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    Why Are the Indian and Chinese Economies Decoupling?

    Many experts argue India is the weaker power unable to take on China. In an article in Foreign Policy, James Crabtree argues that a trade war with China would be a bad idea for India. In his view, India’s “military is inefficient, underequipped, and dogged by procurement corruption scandals.” To develop its military strength, India needs a dynamic economy, and an “inward economic direction” would only benefit China in the long run. Therefore, an India–China decoupling is a terrible idea.

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    These analysts are wrong. Their argument against decoupling is based on three implicit assumptions. First, India is a deeply-divided country unable to act or respond decisively. Second, India is dependent on the Chinese economy for its growth. Third, China’s rise is inexorable and India has no option but to come to terms with it. These assumptions are true, but it is an error of judgment to treat them as unqualified truths.

    A Trip Down Memory Lane

    For Indians with longer historical memories than many of these experts, these arguments sound familiar. Anglo-Saxon publications have long hectored, advised and moralized on Indian issues. On July 5, 2014, the editorial board of The New York Times made a case against India’s membership of the Nuclear Suppliers Group. To be admitted, India needed “to sign the treaty that prohibits nuclear testing, stop producing fissile material, and begin talks with its rivals on nuclear weapons containment.”

    In response, Gurmeet Kanwal, a retired Indian brigadier-turned-defense analyst, called the editorial “partisan and condescending.” Some even saw it as neocolonial. He pointed to “the existential threat posed by two nuclear-armed states on India’s borders” that led India to develop its nuclear weapons capability. Kanwal argued that India had been a “responsible nuclear power” with a “positive record on non-proliferation” and had “consistently supported total nuclear disarmament.” In typical Sikh humor, he advised nuclear ayatollahs to focus on real proliferators and let go of the cap, roll-back and eliminate (CRE) stance they had adopted against India since the 1990s.

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    Just as India stood up to the US on the nuclear issue in the 1990s, it is capable of standing up to China in 2020. An India–China conflict is highly undesirable. Ideally, New Delhi and Beijing should be able to work something out over endless cups of tea. However, sanctimonious advice from foreign experts about dire consequences of an India–China decoupling has to be taken with a bucket, not a pinch, of salt.

    In 1998, India went nuclear despite dire predictions for its economy. Many in Washington assumed that India depended on the West for its economy. Barely seven years prior, India had experienced a serious financial crisis. The Gulf War and slowing exports to the US crippled an economy by rising deficits and increasing debt. The precipitous decline of the Soviet Union meant India no longer had a godfather to bail it out. So severe was India’s 1991 currency crisis that it had to pledge its gold reserves and liberalize its economy to get a bailout from the International Monetary Fund. In 1998, India was better off than in 1991 but certainly not in a strong position. Nuclear tests put it under immense pressure.

    At the UN, the Conference on Disarmament condemned Indian nuclear tests. In the preceding years, India had watched the West ignore the 1989 Tiananmen Square crackdown and fete China for its economic reforms. Condemnation for nuclear tests strengthened, not weakened, India’s response. It stood up to the West, ignored experts and upended nuclear apartheid. Today, India is again in a mood to defy experts and stand up to China.

    Like Love, Trade Is Complicated

    As troops amass on the India–China border, a full-scale economic war has broken out. It is leading to a structural break in the Indian economy. Both public opinion and political leadership is now committed to decoupling from China. In India, there is a ban on 59 Chinese apps by government authorities. Major trade bodies have formally announced boycotts of Chinese products. For instance, the Confederation of All India Traders (CAIT) has listed 3,000 such products. CAIT is a national umbrella organization with 40,000 smaller trade bodies and 70 million traders as members. The government has tightened country of origin rules for e-retailers and other sellers.

    Demand for Chinese products is declining. Xiaomi is no longer India’s top-selling phone. Samsung has replaced it. Increasingly, selling Chinese goods using Southeast Asian free trade agreements is becoming difficult. The existing business model of buying in China and selling in India is under pressure.

