Daily Times

After attaining remarkable growth through economic liberalization, the Chinese authorities have decided to change their development model to ensure sustainable development. The ‘world factory’ image served China well for nearly two decades. ‘Made in China’ became the fastest growing brand and exports grew exponentially. However, top Chinese decision makers were quick to realise that this was not going to be enough to ensure sustainable development.

The current regime has come up with a new plan to sustain China’s economic growth and assure access to energy resources. Given its vast industrial base, availability of competitively priced energy is crucial for sustainable development. The new plan envisages a matrix of regional and global interdependence through the Belt and Road Initiative – placing China at the centre of trans-continental economic relationships. Chinese investment in the BRI is meant thus to integrate it with the rest of Asia, Europe, and Africa, and to build modern infrastructure across these regions in order to advance their economic development and sustain a win-win strategy. The BRI is being financed by the Asian Infrastructure Investment Bank, which has more than 50 signatories.

The BRI is an ambitious venture. It has the potential to change the regional and global power dynamics. Despite its purely economic nature, it has already alarmed Washington and New Delhi so that regional tensions have been rising. Chinese decision-makers have insisted that their approach to development is a positive-sum one and shown optimism that it will win it more partners. Their quiet confidence has won them admirers, among other places, in the US foreign policy establishment. The Democratic camp, in particular, is eager on a Sino-US competition-cooperation nexus. Bill Burns, the former deputy secretary of state , has said: “A healthy Sino-US relationship is central to the future of the Asia-Pacific region and the world economy.” Daniel Russell, the assistant secretary of state for East Asian and Pacific Affairs from 2013 to 2017, believes that new models of global governance that promote healthy competition as well as cooperation on big challenges are needed to address the changing dynamics between the US and China. New regional initiatives, he says, could be a road test for China’s emergence as a world leader.

China, the largest country in the neighbourhood, has tried to maintain and enhance its relations with both Pakistan and India

The BRI plans to connect Asia Pacific, Africa, and Europe through six economic corridors. The China Pakistan Economic Corridor is the flagship project in the scheme. It promises to bring rapid economic development to Pakistan and transform the nation through Chinese infrastructure investment. The Bangladesh, China, India, and Myanmar is another regional link. Geng Shuang, the Chinese Foreign Ministry spokesperson, has said: “The CPEC and the BCIM economic corridors are both significant cooperation projects under the framework of the BRI.” The plan is based solely on regional cooperation, infrastructure investment, economic development, financing, and win-win trade. That is how the BRI promises economic advantage to South Asian countries.

Between India and Pakistan, however, the mindset appears on both sides to be sticking to a zero-sum approach.

China, the largest country in the neighbourhood, has tried to maintain and enhance its relations with both Pakistan and India. The US, a global player, however, has sought to play one against the other. It is argued that a weak Pakistan is neither in India’s interest nor China’s as a Pakistan would be unable to keep global terrorism in check.

Beijing is willing to think beyond old problems and find new ways to cooperate in mutual interest.

China has also contributed to the quadrilateral coordination group on Afghanistan to facilitate a peace process between the Afghan government and the Taliban. The fact that Afghanistan has supported the CPEC and desires to join it is good news for CPEC.

Despite a few diplomatic issues, China has reasonably good trade relations with India. Many Indian analyst and policy makers believe that Chinese investments (both in manufacturing and infrastructure development) could play a major role in promoting growth of manufacturing sector in India. The trade between China and India has grown at over 30 per cent a year since 1999. India is interested in expanding economic cooperation with China, particularly in the technology sector. “There’s a common perception on both sides that India does software and China does hardware, and the two of them together could build a new Asian market,” Segal believes.

Analyst Sumit Ganguly says India has a serious case of ‘status-anxiety’ in relation to its northern neighbour, and is frequently staring over the Himalayas at Chinat. On the other hand, China has made possible the economic reforms and developments just a decade before India did. Now China’s per capita income is approximately three times that of India.

The incumbent Indian government has shown no interest in trying to contain China. Its policy is to hunt for the best possible relationship with China. Srivastava agrees that neither United States nor India is paying attention to containment of China.

The writer has a PhD in global studies from Shanghai University