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The new prospects of the Communist Party of China

Giancarlo Elia Valori

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The Communist Party of China (CPC) – in the phase in which it is governed by Xi Jinping and by Prime Minister Li Kekiang – is changing rapidly. This is a geopolitical and strategic factor of great importance also for Europe and the United States.

 Just a few years before its centennial, the Party founded in Shanghai in 1921 is still a “hircocervus”, both for the Communist tradition resulting from the Third International and for the evolution and, sometimes, the disappearance of the Communist Parties in power in the Soviet Union, in its Eastern European satellite countries and in many Asian countries.

 Indeed, the CPC is both a large mass Party and a political organization that, following the Third International’s tradition, presides over the State and defines its political direction.

 Lenin thought of a small Party of militants and officials who developed the policy line and, through the State, imposed it on society.

 In fact, in the Soviet Union, the CPSU destroyed itself by entering civil society. Conversely, in China, the CPC grows stronger by acquiring and selecting the best elements of society and representing the great masses inside and above the State.

 We can here recall the sarcastic smiles and the biting jokes that the CPC leaders –  and, at the time, the Deng Xiaoping of the “Four Modernizations” was already in power – reserved for Gorbachev paying an official visit to China while the “Tien An Mien” rebellion of the students who wanted “democracy” was underway.

 As is well-known, the repression was very harsh. The CPC does not delegate to others the power to reform the Chinese society.

 Hence a Party like the CPC, which is fully traditional in its relationship with the State and the masses, appears to be completely new in turning itself into a mass organization, thus also remaining the source for legitimacy of the Chinese State.

 The Chinese official sources tell us that, when it was founded in 1921, the Party counted only fifty members.

 Today – considering that the CPC has been able to understand the new phase of globalization – it counts 87.7 million members, one every sixteen Chinese citizens.

 More than the population of the whole Germany.

 75% of the current members are male; 43% have at least a high school diploma; 30% are farmers, shepherds and fishermen; 25% are employed, 18% are retired, but only 8% are civil servants.

 On the contrary, the 50 or more probably 57 founding members of the CPC in Shanghai were all members of the ruling classes, with 27 students, 11 journalists and 9 professors.

 In 1949, when the Chinese Communist Party was already controlled by Mao Zedong and took power by wiping out the nationalists, the members were almost four millions.

 From the outset the CPC has chosen the best of the Chinese society, by changing its targets year after year: sometimes intellectual elites or, in other years, rural masses and working classes.

 The traditional dilemma of “Red” versus “Expert” that the CPC would never solve, not even in the harshest moments of the “Great Cultural and Proletarian Revolution”.

 With Deng Xiaoping, who put an end to the phase of the “Red Guards”, by often sending them to terrible work camps, the CPC reached a 50% of technicians, specialists, teachers and “experts”.

 Currently the university students are 40% of the Party’s new recruits.

 A CPC that does not renounce at all to be a mass Party, but also organizes the elites: it is one of the most significant traits of what the Chinese leaders called “Socialism with Chinese characteristics”.

 Furthermore, Xi Jinping no longer wants a Party “taking everyone on board” or joining militants without qualifications, but he tends to gradually turn the CPC into a more selective organization than it currently is.

 The selection is always conducted silently by the Party that listens to the candidates’ friends and colleagues and asks them whether they are “frugal”, “honest” and “correct”.

  For the sources of the CPC inspectors, silence and secrecy are a must.

 Otherwise, the Party will “not forget this.”

All State companies and all foreign companies have a Party unit inside them and this allows better relations between companies and State power.

 Hence if we were to analyze the CPC according to Giovanni Sartori’s modern theory of political Parties, we should say that the Chinese Communist Party is both a “social brokerage body” and a “mechanism of representation”.

 The Soviet Communist Party (CPSU) collapsed because it played only a social brokerage role, but was not representative, while the CPC is expanding because it plays both roles effectively.

