Friday, October 13, 2023

 US President Joe Biden. Photo Credit: White House video screenshot

Biden’s Call For Democracy Versus Sino-Russian Entente – OpEd

By 

With the Sino-Russian declaration of “no limits” to their cooperation one wonders if Joe Biden’s call for democracy as the pillar of a free world is going to be attractive to the developing world.

Decades back many developing countries were freed from mainly British rule and some from the colonial rule of Portugal and Spain in South America where the Monroe Doctrine played an important role. The advent of the Second World War marked the hegemonistic rise of the US and The Western powers which literally divided the world into rich nations-US and Europe- and emerging economies.

Some of these countries refused to be drawn into the game of rich and big powers and floated the idea of non-alignment which today has 120 nations as members. They represent nearly two-thirds of the United Nations’ members and contain 55% of the world population. Membership is particularly concentrated in countries considered developing countries and some developed countries as well. The Russian invasion of Ukraine and the support given by the developed countries has changed the contours of the non-aligned bloc. Many non-aligned countries have refused to criticize Russia in the UN-sponsored resolution and have called for a peaceful solution to the conflict. 

The Economist magazine had a detailed discussion with Henry Kissinger who said, interalia, “We are on the path to great power confrontation. And what makes it more worrisome to me is that both sides have convinced themselves that the other represents a strategic danger. And it is a strategic danger in a world in which the decisions of each can determine the likelihood of conflict. And in such a situation it is natural to attempt to be preeminent, technologically and materially. So a situation can arise in which an issue escalates into a confrontation about the overall relationship. That is the biggest problem, at the moment. And, when you have an issue like Taiwan, in which concessions become very difficult because it involves fundamental principles, that becomes even more dangerous.”

Kissinger added “ The nature of sovereignty begins with the definition of the interests of states. And it is also inherent that sovereign interests will not always coincide, and that nations will need to explain their interests to each other. So if either of those elements comes into being where those interests are close enough to permit negotiation of differences, it becomes a mediating influence. Where sovereign nations use force to prevent outcomes, military conflict may occur. The general challenge of diplomacy is to bring those interests into connection with each other and not to settle issues by war.”

Kissinger believes that a peaceful resolution of the Ukraine conflict is possible and is the demand of the world. The problem lies mainly with the Americans who despite Russian President Vladimir Putin’s repeated requests that Ukraine should not join either the Western-sponsored group or the Russian camp so that Russian security is not threatened. The US and the West are insistent that no country should be allowed to interfere in the sovereignty of another country by force. TREATY OF WESTPHALIA After saber rattling for thirty years the major European powers desiring rest produced the Treaty of Westphalia (1648).

“It also ended the Eighty Years’ War (1568 – 1648) between Spain and the Dutch Republic, with Spain formally acknowledging the independence of the Dutch Republic. It was negotiated from the Westphalian towns of Münster and Osnabrück. In the international politics, this treaty was the first, modern diplomatic congress to use international law to influence relations between independent states and for the creation of the concept of reign, non-intervention in interior affairs of another nation, territorial unity, and legal equality between the independent nations. It heralded a foundation for the modern European state system known as the balance of power, which was one of the contributing causes for numerous future wars including both World Wars. It was also the first pan-European effort to achieve a fair resolution for numerous conflicts and a lasting peace, rather than merely penalizing the defeated side.” ( Historyplex).

Europe had been more or less a settled area till the Emergence of Adolf Hitler and his unbridled ambition to unify German-speaking people in a single unit. The major European powers at the time including British Prime Minister Lord Palmerstone who misread Adolf Hitler’s hunger for power led to the catastrophe of the Second World War. 

 Palmerston believed that something like the British system of responsible government would be good for all European states and that it would become the norm (as by the first decade of the 20th century it had). was better than tacit acquiescence in wrong and that opinions were mightier than armies. Palmerston believed that no country had no permanent allies, only permanent interests. This is true even today as the policy of non-alignment heralded by Tito of Yugoslavia, Churchill of Britain, Nkrumah of Ghana, Sukarno of Indonesia Gamal Abdul Naser of the United Arab Republic, and Pandit Nehru of India proved its efficacy in international relations. 

