Last night when I came from Office, I was tired like anything. As per the policy of my office, work load comes un-noticed that too in unexpected quantity. Same was happened with me on Saturday. As it was the first day of one of my favorite festivals “NAVRATRI”, I was eagerly waiting for the evening to come so that I can go to play “Dandiya”. But, due the hectic work of the day, I decided go to the next day. I came home and thought to go to sleep after dinner. However, while watching TV during dinner I seen news of recent tussle between India-China and thought to do a little research on the same. So after dinner I sat on my DELL Laptop and started searching news regarding the tussle between Dragon and Tiger. I got a lot of interesting information and decided to put on the blog to share with you guys.

India and China, as they say the two rising super powers of Asia Pacific Region. Together accounting for 2.5 billion people, China and India are today the engines of growth in the midst of rapid economic transformation in the global economy. In fact, driven by India and China, the emerging Asian economies are no longer witnessing a slump, as per a report by the UK financial services major Barclays. According to most of the economists, in the fight with the recent recession, India and China played a major role.

Comparing the India and China, both the countries are superior to each other in certain things. Hence, being two major economies of a continent and being neighbors, they compete each other in the remaining things.

India is currently a IT Super Power in world. Also, India has overtaken China in Auto Exports. There are numbers of other things where India is growing rapidly to overtake China.

Among the most encouraging recent developments in India China Economy and India-China ties is the rapid increase in bilateral trade. A few years ago, India Inc had a fear of being swamped by Chinese imports. Today, India enjoys a positive balance of trade with China.In 2004, India's total trade to China crossed US $13.6 billion, with Indian exports to China touching $ 7677.43 million and imports from china at US $ 5926.67 million. But major industry players in India feel there is no need to give the Chinese a free ride into the domestic market so early. This is particularly, when India and China have been directly competing across several product categories. And that too, when both the applied and bound import tariffs are higher in India compared with China. Indian industry's ambivalence over the proposed Indo-China FTA stems from concerns over previous FTAs signed by the government. There's a feeling that some of these FTAs were signed in haste, and without adequate homework. Result: There has been confusion about the country of origin issue as well as the items to be put in the early harvest lists.

India and China are gearing up for a showdown, one that might go all the way to the World Trade Organization, over India's increasing reluctance to allow Chinese imports to flood the Indian market. The seemingly incongruous export item that raised hackles this time around? Chinese plastic toys, which have captured anywhere between 60% and 90% of its $2.5 billion toy market, depending on whose numbers you trust. On Jan. 23 the Indian government imposed a six-month ban on the imports of Chinese-made toys.

Toys may be just the beginning. Officials in India's Ministry of Trade confirm the Indian government has been collecting data and passing them to Chinese counterparts in several sectors where New Delhi plans either to ban or restrict Chinese imports. Whether India proceeds with such restrictions depends in part on its success at the WTO dispute settlement hearing that China threatens against the toy ban. India already has 10 anti-dumping investigations under way into Chinese-made products as varied as penicillin, steel used for car manufacturing, and even linen.

In retaliation, on Feb. 4 the official Chinese government newspaper, the China Daily, reported that Beijing is considering appealing to the World Trade Organization to overturn the measure as an unfair trade restriction.As being superior in military power, China also tried to pressure India by doing border violations. The Indian Army recorded 270 border violations and nearly 2,300 cases of “aggressive border patrolling” by Chinese soldiers last year.

China is also trying to abase India using its trading powers. Earlier this year, it has tried to block a $2.9 billion dollar Asian Development Bank (ADB) loan to India. It said part of the loan was intended for water projects in Arunachal Pradesh, which includes Tawang, an area which the Communist nation says is disputed. Also, China, in May 2007, refused to grant visa to an IAS officer from Arunachal Pradesh.

India has publicly said that it is committed to improving infrastructure along its border with China in order to help its armed forces. Could the Chinese be warning India not to go any further and give a comfortable passage to enter in domestic market?

Friends give your honest comments on the same…….