    In an additional twist, Indian tax authorities have conducted raids on Chinese companies and individuals for money laundering. It led to the arrest of a Chinese national. Apparently, he was married to a woman from India’s northeast border state of Mizoram, had spuriously obtained an Indian passport and been arrested earlier for espionage. It seems trade is not as simple as experts imagine it to be. Intelligence, influence and geopolitics are inextricably intertwined with trade, business and investment. In the India–China economic relationship, three largely forgotten factors are noteworthy.

    First, India enhanced trade ties with China not only for economic reasons but also geopolitical ones. Becoming a key market and investment destination for China was supposed to reduce the risk of conflict and wean Beijing off Islamabad. Aggressive Chinese actions have made India reconsider this strategy and change tack.

    Second, India’s manufacturing sector is reasonably well developed but has suffered from Chinese competition since China joined the World Trade Organization (WTO) in 2001. A 2018 parliamentary report concluded that Chinese imports were playing “a negative role for [India’s] domestic industry.” The report warned about the loss of jobs, an increase in bad debts for banks, a decline in tax revenues and a worrying dependence on China for critical products. It concluded that China does not play by WTO rules and “the problem of Chinese dumping is a matter of concern across the globe.”

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    India is not alone in having concerns about China’s abuse of WTO rules. A 2018 report to the US Congress expressed concern at “China’s continued embrace of a state-led, mercantilist approach to the economy and trade.” It detailed “substantial costs borne by WTO members as a result of China’s problematic trade regime” and  the challenges presented by its “non-market economic system.” Given China’s track record, there is a case to be made for India taking a more protectionist path.

    There is another tiny little matter. Protectionism has played a key role in industrialization for any latecomer. Furthermore, industrialization has been the key driver of economic growth. In a 2019 article, one of these authors observed that the first major act passed by Congress was the Tariff Act of July 4, 1789. Without protecting its infant industry, the US would not have emerged as an industrial power.

    Since 1978, China has followed the American playbook on steroids. It has powered through the largest and fastest industrialization in history. Its companies enjoy the advantages of infrastructure, cheap financing and political support. Therefore, they have been able to achieve economies of scale. As a result, Indian companies have been blown away. An India-China decoupling might give sectors from aerospace components to advanced pharmaceuticals a second chance.

    Third, Chinese imports into India are nice-to-have, not must-have, goods. Demand for them is elastic unlike the inelastic demand for energy from the Middle East and the US. An India-China trade war that leads to a decoupling of the two economies could lead to short-term pain but has a strong rationale for the longer term.

    The Shape of Things to Come

    In any case, experts forget that India is unlikely to turn entirely inward as it did after independence in 1947. Recently, billions of dollars have poured into India from the US. Reliance Jio, an Indian mobile internet company, raked in $15 billion in 10 weeks. This is indicative of a deeper trend. Given new geopolitical imperatives, India is now looking to boost economic ties with friendly powers. It wants Korean, Japanese, European and American firms to set up shop in the country. Foreign market players who can act nimbly would be in a good position to grab some of the approximately $60 billion China’s trade surplus with India. There are new investment, manufacturing and trading opportunities emerging as the status quo changes and a new order emerges.

    Many economists predict a short-term price shock as Chinese goods stop coming into the country. They forget that India has struggled with jobless growth even during the best of times. Decoupling with China could boost domestic manufacturing not only for large but also for medium and small industries. This would increase employment, tax revenues and even demand thanks to a multiplier effect. Improved job figures further increase political support for decoupling and decrease India’s need to subsidize agriculture so heavily. For decades, agricultural subsidies have put pressure on public finances. If a lower amount is spent on subsidies, pressure on the fiscal deficit would abate.

    To sum up, India has strong reasons to decouple and no longer consider WTO rules sacrosanct. A tectonic shift is underway. After World War II, a new rules-based order emerged. The end of the Cold War strengthened this order and led to visions that Western democracy was the final destination for all societies. With polarization and partisanship at home, Western democracies themselves are in peril. The order that emerged in 1991 is crumbling and a new one is about to emerge. History offers us lessons as to what to expect.