Hitler’s gravest mistake was his invasion of the Soviet Union which was many times bigger than Germany and Hitler’s army was bogged down in severe winter disrupting supply lines for his beleaguered troops. Added was the attack on Pearl Harbor by Japan which forced the US to openly declare war and join the allies. Without adding to the hundreds of books and articles written on German-Japan’s defeat and the devastation of Hiroshima and Nagasaki suffice it would be to say that the Yalta Conference decided that Germany would be divided into occupied zones administered by U.S., British, French, and Soviet forces. The conferees accepted the principle that the Allies had no duty toward the Germans except to provide minimum subsistence, declared that the German military industry would be abolished or confiscated, and agreed that major war criminals would be tried before an international court, which subsequently presided at Nuremberg. Nuremberg Trial refused to accept the plea that the accused were performing their duties assigned to them.

Those who were sentenced to death were Goering, Joachim von Ribbentrop, Wilhelm von Keitel, Dr. Ernst Kaltenbrunner, Alfred Rosenberg, Hans Frank, Wilhelm Frick, Julius Streicher, Fritz Sauckel, Alfred Jodl, Arthur Seyss-Inquart, and Martin Bormann, in absentia. Rudolf Hess, Walther Funk, and Eric Raeder were sentenced to life in prison. Hitler escaped punishment by committing suicide. As mentioned earlier the principles of non-alignment which survive today have given the opportunity to several countries to abstain from voting on the US resolution on the Russian invasion of Ukraine. The countries which abstained took the stand that a political solution should be sought instead of accusing Russia of invasion.

One has to remember that Vladimir Putin has been urging the Western countries to ensure that Ukraine should not join either NATO or any other Western alliance nor should Ukraine be a part of the Russian alliance. Unfortunately, the Western powers paid no heed to Russian proposals. Instead, the West encouraged President Zelinsky of Ukraine to continue his crusade against Russia. Despite US, NATO, European Union, and others’ encouragement to Zelinsky that it is not possible for Ukraine to defeat Russia or to recover the lost territory. The US public may not mind the dispatch of money and materials to Ukraine but they under no circumstances would support American troops to fight the Russians on Ukranian territory. It is understood that the US has already assured Russia that American troops would not be sent to Ukraine. Despite all these Russia has not abandoned the nuclear option. It is possible that the “nuclear option” is a ruse used by Russia to encourage Ukraine by the Western powers to find a political solution.

 The Ukrainian problem has been further complicated by total support extended by China to Russia as a front, to display to the poor and needy countries in South Asia and Africa, that the Western description of “ illiberal autocracy” of the Sino-Russian entente is far more efficient to feed the poor and the needy than the Western countries. The Chinese Belt and Road Initiative is a case in point. The Initiative is to demonstrate to the poor and the needy of Chinese readiness to help these countries to build infrastructure which they cannot afford to do. 

Critics have warned the poor countries citing the Sri Lankan example of a “debt trap” by China publicly warned by Vice President Mike Pence of the Donald Trump administration. It remains to be seen how far love for democracy will win over the need of the poor. If one looks at the voting pattern of the UNGA resolution on the Russian invasion of Ukraine one gets a clear picture of many countries including India who abstained in the UNGA vote. Such abstention indicated that many countries were not ready to charge Russia with the invasion but would rather want a political solution to the issue. The world is s not yet prepared to bring the curtain down on mankind and would prefer, however much wounded, to continue its existence.

CONCLUSION 

In order to examine the consequences of Chinese economic growth one has to examine the fallout of “ decoupling” and “delinking” of the global economy from that of China. A recent write-up in The Economist (China hits back against Western sanctions-July 23 2023) says to counter America’s effort to contain China’s technological ambitions, Xi Jinping, China’s paramount leader, has called on regulators to fight back against Western coercion in what he has called an “international legal struggle”.

The result is a flurry of lawmaking that is creating a framework for a more robust Chinese reaction to America’s commercial warfare.  An “unreliable entities” list, created in 2020, punishes any company undermining China’s interests. An export-control law from the same year created a legal basis for an export-licensing regime. In 2021 year, an anti-sanction law enabled retaliation against organizations and individuals who carried out the sanctions of other countries. A sweeping foreign-relations law enacted this year, and prompted by Western sanctions against Russia over its invasion of Ukraine, permits countermeasures against a wide range of economic and national security threats facing the country. It came into effect on July 1st. In addition, an anti-espionage statute came into force, extending the reach of Chinese security agencies.