 The goal set by Xi Jinping is to create a “moderately prosperous society”.

 It is the evolution of Xi Jinping’s theory of the “Four Comprehensives” announced in early 2015.

 The Four-pronged Comprehensive Strategy is based on the following Four Comprehensives: “comprehensively build a moderately prosperous society”; “comprehensively deepen reform”; “comprehensively govern the nation according to law” and “comprehensively strictly govern the Party”.

 It is worth recalling that moderate prosperity is a fully Confucian concept. Said moderation is that of the equilibrium of man’s faculties and of the relationship between mind and desire. It is not an anti-Epicurean “moderation” in the Western sense.

 Hence the primary factor is prosperity.

  According to the usually reliable Chinese official statistics, over the past thirty years 700 million Chinese have come out of poverty.

 Currently this happens mainly in rural areas, after Deng Xiaoping’s dismantling of rural communes – indeed, the First Modernization was the agricultural one.

 Chinese farmers, however, account for 56-68% of the total population or for 12-14% of the world’s population.

 Nevertheless Deng’s modernization of rural areas did not fully work and, in the early 1990s, the Chinese rural society was still stratified, impoverished and characterized by low productivity, while the cities grew disproportionately and weighed ever more on rural resources.

 Cities and rural areas, the two terms of Mao Zedong’s theory both within Communist China and in foreign policy – the two extreme of the Third International’s eternal dilemma, from the 1932-33 rural crises in Ukraine until Stalin’s famine of 1950.

 Hence Xi Jinping, who knows that the crisis of the Chinese rural world has certainly not disappeared with the semi-privatization of land and prices, has sent 770,000 officials and Party leaders to Chinese rural areas to eradicate poverty and hence stabilize said areas even politically and socially.

 This avoids the excess of rural population reforming a kind of Lumpenproletariat in the urban suburbs.

 With terrible effects on China’s political and social stability.

 A society with excessive income differences is never “harmonious” – just to use a Confucian concept that has now become typical of the CPC.

 And the operation has worked – at least for the time being.

 In fact, from 2013 to 2016, other 56 million people living in rural areas  came out of poverty – and the process to which Xi Jinping attaches particular importance is going on.

 With a view to having a CPC functioning as a backbone of the State and, at the same time, of civil society, corruption must be eradicated – as we have seen since Xi Jinping has been in power.

 Approximately one million Party officials punished, in various ways, for corruption until 2016 and as many as 210,000 already punished in 2017 alone.

 Currently Xi Jinping is the ultimate arbiter of the Party and its members’ careers – perhaps even Mao Zedong never had such power.

 However, instead of destroying all his competitors, Xi Jinping is creating a new blood of young executives, all coming from the CPC, who will quickly replace the old satraps of bureaucracy.

 Besides repressing corruption however, the mechanism of political scrutiny needs to be renewed and strengthened, as the CPC is doing.

 Created when the CPC was founded, the Central Commission for Discipline Inspection (CCDI) has always had very strong power, but it was abolished in 1969 following the Party’s well-known internal struggles.

 It was revived in 1977 and – as happened since 1949 – it has been included  in the Party Constitution.

 Even before Xi Jinping’s rise to power, from 1982 to 1986 the Central Commission for Discipline Inspection expelled 25,000 Party members and imposed a series of disciplinary sanctions on other 67,000 CPC members.

 A structure that has never reduced its specific powers and is the arbiter of the main careers inside the Party and the State.

 In Xi Jinping’s mind the fight against corruption – which, with his leadership, has reached unimaginable levels and has hit high-ranking executives, such as Bo Xilai and Ling Jihua – the cleansing inside the Party combines with the refoundation of the Party’s working style and the strengthening of internal discipline.

The Politburo’s “Eight Guidelines” of December 2012 already pointed to a sober and modest lifestyle for all officials and leaders. Furthermore, Li Keqiang has imposed new standards for the transparency of public budgets and reduced the number of government approvals and authorization for spending, thus eliminating evident possibilities of generating bribes.

