Sushant Singh
While India-China tensions began to thaw last year, the bilateral relationship has mostly been on the decline in recent years. In response, New Delhi has taken two distinct approaches to its relations with Beijing — a more confrontational security stance on the one hand and a cooperative economic posture on the other. The 2020 clashes between India and China on the disputed border,
which resulted in the first deaths on the Line of Actual Control (LAC) in decades, and the subsequent deterioration in diplomatic ties, only further highlighted this divergence over the past five years. After the clash, the Indian government heightened anti-China rhetoric, banned Chinese apps and argued that a “normal” India-China relationship required peace on the border. Yet trade with China continued to reach record highs.
The two countries have taken steps toward normalized ties after an October 2024 border agreement,
but the experience of the preceding four years has showcased the depth and scope of India’s economic vulnerability to China. China is India’s top trading partner — with bilateral trade significantly skewed in China’s favor — and New Delhi relies on Beijing for imports in industries critical for India’s growth including electronics, solar power and pharmaceuticals. China’s recent restrictions on high-tech manufacturing to prevent Chinese companies from moving manufacturing away from Beijing has already demonstrated how disruptive restrictions could be for Indian industries.
The May 2025 India-Pakistan crisis, sparked by a terrorist attack in Kashmir, saw intense military exchanges and highlighted China’s overt support for Pakistan — including military assistance. This deepened India’s concerns about a “two-front” threat, reinforcing its view of China as a direct, interconnected security challenge.
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