All the while, China has tightened various data and cyber-security rules. The new rules are already being used, as opposed to merely brandished. The Economist adds that China produces 98% of the world’s raw gallium, a key ingredient in advanced military technology. This includes America’s next-generation missile defense and radar systems. A shock to the supply of gallium could cause long-term problems for the American defense industry, reckons CSIS, a think-tank in Washington. Moreover, a gallium-based compound, gallium nitride, may underpin a new generation of high-performance semiconductors. Keeping it out of foreign hands would stymie Western efforts to develop the technology while furthering Xi’s policy goal for China to control. It would, however, be foolhardy to assume XI-Jinping would have a free hand to establish global rules in conjunction with Russia which is already been described as a “vassal” of China.

President Joe Biden has already declared war on the “illiberal autocracy” of the Sino-Russian entente of “no limits”. Closer home in South Asia along with Africa and other developing countries one could cite the joint statement given by the heads of the FAO, IMF, World Bank Group, WFP, and WTO on February 8, 2023, called to prevent a worsening of the food and nutrition security crisis the world needs to  (i) rescue hunger hotspots, (ii) facilitate trade, improve the functioning of markets, and enhance the role of the private sector, and (iii) reform and repurpose harmful subsidies with careful targeting and efficiency. Countries should balance short-term urgent interventions with longer-term resilience efforts as they respond to the crisis. Last Updated: Jul 17, 2023. Though inflation is now a global phenomenon there is no reason to believe that the Sino-Russian entente, in particular the Russian ban on the export of food grains from Ukraine, has not played a devastating role in augmenting the global food crisis, and China by association remains guilty. In the near future, China appears to have the upper hand as big American companies are dependent on China.

A report by Nikkei Asia (12 July 2023)  informs that Overall bilateral trade between the U.S. and China — the world’s two largest economies — reached a record $690 billion last year, with U.S. exports to China increasing by 28% between 2018 and 2022. U.S. imports from China in 2022 totaled $536.3 billion. “China has grown to be an indispensable part of the global economy,” and China is now also “a single market not much less than the domestic U.S. market for these high-tech companies. While the U.S. government tried to block Chinese access to high technology, the high-tech firms in the U.S. can’t live without the Chinese market.” 

Apple and other tech giants like Google are looking to move parts of their supply chains away from China and into other Asian countries. Apple has said India will be a “major focus” for the company, which is hoping to tap the country both as an alternative production base to China and a source of growth. An investor of Apple has blamed both the U.S. and China, saying economic tensions have been “wrongly created on both sides. Using Apple as an example, he stressed that U.S. engagement with China has produced results that have been “good for Apple and good for China.”

IBM CEO Arvind Krishna told Nikkei at the World Economic Forum in Davos earlier this year that he is a “firm believer” that the “world is better served by nations having lots of trade, and by building to participate in a much larger global economy than by any kind of falling prey to geopolitics.” Arvind Krishna, chairman, and chief executive of IBM, says the “world is better served by nations having lots of trade, and by building to participate in a much larger global economy than by any kind of falling prey to geopolitics.” 

Similarly, Satya Nadella, CEO of Microsoft, told Nikkei last year that he hopes “the largest powers in the world will always find some common ground to work together on issues that the world needs us to work together, while not sacrificing what’s in their national interest.” However, analysts do not see the U.S.-China technology confrontation ending anytime soon. It is predicted that the U.S. would only quit once China’s technological competitiveness decreases. In short China and the global economies are so intertwined that it is not possible in the short run to de-globalize the world economies.

As may be seen above US big economic players are more interested in dealing with China than to exorcise China as “enemy number one”. President Joe Biden and the Western world would be better advised to moderate their public utterings as should Xi-Jinping in undertaking any risky adventure. 

 

Has Democracy Lost Its Charm?

Determining the success of the Belt and Road Initiative in South Asia boils down to two key questions: Do recipient countries see it as beneficial, politically or economically? And, has the BRI helped these countries advance their own domestic agendas?

  
5 mins read
 
Wan Chai, Hong Kong SAR [Joseph Chan/ Unsplash]

HAS BIPOLARITY REPLACED MULTIPOLARITY?