 Currently the CPC inspectors are included – often secretly – in all government bodies and in all regional and local structures.

 The system is such that the inspectors are directly responsible for the mistakes or “oversights” of the various Party and government members’ behaviours.

 Before Xi Jinping’s rise to power (and before Wang Qishan, his anti-corruption Chief) the incentives to national or local officials and leaders were based on reaching specific economic targets. Nowadays the granting of cash prizes or of career advances is linked to the overall behaviour of officials and, above all, to their honesty – which overlaps with loyalty and  obedience to the Party, the Central Committee and, obviously, Xi Jinping’s line.

 Moreover the inspections have the strictly political purpose of safeguarding the Central Committee’s joint and centralized authority and leadership.

 Xi Jinping knows all too well that any corruption activity is a de facto form of secession from the “political centre” – as demonstrated by the studies on organized crime in the South of Italy.

 Hence return to the Party’s centralism, without the “federalist” nonsense that is destroying Europe; maintenance of the CPC leadership role on the whole Chinese society and of Xi Jinping’s role as undisputed leader of the  Communist Party of China.

 Three factors which are closely interwoven.

 So far there have been 12 cycles of inspections within the Party – inspections regarding the CPC organizations at all levels, State companies, banks and financial companies, as well as  universities.

 The revision of part of the Constitution has started from this process of  political and moral restructuring.

 The next 19th National Congress will constitute the last and final Sinicization of Marxism.

  A stronger and more authoritative CPC, but, above all more integrated in civil society – and here is the novelty compared to the Third International’s Western tradition.

 Hence development of Socialism “with Chinese characteristics”, which  means Socialism in a society that has not been industrialized by the national bourgeoisie, but by foreigners – a society which is largely rural,  while Marxism thinks above all of industrial workers (that is highly traditional), while Western socialism has inherited the most radical aspects of the bourgeois Enlightenment.

 The aim of this CPC exercise – made authoritative by the struggle against corruption – is that of Xi Jinping’s “moderately prosperous” society, namely a balanced progress of the economy and of political organization, as well as of the cultural, social and environmental evolution.

 Hence self-control of the Party, and – for the first time in the CPC history – reaffirmation of a typical concept of the Western political tradition, namely the “rule of law”.

 As recently stated by Xi Jinping at the Interpol General Assembly in Beijing on September 26 last, China’s inclusion in Interpol is a tool for building a world integrated collective security system both strategically and for the repression of personal crimes and offences.

 The new security – and here Xi Jinping spoke of international policy between the lines – shall be common, global, cooperative and sustainable in the future.

 Hence support for the security of developing countries and perception by all actors of the others’ interests.

 We could speak here of Confucian geopolitics.

 Thinking also of the others is not a difficult process. The issue lies in changing the thinking style and putting ourselves in other people’s shoes, to avoid excessive reactions and, above all, dangerous for the best interest of nations, i.e. world stability.

Hence, stability and security at internal level, with the centralization and moralization of the CPC; security and stability in the international context, with Xi Jinping vigorously defending globalization in Davos, against the resurgence of economic nationalism in the United States; security and centralization of the Chinese interests in Central Asia, which will soon become the launching pad of China as great global power, far beyond its already significant economic potential.

Advisory Board Co-chair Honoris Causa Professor Giancarlo Elia Valori is an eminent Italian economist and businessman. He holds prestigious academic distinctions and national orders. Mr. Valori has lectured on international affairs and economics at the world’s leading universities such as Peking University, the Hebrew University of Jerusalem and the Yeshiva University in New York. He currently chairs “International World Group”, he is also the honorary president of Huawei Italy, economic adviser to the Chinese giant HNA Group. In 1992 he was appointed Officier de la Légion d’Honneur de la République Francaise, with this motivation: “A man who can see across borders to understand the world” and in 2002 he received the title “Honorable” of the Académie des Sciences de l’Institut de France. “

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East Asia

Nepal-China Boundary Treaty: An example of peaceful Himalayan frontiers

Birat Anupam

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image source: Chinese Embassy in Nepal

Chairman Mao: How is everything with Your Excellency? Have all the problems been solved?

