China, India and the promise of the power of two
Context
- The year 2023 marks a high point in India’s diplomacy, with its presidentship of the Shanghai Cooperation Organization (SCO) and the G-20.
- The focus is also on China which held “two sessions” recently:
- National People’s Congress of the People’s Republic of China.
- National Committee of the Chinese People’s Political Consultative Conference.
Some insights into China’s Development
China is advancing modernization on all fronts.
- Path to modernization: It is based on China’s practices with a focus on high-quality development.
- It means the modernization of a huge population, where there is common prosperity for all, material and cultural-ethical advancement, harmony between humanity and nature, and peaceful development.
- China and India are representatives of developing countries: India and China are both in the process of national rejuvenation and a crucial period of modernization where challenges need to be overcome and problems need to be solved.
China’s focus Area
The development of China in recent years can be summarized in four points.
- Steady Growth: In 2022, China’s economy grew by 3% with a total of 12.06 million urban jobs.
- China’s GDP increased to 121 trillion yuan (approximately $18 trillion), registering an annual growth rate of 5.2% over the past five years and an annual growth of 6.2% over the past decade with GDP increasing by nearly 70 trillion yuan.
- Well-being of the people: China has historically resolved absolute poverty, with the alleviation of close to 100 million rural residents from poverty.
- Over 70% of the government’s expenditure went toward ensuring people’s well-being.
- Basic old age insurance covers 1.05 billion people, an increase of 140 million.
- Opening up: In 2022, China’s total volume of trade in goods exceeded 40 trillion yuan, registering an annual growth rate of 8.6%.
- China’s actual use of foreign capital was up by 8% and the country remained one of the top destinations for foreign investors.
- Win-Win Cooperation: In the period 2013-2021, China’s contribution to global economic growth averaged 38.6%, higher than that of G7 countries combined (25.7%).
- Ever since China proposed the Global Development Initiative (GDI) in 2021, more than 100 countries have expressed their support and over 60 countries have joined the Group of Friends of the GDI.
What are the areas of convergence between India and China?
- China and India are important trading partners, with bilateral trade volume reaching $135.984 billion in 2022.
- Though there is a trade deficit, India’s import of equipment and materials from China does reduce the overall cost of “Made-in-India” products, benefits Indian downstream industries and consumers, enhances the competitiveness of Indian exports, and in turn facilitates India’s integration into global industrial and supply chains.
- Chinese market is open to India: Investments by Chinese enterprises have created a large number of jobs for the Indian people and contributed to India’s economic development.
Way Forward
- The development and revitalization of China and India embody a boost to the force of developing countries.
- It is one that will change the destiny of a third of the world’s population and having bearing on the future of Asia and beyond.
Conclusion
China is willing to strengthen communication and coordination with India, be a partner on the path to modernization, safeguard the respective legitimate rights and the common interests of developing countries, and make contributions to peace and stability in the region and beyond.