All indian reactions to chinese reflect that the indians either fear China or overwhelmed by her remarkable economic and military progress. Until 80s chinese GDP was behind the GDP of India but now it has taken an unbeatable position threatening the US. Japan, once the no. 1 economy, looks like Korea in front of Japan and US never felt so threatened about her position until the chinese challenge.
China has the advantage of a strong dictatorial regime which enables her to pursue long term policies. Chinese do not play any game without much calculation and stop playing if there is any deviation from expected lines. Indian policy of globalization has been very willy-nilly and political instability has contributed to further policy paralysis. Also India's liberalized economy caters only to a section of the society making them super rich while poor gets poorer. this is not the case with china. India still comes nowhere close to chinese growth rate and growth model.
On Tibet border, chinese keep testing indian nerves and india always shows her nervouness. if after 1962 military defeat, Indians suffer from inferiority complex, its because we have never developed our confidence to match china. While 1962 is always alive in Indians' psyche, they forget the 1967 when india damaged military reputation of china in a minor stand off in Sikkim and exerted her total control on the territory. Its only now that India is raising a mountain corps that will have 80,000 soldiers specializing in Arunachal territory. Until this mountain corps is raised, India will have to buy time. All strategic alliances with China and Vietnam are fine but they wont work unless they are as specific as NATO or Warsaw Pact or the one between India and Russia signed in1971 before the creation of Bangladesh. With China alluring India's tiny neighbours like Maldive, Srilanka and Bangladesh, they may pose a bigger threat challenge as they suffer from smaller neighbour syndrom viz-a-viz India....it will nourish the ego of these smaller nations to say that look, we are able to cause so much discomfort to India. If Sri Lanka invites chinese naval and military base on her soil in return of a few billion yuans, will India be able to send her another IPKF?? we must ask ourselves, if we have become stronger or otherwise.
Indians keep feeling good when business relations are good with china but they forget that China has humiliated India big time by grabbing Aksai Chin and claiming Arunachal Pradesh and is defiant in her visa policy for indians born in arunachal pradesh. While India has permitted all sorts of import from China, mineral ores, manufacturing goods, telecom etc., china does not allow indian products like software and pharma where india can take a lead and balance the trade. And we are expecting Pakistan to let us sell them our products on equal terms.
1990s were the time of instability and uncertainty but with stability during Vajpayee and Manmohan singh govts. India continued with a submissive policy towards china. We may have tamed horses, elephants and tigers but we seem to have no clue about the dragon. Its high time India played her cards when Japan, Vietnam, US, Australia seem to be supportive and S E Asia is receptive. Today, India is against Tibet freedom fighters, India cant have relations with Taiwan, India has forgotten to ask Aksai chin and hoping to draw any line in place of Mcmohan so that chinese dont keep pushing us back until they push us from Arunachal to Assam. Why is India scared of fighting the aggressive chinese. I am sure one hot response from indian soldiers will make chinese think 100 times to infiltrate our borders. They should be on defensive in Tibet and not India. Hope Modi takes out this fear psychosis from Indians about china.