The past 12 months have seen China getting directly involved in potentially explosive situations such as Ladakh or the Diaoyu Islands. It almost seems as if, as China rises, it is starting to flex its muscles and shift away from the more non-confrontational approach it has used in the past decade towards more direct military confrontation. However, appearances can be deceiving. These two situations, seen from the point of view of Chinese citizens, are extremely different from each other.
The recent conflict surrounding the Diaoyu Islands is born from the trauma China endured under Japanese occupation during the World War II. To this day, the relationship with Japan remains extremely tense, particularly due to what is perceived as continuing provocation, such as Japanese prime minister Shinzo Abe's yearly visit to the Yasukuni shrine where Class A, B and C war criminals are enshrined. As a consequence, any geopolitical conflict with Japan usually arouses very strong reactions from the population, often demanding immediate retribution and forcing the government into taking a hard stance.
PARTNERS NOT FOES
The Ladakh conflict, however, is seen as very different. Very few Chinese citizens feel there are tensions between India and China, to the extent that awareness of this incident is extremely low. Furthermore, the strategic importance of the Ladakh region or other border areas such as NEFA seems far lower than the Diaoyu Islands. They do not fit into China's plan for Tibet, and the massive, forbidding heights of the Himalayas make the regions difficult to access and develop.
Rather, most Chinese citizens view India as a strong partner in the region. Over the past two decades both countries have followed very different development models: India has focused on building up a strong tertiary sector while China has relied on export - driven growth. This has led to a situation in which both countries' economies have been strongly complementary, and cooperation has been the natural course to follow.
These two giant countries are therefore seeing their economic reliance on the other increase year by year. Trade between China and India has grown tremendously over the past few years, and currently stands at between $50 billion and $80 billion.
However, the commonly shared impression is that cooperation is only beginning. Indian businesses are being greeted with open arms while an increasing number of Chinese brands are looking towards India as the next great market to enter. Service companies in China and India are teaming up and offering combined services to global players worldwide. For businesses throughout China, India is a potential long-term partner with which it is increasingly important to build strong relationships. For them, the importance of the Ladakh region is almost insignificant when considering the greater scheme of things.
POWERHOUSES, BOTH
Furthermore, from a Chinese standpoint, greater cooperation with India is needed. These two economic powerhouses are fast becoming political forces that are shaping Asia around them. Collaboration and agreeing on aligned approaches to geopolitical problems will be key to establishing a stable and prosperous Asia. Incidents are bound to happen occasionally. However, they will be resolved diplomatically and with no risk of escalation.
In the coming meeting between Chinese and Indian leaders, one can expect this situation to be resolved quickly and efficiently, so that the conversation can move on to more important issues. The real question that will be addressed is both simple and extremely complex: Which measures need to be taken within each country to strengthen economic cooperation between them? The day when Indian brands are household names in China, and Chinese brands are serious competitors in India, and when both countries help drive each other's growth and innovation is not far away.
(The writer is an analyst with China Market Research Group, a Shanghai-based strategic market intelligence firm.)
Chinese find India a potential partner unlike Japan - Page2 - The Economic Times
The recent conflict surrounding the Diaoyu Islands is born from the trauma China endured under Japanese occupation during the World War II. To this day, the relationship with Japan remains extremely tense, particularly due to what is perceived as continuing provocation, such as Japanese prime minister Shinzo Abe's yearly visit to the Yasukuni shrine where Class A, B and C war criminals are enshrined. As a consequence, any geopolitical conflict with Japan usually arouses very strong reactions from the population, often demanding immediate retribution and forcing the government into taking a hard stance.
PARTNERS NOT FOES
The Ladakh conflict, however, is seen as very different. Very few Chinese citizens feel there are tensions between India and China, to the extent that awareness of this incident is extremely low. Furthermore, the strategic importance of the Ladakh region or other border areas such as NEFA seems far lower than the Diaoyu Islands. They do not fit into China's plan for Tibet, and the massive, forbidding heights of the Himalayas make the regions difficult to access and develop.
Rather, most Chinese citizens view India as a strong partner in the region. Over the past two decades both countries have followed very different development models: India has focused on building up a strong tertiary sector while China has relied on export - driven growth. This has led to a situation in which both countries' economies have been strongly complementary, and cooperation has been the natural course to follow.
These two giant countries are therefore seeing their economic reliance on the other increase year by year. Trade between China and India has grown tremendously over the past few years, and currently stands at between $50 billion and $80 billion.
However, the commonly shared impression is that cooperation is only beginning. Indian businesses are being greeted with open arms while an increasing number of Chinese brands are looking towards India as the next great market to enter. Service companies in China and India are teaming up and offering combined services to global players worldwide. For businesses throughout China, India is a potential long-term partner with which it is increasingly important to build strong relationships. For them, the importance of the Ladakh region is almost insignificant when considering the greater scheme of things.
POWERHOUSES, BOTH
Furthermore, from a Chinese standpoint, greater cooperation with India is needed. These two economic powerhouses are fast becoming political forces that are shaping Asia around them. Collaboration and agreeing on aligned approaches to geopolitical problems will be key to establishing a stable and prosperous Asia. Incidents are bound to happen occasionally. However, they will be resolved diplomatically and with no risk of escalation.
In the coming meeting between Chinese and Indian leaders, one can expect this situation to be resolved quickly and efficiently, so that the conversation can move on to more important issues. The real question that will be addressed is both simple and extremely complex: Which measures need to be taken within each country to strengthen economic cooperation between them? The day when Indian brands are household names in China, and Chinese brands are serious competitors in India, and when both countries help drive each other's growth and innovation is not far away.
(The writer is an analyst with China Market Research Group, a Shanghai-based strategic market intelligence firm.)
Chinese find India a potential partner unlike Japan - Page2 - The Economic Times
