Essay on Chinese economic policy in countries bordering India for Class 12, Mains Exam (UPSC, PSC, SSC)
Chinese economic policy in countries bordering India Essay : India has witnessed China’s escalation of investments in Asia, particularly in India’s neighbours such as Sri Lanka. The unforeseen rate of investments is part of Xi Jinping’s presidential and administrative ambitions, the Belt and Road Initiative (RBI) to create a Sino-centric Global Trading Network. The expansion of economic trade facilitates Beijing is its pursuit of territorial and maritime claims betraying their whim of reshaping the world order as well as administrative arrangements within neighbouring countries.
Discussion
The Gateway House has launched a study round-the-year research and analytic exercise collecting information focussing on Chinese investments in six of India’s neighbours in South Asia. The reports accompanying statistics reveal the outcomes of the continuing study.
i) Chinese Investments in Maldives subvert Democracy: India is concerned with massive Chinese investments in infrastructure, housing, power and the hospitality sector. Maldives had been under the influence of India since 2013. After Abdulla Yameen won the disputed election, Maldives have been brought under the sphere of Beijing. The 2015 constitutional amendment of Maldives allowed foreigners to own lands on the archipelago providing China with the scope of leasing the Feydhoo Island for the long term. In 2017 the Maldives government rushed through a free trade agreement with china. The research states that the three largest Chinese projects are worth 1.5 billion Dollars which constitutes 40% more than Maldives’ GDP.
ii) Sino-Pakistan: A Precarious Mortgage
The China-Pakistan Economic Corridor is a strategic move by China veiled as an economic passway. It will create grave political problems for India as war would be an apprehension. The so-called economic corridor is economically lucrative in the short run. China has invested $62Billion Dollars in the China-Pakistan Economic corridor and $42.6 billion in power projects. The investment came at an opportune time with the USA resigning as the major bank for Pakistan. This economic agreement is favourable for both Pakistan and China from a military perspective
iii)Sri-lanka- Debt-Trapped
In addition to China aiding Pakistan economically, India’s qualms increase as Sri Lanka to has replaced India with China as its biggest economic partner. China accounted for 30% of all Foreign Direct Investments in Sri Lanka from 2012-16. Sri Lankans are indebted to china for more than $11 Billion over %0 major projects including port construction and infrastructure development. Chinese Developmental loans cost Sri Lanka 6.5% interest as contrasted to 2.5%-3% from the Asian Bank.
Conclusion
India is in a precarious geo-political situation with China’s aggressive economic policies expanding through the major Asian countries like Pakistan, sri Lanka and Nepal.India cannot emulate China’s influence in Asia in the contemporary times. In the apprehensive situation, India can builtd on its strengths.For instance indian consumer products are widely used in Myannmar, the only country to move in the opposite direction of other Asian Countries.To surmise, India needs to execute strategic patience and wait for the overwhelming presence of China in the asian countries.
FAQs
Q1. What is China’s presidents international ambitions
Ans: The unforeseen rate of investments is part of Xi Jinping’s presidential and administrative ambitions, the Belt and Road Initiative (RBI) to create a Sino-centric Global Trading Network. The expansion of economic trade facilitates Beijing is its pursuit of territorial and maritime claims betraying their whim of reshaping the world order as well as administrative arrangements within neighbouring countries.
Q2. What is the name of the study that researched about Chiina’s investment plans ?
Ans: The Gateway House has launched a study round-the-year research and analytic exercise collecting information focussing on Chinese investments in six of India’s neighbours in South Asia. The reports accompanying statistics reveal the outcomes of the continuing study.
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