Share

China-India Brief #178

March 01, 2021 - March 13, 2021

China-India Brief #178BRIEF #178

Centre on Asia and Globalisation
Lee Kuan Yew School of Public Policy

Published Twice a Month
March 01, 2021 - March 13, 2021


Guest Column

Contradictions and contrarianism: Sino-Indian relations tilting towards no return?
By Stephen Nagy      


CIB178_1Image credit: wikimedia commons

Sino-India relations have transformed from a relative period of mutual understanding and dialogue embodied in the India-China Informal Summit at Wuhan in April 2018 to one characterized by contrarianism and contradiction. On the one hand, bilateral relations have been fraught with increased friction and mistrust in 2020. The Galwan clash in June 2020 over the Line of Actual Control (LOC) not only resulted in a loss of life on both sides of the border but also an acceleration of the deterioration in the bilateral relationship.

On the other hand, India remains economically wedded to its relationship with Beijing. China overtook the US as India’s largest commercial partner at $77.7 billion in 2020, slightly less than the previous year of $85.5 billion. This trade relationship has contributed to continued reticence to confront Beijing on security issues. This is best evidenced by India’s continued reluctance to align itself with Quad partners on core security issues or expand its Indo-Pacific geographic scope beyond the Indian Ocean.

This contradiction and contrarianism is also evident in Beijing’s diplomacy in the region and towards India. The signing of the Regional Comprehensive Economic Partnership (RCEP) Agreement in November 2020, an ASEAN centred FTA, suggests that Beijing continues to see the value of inculcating itself into the region’s trade architecture. Having India part of RCEP would have made the agreement much more significant. It would have enmeshed China into the Indian economy as well, complicating India’s ability to fully participate in any actions to constrain China for fear of punitive economic retribution. The agreement its also significant as it makes the much-hyped supply chain decoupling less feasible.

China’s mask and vaccine diplomacy has also been instrumental, if not mixed, in building relations and consolidating the Health Silk Road first enunciated at the 2017 BRI Forum.

China’s initial missteps in handling the Covid-19 pandemic led to an all of government approach to stamp out the spread of the virus allowing its economy to return to 90% of the pre-COVID-19 period. The effective, if not draconian approach to suppressing the spread of the virus, has inculcated a confidence in the CCP and regular Chinese citizens in their political system and the choices made by their government.

Without a doubt, this confidence is related to real and carefully curated narratives about the “West’s” inability to tackle the Covid-19 crisis most typified by the US and European countries but also by India and its 11 million plus cases.

Confidence has seemingly led to regionwide assertive behaviour, targeted and performative wolf warrior diplomacy, and declining international favourability ratings according to the 2020 October Pew survey. These are echoed in the successive Institute of Southeast Asia Studies (ISEAS) surveys on “The State of Southeast Asia: 2021 Survey Report” and the Lowry Institute’s “Asia Power Index” in which China scores low in trust and soft power. 

These unfavorability ratings are unlikely to rebound in 2021. Beijing sees New Delhi’s proactive involvement in the Quad, enhanced Malabar exercises with Australia, and even the latest Sea Dragon 21 exercises that even included Canadian submarines as India’s tilt towards a US-led containment strategy with other forward leaning allies such as Japan and Australia. The signing of the September 2020 Resilient Supply Chain Initiative (RSCI) further entrenches the view in Zhongnanhai that India views Beijing as a revisionist power aimed at re-constructing a Sino-centric regional order with Beijing at its apex and that the Indo-Pacific Strategy is merely code for a China-containment strategy.

Further complicating Indo-China relations is nationalism. Insecurity about predatorial Chinese behaviour during the pandemic period, Delhi restricted FDI into India, a tactic clearly aimed at China. Beijing as well has had to deal with fervent nationalists in the post-Galwan clash period who advocated to not de-escalate the Himalayan conflict. Pretentions of nationalistic superiority have only increased with China’s successful suppression of the Covid-19 spread within its borders.

Importantly, on July 23, 2021 China will commemorate the 100th anniversary of the Chinese Communist Party (CCP). Having crafted a post-civil war narrative that it was the CCP that ended the Century of Humiliation and unified (mostly) China under the CCP, Party leaders will be loath to demonstrate any compromise or weakness on territory or issues that could disrupt celebrations. Political arrests under the new National Security Law, China doubling down on its Xinjiang Policy, and explicit threats to Taiwan if it pursues independence are all part of the CCP’s uncompromising position in this sensitive year. India should expect no different.

