Democracies, Demonstrate!

The Economic Times     28th July 2020     Save    
QEP Pocket Notes

Context: Indo-US strategic partnership relies on its fundamental shift in ties with China.

India’s China Policy

  • Indirect economic sanctions on China as a result of LoAC confrontation.
  • Despite the humiliation of 1962, China never became a long-standing domestic political issue of significance. 
  • Pursuing a more mature, accommodating frame with China would undermine India’s strategic autonomy.

China’s India Policy

  • Neighbour appeasing policy: made ally of Pakistan, armed it with nuclear weapons, controlled Myanmar.
    • Developed strong military and economic ties with Bangladesh and Sri Lanka.
  • Economic policy: developed a profitable economic relationship with India.
  • Chinese status quo at the border: despite the economic embrace. 

China’s US Policy

  • Retains considerable economic leverage despite restrained political and security relationships.
    • Despite tensions, China has tried to honour the trade deal with the US.
  • Restoring/recovering bilateral relationship with the US using its economic levers post-US elections.
    • Ronald Reagan came to power with an anti-China pitch but strengthened One China’ policy post-elections.
    • George H W Bush imposed sanctions after the Tiananmen protests crackdown, but later on restored economic relations.
    • Bill Clinton came to power with a campaign to withdraw China’s Most-Favored Nation (MFN) status but later on piloted the US-China relations.
  • Intricate economic interdependencies of the relationship: China pushed ahead of Japan to become the largest holder of US treasuries.
    • The US and the Soviet Union never had such an economic relationship hence it would be incorrect to replicate the Cold War template on the US-China rivalry. 

Way Forward

  • India has to start thinking about a new ‘Minimum China’ economic and security architecture irrespective of the border negotiations.
  • India needs to determine the sustainability of its anti-China approach and must forge a strategic relationship with the US.
    • Indo- US political and security relationship is on a better wicket than its dynamics on the economic front. 

Conclusion: Indo-US strategic alliance holds viability for carrying out a sustainable anti-China stance.

QEP Pocket Notes