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      China-India Clash Wakes Up Tibet’s Ghost of Independence

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      Wildfires have been burning in California, Brazil and Siberia. Brexit is causing unending headaches in both Europe and the UK. The American election campaign has kicked off in high gear. Deaths from COVID-19 have crossed one million. US President Donald Trump’s taxes were the talk of the town, before he landed in hospital with COVID-19 himself. In such a milieu, it is easy to overlook a tempest in Asia. On October 5, China threatened to make India’s latest strategic tunnel unserviceable even as Indian engineers race against time and tough conditions to bolster their country’s border infrastructure.

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      For the last few months, India and China have been clashing over icy heights on the roof of the world. Their undefined border and contesting claims are causing increasing unease in the world’s largest and most populous continent. They are also leading to new moves on the geopolitical chessboard that might have historic consequences.

      Tibetan Troops, Article 370 and Ladakh

      Tenzin Nyima, a company leader in India’s shadowy Special Frontier Force (SFF) and a stateless Tibetan refugee, died on the contested Line of Actual Control that separates territories controlled by India and China. Hundreds of thousands of Tibetan refugees have lived in India since the Dalai Lama’s flight to the country in 1959. A select few serve in the SFF, an extremely tough outfit that excels in high-altitude operations.

      The Tibetan Kashag was the de facto independent government of Tibet before the invasion by China’s People’s Liberation Army (PLA) in 1950, which was condemned by the United Nations General Assembly. The SFF fights under the snow lion flag of the Tibetan Kashag. The Central Tibetan Administration, known as the Tibetan Government in Exile, also uses the same flag. Understandably, the PLA, the Communist Party of China (CCP) and Chinese nationalists are not too fond of this symbol.

      Nyima’s funeral in Ladakh occurred with much honor. Importantly, Ram Madhav, then the general secretary of India’s ruling Bharatiya Janata Party (BJP), was present at the funeral. His admirers refer to him as the “Kissinger of India.” More pertinently, Madhav is one of the most influential political figures in India and a key ideologue on strategic matters. He was a key architect of the BJP’s Kashmir policy and was instrumental in removing Article 370 last year, which ended Jammu and Kashmir’s autonomy. By honoring Nyima, Madhav is making a symbolic but profound point: He is signaling support for the Tibetan cause.

      As most Indians and India hands know, the BJP had been vowing to remove Article 370 for decades. Once Prime Minister Narendra Modi won historic reelection last year, the BJP made a bold bet and removed this article from the constitution. It carved out Ladakh from the state of Jammu and Kashmir as a separate union territory. The people of this land practice Tibetan Buddhism, share ethnic kinship with Tibetans and follow the Dalai Lama. By removing Article 370 and giving Ladakhis their own territory, India has upset not only Pakistan but also China.

      Salami Tactics

      Historically, India’s stand on Tibet has been ineffectual. Despite domestic opposition, Jawaharlal Nehru acquiesced to the Chinese conquest of Tibet. Even after the disastrous defeat of 1962, India’s first prime minister did not come down on the side of the Tibetans. The Dalai Lama has lived in India for decades, but Delhi has never openly supported Tibetan independence or autonomy. In contrast, China has allied with Pakistan and opposed India’s interests in Jammu, Kashmir and Ladakh.

      Since Modi came to power in 2014, he has met Chinese President Xi Jinping 18 times. He has been conciliatory and accommodating to Xi. Even before Modi, India opened its markets to Chinese products. This economic engagement was for a strategic reason: India wanted peace with its larger neighbor and aimed to wean it away from Pakistan. Instead, China has consistently followed salami tactics, and, this year, it cut off a larger slice of Indian territory.

      Chinese actions led to Modi losing face earlier this year. The Indian National Congress (INC) party tried to paint him as the new Nehru. For the Nehru dynasty that still leads the INC, a debacle for Modi would wash off Nehru’s sins and damage the BJP. In the brutal battle for national dominance, an embarrassment for Modi would boost the INC. Hence, it is no surprise that Modi and Madhav are pushing back so strongly against China.