While Beijing’s pandemic behaviour has shifted Delhi’s calculus towards Beijing, we see little institutionalized shift towards an overt anti-China alignment with the US or Quad partners. The reason is severalfold. Tokyo and Canberra’s largest trading partner, like Delhi, is China. Any post-pandemic economic and health recovery will necessarily include China. Japan, but also Australia, and other RCEP members see trade as mutually beneficial and a critical scaffolding to further integrate the region. Tokyo, in particular, understands that its sustainable economic future and security are integrally related to emmeshing itself into the Indo-Pacific economy.

Second, critical supply chains are still dominated by the China-centred global production network. Decoupling to Southeast Asia or South Asia remains a pipe dream for RCEP members. This means China will continue to be a critical economic partner.

Third, China’s footprint throughout the region is multifaceted and deep. BRI infrastructure and connectivity projects throughout the region, client state relations with some states in Southeast Asia and South Asia, asymmetric economic relations with all neighbours, and security challenges with India and Southeast Asian states means there is no quick and easy way to fundamentally change relations with China.

Lastly, India continues to take a Security and Growth for All in the Region (SAGAR) approach to the region characterized by inclusivity, strategic autonomy, and an ambiguous position vis-à-vis Sino-US great power politics in the Indo-Pacific.

While Sino-Indian relations remain fraught with challenges, contradiction and contrarianism will continue to characterize bilateral relations going forward. Beijing and Delhi both have reasons to ensure that the relationship does not slip further into a negative spiral. Beijing understands that its own tilt towards the US and away from the Soviet Union during the Cold War was key to allowing the US to successfully prosecute a containment strategy against Moscow. Based on that experience, Beijing has placed limits on how far it is willing to let bilateral relations deteriorate. Depending on the tone of the 100th anniversary celebrations this July, Beijing could inadvertently accelerate a tilt or foster stability. 

Delhi in contrast is realistic about the economic, military and diplomatic asymmetry that exists between China and India. A further deterioration would not be in India’s economic interests, especially as it attempts to recovery from the Covid-19 induced recession. As difficult as it may be, the Modi administration will need to reign in Hindu nationalism directed at China (and others) to ensure stable India-China economic relations drive economic growth and recovery.


Dr. Stephen Nagy is a Senior Associate Professor at the International Christian University in Tokyo, a Fellow at the Canadian Global Affairs Institute (CGAI) and a Visiting Fellow with the Japan Institute for International Affairs (JIIA).


Guest Column

A Pause at the Brink?
By P. S. Suryanarayana      


CIB178_2Image credit: Pixabay

For nearly ten months, the Chinese People’s Liberation Army (PLA) and the Indian Army confronted each other at the Pangong Tso Lake along their nebulous Line of Actual Control (LAC). Yet, for now at least, the two nuclear-armed neighbours have reversed their intense military brinkmanship in the area and are said to have pulled their forces back.

Unlike the tense non-lethal faceoff between them at Doklam (Dong Lang) in 2017, each side accused the other of firing provocative or warning shots at Pangong at one stage. Also, unlike Pangong, Doklam was not a hot spot along the LAC. But, as in 2017, Sino-Indian military diplomacy, complemented by civilian efforts, produced an accord to “disengage” at Pangong. On 21 February 2021, “smooth” completion of the “synchronised” and “organised” disengagement was noted at the 10th round of corps commanders level meetings which began in mid-2020.

The Pangong crisis differed from the violent clash that took place in the Galwan Valley in June 2020. Ironically, that clash, which resulted in fatalities on both sides, occurred in the wake of an understanding to disengage. In contrast, the announcement of a “smooth” disengagement at Pangong may appear to presage new maturity in the Sino-Indian engagement which is still rocked by swirling differences over the Kashmir issue. But any such hope will depend on how both sides engage each other going forward.

Two types of ‘LAC’

The latest Sino-Indian crisis has concealed two types of ‘LAC’—the agreed but un-demarcated ‘Line of Actual Control’, and a ‘Line of Active Control’. During discussions which later produced the 1993 Border Peace and Tranquillity Agreement, China had at first insisted on using the term ‘Line of Active Control’; though both sides would eventually agree on using ‘Line of Actual Control’, as the referral point for peace in the border areas. However, the current situation has, in my view, turned into a contest for active control along the long-disputed boundary.

