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India - China Relations

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National : China's Communist Party sees India as part of U.S. “containment” strategy. China's Communist Party has expressed concern at the country's neighbours, including India, being drawn into a United States-led “anti-China alliance,” suggesting a seven-step strategy, from using China's economic clout better to building new alliances to counter American influence in the region. An article published in the latest issue of Qiushi (Seek Truth), party's official magazine and an influential journal that is circulated among its members, called for a review of China's foreign policy and for the country to come up with an adequate response to new challenges posed by the U.S. Last year has been seen by many in China as a particularly testing period for its diplomacy, with rising tensions with many of its neighbours and concerns at the U.S.'s renewed engagement in the Asia-Pacific.

“The U.S. seems highly interested in forming a very strong anti-China alliance. “India has stayed closely allied with the U.S. in recent years, and [U.S. U.S. measures. International : India-China trade surpasses target. Bilateral trade between India and China exceeded the two countries' $60 billion target last year, driven largely by rising Indian imports of Chinese machinery that have left a record trade imbalance of $20 billion in China's favour. Figures released for last year showed that bilateral trade in 2010 reached $61.7 billion, with Chinese exports to India touching $40.8 billion. This marked a 43 per cent jump in trade volume from last year, when the recession reduced two-way trade to $43 billion. In 2008, China became India's largest trade partner with $51.8 billion in bilateral trade. Despite the growth, the figures underscore rising Indian concerns over the fast-widening trade deficit, with Indian exports, largely made up of iron ore, other raw materials and cotton, contributing a little over $20 billion — equalling the size of the deficit.

China, in contrast, exports finished goods to India, mainly machinery. In China, high growth sparks inflation fearsJanuary 21, 2011. Suhasini Haidar: Hands across the Himalayas. Partners, not rivals. That’s how the two men who lead India and China, Prime Minister Manmohan Singh and Premier Wen Jiabao, described the relationship this December. Yet just two weeks later, two other men on a motorbike laid bare the difficulties of achieving that goal. After reports that Chinese soldiers had transgressed into the Demchok area of Ladakh, fears of an “incursion” set off alarm bells. It took statements from the ministry of external affairs, the army chief and even the air chief to put things into perspective. The incident, small as it was, and diplomatically controlled as quickly as it was, is just one of many pinpricks on the India-China road that deflates relations, and diverts New Delhi from both the nature of the “rival” and the avenues for “partnering” it.

Both aspects came sharply into focus on a recent visit to Beijing, to attend a conference organised by the international department of the Chinese Communist Party and the Observer Research Foundation. The Great Claw of China. Wooing NSCN (IM) China agrees to host a permanent representative of the NSCN (IM) from 2008 The outfit is asked to spy on Indian troops in Arunachal Pradesh and the Dalai Lama Pakistan’s ISI also contacts NSCN (IM) and asks it to break the ceasefire with India NSCN (IM)’s firepower grows significantly during the ceasefire with India that began in 1995 For decades, India and China have played a cat-and-mouse game, full of intrigue and suspense.

Even while New Delhi is trying to find ways around vexatious border issues or making occasional noises about stapled visas, Beijing has been secretly supporting, advising and arming major insurgent outfits in India’s troubled Northeast and the Maoist belt. Unlike the noise and heat the Indo-Pak relationship generates, Indian diplomats maintain a studied silence when it comes to the Chinese hand in the Northeast or arms from across the border reaching Maoists in central India. Shimray: Tailed and Nabbed Chinese Arms for the Northeast ISI Links.