    In the past, India and China focused on their spheres of influence with the Himalayas keeping them apart. Both prospered. In this age of trade, peace and prosperity, a Chola empire based in the modern-day southeastern state of Tamil Nadu ruled Malaysia (Putrajaya), Indonesia (Srivijaya), Sri Lanka and the Maldives. The Middle Kingdom held sway over Mongolia, Korea and Japan. Both India and China could go back to sticking to their historic spheres and to trading with each other.

    At the moment, China has followed salami tactics and encroached on territory India claims as its own. China has also been meddling in Nepal, Myanmar and Sri Lanka, India’s key neighbors. Since  1963, China has been in a close alliance with Pakistan. Yet China has never played a role in the Indian subcontinent and cannot suddenly turn into an overlord here. Therefore, close India-China economic ties no longer make strategic sense.

    Additionally, China disingenuously claims to meet India halfway while insisting that the onus to improve the border situation lies entirely with its neighbor. This is a one-way, not halfway, diplomacy that suggests aggressive intent. The Chinese also seem determined to win the war of narratives and are enlisting the support of free market ayatollahs to do so. It is only natural that the Indian narrative is bound to be different. It is in sync with the new realities of the day, which drive India’s decision to decouple its economy from China. Trade, investment and deep economic ties are a jolly good thing with allies and friends, not with rivals and foes.

    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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    India and China: A Time for Diplomacy, Not Confrontation

    Chinese and Indian forces have pulled back from their confrontation in the Himalayas, but the tensions that set off the deadly encounter this past June — the first on the China–India border since 1975 — are not going away. Indeed, a poisonous combination of local disputes, regional antagonisms and colonial history could pose a serious danger to peace in Asia.

    In part, the problem is Britain’s colonial legacy. The “border” in dispute is an arbitrary line drawn across terrain that doesn’t lend itself to clear boundaries. The architect, Henry McMahon, drew it to maximize British control of a region that was in play during the 19th-century “Great Game” between England and Russia for control of Central Asia. Local concerns were irrelevant.

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    The treaty was signed between Tibet and Britain in 1914. Although India accepts the 550-mile McMahon Line as the border between India and China, the Chinese have never recognized the boundary. Mortimer Durand, Britain’s lead colonial officer in India, drew a similar “border” in 1893 between Pakistan (India’s “Northern Territories” at the time) and Afghanistan that Kabul has never accepted, and which is still the source of friction between the two countries. Colonialism may be gone, but its effects still linger.

    Although the target for the McMahon Line was Russia, it has always been a sore spot for China, not only because Beijing’s protests were ignored, but also because the Chinese saw it as a potential security risk for its western provinces. England had already humiliated China in the two Opium Wars as well as by seizing Shanghai and Hong Kong. If it could lop off Tibet — which China sees as part of its empire — so might another country… like India.

    A Threat to China?

    Indeed, when Indian Prime Minister Narendra Modi unilaterally revoked Article 370 of the Indian Constitution and absorbed Jammu and Kashmir in 2019, the Chinese saw the grab as a threat to the security of Tibet and its restive western province of Xinjiang. The area in which the recent fighting took place, the Galwan Valley, is close to a road linking Tibet with Xinjiang.

    The nearby Aksai Chin, which China seized from India in the 1962 border war, not only controls the Tibet-Xinjiang highway, but also the area through which China is building an oil pipeline. The Chinese see the pipeline — which will go from the Pakistani port of Gwadar to Kashgar in Xinjiang — as a way to bypass key choke points in the Indian Ocean controlled by the US Navy.

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    The $62-billion project is part of the China-Pakistan Economic Corridor, a piece of the huge Belt and Road Initiative to build infrastructure and increase trade between South Asia, Central Asia, the Middle East, Europe, and China.

    China moves 80% of its oil by sea and is increasingly nervous about a budding naval alliance between the United States and Beijing’s regional rivals, India and Japan. In the yearly Malabar exercises, the three powers’ war-game closes the Malacca Straits through which virtually all of China’s oil passes. The Pakistan-China pipeline oil will be more expensive than tanker supplied oil — one estimate is five times more — but it will be secure from the US.

