Why do you think China would be occupied by another country if it was a democracy? 
Because if it was run in the immediate interests of the majority (land workers) it would be a country sitting on a lot of natural and geographic resources with not much industry and military. Surrounded by a lot of advanced capitalist countries with high tech militaries and industries and not enough resources.
India is the biggest democracy in the world by population and it also has an impoverished majority who work the land yet it has been independent since 1947. Sorry I don't understand..... 
India's a very different country, very crowded, lots of urban dwellers. When it was a feudal country it was occupied. By us. They are now more capitalist and pretty quickly the 1% in India got themselves some nukes. Invasion suddenly becomes unlikely after a succesful test.
Anyway, there's no such thing as a perfect democracy, never has been and never will!
A country being run in the interests of the majority!!??
Whatever next!!! 
Will happen one day. Next day there'll be a coup though
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I disagree with your views about both countries dbdb.
If China had been an open and free democratic country since the demise of the Emperors in 1916, with a free market economy and the rule of law, the world would be a very different place. A strong China in the 1930's might have deterred Japanese ambitions then, which might have led to different outcomes in WW2 and the Cold War. They would probably now be the worlds largest economy and possibly the world's biggest military power, both of which they may well achieve in the coming years anyway, but only after Deng Xiaoping liberalised the economy in the 1980's. Incidentally China has been a nuclear power since the 1960's and is a permanent member of the UN Security Council, they have a standing army of over 2 million, so I doubt they would be occupied by another country, democracy or not.
India was as you rightly say, occupied by us, but it was not a democracy before the British arrived and certainly wasn't under British rule. Again India's economy has flourished since the economy was liberalised in the 1990's and it is a relative newcomer to the nuclear club. India also has a strong military.
I think there are similarities between the two countries. Both have huge populations of over a billion people, both have a large agrarian peasantry and both have large urban metropolises where people flock to from the countryside in search of work and both countries economies have taken off following liberalisation.
