Chinese Premier Li Keqiang recent visit to India on Sunday was predictably ho-hum, and ended without any breakthrough that could have helped to resolve the contentious border dispute between the two neighbours. Li's visit, his first overseas since becoming prime minister in March, came after tensions on the nations' boundary in the Ladakh area in the western Himalayas flared in mid-April, when India said China had pitched tents 12 miles within its territory and responded by moving more troops into the area.
In recent years, as trade between India and China has boomed, the two countries have attempted to smooth over regular border disputes. Bilateral trade rose by about a third to nearly $76 billion in the year ended March 31, 2012, and the countries hope to boost it to $100 billion by 2015. The Chinese PM had in fact come to India to seek concessions for its companies in India. While pushing for more concessions for the Chinese companies Li asked Indian companies to invest in China. However, the issue of trade deficit, of which China is the beneficiary, was not adequately addressed. The deficit has increased from $ 1.08 billion in 2001-02 to $40.77 billion in 2012-13. India has been unsuccessfully pushing for more access to the Chinese markets but Chinese exports to India continue to grow unabated and far exceed its imports.
Even on the border issue, the joint statement issued at the end of the visit did not touch on the core issues. The three paragraphs which touched on the boundary issue said something which the Chinese wanted. Paragraph 23 talked of increasing exchanges between Army, Navy and Air force of the two nations. Paragraph 24 expressed satisfaction over the work done so far by Special Representatives of the two countries and sought to take steps to encourage them to push forward the process of negotiations. And Paragraph 25 noted with satisfaction that the meeting of the India-China Working Mechanism for Consultation and Coordination has made significant progress. But as can be seen, there has not been any progress on any core issue related to the border dispute.
The issues were either not raised or not pressed adequately. The Chinese side, on the other hand, achieved their intended objective.