Current Affairs · · GS2 · International Relations

India and China: can rivals manage competition peacefully?

A Hindu opinion piece argues that India and China, despite the 1962 war, the unsettled boundary and the 2020 Galwan clash, share enough interests to aim for managed competition and peaceful coexistence. It points to recent steps such as border disengagement and resumed flights, while warning of trust deficits, trade imbalance and China's ties with Pakistan.

Event date:

REq1
  1. Note1 / 5

    WHY IN NEWS?

    • A Hindu opinion piece asks whether India and China can coexist peacefully.
    • It describes the relationship as a mix of economic dependence, strategic competition and mistrust.
    • It argues the realistic goal is managed competition and strategic stability, not friendship.
    • It notes signs of a thaw since late 2024, alongside lasting frictions.
  2. Note2 / 5

    FRICTIONS AND THAW

    FrictionsSigns of thaw
    Unsettled boundary and differing LAC perceptionsOctober 2024 patrolling arrangement at Depsang and Demchok
    CPEC through Pakistan-occupied KashmirKailash Mansarovar Yatra resumed in 2025
    China–Pakistan strategic tiesDirect flights restored in 2025
    Large trade deficit for IndiaSpecial Representatives' talks on the boundary
    Upstream dam on the Yarlung Tsangpo (Brahmaputra)Talks on sharing river flow data
  3. Note3 / 5

    KEY CONCEPTS

    1. What is Panchsheel?

    Five principles of peaceful coexistence in the 1954 India–China agreement, including mutual respect for sovereignty and non-interference.

    1. What is the 2005 agreement?

    The Agreement on Political Parameters and Guiding Principles set the framework for a boundary settlement, including respect for settled populations.

    1. Why is the trade deficit a concern?

    India imports far more from China — electronics, machinery, solar parts and drug ingredients — than it exports. This creates economic dependence.

    1. What is the security dilemma?

    When one side builds roads, airfields or forces for defence, the other sees a threat and responds, raising tension for both.

  4. Note4 / 5

    THE CASE FOR COEXISTENCE

    These points are the writer's argument.

    • Trade: Bilateral trade was about $127.7 billion in 2024-25, giving both sides a stake in stability.
    • Development goals: Both need peace to meet long-term growth targets.
    • Shared platforms: BRICS, the SCO and the G20 offer room to cooperate.
    • Deterrence: Both are nuclear powers, making war very costly.
    • Climate: Both share interests in climate finance and technology.
    • History: The 1988 Rajiv Gandhi visit and the 2005 agreement show rapprochement is possible.
  5. Note5 / 5

    WAY FORWARD

    These are the writer's suggestions, not adopted policy.

    • Manage the border through hotlines, commanders' talks and agreed patrol rules.
    • Clarify the LAC to prevent face-offs.
    • Deter credibly with infrastructure, surveillance and domestic defence production.
    • Reduce dependence through manufacturing incentives, semiconductors and domestic drug ingredients.
    • Stay autonomous: Engage the Quad without closing doors to Beijing.
    • Cooperate on rivers through regular data-sharing.

Sources

Syllabus

PaperSubjectSub-topic
GS2International RelationsIndia and its neighbourhood, bilateral relations, effect of policies of other countries
GS3EconomySecurity, trade
PrelimsInternational RelationsPanchsheel, 2005 agreement, CPEC, Yarlung Tsangpo

Topics

World Map-Based GeographyExternal Sector of IndiaInternational Relations and Current Affairs

Related previous-year questions

Asked in earlier UPSC Prelims papers on this topic. Answer, then check.

  1. UPSC Prelims 2012 · Science and Technology · Miscellaneous Science and Technology

    Recently, there has been a concern over the short supply of a group of elements called ‘rare earth metals’. Why? 1. China, which is the largest producer of these elements, has imposed some restrictions on their export. 2. Other than China, Australia, Canada and Chile, these elements are not found in any country. 3. Rare earth metals are essential for the manufacture of various kinds of electronic items and there is a growing demand for these elements. Which of the statements given above is/are correct?

    1. 1 only
    2. 2 and 3 only
    3. 1 and 3 only
    4. 1, 2 and 3
    Show answer