Under the concept of actual control, each side was expected to respect the other’s customary or known positions along the LAC pending a resolution of the boundary dispute. However, both parties often felt thwarted in enforcing their perceived rights in this regard. At Pangong, therefore, China and India secured vantage positions, and resorted to active military presence to hold them. But, under the disengagement accord, these positions are said to have been given up now. If so, what was the logic of the mutual withdrawals?

Surely, one side must have felt more vulnerable than the other due to their respective gains to establish active control. In the end, though, mutual anxiety about these gains prompted mutual withdrawals. A view in India is that its military gains at Pangong could have been used as bargaining chips in negotiations with China on other friction points. But the frequent tensions along the LAC have been treated as localised episodes requiring local solutions.

The shadow of Kashmir

Going forward, a key issue to be considered is the root cause of the latest tensions in the western sector which spans the China-India-Pakistan neighbourhood. In 1963, when China and Pakistan signed a “temporary” boundary agreement—which has neither been formalised nor scrapped—this neighbourhood acquired its triangular dimension. Moreover, the Kashmir issue, originally an India-Pakistan affair, has become the new root cause of Sino-Indian tensions, following Delhi’s creation of the Union Territory of Ladakh (UTL) in 2019.                      

Ladakh has long been the subject of a territory dispute between India and China. Though the territory was officially administered by India, it enjoyed a certain degree of freedom from Delhi due to it being part of the autonomous state of Jammu and Kashmir. This changed in 2019 when India’s central government scrapped the state’s autonomy and converted Ladakh into a federally-administered Union Territory (UTL). From Beijing’s standpoint, Delhi’s stratagem was to try and nullify the status of Jammu and Kashmir, including Ladakh, as “an internationally-recognized disputed area”, thereby weakening China’s claims over them. Moreover, Delhi’s assertion that the UTL encompasses the Chinese-administered Aksai Chin turns the tables against Beijing, potentially strengthening India’s claim over this contested territory.    

This frames the political context of the latest Sino-Indian crisis in the western sector. Overall, though, the evolving military situation will determine whether and, if so, how China and India will re-set their stakes in this triangular theatre. If the Sino-Indian disengagement at Pangong holds, followed by de-escalation and peace, the focus will shift to other friction points in this sector.

A Vital Strategic Cluster

Among the dense cluster of strategic sites along the LAC, Depsang is an area that is seen as particularly important. The Sino-Indian confrontation there predates the creation of the UTL. An airstrip, which India modernised in its efforts to play catch-up to China’s strategic military build-up along the LAC, is one of these sites. Others include India’s long arterial road along the LAC, the Siachen Glacier where the Indian Army dominates, and Shaksgam Valley which China holds.

The salience of this cluster is heightened by the proximity of the Karakoram Highway and the China-Pakistan Economic Corridor, which passes through Gilgit-Baltistan and which India deems as its domain. Gaining attention, therefore, is a statement by Chinese Defence Minister Wei Fenghe during his visit to Pakistan on 1 December 2020. He is reported to have said that China wanted to “push the mil-to-mil relationship to a higher level, so as to jointly cope with various risks and challenges…and safeguard the regional peace and stability”.

There is nothing new about the close China-Pakistan military cooperation which has always been a concern for India. But the timing of General Wei Fenghe’s visit to Islamabad, at the height of the Sino-Indian crisis at Pangong, has been noticed in Indian strategic circles. Crucial was his idea that Beijing and Islamabad should “jointly cope with” the challenges in safeguarding regional peace. By “regional”, he likely meant the contested China-India-Pakistan areas in Jammu and Kashmir.

The strategic cluster around Depsang has become a sensitive arena for China. An emerging Indian view of the crisis of 2020 is that the Chinese push in the Galwan-Pangong area was actually a feint. The real strategic targets, going back to 2013, were the Depsang plains and the Indian facilities including the airfield in the area. This view seems bolstered by the fact that the disengagement has occurred in Pangong while a similar agreement for Depsang has not been achieved. However, if the goodwill generated by disengagement at Pangong holds, Beijing and Delhi may be able to re-set their stakes on Depsang and other friction points in UTL/Aksai Chin. As things stand, it is still too early to call. Much will depend on how the situation along the border and the bilateral relationship between the two Asian giants develop in the coming months.


Mr. P. S. Suryanarayana is an Adjunct Senior Fellow with S. Rajaratnam School of International Studies (RSIS), Nanyang Technological University (NTU), Singapore. He is the author of Smart Diplomacy: Exploring China-India Synergy (2016), and his latest book is titled The Elusive Tipping Point: China-India Ties for a New Order (World Scientific, 2021).


