China_Report_Issue_51_August_2017

O

n the sidelines of the G20 sum-
mit held in Hamburg, Germany
on July 7, Chinese President Xi
Jinping met with Indian Prime Minister Na-
rendra Modi for a brief moment. The awk-
ward encounter took place while tensions
were running high amid the worst border
stand-off for years between the two nations.
As of going to press, there was no resolution
to the dispute.
According to Indian External Affairs Min-
istry spokesperson Gopal Baglay, Modi and
Xi discussed “a range of issues.” By contrast,
Chinese Foreign Ministry Spokesperson
Geng Shuang only acknowledged that the
two leaders were present at the BRICS Lead-

ers’ Informal Meeting hosted by China, and

said that they did not hold “a bilateral meet-

ing.”

As the border dispute dominates the rela-

tionship between the two Asian giants once

again, it may mark the end of a short period

of mutual overtures following Xi’s visit to

India in 2014 and Modi’s reciprocal visit to

China in 2015, when the two leaders vowed

to take the bilateral ties to “new heights.”

During this period, China and India did

in fact increase economic cooperation. India

joined the China-led Asian Infrastructure

Investment Bank and the BRICS Devel-

opment Bank, now officially known as the

New Development Bank. India was also seen

as taking a restrained position on the South

China Sea issue.

For some time, there was hope that Xi and

Modi, both seen as strong leaders at home,

would have the power to steer the bilateral

relationship in a new direction. But if there

was any genuine optimism about the future

of the bilateral relationship, it proved to be

short-lived. As grievances emerged in a va-

riety of new areas, further complicating old

disputes, the mood of bilateral relations has

now swung back to suspicion and hostility.

China’s Belt and Road

Under the leadership of President Xi Jin-

ping, China’s flagship initiative in the last

China-India Relations

refighting 1962?

After a brief honeymoon, sino-Indian relations are back in the doldrums – and new

Delhi is stuck in the past

By Yu Xiaodong

s PECIAL REPORT