India’s diplomatic relations with China have altered considerably in recent years.Many variables have influenced India and China’s bilateral relationship, particularly territorial conflicts, economic competition, and geopolitical considerations. The 2020 Galwan Valley Clash resulted in higher casualties for PLA forces, with 43 soldiers dead, prompting India’s diplomatic posture to become more robust.
IMMEDIATE REACTIONS POST GALWAN
In reaction to the occurrence, India enacted a number of regulations aimed at limiting the Chinese Communist Party’s unrestrained influence and soft power.
In recent years, the Indian government has ordered the suspension of over 250 Chinese apps, including PUBG Mobile, Tiktok, Shein, AliExpress, and others, in order to address concerns about data security and the protection of Indian user data.
Almost three-quarters of Chinese FDI applications have been denied in order to reduce Chinese influence in critical fields such as telecommunications, computer software and hardware, commerce, and autos. The action aims to limit opportunistic takeovers of Indian businesses.
The PLI scheme was launched in India in 2020, and it covers 14 manufacturing sectors, including mobiles, medical devices, telecom and networking products, automobiles and auto components, pharmaceutical drugs, white goods, specialty steel, electronic products, food products, textile products, solar PV modules, advanced chemistry cell batteries, and drones and drone components. The purpose was to establish an alternative supply chain in India in order to increase exports, eliminate cheap subsidized Chinese imports, and create jobs.
Many Chinese corporations, including Oppo, Vivo, Huawei, and Xiaomi, were discovered to be involved in tax cheating, falsely claiming duty exemptions, and money laundering. In addition, law enforcement has cracked down on Chinese loan apps that were extorting money.
On the grounds of defense and national security, India prohibits Chinese enterprises from participating in public procurement bids. In the most recent development, both have expelled the other journalist.
The Indian government has constituted a commission to expedite infrastructure projects near the Line of Actual Control (LAC), where the Indian and Chinese forces have been embroiled in a three-year standstill.
To counteract the expanding predatory Chinese practices around the world, the Indian government intervened to help Sri Lanka by giving a substantial Line of Credit and is actively mediating to reduce Colombo’s obligations with the IMF.
INDIAN DIPLOMACY OUTSMARTS WOLF WARRIOR DIPLOMACY OF CHINA
The Indian government is aggressively interacting with Taiwan’s government, and the island nation will open a Taipei Economic and Cultural Center in Mumbai, in addition to offices in Delhi and Chennai. Furthermore, many top Taiwanese semiconductor and electronic equipment enterprises are making efforts to relocate their manufacturing bases to India in order to limit their risk in the Chinese market. Vedanta, an Indian conglomerate, has partnered with Foxconn to establish an electronic chip manufacturing plant in India.
The Indian government has built partnerships with nations such as Vietnam, the Philippines, and Indonesia under its “Act East” policy, and has actively participated in projects such as the Quad. The Quad aspires to create an Indo-Pacific area that is free, open, and inclusive.
The Indian Navy and its submarines participated in a naval maritime drill with the Indonesian fleet in order to protect their respective maritime interests in the Indo Pacific. Both countries are looking into the possibility of developing the strategically significant port of Sabang, which is around 700 kilometers from the Andaman and Nicobar Islands.
India and Vietnam have both signed strategic defense and maritime treaties. To counter the Chinese threat, the Indian government has provided Vietnam with indigenously built surface-to-air Akash missiles, supersonic Bramhos missiles, and Light Combat Helicopters. Both countries are hoping to broaden existing strategic connections through oil exploration, as they emphasized the importance of freedom of navigation, overflight, and unhindered commercial activity in the South China Sea.
India and the Philippines have agreed to work together to strengthen their bilateral relationship, with India providing a concessional line of credit to meet the Philippines’ defense requirements, including the acquisition of naval assets, maritime cooperation, and increased trade and investment, among other things. In order to foster a free, open, and inclusive Indo-Pacific, India joined the Philippines on Thursday in wanting China to follow a 2016 legally binding judgement that forcefully disputed China’s sweeping claims in its South China Sea (SCS) conflict.
INDIA & THE SCO SUMMIT
The Indian Government, as the current chairman of the Shanghai Cooperation Organization (SCO), organized the annual summit in a virtual format, thereby diminishing the significance of the in-person intergovernmental meeting. The SCO consists of full-time members including India, Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and Pakistan. Iran recently became the ninth member of the group, and Belarus is scheduled to be inducted next year.
With China playing a key role in its establishment and the goal of implementing the “Beijing Consensus,” the Delhi Declaration this year criticized China’s Belt and Road Initiative in the SCO joint statement. The China Pakistan Economic Corridor, a critical component of the project, travels through Indian areas illegally held by Pakistan.The project enters in Gilgit Baltistan, an Indian territory held by Pakistan, and runs the length of Pakistan from north to south before reaching the Arabian Sea.Previously, Indian Prime Minister Narendra Modi chastised China and Pakistan for funding terrorism and deploying troops across the LAC. In response to China’s BRI Initiative, the Indian government has partnered with RUSSIA, IRAN, and ten other nations to construct the International North-South Transport Corridor (INSTC), a multi-mode network of ship, rail, and road routes. The 7200-kilometer road is intended to link landlocked Russia with India.
INDO-US STRATEGIC PARTNERSHIP IRKS CHINA
The Indian government has been consistently exerting pressure on China through diplomatic dialogues and negotiations. Prime Minister Narendra Modi’s recent visit to the United States resulted in the signing of numerous agreements, covering a wide range of areas. These agreements included technology transfer of GE Engines, procurement of drones, collaboration in space research and exploration, the goal of establishing India as a semiconductor hub, and the development of open network technologies, artificial intelligence, and quantum computing. The Chinese foreign ministry expressed reservations and stated the agreements undermine regional peace and stability, with the aim to target China.
INDIA DEACCELRATING DEDOLLARIZATION
The growing stature of Prime Minister Narendra Modi and India being hailed as leader of Global South had forced American Administration to acknowledge the strategic autonomy and respect independent foreign policy of India. And this posture seems to be quite uneasy for Chinese Premier Xi Jingping and will force China to toe the Indian line. The Indian Foreign Minister recently hinted that India is not interested to create BRICS New Currency thereby shattering Chinese dreams of Internationalization of Yuan and strengthen its own currency.