The world appears to be preoccupied with the loss of multipolarity and the division of bipolarity between the “limitless” friendship of Russia and China. This bipolarity, some critics think, is to demonstrate the superiority of authoritarianism over democracy. To understand the reasons for the attraction to authoritarianism even those countries understand its evil connotation many emerging economies have embraced it mainly because of the quick delivery of essentials to the needy compared to the promise of democracy.  

ROAD AND BELT INITIATIVE OF CHINA

A case in point is the Road and Belt Initiative of China. In an article, Franziska and Elizabeth Kaufman spoke of the initial stage of China’s Belt and Road Initiative. In 2013, they said, Chinese President Xi Jinping announced a major undertaking, named initially as the One Belt and One Road Initiative and later referred to as the Belt and Road Initiative (BRI), to support better connectivity in the Asian, European, and African continents. Often referred to as the ‘New Silk Road’, the BRI revives the idea of the ancient Silk Road, which describes traditional trading routes spanning across China, the Asian continent, the Middle East, and Europe.  They added that The BRI is not a single megaproject but a continuously growing initiative with a large portfolio of projects for (1) rail, road, sea and airport infrastructure, (2) power and water infrastructure, (3) real estate contracts and, more recently, (4) digital infrastructure. For these projects to be realized, the BRI builds on an increasing institutionalized, contractual, and structured cooperation between China and other states. The research provides a comprehensive overview of the influence the BRI already has in Europe and the diversity of these bilateral relationships.

ROAD AND BELT INITIATIVE AND SOUTH ASIA

The Council of Foreign Relations in ( June 2022) elucidated that  China and the Belt and Road Initiative in South Asia China and the Belt and Road Initiative in South Asia.  To support its allies and partners in South Asia, the United States should assist South Asian countries in assessing the Belt and Road Initiative’s risks and benefits. The Council added that Over the next decade, the Belt and Road Initiative (BRI) became a gigantic infrastructure, trade, and connectivity project, spreading beyond Eurasia and Southeast Asia to regions such as South Asia, the Middle East, and many parts of Africa. Some China watchers argued that the BRI is China’s updated and planned grand strategic vision of its historical Middle Kingdom hierarchy—China centered on a global network of connectivity where all roads (territorial and maritime) lead to Beijing.

SHOULD COUNTRIES EMBRACE OF CHINA  BEWARE OF THE “CHINESE DEBT TRAP”?

 Others worried that the BRI is China’s strategic plan to gain geopolitical power by making smaller and weaker countries beholden to it indefinitely. Still, others cautioned that the BRI, far from being a monolithic and well-planned-out vision, is deeply fragmented by domestic interests, diluting its effectiveness as a unified grand strategy. These arguments evaluate whether the BRI is a success or failure for China—that is, whether the BRI strengthens China’s geopolitical status and brings it economic benefits. Those factors are important, but they are China-centric. In the end, success also depends on a more neglected consideration—the recipient countries’ perceptions of China and their reception of the BRI. The success or failure of the Belt and Road Initiative in South Asia can be determined by asking two questions. First, do recipient countries view the BRI as a positive Chinese initiative that brings significant benefits, either political or economic? The BRI and China are seen as synonymous, so positive views of the BRI can not only boost positive views of China but, in theory, also make recipient countries amenable to further cooperation with China. Second, has the recipient country been able to manage the BRI to advance its own domestic agenda? If recipient countries see the BRI as advancing their stated political or economic goals, then they are likely to continue to welcome expanded Chinese investment.

Conversely, if they view the BRI as either not delivering on the promise of economic benefits or as leading to significant political side effects, then it can give recipient countries pause. In the long run, this could affect further cooperation with the BRI and China. In South Asia, even if a recipient country sees the BRI and China positively, it has not necessarily also been able to manage the BRI to its satisfaction. Pakistan is one example. Then again, even when the BRI and China are viewed negatively, such as in India, the government has been able to use the specter of the BRI to advance other interests. The lesson for the United States is that if it seeks to curb China’s influence in South Asia, it should pay attention to how potential recipients of this largesse respond to China and the BRI.  

CAN THE US MATCH CHINESE BRI INVESTMENT IN SOUTH ASIA?

The United States cannot match the BRI’s investments in South Asia, but it can support South Asian countries choosing to cooperate with China, as well as India, the dominant power in the region. The Council added that to support its allies and partners in South Asia, the United States should assist South Asian countries in assessing the Belt and Road Initiative’s risks and benefits.

