7.8B - Asian Tensions
The rising economic importance of certain Asian countries (China or India) on the global stage increases the geopolitical influence of the region but also creates political and economic tensions within it.
India and China represent 36% of the world's population, 18% of global GDP and 32% of global carbon dioxide emissions. Their rising economic importance to the world cannot be denied. Both are members of the G20, which is an increasingly important global grouping. The older G8 set up in 1975 consists of indebted developed countries, whereas the G20 includes cash-rich investor countries.
Relations between China and India are interesting:
- They are ideological rivals: India is the world's largest democracy, whereas China is a communist dictatorship
- They share a border, but parts are disputed (Arunachal Pradesh, Tawang, Aksai Chin) which led to conflict in 1962, 1967 and 1987.
- China has created a strong economic alliance with Pakistan focused on the $54 billion Chinese investment in CPEC (China-Pakistan Economic Corridor), but Pakistan and India have tense, often antagonistic relations.
- China has the upper-hand in terms of economics, as India has a large trade deficit (imports more than exports) with China.
Increasingly, India and China are rivals in outer space. Both have advanced space programmes. The rocket technology from this also helps develop their nuclear missile technology. Both have an aircraft carrier, and both are building more - demonstrating they have regional (if not global) naval ambitions.