Democracy Vs Maoism 2020

Context: Rising India is an obstacle to the China’s expansionist and assertive dream of becoming a pre-eminent global power. It is time for India to look for a strong strategic India-US Alliance.

Indo China Matrix

• China’s expansionist and aggressive policy:

• BRI initiative to build global string of strategic ports and transport links.
• Territorial claims along India’s borders and in South China Sea.
• Trying to woo India’s neighbours (Bangladesh, Nepal, Bhutan, and Sri Lanka).

• Non-Cooperating areas: Obstructionist stance to China’s BRI on account of India’s security and sovereignty concerns.
• Cooperating areas: Kunming-Kolkata’ link, Asian Infrastructure Investment Bank and New Development Bank.
• Economic dimension: Trade deficit in favour of China

• Low Chinese investments in India i.e. 0.5% of all its FDI.
• Restricting Chinese imports, especially for final products: is a threat to Chinese economy.

Chinese Competitive Advantage

• China-dominated free trade grouping : such as RCEP are not viable option for India on account of its poor human and physical infrastructure.
• Competitiveness of Chinese products: over Indian and use of non-tariff barriers to block a range of Indian products.
• Rules of International institutions: are in alignment with the Chinese specifications like WTO’s antidumping measures failed to restrict dumping.

Way Forward

• Enhance competitiveness: through series of reforms like

• Build strong trade relations with the US and EU by overcoming trade  issues.
• Explore South American and African markets.

• Military alliances: with the ‘Quad’ and beyond to contain China. 

• Russia could serve as a conduit in a dialogue with China. 
• More open economic relationships with Taiwan.

• Strengthen strategic India-US alliance: to contain belligerent China working assiduously to harm India’s interests.

• The US-India civil nuclear deal: brought the two countries closer.