Towards A Resurgent Asia: Indo-Chinese Bilateral Ties

While there are reports of incursions by Chinese across LAC, Chinese President Xi Jinping is tipped to visit India for two days Sep 17-19. There is an aura of enthusiasm among various South Asian countries who hail the meeting of heads of two emerging economies of the region. This bilateral visit, more so assumes great importance after Prime Minister Modi’s triumphant visit to Japan early this month and for indirectly referring to China’s for its 18^th century imperialistic attitude. Further, Prime Minister Modi having established an initial friendly rappoteur of friendship during the BRICS summit can strengthen bilateral ties by offering him the privilege of addressing the Parliament an honour already given to the Japanese Prime Minister Shinzo Abe and President Obama. This gesture can be a stepping stone for enhancing trust and confidence between both the parties.

 Though there are sizeable trade related transactions between the two nations, China has been the biggest benefactor so far. China’s investment is paltry $ 500 million, mostly in Gujarat. Expectations are riding high that China is bound to make investments greater than Japan, which has already pledged investments to the tune of $35 billion in Indian markets over a period of five years. China with largest forex reserves of $ 3.95 trillion with richest bag is believed to make investment between $100 and $300 billion in modernisation of railways. Japan having bagged the Mumbai-Ahmedabad bullet train line, Chinese evinced interest in modernising Bengaluru- Chennai and Bengaluru-Mumbai high speed rail corridor.

India can actively engage with China in its efforts to establish an Asian Infrastructural Investment Bank (AIIB) which aims at providing investment and strong platform for multi-modal connectivity through high speed ports, rails and airports. China has already invited India to be a founding member of AIIB. Further, China is in the process of reconstructing the centuries old Maritime Silk Route (MSR) aimed to improve connectivity with South East Asia, South Asia, West Asia and Africa by building a network of port cities along the route linked to the economic hinterland of China. India can be part of this initiative to improve its industrial as well as supply chains. China is also keen to open the headquarters of the AIIB among the MSR countries and India can possibly be one of them.  China has recently invited India to participate in the Asia Pacific Cooperation Economic (APEC) Summit in Beijing. It has also invited India to be part of the Shangai Cooperation Organisation (SCO). India should consider these offers in a positive note and respond decisively. Induction of India into SCO can be helpful in regional security and economic cooperation. It can be a gateway to gain greater access to Afghanistan and Central Asia.

Similar to Modi’s visit to Japan, Xi is expected to land in Ahmedabad as against New Delhi with a contingent of 50 business men. Modi would fly to Ahmedabad to receive him personally. As many as 20 MoU’s on various issues ranging from infrastructure development, trade to culture related agreements are expected to be signed.  Among these agreements, two industrial centres near Gandhinagar and Pune are going to be developed on lines of Chinese manufacturing hub Shenzan.

Xi recently cancelled his scheduled visit to Pakistan due to its volatile domestic political situation. It has been first bilateral visit by a Chinese President to India and not Pakistan after the Indo-China war of 1962. Following the recent assertions of Sushma Swaraj’s One China policy, it is believed that assiduous efforts of India might help in resolving the boundary dispute amicably. Among other important juggernauts that elude Sino-Indian relationships is India’s closeness to Japan and US. For India the major reason for worry is the Dragon’s strategic relations with Pakistan and with other neighbours in its back yard.  Both the countries have a lot to gain if they can keep mutual mistrust and rivalries at abeyance. India can hugely gain from Chinese investments and expertise in infrastructure, construction of high quality ships and World Class ports. China too would equally benefit by gaining access to the $2 trillion worth Indian economy and Indians would too start actively investing in China. Another highly anticipated announcement which can turn around the tables during President Xi’s visit would be China’s gesture of opening up new safe route for Indian piligrims visiting Kailash Mansarovar in Tibet via Nathu La pass in Sikkim. This can strike cord with people of India at large especially among Hindus and Buddhists considering the religious importance.

The resurgent and a proactive strategic foreign policy of India under the leadership of Modi can aim to change the geopolitical equations in Asia if India and China forge better friendly relationships. Together, both nations with their iconic friendship and mutual cooperation can pave way for a resurgent Asia-peaceful, prosperous, powerful. 

 

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