Over the next decade, the Belt and Road Initiative (BRI) became a gigantic infrastructure, trade, and connectivity project, spreading beyond Eurasia and Southeast Asia to regions such as South Asia, the Middle East, and many parts of Africa. Some China watchers argued that the BRI is China’s updated and planned grand strategic vision of its historical Middle Kingdom hierarchy—China centered on a global network of connectivity where all roads (territorial and maritime) lead to Beijing.

Others worried that the BRI is China’s strategic plan to gain geopolitical power by making smaller and weaker countries beholden to it indefinitely. Still, others cautioned that the BRI, far from being a monolithic and well-planned-out vision, is deeply fragmented by domestic interests, diluting its effectiveness as a unified grand strategy. These arguments evaluate whether the BRI is a success or failure for China—that is, whether the BRI strengthens China’s geopolitical status and brings it economic benefits. Those factors are important, but they are China-centric. In the end, success also depends on a more neglected consideration—the recipient countries’ perceptions of China and their reception of the BRI. 

DETERMINANTS OF BRI INITIATIVE IN SOUTH ASIA

The success or failure of the Belt and Road Initiative in South Asia can be determined by asking two questions. First, do recipient countries view the BRI as a positive Chinese initiative that brings significant benefits, either political or economic? The BRI and China are seen as synonymous, so positive views of the BRI can not only boost positive views of China but, in theory, also make recipient countries amenable to further cooperation with China. Second, has the recipient country been able to manage the BRI to advance its own domestic agenda? If recipient countries see the BRI as advancing their stated political or economic goals, then they are likely to continue to welcome expanded Chinese investment. Conversely, if they view the BRI as either not delivering on the promise of economic benefits or as leading to significant political side effects, then it can give recipient countries pause. In the long run, this could affect further cooperation with the BRI and China.

HOW BRI RECIPIENTS LOOK AT CHINESE STRATEGIC POLICY

In South Asia, even if a recipient country sees the BRI and China positively, it has not necessarily also been able to manage the BRI to its satisfaction. Pakistan is one example. Then again, even when the BRI and China are viewed negatively, such as in India, the government has been able to use the specter of the BRI to advance other interests. The lesson for the United States is that if it seeks to curb China’s influence in South Asia, it should pay attention to how potential recipients of this largesse respond to China and the BRI. The United States cannot match the BRI’s investments in South Asia, but it can support South Asian countries choosing to cooperate with China, as well as India, the dominant power in the region.

Friday, October 6, 2023

 

Importance of South Asia in Global Politics with India Leading the Pack

A former diplomat of India stated that "smaller powers like India and Australia, who have aligned with the US, are witnessing a more aggressive China". 

by Kazi Anwarul Masud

COUNTRIES OF SOUTH ASIA

South Asia is the southern subregion of Asia, which is defined in both geographical and ethnic-cultural terms. As commonly conceptualized South Asia consists of Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. Most recent figures in US $ the per capita income of South Asian countries with the year of enumeration are as follows; the latest count the countries possessing nuclear weapons are as follows:- Russia — 6,257 (1,458 active, 3039 available,), United States — 5,550 (1,389 active, 2,361 available,) China — 350 available (actively expanding nuclear arsenal), France — 290 available, United Kingdom — 225 available, Pakistan — 165 available, India — 156 available, Israel — 90 available, and North Korea — 40-50 available (estimated).

Asia on Globe

In an article (September 24, 2023) KruthikaPathi of AP writes “The United States, Britain and India’s Cold War-era ally Russia have voiced support for India’spermanent membership over the years. But U.N. bureaucracy has stopped the council from expanding. And even if that changes, China — India’s neighbor and regional rival — would likely block a request. Kept out of the U.N.’s most important body, Modi has made sure that his country is smack at the center of a tangled web of global politics. On one hand, New Delhi is part of the Quad and the G20, seen as mostly Western groups. On the other, it wants to expand its influence in the BRICS and the Shanghai Cooperation Organization, where Russia and China dominate.

INDIA’S MULTIPOLAR FOREIGN POLICY

The deft juggling of the West and the rest has come to define India’s multipolar foreign policy. Its diplomatic sway has only grown over its reluctance to condemn Russia for its war in Ukraine, a stance that resonated among many developing countries that have also been neutral. And the West, which sees an ascendant India as crucial to countering China, has stepped up ties with Narendra Modi.

