As Prime Minister Narendra Modi meets Chinese President Xi Jinping, an old agreement signed 70 years ago still shapes conversations between India and China, the Panchsheel Agreement of 1954. Once seen as a promise of friendship, today it is remembered as both an inspiring vision and a reminder of how trust broke down.

What was Panchsheel?

In 1954, India and China signed the Agreement on Trade and Intercourse Between the Tibet Region and India, better known as the Panchsheel Agreement.

Its preamble introduced five guiding principles of peaceful coexistence:

  • Respect for each other’s sovereignty and borders

  • Non-aggression

  • Non-interference in internal matters

  • Equality and mutual benefit

  • Peaceful coexistence

These principles were meant to build trust between two newly independent Asian countries.

Why was it signed?

The early 1950s were full of optimism. India had just gained independence, while the People’s Republic of China had been established in 1949. Both countries wanted to show they were not siding with either the US or the Soviet Union.

But there was a pressing issue: Tibet. India had old trade routes and posts in Tibet from British times. After China took control of Tibet in 1950, the two countries needed to settle how trade, travel, and rights would continue.

The 1954 Agreement recognised Chinese authority over Tibet but allowed India trade rights and pilgrimage routes.

How did the world respond?

The Panchsheel principles were welcomed globally. At the Bandung Conference in 1955, they became the basis for the Non-Aligned Movement, giving newly independent countries a way to avoid Cold War rivalries.

For India, the pact symbolised faith in peaceful ties. For China, it showed the world it wanted cooperation, not conflict.

What did the agreement include?

Apart from principles, the deal had practical points:

  • India kept trade agencies in Yatung, Gyantse, and Gartok.

  • China opened offices in New Delhi, Kolkata, and Kalimpong.

  • Clear rules for the movement of goods and pilgrims were laid down.

It was meant to replace colonial-era systems with agreements between equals.

The agreement was valid for eight years, ending in 1962. At the time of signing, Indian leaders believed it made war between the two nations “unthinkable.”

But trouble soon followed. In 1957, India discovered China had secretly built a road in Aksai Chin, a territory claimed by India. Then, in 1959, after the Dalai Lama fled to India following Tibet’s uprising, China accused India of interference.

When the agreement expired in June 1962, relations had already soured. Four months later, India and China went to war.

Why did Panchsheel fail?

The pact failed mainly because:

  • It never settled the exact border.

  • There was no system to resolve disputes.

  • It relied only on political trust, which collapsed quickly.

The 1962 war ended the hope Panchsheel once represented.

Even though India and China fell out, the five principles continued to influence world diplomacy. The Non-Aligned Movement and many countries in Asia, Africa, and Latin America used them to push back against dominance by big powers.

Even today, both India and China sometimes mention Panchsheel when talking about peace and cooperation.

Seventy years later, the border between India and China is still disputed. Standoffs like Doklam in 2017 and Galwan in 2020 show how fragile ties remain.

The idea of peaceful coexistence is still important, but experts say principles alone are not enough. Clear agreements, communication channels, and trust-building measures are needed to prevent another breakdown.

The Panchsheel Agreement began as a dream of friendship between neighbours. But without clear solutions to hard issues, the dream collapsed.

As India and China continue to share rivalry and cooperation, Panchsheel remains a reminder: peace requires more than words; it needs action, clarity, and trust.

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