Four out of five Chinese, from a broad cross-section of society, told me in an informal survey that Bollywood movies come immediately to mind when they think about India. The bonds between China and India run deep. The pass makes it easy for China’s Buddhists to offer prayers at monasteries in Sikkim, such as Rumtek, and for India’s Hindus and Jains to visit sacred Mount Kailash and Manasarovar Lake in Tibet. Beginning in 2012, they will allow tourists to use Nathu La, which will increase the number of cross-border pilgrimages. The two nations are also reviving their old cultural and religious ties. China now supports India’s bid for a permanent seat on the United Nations Security Council their armies have held joint military exercises and at World Trade Organization negotiations, the countries have adopted similar positions on international trade in agricultural products and intellectual property rights. In the past few years, China (under President Hu Jintao and Premier Wen Jiabao) and India (led by Prime Minister Manmohan Singh) have forged links anew. After that, the two nations’ armies glared at each other, weapons at the ready, until their governments decided to fight poverty rather than each other. The friends turned foes in 1962, when they fought a short but bloody war. The decision to reopen the world’s highest customs post marked the culmination of a slow but steady process of rapprochement between China and India. Braving heavy wind and rain, several dignitaries-including China’s ambassador to India, the Tibet Autonomous Region’s chairperson, and Sikkim’s chief minister-watched as soldiers removed a barbed wire fence between the two nations.Ĭompanies all over the world would do well to hear the winds of change roaring through Nathu La (which in Tibetan means “Listening Ears Pass”). After 44 years, the Asian neighbors reopened Nathu La, a mountain pass perched 14,140 feet up in the eastern Himalayas, connecting Tibet in China to Sikkim in India. At least two American corporations, GE and Microsoft, have effectively combined their China and India strategies, allowing them to stay ahead of global rivals.Ī historic event, largely unnoticed by the rest of the world, took place on the border between China and India on July 6, 2006. Multinational companies usually find that tapping synergies across countries is difficult. Even the countries’ state-owned oil companies, including Sinopec and ONGC, have teamed up to hunt for oil together.
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China’s Huawei has recruited 1,500 engineers in India to develop software for its telecommunications products. India’s Mahindra & Mahindra developed a tractor domestically but manufactures it in China. Some companies have already developed strategies that make use of both countries’ capabilities. Third, China and India have evolved in very different ways since their economies opened up, reducing the competitiveness between them and enhancing the complementarities. Second, neighbors trade more than non-neighbors do, research suggests. First, these ancient civilizations may have been at odds since 1962, but for 2,000 years before that, they enjoyed close economic, cultural, and religious ties. Still, China and India are learning to cooperate, for three reasons.
Moreover, the world’s fastest-growing economies are archrivals for raw materials, technologies, capital, and overseas markets. Not only do the neighbors annoy each other with their foreign policies, but they’re also vying to dominate Asia. The trouble is, most companies and consultants refuse to believe that the planet’s most populous nations can mend fences. If Western corporations fail to do the same, they will lose their competitive edge-and not just in China and India but globally.
A few companies from both nations have been quick to gain competitive advantages by viewing the two as symbiotic. China and India are burying the hatchet after four-plus decades of hostility.