By doing so, it looks past concerns of democratic backsliding under his government.Before Narendra Modi India had a glorious past and had a glorious past. When the British left in 1947 with independence, India was blessed with several leaders of world stature, most notably Mahatma Gandhi and Pandit Jawaharlal Nehru, who were able to galvanize the masses at home and bring prestige to India abroad. The country has played an increasing role in global affairs.

Contemporary India’s increasing physical prosperity and cultural dynamism—despite continued domestic challenges and economic inequality—are seen in its well-developed infrastructure and a highly diversified industrial base, in its pool of scientific and engineering personnel (one of the largest in the world), in the pace of its agricultural expansion, and in its rich and vibrant cultural exports of music, literature, and cinema. Though the country’s population remains largely rural, India has three of the most populous and cosmopolitan cities in the world Mumbai,  Kolkata, and Delhi. Three other Indian cities—Bangalore, Madras, and Hyderabad—are among the world’s fastest-growing high-technology centers, and most of the world’s major information formation technology and software companies now have offices in India.

EMERGENCE OF INDIA AS FASTEST GROWING MAJOR ECONOMY

According to ( last updated on September 27, 2023) India has emerged as the fastest-growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships. India’s appeal as a destination for investments has grown stronger and more sustainable as a result of the current period of global unpredictability and volatility, and the record amounts of money raised by India-focused funds in 2022 are evidence of investor faith in the “Invest in India” narrative.

India’s nominal gross domestic product (GDP) at current prices is estimated to be at US$ 3.31 trillion (Rs. 272.41 trillion) in FY22. Additionally, the Nominal GDP at current prices in Q3 of 2022-23 was US$ 874.84 billion (Rs. 71.82 trillion), as against US$ 792.3 billion (Rs. 65.05 trillion) in 2021-22, estimating a growth of 10.4%. With 115 unicorns valued at more than US$ 350 billion, as of February 2023, India presently has the third-largest unicorn base in the world. The government is also focusing on renewable sources by achieving 40% of its energy from non-fossil sources by 2030.

CHINA’S ATTEMPT TO ATTEMPT TO STILL INDIA’S GROWTH

However, the growth rate of India has been stilled by the arrest of India’s growth imposed by China. China and India are the two emerging economies in the world. As of 2021, China and India are the 2nd and 5th largest economies in the world, respectively, on a nominal basis. On a PPP basis, China is at 1st, and India is at 3rd place. Both countries share 21% and 26% of the total global wealth in nominal and PPP terms, respectively. Among Asian countries, China and India together contribute more than half of Asia’s GDP.In 1987, the GDP (Nominal) of both countries was almost equal; even in PPP terms, China was slightly ahead of India in 1990. Now in 2021, GDP is 5.46 times higher than India’s. On a PPP basis, the GDP of China is 2.61x that of India.

China crossed the $1 trillion mark in 1998, while India crossed nine years later in 2007 on an exchange rate basis.Both countries have been neck-to-neck in GDP terms till 1990. As per both methods, India was richer than China in 1990. In 2021, China is almost 5.4 times richer than India on the nominal and 2.58 times richer in the PPP method.

The per capita rank of China and India is 63rd and 147th, respectively, in nominal. The per capita rank of China and India is 76th and 130th, resp, in pp. China attained a maximum GDP growth rate of 19.30% in 1970 and a minimum of -27.27% in 1961. India reached an all-time high of 9.63% in 1988 and a record low of -5.24% in 1979. From 1961 to 2019, China grew by more than 10% in 22 years while India failed. The GDP growth rate was negative in five and four years for China and India, respectively.

SOUTH ASIAN STATES’ CONCERN ON POSSIBLE CONFLICT IN TAIWAN STRAIT

Michael Kugleman who writes for Foreign Policy magazine in one of his recent writings explained that Still, South Asian states are likely more concerned about conflict in the Taiwan Strait because it would disrupt trade with China, not because it would interrupt efforts at friendship between Taiwan and the region.

However, India has expanded economic cooperation with Taiwan more than any of its neighbours, in great part because of its sharp rivalry with China. Trade with India accounts for nearly 80 percent of Taiwan’s trade with South Asia. In recent decades, New Delhi and Taipei have inked a bilateral investment agreement and pursued science and technology cooperation Despite India’s vows to curtail commercial cooperation with China, it remains a top trade partner. New Delhi has also never opposed Beijing’s “One China” principle—its view that it has sovereignty over the mainland, Hong Kong, Macao, and Taiwan.

