Context: External Affairs Minister S. Jaishankar and his Chinese counterpart met in Moscow and both sides reached a five point agreement to disengage and de-escalate the situation along the Line of Actual Control.
These five points are:

• The two ministers agreed that both sides should take guidance from the series of consensus of the leaders on developing India-China relations, including not allowing differences to become disputes.
• The two foreign ministers agreed that the current situation in the border areas is not in the interest of either side. They agreed therefore that the border troops of both sides should continue their dialogue, quickly disengage, maintain proper distance and ease tensions.
• The two ministers agreed that both sides shall abide by all the existing agreements and protocol on China-India boundary affairs, maintain peace and tranquillity in the border areas and avoid any action that could escalate matters.
• The two sides also agreed to continue to have dialogue and communication through the Special Representative mechanism on the India-China boundary question. They also agreed in this context that the Working Mechanism for Consultation and Coordination (WMCC) on India-China border affairs should also continue its meetings.
• The ministers agreed that as the situation eases, the two sides should expedite work to conclude new confidence-building measures to maintain and enhance peace and tranquillity in the border areas.

Possible Reasons Behind Increased China’s Deployment at the LAC

• India’s decision to strengthen its border infrastructure (Darbuk-Shyok-Daulat Beg Oldie road).
• India’s United States tilt (e.g. Quad) amid US-China tensions.
• China views India’s assertions regarding Gilgit-Baltistan, as an implicit attack on the China-Pakistan Economic Corridor (CPEC), China’s flagship programme.
• China’s growing assertiveness over the South China Sea.
• Political and economic tensions within China due to Covid-19 pandemic.
• India being a growing power in Asian region.

Line of Actual Control

• Demarcation Line: The Line of Actual Control (LAC) is the demarcation that separates Indian-controlled territory from Chinese-controlled territory.

LAC is different from the Line of Control (LoC) with Pakistan

• The LoC emerged from the 1948 ceasefire line negotiated by the United Nations (UN) after the Kashmir War.
• It was designated as the LoC in 1972, following the Shimla Agreement between the two countries. It is delineated on a map signed by the Director General of Military Operations (DGMO) of both armies and has the international sanctity of a legal agreement.
• The LAC, in contrast, is only a concept – it is not agreed upon by the two countries, neither delineated on a map or demarcated on the ground.
• Length of the LAC: India considers the LAC to be 3,488 km long, while the Chinese consider it to be only around 2,000 km.

Sectors Across the LAC

• It is divided into three sectors: the eastern sector which spans Arunachal Pradesh and Sikkim (1346 km), the middle sector in Uttarakhand and Himachal Pradesh (545 km), and the western sector in Ladakh (1597 km).
• The alignment of the LAC in the eastern sector is along the 1914 McMahon Line.
• The McMohan line marked out previously unclaimed/undefined borders between Britain and Tibet.
• The middle sector is the least disputed sector, while the western sector witnesses the highest transgressions between the two sides.

Disagreements

• India's claim line is different from that of the LAC. It is the line seen in the official boundary marked on the maps as released by the Survey of India, including Aksai Chin (occupied by China).
• In China’s case, LAC corresponds mostly to its claim line, but in the eastern sector, it claims the entire Arunachal Pradesh as South Tibet.
• The claim lines come into question when a discussion on the final international boundaries takes place, and not when the conversation is about a working border i.e. LAC.

Border Negotiations

• Indian Prime Minister’s visit to China in 2003 led to the agreement on appointing Special Representatives (SRs) and, in April 2005, there was agreement on the political parameters and principles that would underpin negotiations.
• The aim was a comprehensive solution encompassing all three sectors. The agreed boundary would follow well-defined geographical features and respect the interests of the settled populations.
• During Indian Prime Minister’s visit to China in May 2015, the proposal to clarify the LAC was rejected by the Chinese.
• However, in the Wuhan (2018) and Mahabalipuram (2019) summits, both China and India had reaffirmed that they will make efforts to “ensure peace and tranquility in the border areas”.

Facts and Figures on China-India Cooperation
Economy and Trade

• Since the beginning of the 21st century, trade between China and India has grown from less than $3 billion to nearly $100 billion, an increase of about 32 times.
• In 2019, the trade volume between China and India was $92.68 billion.
• With a combined market of over 2.7 billion people and a GDP of 20% of the world's total, China and India enjoy huge potential and broad prospects for economic and trade cooperation.

Science and Technology

• Both nations have held Joint Research workshops on Science and Technology Innovation.
• Indian companies have set up IT corridors in China, which help promote China-India cooperation in information technology and high technology.

Defence

• ‘Hand-in-Hand’ joint anti-terrorist exercises to enhance mutual understanding and trust, exchange training experiences and jointly improve anti-terrorism capabilities.
• China-India defense and security consultation to strengthen exchanges and cooperation in the defense field.

People-to-People Exchanges

• Both nations have held meetings of China-India High-Level People-to-People and Cultural Exchanges Mechanism. The two sides have made new progress on exchanges and cooperation in the fields of art, publishing, media, film and television, museum, sports, youth, tourism, locality, traditional medicine, yoga, education and think tanks.
• Sessions of China-India High Level Media Forum and China-India Think Tank Forum were held to strengthen exchanges and cooperation in the field of media and think tanks.
• The two countries have established pairs of sister cities and provinces. For example, sister provinces and cities between Fujian Province and Tamil Nadu State, Quanzhou City and Chennai City.
• The number of Indian pilgrims to Xizang Autonomous Region of China has surged from several hundreds in the 1980s to more than 20,000 in 2019.

At this moment, it is particularly important to revisit the original aspiration of establishing diplomatic relations 70 years ago and carry forward the spirit of good neighborliness and friendship, unity and cooperation.

Both nations need to master the four keys of:

• Leading: It means to reach consensus and guide the direction of the development of bilateral relations under the guidance of leaders from both nations.
• Transmitting: It means to transmit the leaders’ consensus to all levels and translate it into tangible cooperation and outcomes.
• Shaping: It means to go beyond the mode of managing differences, shape bilateral relations actively and accumulate positive momentum.
• Integrating: It means to strengthen exchanges and cooperation, promote convergence of interests and achieve common development.

Road Ahead

• Since then, both sides have further strengthened their military presence by moving in additional troops, tanks and other weaponry. The Chinese side, however, has been rattled by India’s proactive move of positioning its troops on several strategic heights to prevent further land grabs on the south bank of Pangong Lake.
• For India, the first priority has to be to restore the status quo ante at the border as it existed in April. This will require both a display of military strength at the border by standing up to Chinese aggression, and diplomatic work by making it clear to China that its intervention will lead to heavy costs across all spheres of the relationship.
• India cannot afford to sever all its economic links with the world’s second-largest economy, even in the digital space. Chinese finance will help in sustaining India’s start-up economy. However, through Atmanirbhar Bharat Abhiyan, India can try to replace chinese products with domestic products in the sectors where it is possible. Further, it needs to boost up its economic relations with other countries.