    In 2019, however, Indian Home Minister Amit Shah pledged to take back Aksai Chin from China, thus exposing the pipeline to potential Indian interdiction.

    From China’s point of view the bleak landscape of rock, ice and very little oxygen is central to its strategy of securing access to energy supplies. The region is also part of what is called the world’s “third pole,” the vast snowfields and glaciers that supply the water for 11 countries in the region, including India and China. Together, these two countries make up a third of the world’s population but have access to only 10% of the globe’s water supplies. By 2030, half of India’s population — 700 million people — will lack adequate drinking water.

    The “pole” is the source of 10 major rivers, most of them fed by the more than 14,000 thousand glaciers that dot the Himalayas and the Hindu Kush. By 2100, two-thirds of those glaciers will be gone, the victims of climate change. China largely controls the “pole.” It may be stony and cold, but it is the lifeblood to 11 countries in the region.

    Back in Time

    The recent standoff has a history. In 2017, Indian and Chinese troops faced-off in Doklam — Dongland to China — the area where Tibet, Bhutan and Sikkim come together. There were fistfights and lots of pushing and shoving, but casualties consisted of black eyes and bloody noses. But the 73-day confrontation apparently shocked the Chinese. “For China, the Doklam stand-off raised fundamental questions regarding the nature of India’s threat,” says Yun Sun, a senior fellow at the Stimson Center in Washington.

    Doklam happened just as relations with the Trump administration were headed south, although tensions between Washington and Beijing date back to the 1998-99 Taiwan crisis. At that time, President Bill Clinton sent two aircraft carrier battle groups to the area, one of which traversed the Taiwan Straits between the island and the mainland. The incident humiliated China, which re-tooled its military and built up its navy in the aftermath.

    In 2003, President George W. Bush wooed India to join Japan, South Korea and Australia in a regional alliance aimed at “containing” China. The initiative was only partly successful, but it alarmed China. Beijing saw the Obama administration’s “Asia pivot” and the current tensions with the Trump administration as part of the same strategy. If one adds to this the US anti-missile systems in South Korea, the deployment of 1,500 Marines to Australia and the buildup of American bases in Guam and Wake, it is easy to see why the Chinese would conclude that Washington had it out for them.

    China has responded aggressively, seizing and fortifying disputed islands and reefs, and claiming virtually all of the South China Sea as home waters. It has rammed and sunk Vietnamese fishing vessels, bullied Malaysian oil rigs and routinely violated Taiwan’s airspace.

    China has also strengthened relations with neighbors that India formally dominated, including Sri Lanka, Bangladesh, Nepal and the Maldives, initiatives which India resents. In short, there are some delicate diplomatic issues in the region, ones whose solutions are ill-served by military posturing or arms races.

    The dust-up in the Galwan Valley was partly an extension of China’s growing assertiveness in Asia. But the Modi government has also been extremely provocative, particularly in its illegal seizure of Jammu and Kashmir. In the Galwan incident, the Indians were building an airfield and a bridge near the Chinese border that would have allowed Indian armor and modern aircraft to potentially threaten Chinese forces.

    Dangerous Thoughts

    There is a current in the Indian military that would like to erase the drubbing India took in its 1962 border war with China. The thinking is that the current Indian military is far stronger and better armed than it was 58 years ago, and it has more experience than the Chinese People’s Liberation Army. The last time the Chinese army went to war was its ill-fated invasion of Vietnam in 1979.

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    But that is dangerous thinking. India’s “experience” consists mainly of terrorizing Kashmiri civilians and an occasional firefight with lightly-armed insurgents. In 1962, India’s and China’s economies were similar in size. Today, China’s economy is five times larger and its military budget four times greater.

    China is clearly concerned that it might face a two-front war: India to its south, the US and its allies to the west. That is not a comfortable position, and one that presents dangers to the entire region. Pushing a nuclear-armed country into a corner is never a good idea.