Furthermore, its guiding foreign-policy principle—strategic autonomy—forbids it from taking formal positions on other countries’ disputes. If China were to invade Taiwan, India would likely take a muted position—one comparable to its stand on Russia’s war in Ukraine. India already carefully manages its diplomatic relations with a few rivals—the United States and Russia, Iran, and Saudi Arabia, to name a couple—and escalating tensions between China and Taiwan present another case. So far, India has succeeded at this balancing act by staying quiet. Sana Hashmi, an expert on India-Taiwan relations based in Taipei, told me this week that if New Delhi made any public statement, it would mostly likely cover the “bare minimum,” and probably not mention China or Taiwan by name.

If it did, this would “mean a policy change,” she said. Yet the broader geopolitics matter for India. China-Taiwan tensions are playing out in the Indo-Pacific region, where India strongly supports U.S. policy that revolves around countering China. Even major Chinese military provocations falling short of an invasion would be a major blow to the policy, which aims to keep the region peaceful. Current tensions are “destabilizing the Indo-Pacific, and that does impact India’s security interests and its objectives in the Indo-Pacific,” according to an analyst.

SOUTH ASIAN STATES AND BELT AND ROAD INITIATIVE

Seeking to avoid getting pulled into U.S.-China competition, other South Asian states have distanced themselves from the Indo-Pacific policy—even though many of them have received investments as part of Beijing’s Belt and Road Initiative. Bangladesh declined a U.S. invitation to become a partner in the policy, while Nepal long resisted agreeing to an infrastructure grant that U.S. officials had described as part of the policy.

The destabilizing effects of tensions in the Taiwan Strait could still present a problem for South Asia more broadly—by threatening some of its partners.The reason for the refusal by South Asian countries of the US proposal is mainly due to their need for the construction of infrastructure for which these countriesdid not have the funds that the Chinese were willing to provide under their Road and Belt Initiative despite former Vice President Mike Pence’s warning of “Chinese Debt Trap”. It is well known that China and India are the two most populous countries in the world.


China was the most populous country with approximately 1.42 billion people in 2018. India was the second largest country by population with approximately 1.35 billion inhabitants in 2018. China and India together account for 36.28% of the total world population of 7,632,819,325. Various macroeconomic growth indicators of the two countries have been compiled to understand what led to the rapid growth of China vs.India. India’s GDP growth rate in the last 17 years has averaged 6.61% CAGR while China’s GDP growth rate has averaged 9.28% Compound Annual Growth Rate(CAGR). China’s capital investment as a percentage of GDP which is a proxy for Investment as a percentage of GDP has averaged 43% while India’s investment as a percentage of GDP has averaged 34.2% in the last 17 years. Subdued investment as a percentage of GDP has led to lower India’s GDP growth rate while China has maintained its investment rate. Indian economy growth rate will rise when capital investment rises for which India will need bigger government and private spending.

INDIA’S DEMOGRAPHIC DIVIDEND OVER CHINA

It is projected that by 2024, India will have more people than China with approximately 1.44 billion people. Currently, China’s population growth rate is 0.39%, while India is growing at 1.11%.  In 1950, the population of China was 554 million. While the population of India was 376 million. China crossed the one billion mark in 1981 and India in 1998.

By 2029, India will cross the 1.5 billion mark. The population density of India is 455 people per square km compared to 148 of China. So, India is 2.96 times denser than China. China is 4th and India is the 7th largest country in terms of area. China’s GDP per capita in constant 2010 dollars grew from $1,767 in 2000 to $7,308 in 2017 translating to a 8.71% Compound Annual Growth Rate CAGR while India grew its per capita GDP from $826 in 2000 to $1987 in 2017 at 5.31% CAGR. Slower per capita growth in India is partially because of a lower female labor force participation rate of ~23% while China has reported closer to ~60% female labor participation rate. China’s GDP growth was export-ledwhile India is still trying to generate a trade surplus. China’s export as a percentage of GDP in 2006 peaked at 36% then it has gradually fallen and in 2018, China’s export as a percentage of GDP was 19.7%. 