      In recent years, India has been preparing for a two-front war. In 2018, India’s Air Force conducted its largest exercise to counter a joint China-Pakistan invasion. The junior minister in charge of border roads is General V.K. Singh, the former army chief. More than most, he understands the key need for border infrastructure and has been pushing hard for it. This has caused the Chinese grief because Indian infrastructure upgradation of its Central Asian tracts chips away at the PLA’s strategic advantage.

      Public Sympathy

      In recent weeks, Modi has gained public sympathy. The Indian public blames Xi for backstabbing him and the Indian intelligentsia for being too naive, if not deluded, about China. This public support has allowed Modi to take a stronger stance against Beijing. The PLA and Xi have been caught off guard. At high altitudes, Chinese troops have been weighed, measured and found wanting. Indian troops have not rolled over as in 1962. In fact, they have given the PLA a bloody nose. This is deeply embarrassing for a country with superpower pretensions. China is setting itself up as a counterpart to the US. Anything short of a conclusive victory against a country China deems to be its inferior would be nothing short of a national disaster.

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      As two of the authors explained in a historical analysis of the India-China conflict, Beijing has become more aggressive since Xi came to power. The PLA has consistently and constantly claimed territory India considers its own. As a result, confrontations have been on the rise. There is a real risk that Xi might be overplaying his hand.

      What Xi fails to appreciate is that 2020 is not 1962. Over the last few months, China has lost the element of surprise. Indian troops are mobilized all along the border and have more experience of high altitudes. Furthermore, Tibetans and other mountain troops fighting for India are local lads with old scores to settle with the PLA. They come from communities who practice Tibetan Buddhism. Hence, they resent Beijing for cultural genocide in Tibet and do not want to live under its yoke. These troops are fighting for their freedom and are in a do-or-die mood. The next clash could easily spill over into an all-out war.

      Xi forgets that India has less to lose in case of war. A decisive defeat would merely confirm its underdog status and win international sympathy. Even if India loses but its troops acquit themselves well, China would be humbled. However, if China loses, Xi himself and his CCP might find themselves in trouble. On a simple cost-benefit calculus, a Xi-led China has no rational reason to go to war against a Modi-led India.

      There is another key reason for China to wind down tensions. After decades of licking their wounds, Tibetans have now openly entered the fray under their fabled snow lion flag and with the blessing of India’s political leadership. It is no longer two militaries clashing for icy crags but two ideas colliding head-on. A military clash might be about to turn into a political, religious and cultural conflict. The Tibetan snow lion of independence threatens Beijing’s holy cow of Greater China.

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      Will China’s Digital Currency Revolutionize Global Payments?

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      China is well on its way to becoming a cashless society. More than 600 million Chinese already use Alibaba’s Alipay and Tencent’s WeChat Pay to pay for much of what they purchase. Between them, the two companies control approximately 90% of China’s mobile payments market, which totaled some $17 trillion in 2019. A wide variety of sectors throughout China have since adopted Blockchain to pay bills, settle disputes in court and track shipments. The Chinese government understands that, via Blockchain, the issuance of its own cryptocurrency is an excellent way to track and record the movement of payments, goods and people.

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      The unsexily named Digital Currency/Electronic Payments (DCEP) is intended to be used by anyone around the world to purchase anything. It has the potential to revolutionize the global payments system. Assuming it succeeds, many other countries will want to emulate it. Some other governments have already launched similar initiatives, but not on the scope or scale of the DCEP, which promises to be the first global digital currency.

      Digital Wallets

      What appears to have spurred the Chinese government to actively pursue the DCEP in 2019 was the birth of an organization that also has the potential to revolutionize the global payments system, the Libra Association. Libra is a grouping of more than two dozen organizations creating the world’s first Blockchain-derived global payment system, specifically founded on best practices in regulation and governance. Its stated objective is to transparently bring access to financial services to billions of people who either have limited or no access to the existing global banking system.

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      Given that it is an American-led initiative that will use the US dollar to determine its benchmark value, Beijing viewed Libra as an attempt to establish US dominance over the global cryptocurrency marketplace. It previously viewed other cryptocurrencies as a threat to its own hegemony over capital controls in China.