    The Chinese need to accept some of the blame for the current tensions. Beijing has bullied smaller countries in the region and refused to accept the World Court’s ruling on its illegal occupation of a Philippine reef. Its heavy-handed approach to Hong Kong and Taiwan, and its oppressive treatment of its Uighur Muslim minority in Xinjiang, is winning it no friends, regionally and internationally.

    There is no evidence that the US, India and China want a war, one whose effect on the international economy would make COVID-19 look like a mild head cold. But since all three powers are nuclear-armed, there is always the possibility — even if remote — of things getting out of hand.

    In reality, all three countries desperately need one another if the world is to confront the existential dangers of climate change, nuclear war and pandemics. It is a time for diplomacy and cooperation, not confrontation.

    *[This article was originally published by FPIF.]

    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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    India Must Abandon Nehru’s Failed Non-Aligned Policy to Confront China

    Troops from India and China have clashed this year in Ladakh and North Sikkim at the border between the two countries. Although there are immediate reasons for the clash, the deeper causes of India’s border disputes with both China and Pakistan are its post-independence historic blunders. India has catastrophically failed to establish, delineate and demarcate its boundaries when it was in a position to do so.

    Jawaharlal Nehru, the first Indian prime minister after independence in 1947, was a man of the leftist mold and so were many of his confidantes. They ignored reports of Chinese atrocities and progressive occupation of Tibet sent by Sumal Sinha, the Indian consul general in Lhasa, and Apa Pant, the dewan, the de facto prime minister, of the Himalayan kingdom of Sikkim, which at that time was a protectorate and is now a state of India.

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    Two influential Indians emerge with much discredit. One is V.K. Krishna Menon, India’s defense minister from 1957 to 1962, who resolutely maintained that India had nothing to fear from China. The other is K.M. Panikkar, India’s ambassador to China from 1950 to 1952, whose advice “proved to be unwise.” Panikkar persuaded Nehru to recognize China’s sovereignty over Tibet when Mao Zedong’s People’s Liberation Army (PLA) took over this de facto independent buffer state in October 1950. The historian T.R. Ghodbole records that Panikkar “advised Nehru not to raise the border issue” with China as the price for accepting the conquest of Tibet.

    One Indian leader shines in contrast. Sardar Vallabhbhai Patel, India’s first home minister and Nehru’s deputy, was prescient about the Chinese threat. He wrote a now well-known letter, to the prime minister, calling Chinese action “little short of perfidy.” Patel, a Gandhian from the right of the Indian National Congress party, argued that Chinese irredentism and communist imperialism were “ten times more dangerous” than Western expansionism or imperialism because it wore “a cloak of ideology.” The wise home minister died soon after writing this letter. Now, Indian policy was firmly in the hands of leftist ideologues who failed to take any of the steps he advocated to safeguard the country’s security interests.

    Misunderstanding China and Abandoning Tibet

    Nehru soon embarked on his misconceived policy of non-alignment. He wanted to be the moral leader of the Third World who pioneered a policy of peace in contrast to the militaristic policies of imperial powers. As a result, India failed to build up its own capabilities to defend its sovereignty and territorial integrity. Nehru forgot to heed the Roman doctrine that if “you want peace, be prepared for war; therefore, let him who desires peace get ready for war.” He also forgot the ancient Indian strategist Chanakya who postulated that “every neighbor is a potential enemy and an enemy’s enemy is a friend.”

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    It was this complete absence of strategic thinking that led to the debacle in Tibet in 1950. Even as China was building up its strength and repudiating so-called unequal treaties imposed by imperial powers, Nehru was content to swan around on the world stage as a moral, peaceful beacon for the world. It was this naive thinking that led the country to take the issue of Kashmir to the United Nations and fail to press home its military advantage in 1948. Back then, India was in a position to claim the entire state of Jammu and Kashmir, including the parts that China now controls.

