Q. ‘China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor. [UPSC-2017]
Ans:
Since last 4 decades China saw significant economic growth. It has favorable trade balance with almost all the Asian countries including India. Its economic relation has not only facilitated its economic rise but also helped developing potential military power status. ©crackingcivilservices.com
Using economic relations and positive trade surplus as tools to develop potential military power status:
- To realise its goal. China mainly engages its debt trap diplomacy.
- China has invested heavily even in non-viable projects in middle- and low-income developing countries.
- Opacity in process: The China neither provides official data on its international lending, nor does it disclose details regarding the volume or the terms of the loans it provides and how the debt negotiations are adjudicated if the borrower cannot service its debts.
- China does not subscribe to any guiding multilateral frameworks, set down by the International Monetary Fund or the World Bank, to define its approach to debt sustainability problems, choosing instead to deal with countries on a case-by-case basis.
- Infrastructural agreements with China often provide Chinese firms the right to access and control land and assets as collateral.
- When these countries struggles to repay the debts then as part of Debt renegotiation process China get control over the strategic assets which helps raising its military power status.
- e.g. Hambantota port in Sri Lanka can be used for increasing Chinese presence in the Indian Ocean Region, Pakistan gave Beijing exclusive rights to run Gwadar Port for the next four decades etc.
Its impact on India as her neighbor:
- Chinese holds over strategic territories has been considered against the Indian strategic interest. It has been observed that China has been ringing India by the “string of pearls” in Indian Ocean region using its assets in Bangladesh, Myanmar, Pakistan, Djibouti, Laos, Sri Lanka etc.
- The China Pakistan economic corridor passes through Pok, which challenges the Indian sovereignty.
- Increased trading relation has led to China emerging as dominant player in strategic regions e.g. the Central Asian regions has around $100 billions trade with China vis-a-vis only $2 billion with India.
- Expansionist tendency of China in South China Sea has implication for the right to navigation for all countries and rule based Indo-Pacific.
- Increased military status of China has led to conflicts with the border countries. e.g Doklam and Galwan stand of with India, Border issue with Bhutan, Nepal, Mongolia etc.
- Chinese presence and its assets in the Indian neighbours also undermines the sovereignty of the countries, interference in the internal politics (e.g. in Maldive), environmental degradation and exploitative attitude towards the native population.
In face of these challenges, India has been taking some crucial steps like helping infrastructure development (e.g. planning Asia-Africa Growth Corridor with Japan), building indigenous military power, fostering international co-operation to maintain the rule based order (e.g. Quad), not joining RCEP etc. ©crackingcivilservices.com
