After The Cold War Between China And India Trade Interdependence Impact On Bilateral Relations

As the cold war ending, the wave of globalization with anunprecedented trend sweeps all over the world. China and India withthe large population, rich resources and brilliant culture have puteconomic reform in practice, so that keep up with the globalization.However, never have the Sino-India relations been so tough since1962border war. They re-started the road to improve the bilateral relations atthe beginning of economic and trade exchanges until1988. Then underthe two big backgrounds, the relations between India and China showunique, compared to the past. As the two countries’ soaring growth onthe economies and military strength, China and India they each otherbecome intensified in regional issues. At the same time, they clashdirectly on the boundary problem and the Tibet issue, and also in whichare locked. However, under the background of globalization, the twocountries have to going on deepening economic and tradeexchanges year by year.Therefore, Scholars try to have the opportunity based on bilateraltrade exchanges, in order to promote the process of their politicalrelations’ improvement. Theory of interdependence is the mostimportant component of economic independence, which is measuredwith sensitivity and vulnerability, to quantify the degree of dependingbetween each other. Meanwhile, it is a normality the cooperation andconflict co-exists within the international system. The two were pushedforward to peace or war for different pushing force. So the degree ofinterdependence is the direct pushing force from cooperation topeace or from conflict to war. The deep trading interdependencewithin some international regime net will improve bilateral politicalrelations effectively, and going forward in the direction of peace in theway of power and communicating pathes. On the contrary, if it is lack of international regimes or only some light degree of interdependence,the trading interdependence is possible to be a source of clash, evengo war.By examining the total volume of trade and also its structure, wefind that the trading dependence between China and India is notstrong enough to provide necessary or sufficient conditions forrelations-improving. In contrast, the deepening progress which bringsabout more uncertainties is a source for the exacerbation of Sino-Indiarelations. Therefore, developments ofthe future relations between them ask for speeding up constructingthe Sino-India free-trade area. The FTA could offer an efficient pathwayfor government and nongovernment groups to communicate, so thatthe more communications provide the more mutual-trust it produces. Atthe same time, in the post-crisis era the G8weakened, the G20rises,and the BRICs included. China and India is the two largest developingcountries, so joining and recreating regional and international order willbe inevitable. In order that, Chinese government and Indiangovernment should seize the chance in region and international systembasing on common interests.At present the scholars’ studies is still insufficient, that on the effectof Sino-India trading on bilateral political relations. Theory ofinterdependence provides a good perspective, but there exists someproblems that confusion of concept and the lack of qualifications.Therefore, defining the concepts and qualifying analysis on China-Indiatrade interdependence highlights its specialty. On the other hand,relations between India and China is one of the most important bilateralrelations in Asia, even in the international system in the future. So that itshould be paid attention to that the adverse factors limit thedevelopment of bilateral trade. Overall, however, the future of Indianeeds bilateral continuous effort. The conclusion we draw is that: in the post-cold war era, the rise of India and China has made more clashingfocuses for the two countries, but bilateral trade is not strong enough toimprove the relationship between the two countries; Instead, it is theweak trade interdependence that brings the political relations the moreuncertainties with increasingly close trade relationship between the twocountries, and that influence the development of bilateral relations.