New Rules of the Game

Context: The recent interim order by the government to ban 59 Chinese apps in India, followed by the killing of Indian soldiers in Ladakh, displays strategic confusion in addressing the issue. A medium-term coherent strategy should define new rules of the game. 

Challenges to the government

• On strategic front: A long-term standoff and an exhaustive watch over the international border is difficult to manage, given the low level of the military of preparedness
• On the economic front: Attempts to damage the Chinese economy or isolate India from it will have a more profound impact on the Indian economy itself

• Trading hurts mainly the less efficient Indian producers.
• Protectionist moves will set back attempts to increase ease of doing business and investor confidence.
• It will hamper the reinvigorated attempt to integrate India into the global supply chains.
• The US experience: Trade war has significantly hurt several vulnerable sectors, such as agriculture.

Way Forward: A coherent Medium-Term Strategy to tackle Chinese aggressiveness.

• Play on India’s Strength: Through the utilization of navy and developing a positive image with potential allies.
• Evaluating Diplomatic actions in Multilateral forums: It will be a cheaper and more effective medium- and long-term measure.

• New rules of the game: No alliances, tacit or open, should be permitted with China at levels such as the World Trade Organization or the UN Convention on Climate Change.
• Seek to detach like-minded developing countries from any China-led blocs.