China and India: An Era of Escalating Economic Interaction

Abstract

As ancient civilizations China and India had close cultural and commercial ties, but they drifted apart after eleventh century until the mid-twentieth century. In the 1990s, the two emerging-market economies once again began to interact and become economically close. The bilateral relationship was strengthened by political initiatives and determination from both sides. Their mutual trade and investment are on the rise and their new relationship has been evolving in accordance with the new diplomatic stance of conciliation. The bilateral economic bonds are likely to involve both competitive and collaborative dimensions. The two neighbors have determined to develop more extensive cooperation in regional and international affairs. Copyright The official journal of The Institute of World Economics and Politics, Chinese Academy of Social Sciences (CASS) 2006.

Rise of China and India in International Trade: From Textiles to New Technology

“…The share of these products in their exports still stands well above world averages (see Table 1). However, the competition between the two countries is limited to a small range of items (Cerra et al, 2005;Das, 2006). China is more specialized in leather and shoes and India in yarns and fabrics.…”