, leading to severe retaliatory measures by India, including banning Chinese applications.
  • China reportedly responded by blocking Indian news websites, significantly straining bilateral relations.

  • The ongoing U.S. trade war with both China and India is creating an unexpected alignment between the two Asian nations.
  • Experts Yoon-soon (Stimson Center) and Milan Vaishnav (Carnegie Endowment) analyze the potential for a powerful India-China economic bloc.
  • Such a partnership would represent one-third of humanity and could yield greater international influence and potential military cooperation.

  • The western Gulwan Valley and eastern Taewong region have been major historical flashpoints between China and India since their independence.
  • The Taewong area holds particular significance due to its connection to the sixth Dalai Lama, complicating Beijing's stance on Indian territorial claims.
  • A 1962 war and the 2020 Gulwan skirmish significantly worsened Indian public opinion towards China and chilled Chinese investment into India.

  • Despite recent warming, the possibility of a long-term friendship between China and India is questioned by experts.
  • Current improved relations are described as a temporary 'marriage of convenience' driven by shifting global pressures rather than genuine mutual affinity.
  • Historically, periods of warming relations between the two nations have not lasted, suggesting potential for future difficulties.

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