      Although its motivations to counter the US are clear enough, much remains unknown about the DCEP. One has to wonder just how much focus it will have on transparency, governance or best practices. It will not be available on cryptocurrency exchanges, nor will it be available for speculative purposes. Embracing Blockchain and creating a DCEP ecosystem will give the Chinese Central Bank unprecedented power over capital movements — certainly in China, but also around the world.

      Like Alipay and WeChat, the DCEP will require a digital wallet, but it will not require a bank account. Commercial banks will issue the digital wallets, but no internet connection will be required to conduct transactions via the DCEP. All that will be required is that a phone has battery power. While a certain degree of anonymity will be present with the DCEP, the Chinese Central Bank will still be able to track who spent or received funds, when, where and from whom. The Chinese government calls the concept “controllable anonymity” and will rely on Big Data to identify behavioral characteristics of the individuals and businesses using DCEP. Doing so will help the government identify money laundering, tax evasion and terrorist financing. It will, of course, also permit a higher degree and quality of state surveillance of Chinese citizens and citizens of any other country that may use it.

      Since the Chinese government will be the first to launch a global digital currency, it will gain a considerable lead over the world’s nations and provide it with the ability to perfect its surveillance capabilities in China and around the world for any country that chooses to adopt the DCEP. It will also help to internationalize the yuan and simultaneously create less dependence on the US dollar. So, the Chinese government intends to stay a step ahead of the competition, enhance its ability to monitor its citizens, broaden its soft power and increase China’s appeal to other countries while countering the supremacy of the US dollar in the process.

      Alternative System

      By issuing the DCEP, the Chinese government hopes that demand for yuan reserves will follow, facilitating a digital version of the yuan as a global alternative to dollar reserves, especially in Belt and Road Initiative (BRI) member nations seeking to modernize their financial sectors. It could also help internationalize China’s e-payment systems, which are not used outside of China. In the absence of an American cryptocurrency, which seems to be a long way off, doing so could in theory make the DCEP the cryptocurrency of choice among BRI (and other) countries.

      Such an alternative system may be particularly appealing for countries under US sanctions, which may wish to avoid using the US dollar entirely, or for countries or businesses engaged in trading, investment or lending with Chinese companies. But the yuan remains not fully convertible, with just 1% of international payments using it. That could have a significant impact on the government’s implementation strategy. In addition, the Chinese government is attempting to centralize what is a decentralized technology by requiring that all “nodes” using the Blockchain register with the government and provide information about their users.

      While the Chinese people are accustomed to having their government pry into, and try to control, their private lives, most of the world’s population wants nothing of the sort. It remains to be seen just how broadly the DCEP will be adopted, or whether it will turn out to be a net positive for the nations that choose to use it, but having the first-mover advantage will surely serve Beijing well. Despite its apparent flaws, if it also helps to bring some of the world’s poorest nations with the least access to basic and global financial services on par with the world’s developed nations in that regard, Beijing will have done much of the world’s population a great service in the process.

      *[Daniel Wagner is the author of “The Chinese Vortex: The Belt and Road Initiative and its Impact on the World.”]

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      Trump First now drives US foreign policy. Even if it leads to war… | Simon Tisdall

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      It’s clear Donald Trump will do almost anything to cling to office. Lie about Ruth Bader Ginsburg’s dying wish? Go for it. Label Joe Biden a radical socialist? Silly, but worth a punt. Start a war with China or Iran? Pause right there. This is not beyond the realms of possibility, given his pathological need to win.As November’s poll nears, Trump is weaponising foreign policy – not to defend US security and national interests, but to help him grab a second term. It’s not about putting “America First”. It’s all about putting “Trump First” – by any dangerous means, and at any cost.Trump has no big international successes to his name. On the contrary, he has trashed America’s global reputation and alienated its friends. His North Korea jamboree was all hot air. His Afghan policy is retreat without honour. Israel’s shabby deals with Gulf dictatorships, stitched up by the White House, undermine the quest for Middle East peace.Scornful of traditional diplomacy and lacking significant achievements, Trump chooses confrontation. He exploits visceral fears, just like he does when campaigning at home: fear of nefarious foreign foes, fear of the other, fear of difference.His China-baiting at the UN last week was typical scaremongering. He characterised the pandemic as a global war triggered by Beijing. Covid-19 was the “invisible enemy”, a “plague” and the “China virus” – terms intended to frighten and divide. Just in case Xi Jinping and the other watching Johnny Foreigners did not get the message, the US, he said, had spent $2.5tn on defence since 2016. “We have the most powerful military anywhere in the world.”Was this a threat? Maybe the entire planet should put its hands up and surrender. More