    India failed to understand China’s worldview. Henry Kissinger, the former US secretary of state under President Richard Nixon, had his finger on the Chinese pulse in his book, “World Order.” He observes that China has considered itself as “the sole sovereign government of the world’ since its unification in 221 BC. It did not consider other monarchs as equal. They were mere “pupils in the art of governance, striving towards civilization.” The Chinese emperor commanded “all under heaven,” tianxia in Chinese parlance. China forms the central, civilized part, “the Middle Kingdom” of tianxia. It is supposed to inspire and uplift the rest of humanity.

    Chinese President Xi Jinping is the son of an ardent Maoist. Like Mao, he has emerged as a modern-day Chinese emperor. Xi has reintroduced this idea of tianxia. His first act when he became the leader of the Chinese Communist Party (CCP) in 2012 was to visit the Museum of Revolution. There he declared that China was ready to be a world leader “because of its 5,000-year-old history, the CCP’s 95-year historical struggle and the 38-year development miracle of reform.” This is the danger that Patel foresaw but Nehru did not.

    In 1950, India could have prevented the Chinese takeover of Tibet. It could have strengthened its garrison in Lhasa instead of withdrawing its troops, used its air force and supported the poorly equipped Tibetan forces. China was isolated internationally in the 1950s. The Western powers were anti-communist and did not like Chinese interference in Vietnam. China’s relations with the Soviet Union spiraled downward after 1955. India failed to build a coalition against China even when the West had shown interest in supporting the Tibetans. Indeed, as Atul Singh, Glenn Carle and Vikram Sood record in a detailed article on Fair Observer, India inexplicably turned down a permanent seat at the United Nations Security Council.

    Once China conquered Tibet, it was at India’s doorstep. In the 1950s, it stealthily took over 37,244 square kilometers of Aksai Chin and built a road connecting southern Tibet to Xinjiang. It also started claiming large chunks of Indian territory such as Arunachal Pradesh and parts of Ladakh. Indeed, the Chinese claim line extends right up to the plains of Assam.

    Singh, Carle and Sood have examined in some detail the various boundaries the British drew as their boundary with the Qing. China was in turmoil after its revolution of 1911-12 and Tibet was de facto independent. It was a buffer state where the British had many strategic assets, which India inherited but soon gave up to China. Released files of the Central Intelligence Agency reveal the extent of Nehru’s capitulation to Mao. India signed a treaty with China and inexplicably agreed to withdraw troops from Tibetan towns of Yatung and Gyantse, which were mainly trading posts, and also wind up the garrison in Lhasa. It handed over control of postal, telegraph and telephone facilities to the Chinese.

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    None of these concessions satisfied the Chinese. Instead, these missteps whetted the appetite of a resurgent Middle Kingdom. China did not accept any of the lines the British had drawn on the map and kept claiming more and more of Indian territory. Finally, war ensued. In 1962, China handed India a devastating defeat that continues to haunt the country to this day.

    The two countries severed diplomatic relations after the war. They restored them only in 1984. Since then, they have conducted several rounds of negotiations and signed several agreements but never been able to agree to define and demarcate the line of actual control (LAC), the de facto line dividing Indian and Chinese territory, or agree upon an international boundary. Despite India’s repeated efforts to get the LAC demarcated, the Chinese have been intransigent. It is far too convenient for them to have an undefined LAC, which allows them to alter it for strategic advantage whenever they have an opportune moment.

    China’s Expansionist Policy and Indian Response

    Chinese intransigence is the key reason why the two countries have been unable to come to an agreement. In 1960, Zhou Enlai, the Chinese premier, proposed formalizing the status quo. He suggested India keep what is now called Arunachal Pradesh while China would retain Aksai Chin. Later, Deng Xiaoping reiterated Zhou’s position. In 1962, Chinese troops largely withdrew from Indian territory and even vacated the strategic town of Tawang, a great center of Buddhist learning and pilgrimage.

    As per these actions, one could infer the Chinese took what they want. Sadly, this is not true. The Chinese have been consistently and persistently moving the goalposts. China now refuses to accept the McMahon Line in Arunachal Pradesh as the international boundary and is claiming Tawang again on the ground that the sixth Dalai Lama was born here. It is important to remember that the border alignment agreed by China with Myanmar follows roughly this very line.