King Mahendra: Everything is settled.

Chairman Mao: Fair and reasonable?

King Mahendra: Yes. We all agree.

Chairman Mao: It is good that we agree. There is goodwill on both sides. We hope that will get along well, and you hope we shall get along well too. We do not want to harm you, nor do you want to harm us.

King Mahendra: We fully understand.

Chairman Mao: We are equals; we cannot say one country is superior or inferior to the other.

King Mahendra: We very much appreciate the way of speaking.

This was a snippet of the candid conversation between founding father of People’s Republic of China Mao Zedong and Nepal’s the then king Mahendra on the historic Nepal-China Border Treaty day of 5 October 1961. A book titled ‘MAO ZEDUNG ON DIPLOMACY’ has detailed this conversation. The conversation is mentioned under the topic of ”Talk with Nepal’s king Mahendra Bir Bikram Shah Deva and the queen’ (page 366 and 367) in the book.

This famous diplomatic book of Mao was compiled by The Ministry of Foreign Affairs of the People’s Republic of China and the Party Literature Research Center under the Central Committee of the Communist Party of China and was published by Foreign Languages Press Beijing on 1998.

This conversation, from the verbatim records, speaks volumes about the level of trust and the height of friendship between two neighbors Nepal and China.

Nepal-China boundary: An example of speedy settlement

Nepal and China boundary settlement has reached 59 years of its signing ceremony at Beijing. It is an extraordinary example of speedy settlement. Nepal and China formally established diplomatic relationship on 1 August 1955.

Few years later on 21 March 1960, Nepal and China signed Boundary Agreement. Nepal’s first democratically elected Prime Minister Bishweshwar Prashad Koirala signed it during the official China visit. The friendly diplomatic dialogue of Koirala and Mao is also included in the book ”MAO ZEDUNG ON DIPLOMACY’ under the topic of ”The Sino-Nepal Border Must be Peaceful and Friendly Forever.”  

On 5 October 1961, Nepal and China signed Boundary Treaty at Beijing during the state visit of the then king Mahendra. The 1414-kilometer-long border treaty protocol was finally inscribed on 20 January 1963.

The adjustment was made on equal footing by land-swapping with Nepal gaining more land than it gave. According to a working paper presented at ”International Cross-Border Conference on Border Regions in Transition (BRIT)-XII Fukuoka (Japan)-Busan (South Korea) 13-16 November 2012” by Nepal’s former Director General of Survey Department and the author of the book titled ‘Boundary of Nepal’, China had given 302.75 square kilometer more land to Nepal.

The paper says, ”the adjustment was made on the basis of ‘give’ and ‘take’ and the inclusion of some pasture land within Nepalese territory. With this principle, Nepal had given 1,836.25 square kilometer of land to China and Nepal had taken 2,139.00 square kilometer, as it has been added 302.75 square kilometer of Chinese territory into Nepal.”

Nepal-China border settlement is an excellent example of speedy border settlement compared to Nepal’s southern neighbor India. Since the formal diplomatic engagement of 1955, it just took around eight years to ink full-fledged technical border adjustment between Nepal and China.

Tragically, Nepal and India are at odds over the border demarked by 204-year-old Treaty of Sugauli. The recent issue of Lipulekh, Kalapani and Limpiyadhura and new political map of Nepal unanimously approved by lower and upper houses of the federal parliament point to the long-pending friendly border settlements between Nepal and India.

Media myths on China’s encroachment of Nepal’s territory

Nepal and India has not resolved much of their border tensions since long. Lately, there are some media reports, mainly from India, about so-called Chinese ‘encroachment’ of Nepal’s territory. There was report about missed pillar number 11. However, it came out to be untrue with the finding of the pillar.  After field inspection and technical studies, Chief District Officer of Humla district, Chiranjibi Giri, made it clear that the rumored border encroachment from China was not the fact.