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      Taking American Carnage to the Next Level

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      It is a recent tradition among occupants of the White House, as they head out of office, to play a few practical jokes on their successors. The Clinton administration jesters, for instance, removed all the Ws from White House keyboards before handing over the keys to George W. Bush’s transition team. The Obama administration left behind books authored by Barack Obama for Trump’s incoming press team.

      Donald Trump has no sense of humor. His “gift” to the next administration is dead serious. With his recent foreign policy moves, the president is trying to change the facts on the ground so that whoever follows in his footsteps will have a more difficult time restoring the previous status quo. Forget about pranks. This is a big middle-finger salute to the foreign policy establishment and the world at large.

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      Of course, Trump is not preparing to leave office, regardless of the results of the November election. But in his policies in the Middle East and East Asia, the president is attempting to change the very rules of the game just in case he’s not around next year to personally make more mischief. The man is not going to win a Nobel Prize for his efforts — despite the recent nominations coming from a pair of right-wing Scandinavians — but he’ll do whatever he can to achieve the next best thing: putting the Trump brand on geopolitics.

      It cost about $5,000 to replace all those W-less typewriters. The bill for all the damage Trump is doing to international affairs in his attempt to make his Israel, Iran and China policies irreversible will be much, much higher.

      Israel Up, Palestine Down

      For several years, the Trump administration promised a grand plan that would resolve the Israel-Palestine stand-off. According to this “deal of the century,” Palestinians would accept some economic development funds, mostly from Gulf states, in exchange for giving up their aspirations for an authentic state.

      The hoops Palestinians would have to jump through to get even such a shrunken and impotent state — effectively giving up Jerusalem, relinquishing the right to join international organizations without Israel’s permission — are such obvious deal-breakers that Jared Kushner and company must have known from the start that their grand plan was not politically viable.

      But finding a workable solution to the Israel-Palestine conflict was not the purpose of the plan. It was all an elaborate shell game. While the administration dangled its proposal in front of world leaders and international media, it was working with Israel to create “new realities.” Trump withdrew the United States from the UN Human Rights Council for its “chronic bias against Israel.” The administration closed the PLO’s office in Washington, DC, and eliminated US funding for the UN agency that supports Palestinian refugees. And in perhaps the most consequent move, Trump broke a global convention by moving the US embassy from Tel Aviv to Jerusalem. Until recently, only one country, Guatemala, had followed suit.

      But then came a flurry of diplomatic activity this fall as both the United Arab Emirates and Bahrain extended diplomatic recognition to Israel. The Trump administration also pushed Serbia and Kosovo, as part of a new economic deal, to include clauses about Israel: Serbia will move its embassy to Jerusalem and Kosovo will establish one there after establishing diplomatic relations with Israel.

      Astonishingly, the Trump administration has promoted this diplomatic activity as restraining Israel. In May, Netanyahu announced that he was moving forward with absorbing sections of the West Bank that already featured large Israeli settlements. He subsequently stepped back from that announcement to conclude the new diplomatic deals with the Gulf states. But it was only reculer pour mieux sauter, as the French say — stepping back to better leap forward. Netanyahu had no intention of taking annexation off the table.

