The famous handshake between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping at the BRICS summit in Russia signaled a potential thaw in the frosty relations between the two Asian giants. However, the path towards reconciliation has been fraught with challenges and setbacks.
The disputed 3,440-kilometer border between China and India, known as the Line of Actual Control (LAC), has been a source of tension for decades. Both sides have accused the other of encroaching on disputed territories. The situation escalated in 2020, leading to a deadly clash between Indian and Chinese troops.
Following this incident, India implemented a series of economic measures against China, including banning Chinese apps and investments. While these actions caused significant economic disruptions for both countries, they did not resolve the underlying territorial disputes.
In recent years, there have been tentative efforts to de-escalate tensions. India and China have agreed to disengage their troops along certain sections of the LAC and establish mechanisms for military-level communication to prevent further clashes. However, progress has been slow, and the risk of renewed confrontations remains high.
The recent meeting between Modi and Xi, who once were good friends, at the BRICS summit offered a glimmer of hope for improved bilateral relations. Both leaders expressed a desire to move beyond the past and focus on cooperation. However, significant challenges remain, including the ongoing border dispute, concerns over China's infrastructure projects in the region, and the broader geopolitical rivalry between the two countries.
While the handshake between Modi and Xi was a symbolic gesture, it is essential to assess the concrete steps both sides are willing to take to build trust and resolve the underlying issues. A lasting reconciliation between India and China would not only benefit the two countries but also have a significant impact on regional stability and global geopolitics.
As far as the immediate neighbours of the two Asian giants are concerned, it is a step in the right direction: first of all, the move leaves them at ease as they do not have to be nervous when it comes to bilateral agreements - without upsetting either China or India on the grounds of security. This will create a conducive environment for trade and investment without leaving either China or India in a state of unease.
China has been worrying about its manufacturing decline for months; improved relations with its immediate neighbour certainly is a shot in the arm as far as the Chinese economy is concerted. The two leaders have emphasized the need of further enhancing the ties that will ultimate benefit the economies of both countries.
