[Solved] 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 GS-2 Mains 2017)

[Solved] 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 GS-2 Mains 2017)

China has used its tremendous economic achievement in increasing its geo-political role around the world. It is using its Belt and Road initiative and Maritime Road Initiative along with a positive balance of trades to influence countries in their economic as well as political decisions.

 Impact on India-


 • The rising China is leading towards geographic and economic encirclement of India.

 • China’s presence in Djibouti nation, development of Chittagong port in Bangladesh, Kyaukpyu port in Myanmar, Hambantota port in Sri Lanka and Gwadar Port in Pakistan is leading towards a string of pearls encircling India from all sides.

 • It is extending its boundaries in South China Sea (Senkaku islands in Japan) and thereby, restricting the right to navigation of all countries.

 • The proposed BRI passes through Pakistan- dominated Kashmir challenging our sovereignty.


 • It is dumping a number of products in Indian market at ultra-low prices to hurt the indigenous industries.

 • India suffers a huge trade deficit with China- around 51 billion dollars.

 • China is funding a lot of infrastructural projects in Asia and Africa under its BRI initiative which may lead to subjugating their economy to Chinese economy that can further be used to harm India in future.


 • The recent Doklam episode showed no initiative on the part of China for preventing a stand-off from escalating into a war.

 • It vetoed the inclusion of Majhood Azhar in the list of international terrorists. This gives encouragement to the terror organisations posing security threat to India.

 • Rising China is leading to decrease in the stature of India in its neighbourhood. The Nepal blockade put China in limelight whereas maligned India’s relation with Nepal.

Sovereignty challenges

 China’s stupendous growth has allowed it to flex its military muscle and try to overpower its adversaries. China is likely to pursue Arunachal Pradesh issue more aggressively to show its dominance.

 Internal security challenges

 China is known to indulge in internal matters of its neighbours more often than not. This feature has been observed in Myanmar and Vietnam where it armed the rebels. Similar steps can be expected in case of India where it will try to fund North-eastern insurgency and Naxalites to create internal disturbance.

 External Security challenges

 China’s string of pearls doctrine intends to surround India’s coastal fronts from all sides in order to reduce its dominance in Indian Ocean Region. This region is one of the major shipway for goods across the globe and China’s interference will have implications on trade security as well.

 Economic challenges

  • The decision by International Court of Justice was not accepted by China. This is also a dangerous precedent for India.
  • India should work towards balancing China and improving its relations with all the nations. It should act vigorously on its frontier region development, military modernisation and regional economic integration etc to deal with rising China.
  • China has emerged both as an economic and a military powerhouse. It has a trade surplus with most of the countries in Asia including India. China’s economic initiatives like One Belt One Road (OBOR) and Maritime Silk Road (MSR), though promoted primarily as economic initiatives have strategic undertone.
  • India faces large trade deficit with China due to unequal distribution of trade. China has the ability to create economic imbalances by indulging in activities such as market capture, dumping etc along with weakening domestic currency.
  • India is doing around $70 billion trade with china with deficit of around $ 40 billion. It is not the case with just India but most of Asian and other global countries also. With such huge deficit countries literally depending on china even for their regular use and essential products
  • . On the name of economic aid it is splendid its huge forex reserves in developing infrastructure projects, ports, military bases in the Indian ocean countries. Because of such huge debts and trade deficits these countries could not raise their genuine concerns.
  • With this china is growing aggressively in this region. It is encircling India with its military and economic power .
  • OBOR, string of pearls are some of the schemes which are becoming bit of concern to India as it is threatening its sovereignty on both land (CPEC passes through POK) and maritime(Indian ocean). Chinese warships and submarines frequently visiting the Indian Ocean on the name of anti-piracy operations.
  • China wanted to enter into Indian sub-continent group called SAARC. Even engaging with Nepal, China wanted to counter the influence of India. So our own geo political, strategic, economic, security interests are bit of concern with such type of activities of china.

 Possible impact of China’s rise on India are–

  • China could emerge as a direct military threat to India as has been seen in the recent Doklam standoff and other border disputes.
  • In face of rising assertion in the international affairs, China could hamper India’s interest in multilateral forums like UNSC and those initiated by Beijing like Asian Infrastructure Investment Bank.
  • Growing economic cooperation between China and Pakistan could be seen as a policy to contain India. This is evident from China Pakistan Economic Corridor (CPEC) which has potential to emerge as a threat to India.
  • China’s deepening relation with South Asian countries, where China is involved in infrastructure building, poses significant challenge to India’s position in the region. At present China has more say in this region where India had strong hold in the past.
  • China’s rising economic influence in Asia will allow Beijing to spread its influence in the entire region, which could be used to India’s detriment. In face of these challenges, India’s policy response must focus on building indigenous military power and forging regional cooperation at the same time.

It is necessary to be vary of Chinese intentions when indulging in interaction with them. But it is also necessary to make use of various benefits that China offers such as technological solutions, market for Indian goods etc. It is therefore necessary to balance both the sides going forward.

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