    Answer: C. Correct Answer: 1 and 3 only Rare Earth Elements are a group of 17 elements used in modern high-tech, clean energy and defence industries. The concern is mainly due to China’s dominance in supply and processing, and their growing strategic demand. Statement-wise Explanation 1. China has imposed restrictions on the export of these elements — Correct China is a dominant producer and processor of Rare Earth Elements. Any restriction by China affects global supply chains, especially electronics, electric vehicles, renewable energy and defence industries. 2. Other than China, Australia, Canada and Chile, these elements are not found in any country — Incorrect This statement is incorrect because Rare Earth Elements are not geographically limited to only a few countries. They are found in many countries, including India, USA, Brazil, Vietnam and Russia. The issue is not their absolute scarcity, but difficult extraction, processing and China’s dominance in refining. 3. Rare Earth Elements are essential for the manufacture of various kinds of electronic items and there is a growing demand for these elements — Correct Rare Earth Elements are used in smartphones, computers, electric vehicles, wind turbines, LED screens, batteries, magnets and defence equipment. Their demand is rising due to clean energy transition, digital technologies and strategic defence applications. Extra UPSC Info * Rare Earth Elements include 15 lanthanides along with scandium and yttrium. * They are called “rare” not because they are extremely scarce, but because they are rarely found in concentrated, economically extractable deposits. * Neodymium and dysprosium are important for high-strength permanent magnets used in EVs and wind turbines. * India has rare earth resources mainly in monazite sands along the coasts of Kerala, Tamil Nadu, Odisha and Andhra Pradesh. * IREL (India) Limited, under the Department of Atomic Energy, is involved in rare earth mining and processing in India. * Rare earths are critical minerals because they are important for technology, energy security and defence supply chains. Final Takeaway Statements 1 and 3 are correct because global concern over Rare Earth Elements is due to China’s export control and their rising importance in electronics, clean energy and defence, while statement 2 is incorrect due to their wider geographical occurrence.

    Difficulty: medium · statement

    Open this question on its own page, with the full explanation →

  2. UPSC Prelims 2026 · Indian Economy · Industry

    Which of the following statements about Rare Earth Elements (REEs) and Critical Minerals is/are correct? 1. Modern technological innovations including Artificial Intelligence, robotics and space exploration extensively utilise Rare Earth Elements (REEs). 2. China has the highest share in mining of REEs followed by India. 3. The Government of India launched the National Critical Mineral Mission (NCMM) in 2025 to establish a robust framework for self-reliance in the critical mineral sector. 4. Rare Earth Elements are a set of 13 metallic elements. Select the answer using the code given below:

    1. 1 and 3 only
    2. 3 only
    3. 1, 3 and 4
    4. 1, 2 and 4
    Show answer

    Answer: A. Rare Earth Elements (REEs) and critical minerals play a vital role in advanced technologies, defense applications, and the global shift toward renewable energy systems. The global supply chains of these minerals remain heavily concentrated in a few regions, encouraging countries to secure reliable sources in order to minimize economic and strategic risks. India has identified a number of minerals as critical and strategic and has introduced targeted policies and missions to strengthen domestic exploration and acquire resources internationally. Statement 1 is correct: Modern technological advancements such as Artificial Intelligence, robotics, and space exploration make extensive use of Rare Earth Elements. REEs are essential in producing specialized components such as microchips, sensors, and high-performance magnets that are widely used in advanced technologies. Statement 2 is incorrect: China holds the largest share in global REE mining; however, countries such as the United States or Australia generally rank next, rather than India. Statement 3 is correct: The Government of India launched the National Critical Mineral Mission (NCMM) in 2025 to create a strong framework for self-reliance in the critical minerals sector. The mission was introduced to enhance domestic exploration, support overseas acquisitions, and reduce dependence on imports of strategic minerals. Statement 4 is incorrect: Rare Earth Elements actually comprise 17 metallic elements, including the 15 lanthanides along with scandium and yttrium, and not 13. Statements 1 and 3 are correct, so the answer is Option (a).

    Difficulty: easy · statement

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Practice questions

  1. The Panchsheel principles were first set out in the India–China agreement of:

    1. 1950
    2. 1954
    3. 1962
    4. 1988
    Show answer

    Answer: B. It concerned trade and intercourse with Tibet.

    Difficulty: medium · statement

  2. The China–Pakistan Economic Corridor is opposed by India mainly because:

    1. It bypasses Indian ports
    2. It passes through Pakistan-occupied Kashmir
    3. It competes with Indian railways
    4. It is funded by the World Bank
    Show answer

    Answer: B. India regards the area as its territory.

    Difficulty: medium · statement

  3. The Yarlung Tsangpo, on which China is building a large dam, becomes which river in India?

    1. Ganga
    2. Brahmaputra
    3. Indus
    4. Sutlej
    Show answer

    Answer: B. It enters India in Arunachal Pradesh as the Siang.

    Difficulty: medium · statement

Mains practice

Answer-writing practice on this article. Attempt it first, then open the hints.

  1. GS2 · 250 words

    "India–China relations are best described as managed rivalry." Examine the drivers of competition and cooperation, and suggest a strategy for India.

    Show hints
    1. Boundary, CPEC
    2. trade deficit, Brahmaputra
    3. BRICS and SCO
    4. 2024 disengagement, deterrence
    5. strategic autonomy.