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Are Sino-Indian relations deteriorating?

India is about to test a nuclear warhead capable of firing into Chinese territory. Currently only China, France, Russia, the US and the UK possess such warheads. India developed nuclear weapons as a counter-weight to Pakistan, which did the same. But as China rises, Delhi seems to be assessing the threat from Beijing as greater than the one from Islamabad.

Back in March the Indians initiated a major border exercise just as China announced its military spending had risen by 11.2% in 2012. While China recently overtook the UK as the world's second largest defence spender, India remains the eighth largest.

India has already purchased a Russian-made nuclear submarine as a replacement for its old Soviet era submarine. India will lease the 630 million sub for 10 years while developing its own. The sub will be deployed on India's east coast. This is telling €" it means that China, rather than Pakistan, is the threat.

China has strong military relations with India's neighbours Pakistan, Bangladesh and Sri Lanka. Reports indicate that China has significantly aided Pakistan's nuclear weapons programme. Beijing has also developed serious diplomatic ties with Sri Lankan President Mahinda Rajapaksa.

Around 40% of the world's population lives in India and China. While the latter continues to grow at rates of around 8%, the former €" often favoured in the West for its democratic credentials €" has stumbled of late, mainly under the weight of petty corruption. While China affords citizens less civil liberties than India, the latter's population is considerably poorer across the board.

Relations between the two have been seriously undermined by the dispute over Arunachal Pradesh, a territory bordered on the north of India by the Tibet region of China. While it has been administered by India as a state since 1987, China still claims most of it as part of the Tibet Autonomous Region.

India and China are worlds apart in military capabilities. China's overall defence budget for 2012 is US$110bn against India's US$36bn. However India's defence budget represents an 11.6% increase on 2011. The danger for Delhi is that in bankrolling a military to balance China it fails to spend adequately on education and infrastructure: the very things which would make India a rich country.

China's defence budget could be as much as US$165bn, since the Chinese fail to account for nuclear development and space programmes in the figures. About half of India's US$36bn is devoted to its considerable land army of 1 million soldiers. While this makes sense considering the threat posed by China's continent and formidable military numbers, it leaves less available to spend on technology.

There are however signs that India may climb down. According to the BBC's Subir Bhaumik, the Indians may be willing to negotiate over Arunachal Pradesh. However General JJ Singh reacts angrily to suggestions that India and China could come to blows.

€I must tell these futurologists and experts to stop this nonsense of predicting a Indo-China war, first in 2010, then in 2012 and now in 2020. They will be proved wrong as we will not fight. We are competitors, not rivals,€ said Gen Singh

But that begs the question why the big military build-up? India faces no serious geopolitical threats from any countries but China and Pakistan. It already has the capability to destroy Pakistan. Certainly Delhi is fixed on joining the top ranks of world power. But in doing so, it may be in danger of generating a rich world's military before developing a rich world's economy.

China has attracted back many non-residents in the diaspora. Rates of emigration to countries like the US, Australia and Canada have fallen. There are signs of significant migration of Western-born Chinese to China.

However there is no sign of significant non-resident Indian (NRI) migration back to India. There have been instances where Indian students in the West have gone to Hyderabad or Mumbai to set up businesses. Yet there has been nothing like the mass movement back to China of overseas Chinese.

Ultimately this could be futile for both China and India. They still need to develop. Both must face up to the enormous challenges they have €" whether income disparity and land seizure in China, or corruption and malnutrition in India €" rather than misinterpreting every highlighting of such flaws by outsiders, as hostile.
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