India believed that Panchsheel Pact settled Border with China: CDS

Syllabus: GS2/IR

Context

• The Chief of Defence Staff (CDS) mentioned that India believed the 1954 Panchsheel Agreement effectively addressed the northern boundary question, even though China viewed it differently.

Panchsheel Agreement 

• In 1954, India recognised Tibet as part of China, and both countries signed the Panchsheel Agreement.
• The Panchsheel Agreement stated the five principles as:
  • Mutual respect for each other’s territorial integrity and sovereignty.
  • Mutual non-aggression.
  • Mutual non-interference in each other’s internal affairs.
  • Equality and cooperation for mutual benefit.
  • Peaceful co-existence.
• It was designed to promote trade and friendly relations, forming the basis of the bilateral ties.
  • With this, India assumed that it had settled its northern border.
• In 2025 the Chinese President underscored that Panchsheel must be cherished and promoted by the two countries.
  • It came as India and China reset their ties and PM Modi visited China after seven years.

The India-China Borders 

• India considers the Line of Actual Control (LAC) to be 3,488 km long, while the Chinese consider it to be only around 2,000 km. 
• It is divided into three sectors: the eastern sector which spans Arunachal Pradesh and Sikkim, the middle sector in Uttarakhand and Himachal Pradesh, and the western sector in Ladakh.
• Western Sector or Aksai Chin Sector: The region is claimed by the Chinese government post-1962 war as an autonomous part of the Xinjiang region which was originally a part of the Indian state of Jammu and Kashmir.
• Middle Sector: It is the less disputed section of the Indo-China border but the recent Doklam standoff and Nathu La Pass trading issues have brought distress at all levels.
• Eastern Sector or Arunachal Pradesh:McMahon Line had differentiated India and China in this sector but in the 1962 war the People’s Liberation Army covered 9000 sq. km. area.
  • The announcement of a unilateral ceasefire made them step back on the international borderline. 
  • However, China has been claiming that area as their own and recently they have started to claim the whole of Arunachal Pradesh as their own.

India-China Relations

• 2025 marks the 75 Years of India-China diplomatic ties.
• Historical Tensions:
  • Strained since the 1962 Sino-Indian war, deepened by recent clashes and mistrust.
  • In 2020, the clash between both armies in Galwan Valley further strained the relationship.
  • India restricted Chinese investments, banned Chinese apps, and halted flights to China.
• Trade Relations: In 2025, bilateral trade between China and India reached a record high of $155.6 billion, registering a year-on-year growth of over 12 per cent. Despite tensions, economic ties continue to grow.
• Ongoing Mechanisms: Despite tensions, mechanisms like the Special Representatives (SR) and Working Mechanism for Consultation and Coordination (WMCC) have been in place to address the boundary issue.
• Recent Developments:
  • 2024 Disengagement: India and China announced successful disengagement in eastern Ladakh.
  • October 2024 Meeting: PM Modi and President Xi Jinping emphasized “mutual trust, mutual respect, and mutual sensitivity.”
  • In 2025 both Nations resumed direct flights and the Indian PM also visited China for the SCO summit.

Areas of Concern

• Ongoing Border Tensions:
  • The unresolved border dispute spans over 2,000 miles, marked by frequent clashes that have strained the relationship.
• Military Standoff and Infrastructure Build-up: Large-scale troop deployment, rapid infrastructure construction, and militarisation along the LAC by both sides have increased the risk of escalation.
• China–Pakistan Nexus: Deepening strategic cooperation between China and Pakistan, especially under the China–Pakistan Economic Corridor (part of the Belt and Road Initiative) which passes through the Indian territory of Pakistan-occupied Kashmir.
• Trade Imbalance: India faces a significant trade deficit with China, with heavy dependence on Chinese imports in sectors such as electronics, APIs (pharmaceuticals), telecom equipment, and solar panels.
• China’s growing presence in the Indian Ocean Region: Sri Lanka: China’s presence at Hambantota Port and investments in an oil refinery raise concerns in India.
  • Nepal: China’s investments in infrastructure (e.g., Pokhara airport) challenge India’s strategic position.
  • Bangladesh: China’s growing influence, including loan agreements, threatens India’s regional influence.
  • Myanmar: China’s deepening ties with Myanmar, including the China-Myanmar Economic Corridor, strengthen its presence in India’s backyard.

India’s Efforts to Address these concerns

• Strengthening Military Preparedness: Enhanced troop deployment and infrastructure along the LAC, induction of advanced weapons systems, and improved surveillance in border areas like Ladakh and Arunachal Pradesh.
• Strategic Partnerships in Indo-Pacific: Active participation in the Quadrilateral Security Dialogue (Quad) and deeper defence cooperation with the US, Japan, Australia, and France.
• Technology & Cyber Security Safeguards: Exclusion of high-risk vendors in telecom infrastructure and promotion of trusted, indigenous digital ecosystems.

• Maritime Security: India has prioritized maritime security, expanding its naval capabilities and strengthening defense ties with the U.S. and Japan.
• Joining Infrastructure Projects: India joined infrastructure projects such as the Global Infrastructure Facility and India-Middle East-Europe Economic Corridor to strengthen its economic expansion.
• Trade Relations: India seeks to reduce reliance on Chinese goods, especially in electronics and renewable energy.

Way Ahead

• India must maintain constant surveillance of border areas and the Indian Ocean Region, and closely monitor geopolitical and technological developments that may impact national security.
• The path forward lies in combining firmness on sovereignty and territorial integrity with calibrated diplomacy and strategic autonomy. 

Source: TH