News Highlights:
- China is willing to partner with India on the path to modernisation, shaping the future of Asia and beyond.
- India’s diplomacy, with its presidentship of the Shanghai Cooperation Organisation (SCO) and the G-20, focus on China.
Key Takeaway:
- China is advancing modernisation on all fronts.
- The path to modernisation is based on China’s practices with a focus on high-quality development.
The development of China in recent years:
- Steady growth:
- In 2022, China’s economy grew by 3% with a total of 12.06 million urban jobs added.
- China’s GDP increased to 121 trillion yuan (approximately $18 trillion), registering an annual growth rate of 5.2% over the past five years and an annual growth of 6.2% over the past decade with GDP increasing by nearly 70 trillion yuan.
- China’s economic strength is steadily reaching new heights.
- People’s well-being:
- As a result of continued efforts over the past eight years, China has historically resolved absolute poverty, with the alleviation of close to 100 million rural residents from poverty.
- Over 70% of the government’s expenditure went toward ensuring people’s well-being.
- Basic old-age insurance covers 1.05 billion people, an increase of 140 million.
- Living standards continue to witness new improvements.
- Opening up:
- In 2022, China’s total volume of trade in goods exceeded 40 trillion yuan, registering an annual growth rate of 8.6%.
- China’s actual use of foreign capital was up by 8%, and the country remained one of the top destinations for foreign investors.
- The overall tariff level continues to fall, from 9.8% to 7.4%.
- China’s doors to the outside world are opening even wider.
- Win-win cooperation:
- In the period 2013-2021, China’s contribution to global economic growth averaged 38.6%, higher than that of G7 countries combined (25.7%).
- Ever since Chinese President, Xi Jinping, proposed the Global Development Initiative (GDI) in a speech at the United Nations General Assembly in 2021, more than 100 countries have expressed their support and over 60 countries have joined the Group of Friends of the GDI.
India- China bilateral trade:
- Overview:
- China and India are important trading partners, with bilateral trade volume reaching $135.984 billion in 2022.
- Though there is a trade deficit, India’s import of equipment and materials from China does reduce the overall cost of “Made-in-India” products, benefits Indian downstream industries and consumers, enhances the competitiveness of Indian exports, and in turn, facilitates India’s integration into global industrial and supply chains.
- The Chinese market is open to India, and the Chinese side is happy to see more high-quality Indian goods, cultural and other products entering the Chinese market.
- Investments by Chinese enterprises have created a large number of jobs for the Indian people and contributed to India’s economic development.
Ways to Enhance the Bilateral Relationship:
- China is willing to strengthen communication and coordination with India, be a partner on the path to modernisation, safeguard the respective legitimate rights and the common interests of developing countries, and make contributions to peace and stability in the region and beyond.
- India-China should properly handle the historical and practical problems in the bilateral relations and care for each other’s concerns while increasing trust and dispelling doubts.
- It is crucial for the two countries not to sharpen rhetoric against each other and look for a pragmatic solution to the existing problems between the two countries.
- The onus lies on India and China to maintain stability in South Asia, which is beneficial for the people of the whole world and for the common people of India and China in particular.
- India-China should stick to the ethics of the Panchsheel (Five Principles of Peaceful Coexistence) and must strengthen coordination on international and regional affairs through more regular and high-level political engagement.
- India-China should carry forward the spirit of good neighbourliness, friendship, unity, and cooperation.
Pic Courtesy: The Hindu
Content Source: The Hindu