Similar incident was reported few weeks ago when Nepal’s leading daily Kantipur claimed China’s encroachment of Nepal’s territory citing unverified Ministry of Agriculture, the ministry that has nothing to do with border issues. However, after formal clarification from Nepal Government, the report was found to be false and the biggest daily of the nation apologized.

There is a section in Nepal that desperately wants to draw parallel between factual Nepal-India border tensions with fictitious Nepal-China border rows. However, so far, this mission has proven wrong at times.

Nepal does not have any serious border tension with China. The only concern Nepal has it about China-India agreement to ‘boost border trade at Quiangla/Lipu-Lekh Pass’ as said in the 28th point of the  joint communiqué issued by visiting Indian Prime Minister Narendra Modi and his Chinese counterpart Li Keqiang on 15 May 2015.

Nepal has diplomatically protested about this agreement by two countries as Lipulekh falls in Nepali territory not only based on the Treaty of Sugauli of 1816 but also the Nepal-China Boundary Treaty of 5 October 1961. Given China’s generosity and friendliness towards Nepal, it is not a big issue to address. Nepalese citizens are optimistic on China’s support on Nepal’s sovereignty over Lipulekh.

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Why doesn’t China take India seriously?

Shalabh Chopra

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India needs to formulate a long-term strategy on China, lest it be lurching from one crisis to another.

Amid rising anti-China sentiment in the aftermath of the bloody border clash with China, India has announced a slew of measures to curtail Chinese presence in the Indian economy. Building on previously imposed restrictions on foreign direct investment (FDI) from China, the latest round of regulations constitute banning over 200 Chinese apps and clamping down on Chinese investments in Indian startups. These measures, while drawing applause from Western governments such as the US and helping massage the nationalistic ego, have seemingly failed to irk the Chinese administration as much as India would have intended, let alone compel the PLA to pull back from the disputed areas along the long and undemarcated Indo-China border. In previous instances as well, India’s signalling to China of allying more closely with the United States in response to China’s aggressive posture on the border has failed to yield desirable results. This begs the question: why does not China take India seriously? The answer may lie in India’s China policy which can be described as reactive at best and incoherent at worst.

India’s Policy Conundrum

Although its geopolitical rise has been significant – next only to China, India still finds itself bereft of a world order concept or a guiding foreign policy framework. The lack of which, when it comes to dealing with China, has translated into a foreign policy muddle. Mohan Malik, for instance, points out that there are three schools of thought in India’s policy-making with regards to China – pragmatism, hyperrealism, and appeasement. Pragmatists maintain that India should balance China both internally (increasing its economic and military strength w.r.t. China) and externally (by forging alliances and enhancing interstate cooperation with other powers) while mitigating differences through economic and diplomatic engagement. Hyperrealists decry pragmatists’ optimism that increased trade and economic engagement can win over a territorially unsatiated China and instead argue for an unabashed encirclement strategy towards it with other China-wary powers. Appeasers posit that China is a benign and friendly power, meaning no harm to India and that it should be enthusiastically engaged. In trying to accommodate such plethora of views in dealing with China, successive Indian governments have found themselves muddling through one approach to another.

