Thursday, August 5, 2021

Japan, South Korea, Australia, Taiwan Back India Amidst US-China Trade War

Amidst the US-China Trade War, Asia’s most advanced economies who are close US allies are favouring India as an alternative to China. Japan, South Korea, Taiwan and Australia all have plans and policies to bank on India’s cooperation as they diverge there trade routes from China.

The poignant influence for this diversification is the concern lingering around the U.S.-China trade war and Asia’s most developed countries trying to reduce their dependence on China and turn toward India.

All close allies of the United States, Japan, South Korea, Taiwan and Australia are bidding to diversify their economies away from dependence on China, whose export-oriented industries are likely to be hurt by the trade war.

Goods produced by many Asian countries are assembled in China before being exported stateside, making the entire region’s manufacturing chain vulnerable to U.S.-China trade tensions.

“In the past, India was reserved about suggesting a larger regional role. Today, India talks of playing the role of leading global player.”-Harsh Pant, distinguished fellow, Observer Research Foundation

Canberra has declared their ambitious plan of “India Economic Strategy” in July. Canberra anticipates making New Delhi as one of its top three export markets and the third biggest Asian destination for outward investment by 2035.

In 2017, South Korean President Moon Jae-in presented a blueprint known as the “Southern Policy” that stressed on deepening ties with Southeast Asia. India — despite not being geographically part of Southeast Asia — will be Seoul’s “key partner for cooperation” on that front, Moon declared during a visit to New Delhi in July.

Japanese Prime Minister Shinzo Abe, who is due to visit New Delhi next week, has committed to making India a pillar of his Indo-Pacific blueprint, which promotes infrastructure investment and development in Asian and African emerging markets. The principal areas of cooperation between India and Japan are personal contacts, strengthened maritime ties and improved relations on defence and development.

India is one of the fastest growing economies but from a political perspective, it remains to be seen whether New Delhi can take full advantage of all the attention it’s receiving. On one hand, India’s economic ascent and Prime Minister Narendra Modi’s robust diplomacy make the country the ideal partner for Asian countries.

India will need to upgrade its economic and security arrangement with other countries in the Asian region since China is far ahead on both fronts. It remains to be seen, however, whether New Delhi can benefit from all these trends.

More News at EurAsian Times

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