China has increased its share of high technology exports as a percentage of total manufacturing exports averaging 21% while India delivered 6.4% in the last 25 years. High technology exports make China competitive and it becomes a supplier that is difficult to replace vs. other nations whose exports are commodity in nature. Apart from economic differences China and India have hundreds of kilometers of demarcated border where border clashes have occurred.

INDO-CHINA BORDER DISPUTES

According to Wikipedia the border between China and India is disputed at multiple locations. There is “no publicly available map depicting the Indian version of the LAC,” and the Survey of India maps are the only evidence of the official border for India. The Chinese version of the LAC mostly consists of claims in the Ladakh region, but China also claims Arunachal Pradesh in northeast India. China and India previously fought over the border in 1962 and 1967 with China gaining victory in the former and India gaining victory in the latter.

Since the 1980s, there have been over 50 rounds of talks between the two countries related to these border issues. During Xi Jinping‘s visit to New Delhi in September 2014, Indian Prime Minister Narendra Modi discussed the boundary question and urged his counterpart for a solution. Since Modi became Prime Minister in 2014 until the 2020 standoff, Modi and Xi met 18 times, including those on the sidelines of summits and five visits to China.  According to an analyst  “… improving combat readiness is now a strategic mission for the Chinese military …. China has since increased its military presence in the Tibetan Plateau. 

China has also been increasing its footprint with India’s neighbours – Nepal, Sri Lanka, and Pakistan to, prevent  India from having a monopoly in the region, China is now posing a direct challenge to New Delhi’s influence in South Asia. The disputed territory of the former princely state of Jammu and Kashmir is administered by Pakistan, India, and China. Multiple reasons have been cited as the trigger for these skirmishes., Critics have blamed successive Indian governments (including the current Narendra Modi government) of neglecting the border areas for decades and turning a “blind eye” to Chinese land grabbing in the region.

SUCCESSIVE INDIAN GOVERNMENTS NEGLECTED THE PROTECTION OF LAC

According to them, India had failed in the protection of its borders, and even in 2020, all along the LAC, India had lost land. In mid-June 2020, a BJP member of Parliament from Arunachal Pradeshacknowledged the presence of regular Chinese patrols inside north-east India as well.MIT professor, Taylor Fravel, said that the skirmishes were a response from China to the development of Indian infrastructure in Ladakh.  He added that it was a show of strength for China amidst the COVID-19 pandemic, which had damaged the Chinese economy and its international reputation. According to Yun Sun, a China specialist at the Stimson Center, China perceived India’s road-building as a threat to its “territorial integrity” which it will not sacrifice for the sake of good relations with India.

Wang Shida of China Institutes of Contemporary International Relations linked the current border tensions to India’s decision to abrogate Article 370 and change the status of Jammu and Kashmir in 2019. Some postulated that a parliamentary speech by Amit Shah, the Minister of Home Affairs, also could have irked China. In the speech, Shah had declared that Aksai Chin, a disputed region administered by China, was part of the Indian-administered Ladakh Union Territory. An Indian diplomatalso agreed that New Delhi’s moves related to Jammu and Kashmir irked Beijing.Other analysts linked the skirmishes to India’s growing alliance with the United States. Tanvi Madan, author of Fateful Triangle (a book about the international relations between the US, India, and China) stated that India thought that this was a “signal from Beijing” to “limit” its relations with the US. 

CHINA’S MUSCLE POWER AS WITNESSED BY “SMALLER POWERS”

A former diplomat of India stated that “smaller powers like India and Australia, who have aligned with the US, are witnessing a more aggressive China”.

India’s former ambassador to China said that these skirmishes were part of a growing Chinese assertiveness in both the Indo-China border and the South China sea. Raja Mohan, Director of the Institute of South Asian Studies at the National University of Singapore, writes that the growing power imbalance between China and India is the main cause of the dispute, with everything else such as the location of the dispute or international ties of India, being mere detail. 

In short since Indo-China- Pakistan conflicts are not going away driving India despite its non-alignment policy in the ultimate analysis India would have to align herself with the US for her survival and to hold on to her preeminence in South Asia and deny China its design to grab South Asia as its base like the one in Sri Lanka.

Kazi Anwarul Masud is a retired Bangladeshi diplomat. During his tenure, he worked in several countries as the ambassador of Bangladesh including Thailand, Vietnam, South Korea and Germany