China,the World and India *

Abstract

After more than three decades of stupendous growth, China is in the process of making the painful transition to a lower growth path. As it does so, the ruling CPC is increasingly turning to nationalism to provide legitimacy in the eyes of its own people. China now openly seeks to ‘display its prowess’ and ‘assume its responsibilities’ in the world. However, it still lacks the capability to impose a political or security order of its own in its immediate neighbourhood. There is, therefore, likely to be a period of instability in the Asia–Pacific region, and the environment in which India pursues its interests will get more complex. China and India today have a relationship with elements of both cooperation and competition. While both countries have a common interest in improving on the existing security and economic order, they compete in the periphery they share. A danger present in present-day India–China relations comes from the mutual gap between perception and reality. Nevertheless, this article argues that this is a moment of opportunity for India–China relations, and that each country could benefit its core interests by working with the other.