Diplomatic relations between India and China. India is the first non-socialist country to establish diplomatic relations with China, the communist government. The joint enunciation of Panchsheel - the 5 principles of peaceful co- existence by the Indian Prime Minister Nehru and Chinese Premier Zhou Enlai was a step towards a stronger relationship. Annexation of Tibet by Chinese caused huge conflicts between the two countries and the tension was also heated due to border disputes caused by China. It took more than a decade to normalize the situation. Trade was the only positive relation between both the countries. They had signed agreements on cultural exchanges and co-operation in science. Bilateral trade between India and China has increased from $338 million in 1992 to more than $84 billion in 2017, But we need to relook how the relation would continue after the post- covid world. The solidarity between the two countries may be degraded due to lack of transparency and trust issues of China. The public perception of Indians has become very negative and the whole world has socially distanced themselves from China. India has been doing the same. The first step is by banning 59 Chinese apps. The outbreak of this pandemic will sure change our relations with China since it the one to be blamed for.

Indo-China Trade. China being the largest exporter to India surely has its upper hand there and it would be a great  troublesome situation for both the countries to have disputes amid this world wide pandemic due to  the CORONA VIRUS. It won’t be wrong to say that Indian MSME sector is very much dependent on various Chinese  imports and that too when it has been in the middle of crisis since a couple of years. Although for the business experts and other analysts it is going to be an interesting show that how  both the countries and going to revive their respective manufacturing sector and the economy as a  whole if thing go wrong. Figuratively speaking, In 2019-20 China accounted over 5% of India’s total exports which includes a  wide range of products including iron ore, cotton yarn, coconuts, copper. Whereas Imports from  china accounted for more than 14 percent, mobile phones and its accessories holding the top spot  over 48% of the total import. For more visit http://www.indiatradedata.com/what-india-import-export-china The above figures shows that India runs a huge trade deficit with china which puts India on the back  foot to take major decisions, although Indian government has already taken some strong decisions  to match up the sentiments of Indian citizens to boycott Chinese products.  India already has its plans to counter Chinese huge imports, The MAKE IN INDIA programme which  was launched in 2014 but Indian economy has not seen or gained much out of it.

INDIA-CHINA DTAA Double Taxation Avoidance Agreement(DTAA)is an accord for the avoidance of double taxation to a citizenary of either or the both nation entalgled to the concord. India-China bilateral significance to DTAA kicked off to a flier in july 1984.The recent development in harmony with the concurrence was observed in Nov.2018. The amendment in the prevailing protocols has now bound both the nation to sticl to the recent international standards. The DTAA is just not about Tax- Credit or Tax- Exemption but it also indirectly helps both the nation to understand each other economic and  monetary policies and aid to prosper growth. However, In  critical circumstances,the accord may be terminated from either party by notifying other.

INDIA CHINA DOKLAM BORDER ISSUE-  Docklam, or Donglang in Chinese, is an area spread over less than 100sq km comprising a platform and a valley at the Tri-junction between India, Bhutan and China. It is surrounded by Chumbi Valley of Tibet, Bhutan Ha Valley and Sikkim. In 2017, a dispute arose between Indian Armed Force and the People’s Liberation Army of China. In June, 2017, the Chinese troops started constructing road on the disputed area of Doklam which the Chinese claims it to be a a part of its Donglang region. However, India and Bhutan recognize it as Doklam, a Bhutan territory. Bhutan has a very strategic position considering the geography of India. To foster the relationship, India and Bhutan had signed a “Friendship Treaty” in 2007 which made India to intervene for the goodwill of Bhutan among other provisions. Also, Bhutan had asked for India’s help to protect its interest in Doklam from Chinese intervention. The question that arose was why Doklam region was so important to these nations. The reason being was that the area of Doklam carries huge military advantages and if it falls into the hands of China, the security of India and Bhutan will be at stake. The access to Tri-junction area shall be easy for the transportation of war machinery to the border of India. In this case, if there is a war between India and China, China will be able to conquer the Chicken’s neck of India which connects the North-Eastern states to rest of India. So, Indian Army was sent in order to stop the Chinese troops from constructing roads on the disputed area of Doklam. The military standoff continued for more than two months. China accused India for entering their border. Well after diplomatic conversations, both the troops were withdrawn from the border. Talking about the consequences of this standoff, I do not think it was an impactful one. The Chinese government claimed that it is their sovereign right so the Chinese troops will be present at the border. They were ready to maintain peace further. Till now, there have been no instances regarding any disturbances on that border.