      “There is no change to my plan to extend sovereignty, our sovereignty in Judea and Samaria, in full coordination with the United States,” Netanyahu said in mid-August. Some further to the right of Netanyahu — alas, they do exist — want to annex the entire West Bank. But that’s de jure. As writer Peter Beinart points out, Israel has been annexing the West Bank settlement by settlement for some time.

      Where does this leave Palestinians? Up a creek without a state. The Trump administration has used its much-vaunted “deal of the century” to make any future deal well-nigh impossible. In collaboration with Netanyahu, Trump has strangled the two-state solution in favor of a single Israeli state with a permanent Palestinian underclass. The cost to Palestinians: incalculable.

      Permanent War With Iran

      Strengthening Israel was a major part of Trump’s maneuverings in the Middle East. A second goal was to boost arms sales to Gulf countries, which will only accelerate the arms race in the region. The third ambition has been to weaken Iran. Toward that end, Israel, Bahrain and the UAE now form — along with Saudi Arabia — a more unified anti-Iran bloc.

      But the Trump crowd has never been content to contain Iran. It wants nothing less than regime change. From the get-go, the Trump administration nixed the Iran nuclear deal, tightened sanctions against Tehran and put pressure on all other countries not to engage Iran economically. In January, it assassinated a leading Iranian figure, Major General Qassem Soleimani of the Iranian Revolutionary Guard Corps. And this summer it tried, unsuccessfully, to trigger “snap-back” sanctions against Iran that would kill the nuclear deal once and for all.

      Even as the Trump administration was celebrating the diplomatic deal between the UAE and Israel, it was going after several UAE firms for brokering deals with Iran. Trump recently castigated the Iranian government for going through with the execution of wrestler Navid Afkari for allegedly killing a security guard during a 2018 demonstration.

      And US intelligence agencies have just leaked a rather outlandish suggestion that Iran has been thinking about assassinating the US ambassador to South Africa. According to Politico, “News of the plot comes as Iran continues to seek ways to retaliate for President Donald Trump’s decision to kill a powerful Iranian general earlier this year, the officials said. If carried out, it could dramatically ratchet up already serious tensions between the U.S. and Iran and create enormous pressure on Trump to strike back — possibly in the middle of a tense election season.”

      Hmm, sounds mighty suspicious. Sure, Iran might be itching for revenge. But why risk war with a president who might just be voted out of office in a couple of months and replaced with someone who favors returning to some level of cooperation? And why would the unnamed US government officials leak the information right now? Is it a way to discourage Iran from making such a move? Or perhaps it’s to provoke one side or the other to take the fight to the next level — and take off the table any future effort to repair the breach between the two countries?

      Cutting Ties With China

      At a press conference earlier this month, Trump laid out his vision of US relations with China. Gone were the confident predictions of beautiful new trade deals with Beijing. After all, Trump had canceled trade negotiations last month, largely because the Phase 1 agreement hasn’t produced the kind of results the president had predicted (in terms of Chinese purchases of US goods). Nor did Trump talk about what a good idea it was for China to build “reeducation camps” for Uighurs in Xinjiang (he reserves such frank conversation for tête-à-têtes with Xi Jinping, according to John Bolton).

      Rather, Trump talked about severing the economic relationship between the two countries. “Under my administration, we will make America into the manufacturing superpower of the world, and we’ll end our reliance on China once and for all,” he said. “Whether it’s decoupling or putting in massive tariffs like I’ve been doing already, we’re going to end our reliance on China because we can’t rely on China.”

      Embed from Getty Images

      As with virtually all things, Trump doesn’t know what he’s talking about. China has been largely unaffected by all of Trump’s threats and posturing. As economist Nicholas Lardy explains, “for all the fireworks over tariffs and investment restrictions, China’s integration into global financial markets continues apace. Indeed, that integration appears on most metrics to have accelerated over the past year. And U.S.-based financial institutions are actively participating in this process, making financial decoupling between the United States and China increasingly unlikely.”

      In fact, decoupling is just another way of saying “self-inflicted wound.” On the non-financial side of the ledger, the United States has already paid a steep price for its trade war with China, which is only a small part of what decoupling would ultimately cost. Before the pandemic hit, the United States was already losing 300,000 jobs and $40 billion in lost exports annually. That’s like a Category 3 hurricane. A full decoupling would tear through the US economy like a Category 6 storm.

