Saturday, February 27, 2021

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India-China Economic Romance Cannot End With A Mere Border Clash – Chinese Experts

India and China have been at each other’s throat for more than a month now. Aside from the military confrontation in Ladakh, India has also moved to disengage from China economically.

While the move has got the support from the majority of Indians, Cui Hui’ao of the China Global Television Network (CGTN) writes that disengaging from China might not be a choice for India and that economic de-coupling is driven politically by Narendra Modi.

As reported by Eurasian Times consistently during last month, the feud between India and China has been a rollercoaster ride. From military buildup, deadly clashes to de-escalation and eventual withdrawal, the clash of the two Asiatic giants has seen it all.

Cui writes that apart from the military confrontation, India has retaliated in the economic sphere, referring to the decision by the Indian government to ban 59 Chinese application including TikTok, WeChat and ShareIt and the call to boycott Chinese products.

The journalist at CGTN writes that decoupling from China may be easier said than done for India. He says that India is not a manufacturing powerhouse, so in terms of bilateral trade, it actually buys much more from China than the other way around.

Cui analyses trade data to support the fact that New Delhi will find it difficult to reduce its dependence on Chinese imports. Between April 2019 and March 2020, India imported over 65 billion U.S. dollars’ worth of goods from China.

Cui is of the opinion that the coronavirus pandemic has hit the Indian economy hard and in fact, the disengagement is driven by politics rather than economics. He finds it difficult to accept that India’s disengagement from China would take place at a time when the Indian economy is projected to contract by 4.5% according to the International Monetary Fund (IMF).

Economic Disengagement Driven Politically 

Speaking to Cui, Cheng Xizhong, a visiting professor from Southwest University of Political Science and Law, says that the decision to de-couple from China economically is because of the domestic pressure on Prime Minister (PM) Narendra Modi.

‘’Since his second term began yet Indian economy is a mess. He has to find a way to shift the public attention elsewhere,” he said.

The author agrees with the point made by Cheng Xizhong and writes that pressure on the Indian PM Modi comes from multiple fronts, including his own supporters, businesses, and farmers union. But this time, the nationalistic voice is even louder.

Other experts interviewed by Chui agree that New Delhi would benefit more if it partnered with Beijing. Professor Cheng, a former Chinese military diplomat in South Asia, said that since India started its opening-up in the 1990s, its economic growth has been crippled by lack of high-quality infrastructure and it would wiser if India and China work together.

Similar views are shared by Indian economist Biswajit Dhar, who says that India’s decision to start producing domestically has to be strategic and it cannot take the decision to produce everything.”

While India and China disengage at the battlefront in Ladakh, the Indian government is looking for solutions to reduce its dependency on Chinese imports. PM Modi has encouraged all Indians to become self-reliant (Aatmanirbhar) by producing and purchasing indigenous goods and boost the Indian economy.

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