China and India: Cooperation and competition

14 May 2007

Growth in economic cooperation between China and India masks continuing political animosity between the two states according to a new paper published today by Chatham House. Whilst the two Asian economic powerhouses have highly successful and developed trade and economic relations, the growing regional and global interests of India and China means that they are, more often, competitors in third countries where they both have interests.

Dr Gareth Price, author of the report and head of the Asia Programme at Chatham House, also points out that closer to home the border disputes between the two states remain unresolved, and economic growth and increasing national pride in both countries may generate increased hostility to the other.

The paper, entitled China and India: Cooperation and Competition, highlights specific potential conflict areas between the two emerging economic powers, water resources being a core example. Key Indian rivers have their sources in the Chinese Himalayas and many in India are concerned over China's management of these resources and its future intentions.

In addition to the paper's specific analysis it also underlines the broad historical state of mistrust between China and India. The numerous unresolved territorial and border disputes and the legacy of the Sino-Indian War of 1962, which still permeates the strategic thinking within both countries, all adds to what is an increasingly complex relationship.

To speak with the author please contact:

Sam Hardy
Chatham House Press Office
+44 (0) 7946 642 205
+44 (0) 20 7957 5739

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