      Geopolitical Carnage

      American presidents want to leave behind a geopolitical legacy. Bill Clinton was proud of both the Dayton agreement and the Oslo Accords. George W. Bush touted his response to the September 11 attacks. Barack Obama could point to the Iran nuclear deal and the détente with Cuba. Donald Trump, like the aforementioned twisters, has left destruction in his path. He tore up agreements, initiated trade wars, pulled out of international organizations and escalated America’s air wars.

      But perhaps his most pernicious legacy is his scorched-earth policy. Like armies in retreat that destroy the fields and the livestock to rob their advancing adversaries of food sources, Trump is doing whatever he can to make it impossible for his successor to resolve some of the world’s most intractable problems.

      His diplomatic “achievements” in the Middle East are designed to disempower and further disenfranchise Palestinians. His aggressive policy toward China is designed to disrupt an economic relationship that sustains millions of US farmers and manufacturers. His bellicose approach to Iran is designed not only to destroy the current nuclear accord but make future ones impossible as well.

      If he wins a second term, Trump will bring his scorched-earth doctrine to every corner of the globe. What he is doing to Iran, China and the Palestinians, he will do to the whole planet. The nearly 200,000 pandemic deaths and the wildfires destroying the West Coast are just the beginning. Donald Trump can’t wait to take his brand of American carnage to the next level.

      *[This article was originally published by Foreign Policy in Focus.]

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      Can the India-China Confrontation Play Out in East Africa?

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      China and India have never been friendly neighbors. The laws of geopolitics set the two Asian giants against one another. In recent years, Chinese President Xi Jinping’s confrontation with the US and Indian Prime Minister Narendra Modi’s ambitions for a powerful and global India have inflamed nationalism on both sides of the Himalayan border. Bilateral tensions peaked in June, when a border clash in the Himalayan Galwan Valley resulted in the death of 20 Indian soldiers and an unspecified number of Chinese troops.

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      Now, the competition between China and India is moving to Africa, and to East Africa in particular. Since 2000, the continent has witnessed China’s deep and ubiquitous penetration through trade, investments, infrastructures, energy, budget support and security cooperation. In 2008, New Delhi showed a newfound interest in Africa.

      Despite China’s head start, India is trying to catch up to counter Beijing’s predominance over the continent. East Africa is the region where the two Asian powerhouses share vital interests and where their competition will likely play out more seriously.

      India’s Africa Policy

      India–Africa relations are rooted in history. The Indian Ocean constituted a channel of trade and population exchange for centuries. Consequently, East Africa has always enjoyed close ties with India, and around 3 million people of Indian descent live between the Horn and South Africa. After independence from British rule in 1947, India was politically active in Africa as a champion of decolonization and South-South cooperation. The period that followed saw India–Africa relations phase out until New Delhi brought the continent back into the picture from the mid-2000s.

      In economic terms, trade augmented eightfold between 2001 and 2017, making India Africa’s third-largest trading partner with a total exchange worth $62.6 billion. While Chinese trade with the continent largely outnumbers it, India has kept up the pace and investments grew alongside trade, jumping to $54 billion in 2016.

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      As a fast-growing manufacturing power, India places strategic relevance to raw materials for the stability of its supply chain and energy sector. Indeed, New Delhi’s exchange with Africa, like Beijing’s, is driven by natural resources — with oil and gas accounting for approximately two-thirds of the total — followed by gold and other ores.

      Political ties have also strengthened over the years. In 2008, the first India–Africa Forum Summit was launched in New Delhi and took place again in 2011 and 2015, with 41 African heads of state attending; the next conference was scheduled in September 2020. These summits allowed African leaders, on the one hand, to set out their cooperation priorities and India, on the other, to respond accordingly. As a result, India–Africa cooperation pivoted around capacity building, technology transfer and infrastructural investments. Lastly, India has sought support on UN reform, which would be unrealistic without the votes of African countries in the General Assembly.