Current Government and Policy Flip-Flops

Following the Galwan clash, India appears to be hinting at a change of tack as evinced by India’s External Affairs Minister S. Jaishankar’s repeated assertions that realism should shape India’s China policy and that peace and tranquillity on the border cannot be separated from the overall architecture of bilateral ties. India’s slashing of Chinese presence in the Indian economy suggests a move in that direction. China’s rather staid response to India’s manoeuvres stems from a general under appreciation of Indian resolve to follow through on such a policy initiative. China’s belief in Indian irresoluteness is not without basis either. The new dispensation led by Narendra Modi started off by trying to bring the “pragmatic” element more into play in India’s dealings with China. To this end, it resorted to a two-pronged strategy of bolstering strategic ties with other regional partners alarmed by China’s newfound boldness such as Vietnam, Japan, Indonesia, Australia among others and spurred up defense and strategic ties with the US, while simultaneously trying to improve relations with China by enhancing bilateral trade (which was already heavily-tilted in China’s favour). However, relations nosedived with the Doklam standoff in June 2017 which lasted for over three months. Cognizant of its power differential with China, and therefore not keen on antagonizing it any further, India broached the idea of organizing an informal summit between Chinese President Xi Jinping and India’s PM Narendra Modi. As the two leaders met in picturesque Wuhan, India had by then made up its mind to drop the “pragmatic” yet somewhat “confrontational” approach and decided in favour of going full throttle with appeasement vis-à-vis China. Following the summit, the Indian government scaled down its contact with the Tibet’s India-based government-in-exile and refused to back Australia’s bid to participate in the annual Malabar exercise. What exactly did India hope to achieve with such tactics is anyone’s guess as China continued to brazenly oppose India’s membership to the Nuclear Suppliers Group (NSG) and block India’s efforts to get Pakistan-based terrorist Masood Azhar admitted to the UN Sanctions list – eventually relenting on the latter (courtesy of US pressure) while continuing to hyphenate India’s cause with Pakistan’s in the case of former.

A Long History of Fluctuating China Policy

As a matter of fact, the blame for such a vacillating policy cannot be squarely put at Modi’s doorsteps. Historical precedents abound where previous Indian governments too have struggled to come up with a comprehensive and coherent strategy on China. Notable examples include Jawaharlal Nehru’s flip-flops on China threat which not only cost India loss of territory but also resulted in a personal loss of face for Nehru. Some twenty-five years later, Rajiv Gandhi who showed remarkable courage in standing up to the Chinese challenge in a serious military provocation along the eastern flank of the LAC let go of the chance to articulate India’s long-term strategy vis-à-vis China and instead sought a quick return to normalcy in bilateral ties following his visit to Beijing in 1988. A decade later, AB Vajpayee, after having justified India’s nuclear tests as a response to Chinese nuclear weapons, ended up describing China as a “good neighbour” in his address at the Peking University only a couple of years later. Indeed, India’s foreign policy history is riddled with complacency on the part of successive Indian governments in dealing with its largest neighbour, and a continual cause of strategic concern.

It is clear that unless India does away with policy ad-hocism and sticks with a clear, long-term China policy,it would not be able to effect a change in China’s attitude towards itself. In this regard, Jaishankar’s recoupling of economic and trade ties with the larger border question is a welcome move, but a lot would depend on how determined India is to persevere through the demanding nature of realpolitik.

Notes:

  1. Mohan Malik’s article on three schools of thought on India’s China policy: accessible at: https://apps.dtic.mil/dtic/tr/fulltext/u2/a591916.pdf

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India-China Relations: A Turbulent Future?

Leoni Connah

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On the 10th May 2020, Indian and Chinese troops engaged in a cross-border dispute in Sikkim. After built up tensions, a month later another clash began in The Galwan Valley. By September, shots had been fired for the first time in over 40 years. Such confrontations are the worst India and China have seen in recent years. Although face-offs between the two sides are not uncommon, border disputes do pose a challenge for Indian and Chinese security. Also, their economic relationship could be strained if the two rising giants do not resolve their territorial dispute. Therefore, this article looks at the recent tensions between the two states and considers what this means for the future of their bilateral relationship.

Where did it Begin?