The views expressed in the article are solely those of the author(s) and do not necessarily reflect the position or policy of the Lee Kuan Yew School of Public Policy or the National University of Singapore.



News Reports

Bilateral relations

China, India agree to hold new round of military talks ASAP
Global Times, March 12

Representatives from the Chinese Foreign Ministry and Indian Ministry of External Affairs co-chaired the 21st Meeting of Working Mechanism for Consultation & Coordination on India-China Border Affairs on Friday (March 12).

China to invest $30 billion for infra development in Tibet over next 5 years
Business Times, March 9

The money will be used on building new expressways, upgrading existing highways and improving the road conditions in rural areas, among other fields, state-run Xinhua news agency reported, quoting the regional transportation department in Tibet.

China and India are friends, not rivals: Wang Yi
CGTN, March 7

Wang stressed that the border issue is a history issue, not the whole of China-India relations.

China, India agree to achieve peace, tranquility in border region: officials
CGTN, March 6

Officials from China and India on Friday (March 5) agreed to achieve peace and tranquility in the border region and bring bilateral relations back on the right track.

Chinese state-sponsored Red Echo group targeted India’s power infra: Govt
Livemint, March 1

This comes in the backdrop of growing concerns that the country’s power infrastructure could be the next target for crippling India’s economy, given the increased state of hostilities in the Indian subcontinent.


News Reports

China and India in the Region

Eye on China, Biden holds first summit with Japan, India, Australia
Channel News Asia, March 12

US President Joe Biden on Friday (March 12) holds the first-ever four-way summit with the leaders of Australia, India and Japan, ramping up efforts to cement alliances as concerns grow over a rising China.

Japan PM takes up China in Modi call
The Times of India, March 10

Ahead of the first Quad summit, Japan Tuesday ramped up the rhetoric against China as it said that PM Yoshihide Suga in a phone call with his Indian counterpart Narendra Modi expressed serious concerns regarding unilateral attempts to change the status quo in the East and South China Seas.

India to Buy First U.S. Armed Drones to Counter China, Pakistan
Bloomberg, March 9

India plans to buy 30 armed drones from the U.S. to boost its sea and land defenses as tensions persist with neighbors China and Pakistan, according to officials with knowledge of the matter.

US and Asia allies plan Covid vaccine strategy to counter China
Financial Times, March 3

Biden administration in talks with Japan, India and Australia to distribute jabs across region.

India treads gently on Myanmar despite escalating violence
Reuters, March 3

India is taking a cautious approach in its response to the military coup in neighbouring Myanmar, worried about the future of ambitious projects worth about $650 million and reluctant to openly denounce generals who could move closer to its rival China.


News Reports

Trade and Economy

Foxconn set to make iPhone 12 in India, shifting from China
Nikkei Asia, March 11

Tamil Nadu plant expected to take as much as 10% of Chinese production.

India likely to block China's Huawei over security fears -officials
Reuters, March 11

India is likely to block its mobile carriers from using telecom equipment made by China’s Huawei, two government officials said, under procurement rules due to come into force in June.

China raises India’s ban on apps, FDI curbs at WTO
Livemint, March 9

China has raised the issue of Indian curbs on cross-border foreign investments and the ban on 200 Chinese apps at the World Trade Organization (WTO).

India woos Tesla with offer of cheaper production costs than China
Channel News Asia, March 2

India is ready to offer incentives to ensure Tesla Inc's cost of production would be less than in China if the carmaker commits to making its electric vehicles in the south Asian country, transport minister Nitin Gadkari said.

 

News Reports

Energy and Environment

With an eye on China, India to allow only approved solar PV models and manufacturers for its solar play
Livemint, March 13

The government has announced a production-linked incentive (PLI) scheme that offers manufacturers in 10 sectors, including those of high-efficiency solar modules, a total benefit of ₹1.97 trillion.

China-India relations: Beijing should speed up hydropower project, Tibetan official says
South China Morning Post, March 10

A proposal to construct dams on the lower reaches of the 2,900km (1,800 mile) Yarlung Tsangpo River was first presented in November and is included in China’s latest five-year plan, which was released on Friday (March 5) at the ongoing legislative meeting in Beijing.

Analysis: Iran slips record volume of oil into China, reaches out to Asian clients for trade resumption
Reuters, March 8

Unlike India, China never completely halted Iranian oil imports.

China's addiction to coal clashes with carbon neutrality pledge
Nikkei Asia, March 8

China's inability to crack its dependence on coal power threatens to undermine the country's pledge to achieve carbon neutrality by 2060.