    China has been constantly upgrading its military and building up its border infrastructure. It has also been breaching all the agreements that it signed with India. The only exception is the exchange of maps relating to the middle sector bordering the Indian state of Uttarakhand in 2005.

    This year, China has displayed unusual belligerence far exceeding past practices. It has exerted pressure in both North Sikkim and Ladakh. The proximate reason lies in India belatedly boosting its border infrastructure. It has built the world’s highest airfield at Daulat Beg Oldi (DBO). An all-weather road now goes east from Leh, the capital of Ladakh, to Durbuk and then further east to the Shyok river, from where it turns north and runs all along the LAC right up to DBO. This airfield sits at the base of a historic pass through the Karakoram and gives India access to Central Asia. It is also close to the strategic Siachen Glacier where India controls the commanding heights and dominates Pakistan.

    For decades, India neglected its border infrastructure. Defeat to China in 1962 scarred the country. Its policymakers went into a defeatist mindset. They thought good roads would be used by the Chinese to speed into Indian territory while rugged undeveloped terrain would slow down Chinese advance. Domestic organizations and foreign private companies have now dramatically altered the ground situation, especially in the western sector. This has made China nervous. It feels the China-Pakistan Economic Corridor (CPEC) — a trade route that is important for Beijing’s Belt and Road Initiative and its geopolitical strategy in South Asia — might be under threat. Indian troops could block off its access to Gilgit-Baltistan.

    Possibly as a reaction, Chinese troops have been pressing at strategic points on the Ladakh border such as Gogra Hot Springs, Depsang Bulge, Galwan Valley and Pangong Tso Lake. They want to make sure that the road India has built to its airfield at DBO comes within range of Chinese gunsights. Nibbling Indian territory has been the general strategy for a long time. The Chinese are infamous for following “salami tactics” not only with India but also with other neighbors like Vietnam or Japan.

    Increasingly, China appears to be unnerved by India’s strategic direction. In 2017, New Delhi was firm in defending Bhutan’s territory in Doklam Plateau, which China lays claim to. India has strengthened ties with Australia, the European Union and the US. The specter of the Quad, an alliance of India, Japan, Australia and the US, blocking the Straits of Malacca — an international waterway — haunts China. In particular, China fears that the US is backing India to be a counterweight to China in Asia.

    Under President Xi, China has been increasingly aggressive on its borders. It has also been repressive internally. China has tightened the screws on Hong Kong, Tibet and Xinjiang. The Belt and Road Initiative is another example of Chinese expansionism.

    China’s recent belligerence might come from a deep sense of insecurity due to several recent developments. The US has unleashed a trade war that has hit China’s export-oriented economy hard. Furthermore, capital and manufacturing have been moving to Indonesia and Vietnam. India has now made a play for that capital as well. In addition, Western countries have criticized China for its domestic as well as external actions. The COVID-19 pandemic has blotted its record and lowered its global image. India has supported the US in calling out China on its suppression of information about the pandemic and in instituting an inquiry into the origins of the COVID-19 disease.

    India has long borne the brunt of Chinese aggression. It has never raised the issue of an independent Tibet in the international arena. It was the first non-socialist country to recognize China. Yet China has consistently acted against India’s interests. It has used Pakistan as a proxy against India. Beijing has even provided nuclear technology and fissile material to Islamabad. It blocks India’s membership of the Nuclear Suppliers Group, an organization of nuclear-supplier countries. It has built a port in Sri Lanka and instigated the communist government in Nepal to act against India’s interests.

    The time has come for India to stand up to China’s bullying. The nation cannot allow China to keep gobbling up Indian territory. India has to keep modernizing its military, building up its border infrastructure and developing closer ties with other nations threatened by China. Most importantly, India has to recognize that China is its principal strategic enemy, both in the short and the long term. Therefore, India has no option but to cast off its failed non-aligned policy and ally with the US against China. Only a full-fledged military alliance between the world’s two largest democracies will deter the world’s biggest tyrannical regime.

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