The Sino-Indian war took place in 1962, when Indian and Chinese troops fought over the Himalayan territory of Aksai Chin. Aksai Chin is located between Tibet, Xinjiang and Ladakh and territory was the primary cause of the war, as well as other issues including sporadic violence. China had gradually exerted its influence over Aksai Chin for four years before the war. At the time, India placed its forces along the border, but China’s strategy was to launch a full-blown attack. China’s standpoint was that the territory they were fighting over was deemed the Line of Actual Control (LAC) and they should have sovereignty over it. As India’s strategy was one of defence, they were outnumbered and lacked sufficient weaponry. Therefore, they suffered heavy casualties with many of the army killed, wounded, missing and captured. The war lasted until China announced a unilateral ceasefire on 21stNovember 1962.India was left defeated and humiliated as it was never prepared for a war with China. Until 1962, India had always focused on the security threat posed by Pakistan and had the upper hand militarily.

Cross-border Disputes

Since the 1962 war there have occurred numerous infrequent stand-offs between Indian armed forces and Chinese armed forces along the disputed territory. There is a competitive nature between the two states whereby these stand-offs become an opportunity to militarily flex their muscles. Episodes occurred in Northern Ladakh in 2013 and Eastern Ladakh in 2014. In 2017, the situation escalated when China attempted to form a road that would extend its border into India. India opposed this and feared that if the road was built, China would have increased access to the Siliguri Corridor, also known as the ‘chicken’s neck’. This is a highly contentious area for India as they believe it is a strategic asset to them because it connects the North Eastern states to the mainland. The high-altitude stand-off lasted for over a month. In September 2019, another violent clash took place near the Pangong Tso (lake), an area that China has control over two thirds of. The most recent disputes involved pushing, shoving, fists, wooden clubs, and stone throwing. The skirmish in May resulted in 11 injured in total, 4 Indian forces and 7 Chinese forces. It was resolved by local brigadier-level sector commanders who were able to discuss the tensions and come to a resolution. However, the clash in June saw 20 Indian soldiers dead and up to 40 Chinese casualties. In late July, it was believed that troops were withdrawing from the border region. However, this remained incomplete and throughout August and September, Indian troops were continuing to deploy along the LAC. For over 40 years, no bullets were fired in these skirmishes because of the de facto border code that prohibits the use of firearms. However, this changed in September when the first shots were fired. The most recent disputes are believed to have been triggered by a disagreement over the location of Chinese observation towers and tents. It seems, tensions have been building since India’s revocation of Article 370 in 2019 and China’s resistance against India’s infrastructure plans in the borderlands.

A Turbulent Future?

In 2018, PM Modi and President Jinping agreed to maintain peace along the border at the Wuhan summit. India and China’s collective economies make up over 17% of the entire global economy. Also, China is India’s primary trading partner with annual trade worth $92 billion. They have attempted to increase cooperation and build confidence measures by undertaking joint projects including a training program for Afghan diplomats and reviving the Bangladesh-China-India-Myanmar (BCIM) corridor. However, these efforts are undermined by the pervasive feeling of distrust between the two states and the echoes of Cold War history. Also, the summits and efforts of cooperation have not stopped the outbreaks of violence, nor have they solved any of the underlying issues. Underlying issues that strain the Sino-Indian relationship include nuclear weapons, China’s support for Pakistan, the situation in Tibet and India’s sheltering of the Dalai Lama, the Chinese navy making an appearance in Indian waters and Indian foreign policy. The Covid-19 pandemic has added pressure to Sino-Indian relations as the Indian general public blame China for the outbreak thus causing an anti-China sentiment. Both states have downplayed the recent stand-off’s as short-term and temporary incidents. However, if relations continue to sour over territorial boundaries and the border remains unresolved, this could compromise their economic relationship. To prevent prolonged crisis, China would need to withdraw its aggressive position voluntarily through peaceful negotiations with India. India could attempt a forceful removal of Chinese forces, but that would lead to increased escalation. Further, India should tread with caution as neighbouring countries including Sri Lanka and Nepal are becoming increasingly supportive of China. In other words, unless India and China find a way to trust each other, it is highly likely that they will be pushed to the brink of war once again.

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