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MBA aspirants must be updated with General Awareness on current topics. General awareness topics with analytically drawn conclusions will benefit you in Essay writing / GD & PI. Today, you will read General Awareness Topic:
Was the recent visit of Chinese premier a diplomatic act or a strategic action?
Before we analyze and come to a conclusion on whether the recent visit of Chinese premier Li Keqiang to India was a diplomatic act or a strategic action, we need to understand the outcome of the meeting. This way, we will come to know the purpose of the premier’s trip.
Many articles were published recently by local and international newspapers claiming that the Chinese premier came over to India to forge friendship. Some claimed that the Chinese premier visited India to strengthen trade and business ties between both the countries. Which of these conclusions is true?
During the meeting, a Rp 55.6 billion (US$1 billion) debt for fuel deal was signed between Essar Energy, a low-cost integrated energy company, China Development Bank and Petro China International.
The loan deal with Chinese banks would be supported by the supply of products from Essar Energy’s refinery in Gujarat, India. This is how Essar is planning to cut its current debt.
In addition, both the countries set a goal to boost bilateral trade from Rp 3,665 billion (US$66 billion) in 2012 to Rp 5,559 billion (US$100 billion) in 2015.
This goes to show that the recent meeting between the Chinese premier and the Indian Prime Minister Manmohan Singh revolved around strengthening economic ties and enhancing bilateral trade relations.
So, the recent visit of the Chinese premier to India was definitely a strategic action, where steps were taken to improve the economic standing of the two countries.
However, his visit was not limited to strategic action alone. Both the countries and other neighboring countries are aware of the tension that is brewing between India and China with regard to border issues.
Although border tensions were not discussed during this trip, it is evident that China is keen on resolving these problems. Soon after President Xi Jinping took over as China’s leader, he mentioned several times that he, together with his team, would like to add urgency to the resolution of security and defense related issues faced by both the countries, especially around the border.
This visit is akin to a public relations exercise where leaders of both parties try to get to know one another better and enhance social and public relations between both the nations. It is hoped that by doing so, the enmity that was once present between the two countries will slowly but surely vanish.
Bilateral trade has often been described as a magic wand by many policy makers that can improve political relations between countries. It is true that when economic ties are strong between two countries, other aspects such as social and political ties fall into place automatically.
No country would want to jeopardize its relations with another nation that is a good trading partner and contributes immensely to its Gross Domestic Product (GDP). This is what China is also aiming for with the recent visit of the Chinese premier to India.
By forging friendship and enhancing bilateral relations, China hopes to become a close ally of India. So, we can safely say that the recent visit of the Chinese premier is both a diplomatic act and a strategic action. For decades, Chinese leaders have failed to strike a chord with Indian leaders.
Now, under the new leadership, Chinese officials are working hard to mend broken ties and start afresh. Hopefully, this visit is the beginning of a new friendship between the two economic giants of the world.