CURRENT AFFAIRS | MARCH 23, 2026 | CLAT GK + INTERNATIONAL RELATIONS
India and China share a paradox — they are each other’s largest trading partners by value, yet engaged in a persistent border dispute along the 3,488 km Line of Actual Control (LAC), with diplomatic tensions running high post the Galwan Valley clash of 2020. Bilateral trade stands at $118 billion (FY2024) with India’s deficit at ~$85 billion, even as both nations sit side by side in BRICS.
Why CLAT 2027 Aspirants Must Know This
India-China relations are a staple of CLAT GK. Key testable points: Galwan Valley clash, LAC length and sectors, trade deficit, BRICS membership, Panchsheel origins, WTO disputes, and India’s PLI scheme. The analytical angle (economic interdependence vs. political rivalry) also appears in CLAT Logical Reasoning passages testing argument identification and inference.
Key Facts at a Glance
- India-China bilateral trade: ~$118 billion (FY2024) — China is India’s largest import source
- India’s trade deficit with China: ~$85 billion — India imports far more than it exports to China
- India imports from China: electronics, machinery, APIs (pharmaceutical raw materials), chemicals, solar panels
- The Line of Actual Control (LAC) is ~3,488 km long — divided into Western, Middle, and Eastern sectors
- Galwan Valley clash (June 15-16, 2020): 20 Indian soldiers killed; China did not officially confirm its casualties
- Post-Galwan disengagement: India-China agreed to disengage from Depsang and Demchok friction points (October 2024)
- India’s PLI (Production Linked Incentive) scheme aims to build domestic capacity and reduce China-import dependence
- Both are BRICS members; both are in SCO (Shanghai Cooperation Organisation)
- China claims Arunachal Pradesh as “Zangnan” (South Tibet)
- India rejected Chinese maps showing Arunachal Pradesh and Aksai Chin as Chinese territory
Key Terms and Definitions
| Term | Definition |
|---|---|
| LAC | Line of Actual Control — the de facto border between India and China; ~3,488 km; divided into Western (Ladakh), Middle (HP/Uttarakhand), Eastern (Arunachal/Sikkim) sectors |
| BRICS | Brazil, Russia, India, China, South Africa — major emerging economies bloc; expanded in 2024 to include Saudi Arabia, UAE, Ethiopia, Iran, Egypt |
| PLI Scheme | Production Linked Incentive — financial incentive for domestic manufacturing to reduce import dependence (especially in electronics, pharmaceuticals, solar) |
| Trade Deficit | When a country’s imports exceed its exports — India’s $85B deficit with China means India pays $85B more than it earns in trade |
| SCO | Shanghai Cooperation Organisation — China-led Eurasian security and economic bloc; India joined as full member in 2017; includes Russia, Pakistan, Central Asian states |
Constitutional and Legal Framework
- Panchsheel (1954): First signed in the Sino-Indian Agreement on Tibet — the five principles including non-interference and peaceful coexistence that now seem aspirational given LAC tensions
- WTO Most Favoured Nation (MFN) Rule: India must give China the same tariff treatment as other WTO members — limits India’s ability to impose punitive tariffs on Chinese goods
- GATT Article XIX (Safeguard Measures): Allows temporary tariff hikes if imports cause serious injury — India has invoked this for some Chinese products
- India’s PLI Scheme: Structured as domestic incentives (not import barriers) to circumvent WTO constraints while reducing Chinese import dependence
Quick Takeaways for CLAT 2027
- LAC = 3,488 km; three sectors (Western/Middle/Eastern); NOT a formally demarcated boundary
- Galwan clash = June 2020; 20 Indian soldiers killed; led to ban on Chinese apps, FDI restrictions
- $118 billion bilateral trade; ~$85 billion deficit — China is India’s top import source
- BRICS = both India and China are members; QUAD does NOT include China
- SCO = both India and China members; India joined 2017; also includes Russia, Pakistan
- China calls Arunachal Pradesh “Zangnan” — India firmly rejects this claim
- PLI = domestic manufacturing push to reduce China dependency; 14 sectors
Practice Quiz — 10 CLAT-Style Questions
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