| Since 2003,the volume of bilateral trade has risen tremendously,two economic giants in the world stand closer than ever before in economic perspective.Chine was the largest trader with India in 2012,and stayed this position ever after.But as the economic interaction were growing fast,so is the economic conflicts between these two nations.India started more anti-dumping investigations to China than any other countries in the world,with the failures of both bilateral trade cooperation like SinoIndia FTA and multilateral trade cooperation like RCEP,a more comprehensive trade mechanism is absent in Sino-India relationship.Given that both countries are rich in population and consumption capacity,the performance of Sino-Indian bilateral trade and investment is hardly a satisfying one.The reasons behind this may be various,but some studies on this topic tends to attribute problems on trade to political disagreements.It seems that trust deficit will naturally lead to catastrophe on trade.Such hypothesizes are generally not proved properly in those studies.After a thorough analysis of political and economic relation between India and China,with an emphasis on bilateral trade and investment,the research concluded that during the past decade,the political relation between India and China has been a steady one.The conflict on economic issues were caused mainly by the unbalanced structure of bilateral trade,which appeared to be an interdependence scenario in SinoIndian relationship,with more vulnerabilities on Indian side.The vulnerability of Sino-Indian economic relation is so high that the political relation could hardly hold negative impact on it.A more prosperous Sino-Indian economic relation should be built on a more open and more institutionalized economic mechanism,which would require both sidesto adjust trade structure respectively.With great potentials,the SinoIndian economic relation could be a useful back up in a more uncertain world for both side. |
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