The politics among some of the largest economies in the world is complex, and it is particularly so when the nations in question have a history of hostility. India and China have had a fraught and difficult relationship for much of their existence. However, the two nations have been doing business consistently, and investments from companies from both countries have been made in the other. That being said, India has steadfastly refused to participate in Belt and Road Initiative, and hence, the latest talks between the two nations at the Financial Dialogue meeting were so important.
On Wednesday, representatives from India and China met for the Ninth India-China Financial Dialogue, and among other things, the two nations discussed bilateral investments. However, bilateral investments were not the only subject under discussion between two of the biggest economies in the world and in Asia. Other subjects included financial cooperation, discussions on the macroeconomic situation and broad strokes about policies. The Indian delegation at the talks was led by the Secretary of the Department of Economic Affairs, Atanu Chakraborty, while the Chinese delegation was led by the Vice Minister of the Ministry of Finance of China, Zou Jiayi. A press release was published by both nations, and both stated that they were committed to harnessing an environment in which high growth can be enabled.
India and China also stated that they were committed to fostering stronger trade and economic ties between the two nations. In this regard, it is important to note that China’s rate of growth has slowed down for the first time in three decades and it is also involved in a highly damaging trade war with the United States. On the other hand, India has also been going through pains with regards to economic growth, and maybe, this is perhaps the best time for the two nations to come together for mutual goals. However, it is also necessary to note that Chinese companies have invested billions of dollars in India over the years and despite diplomatic tensions, the Indian policymakers have not gone after those companies. It remains to be seen how the two nations move forward as the world economy grows weaker by the day.