      Security issues have been on the agenda as well. New Delhi is particularly active in the realm of anti-piracy. After the kidnapping of several Indian citizens by Somali pirates, the Indian navy stepped up its efforts after 2008 and escorted over 1,000 vessels across the Gulf of Aden, sometimes in cooperation with the European Union’s Mission Atalanta.

      Another domain that saw India at the forefront is UN peacekeeping missions. The Indian subcontinent has always been one of the leading suppliers of peacekeepers to UN missions, with 80% of them deployed in Africa. On top of that, Indian defense academies have provided training to the Nigerian, Ethiopian and Tanzanian military.

      Modi and the Challenge to China

      Modi has given further impetus to India–Africa relations. In July 2018, he outlined the 10 guiding principles of India’s engagement with Africa during a visit to Rwanda and Uganda. On that occasion, the prime minister leveraged India’s role in South-South cooperation to advance his credentials as leader of the developing world. Besides rhetoric, Modi moved from words to action by signing a defense agreement with President Paul Kagame of Rwanda and by extending two credit lines worth nearly $200 million to the Ugandan government. He also announced the opening of 18 new diplomatic missions in Africa by 2021, bringing the total to 47.

      The prime minister has placed a keen eye on East Africa, which is set to become the epicenter of the India–China confrontation. The Red Sea and the Gulf of Aden are essential maritime routes for India’s export-oriented economy. China is heavily investing along these two waterways through the “Belt and Road Initiative” (BRI), especially in the port of Djibouti and the Suez Canal.

      Djibouti is indeed becoming yet another element of the Chinese maritime network in the Indian Ocean, along with Pakistan, the Maldives, Sri Lanka, Bangladesh and Myanmar. This network, the so-called “String of Pearls,” geographically surrounds India and is perceived as a strategic nightmare in New Delhi. Therefore, the Chinese expansion in the western Indian Ocean urges India to intervene.

      To counter the BRI in the Indian Ocean, New Delhi launched a similar initiative for East Africa: the Asia-Africa Growth Corridor (AAGC). Conceived in 2016 and still at an early stage, this Indo-Japanese project will attract investments on development, quality infrastructure, institutional connectivity, capacity building and people-to-people cooperation to the region. Due to its anti-Chinese nature, the AAGC primarily targets contested countries like Djibouti and Ethiopia.

      In 2017, Indian President Ram Nath Kovind clustered both countries for his first official visit. At the time, Ethiopia was already the largest beneficiary of India’s scholarship scheme and lines of credit for Africa with $1.1 billion, besides being the scene of the 2011 India-Africa Forum Summit. Djibouti was a relatively new target for New Delhi. In the year of the visit, China opened its first overseas military base in Djibouti. Consequently, Kovind not only signed some cooperation agreements, but he also reportedly expressed India’s interest in a military base on Djiboutian soil, a project still under discussion.

      The geopolitical confrontation between India and China looms on the horizon. Africa — particularly the east — is set to become an arena of such a global, momentous challenge. India has economic, energetic and security reasons to deepen its relations with the continent. Furthermore, China’s ubiquitous presence in Africa and the Indian Ocean is a direct menace to Modi’s global ambitions. Although China is still out of reach, New Delhi’s engagement has been steadily expanding in all fields, and its approach based on soft power looks promising. The concepts of building Africa’s capacities and unleashing its potential, along with the employment of African workers instead of foreign labor like China, have resonated across the continent.

      On the one hand, East Africa is under India’s radar more than any other region of the continent for its strategic position. On the other, East African governments have a long track record of balancing off the influence of external actors. East Africa is also the region where India can rely on a robust diaspora community. Hence, India presents itself as a useful ally to balance China’s growing influence in the region.

      Finally, yet importantly, the US and the European powers might prefer New Delhi’s penetration into the continent at the detriment of China’s, which is perceived as a growing geopolitical threat to the West. East Africa, in sum, might soon become the new battleground of the economic and security confrontation between the two Asian giants.

      *[Fair Observer is a media partner of Gulf State Analytics.]

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More