Published by yourcollegebars on September 23, 2017

Doka La standoff ends: Four good economic reasons China had to not mess with India

What really caused a sudden end to the Doka La gap between India and China is still unclear. Until recently, the situation did not improve as the war of words escalated on both sides, recalling the war of 1962 and the highly provocative and sometimes misleading reports in the media.

But everything changed on Monday when both sides issued statements about the end of the stagnation and withdrawal of troops. What has worked between the two parties for such a rapid resolution, perhaps, is still a state secret. The decision was also used to protect political leaders on both sides.

The important way out of the decision is that it saves both sides from the main economic consequences. More importantly, he avoided embarrassment for China at the BRICS Summit that begins on September 3 in Xiamen. While the exact reasons for the end of the stalemate are unknown, there are some clear reasons why China could not have extended the Sikkim border and finally made India an enemy.

First, India plays an important role in the emerging economies of the world. Among the BRICS countries (Brazil, Russia, India, China and South Africa), India is undoubtedly considered a major emerging economic power with strong enough pillars to challenge China’s dominance over the coming decades.

Even today, India plays a key role in the Asian economy, the third largest in the region. Against this background, China would not have been able to confront India at the meeting to discuss the economic cooperation of the BRICS countries when the troops of both countries are positioned against each other in a high voltage scenario.

In addition, India’s emerging economic domination in the region will ensure that any country is seeking friendship, especially China, which wants to play the role of older brother in Asia. A recent Harvard study said that India has emerged as the economic pole of global growth surpassing China and is expected to maintain its leadership in the next decade by citing that it is uniquely positioned to continue diversification. In new areas, given the accumulated dating capabilities.

In addition, according to growth projections from the Center for International Development of Harvard University (CID), India will be on the list of the fastest growing economies until 2025 with an average annual growth of 7, 7%. Secondly, India now has better diplomatic relations with world powers, mainly the United States, which China can no longer ignore.

If China intensifies tensions with India and becomes enemy of its neighbor, it will naturally put China on the other side and erode the gains it has made as a loving, peace-loving country aspiring to become a world leader. Beijing would not have wanted to play its hard-won image by extending the military stagnation with India in disputed territory.

Third, China will also suffer on the trade front if it reduces ties with India. It has more to lose than India, as China traditionally has a trade surplus with India. Currently, India has a trade deficit of about $ 52 billion with China. In the past year, India exported about $ 9 billion worth of goods to China, while China exported $ 60 billion to India.

This is a great trading opportunity for Chinese manufacturers. It would not be wrong to say that the Chinese presence is evident in almost all sectors, from electronic products to pharmaceuticals. There, China would have been hit hard if tensions led to war.

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