Analyses

A stare and a wink: how India achieved a Chinese rollback in the Himalayas
Asia Global Online, March 11

By Yogesh Joshi, Research Fellow, Institute of South Asian Studies, National University of Singapore

India’s very resolute stand against the PLA, however, cannot fill the gap in military capability vis-à-vis Beijing. There is no guarantee that India’s successful manipulation of risk in the recent past could be replicated with equally resounding results in the event of a future crisis.

India and China Need More Than a Border Pullback to Mend Fences
World Politics Review, March 10

By Anubhav Gupta, Associate Director, Asia Society Policy Institute

With no political solution to the border issue on the horizon, the military disengagement merely provides temporary relief for a chronic problem.

Quad economic ties not solid enough to tie India on chariot of ‘Asian Nato’
Global Times, March 10

By Qian Feng, Director of research department, of the National Strategy Institute at Tsinghua University

Given India's subtle political stance between China and the US, it's not hard to imagine the South Asia country may not rush to embrace the Quad, if the framework is solely based on military and security cooperation.

South Asia deftly navigates China–India tensions
East Asia Forum, March 9

By Rohan Mukherjee, Assistant Professor of Political Science at Yale-NUS College, Singapore

India’s neighbourhood has increasingly become a space in which the two major powers jostle for influence.

China is the rival India cannot live without
Nikkei Asia, March 4

By Rupa Subramanya, Distinguished Fellow, Asia Pacific Foundation of Canada

The imbalance of power between China and India is reflected not just in the trade statistics nor in the Chinese incursion into Indian territory, which the recent agreement ostensibly resolved, but the many levers that China has to punish India if it wants to.

‘Cheaper costs than China’ not adequate to lure Tesla to India
Global Times, March 3

By Liu Zongyi, Secretary-general of the Research Center for China-South Asia Cooperation at Shanghai Institutes for International Studies

In New Delhi's latest efforts to bolster India's manufacturing capacity, Nitin Gadkari, the transport minister of the South Asian country reportedly assured Tesla Inc with the cheapest manufacturing cost in world - even lower than China.

 

Books and Journals

The road from GalwanThe Road from Galwan: The Future of India-China Relations 
Carnegie India, March 2021


By Vijay Gokhale, Nonresident Senior Fellow, Carnegie India; and Former Foreign Secretary of India. . 

On June 15, 2020, Indian and Chinese troops engaged in a brawl that left twenty Indian soldiers dead while causing an unspecified number of Chinese casualties. The clash is a part of a broader border standoff along the Galwan River between the two forces on the Line of Actual Control that is yet to be resolved. The Indian strategic community is broadly in agreement that this border dispute marks an implacable decline in India-China ties. They argue that the very basis of relations that emerged after former Indian prime minister Rajiv Gandhi’s visit to Beijing in 1988 has been shaken, if not destroyed. Yet, how did the two countries manage to reach this nadir in ties, and furthermore, what does the Galwan clash signify for the future of Sino-Indian relations?

This paper argues that, long before the present border dispute occurred, Sino-Indian relations had been steadily declining due to rampant misperceptions of the other side, contributing to a lack of trust. The most fundamental misperception between the two countries is the inability to comprehend each other’s international ambitions, yielding the fear that their foreign policies are targeted against the other. This paper traces the impact and development of these misperceptions on Sino-Indian ties through three different phases before considering the future of the relationship after the Galwan dispute.

AJIAExplaining the asymmetry in the Sino-Indian Strategic Rivalry 
Australian journal of international affairs, February 2021


By Manjeet S. Pardesi, Senior Lecturer in International Relations and Asia Research Fellow at the Centre for Strategic Studies, Victoria University of Wellington. 

China views India as an asymmetric (‘lesser’) rival that has the ability to obstruct China’s grand strategic goals. China’s long-term goals are domination in East Asia followed by Asia-wide domination, and finally global pre-eminence. The asymmetric dimension of their rivalry is rooted in the ego-relevancy cognitive bias in the Chinese elites’ perceptions of Indian history and statehood. Consequently, China does not consider India as a ‘peer’. This perceptual dimension pre-dates their material power asymmetry. Nevertheless, China perceives India as an ‘imperial’ rival that interferes in China’s Tibet. Furthermore, India’s ‘hegemonic’ ambitions in Southern Asia pose a challenge for China at the pan-Asian level, and may even undermine Chinese domination in East Asia. Thus understood, there are three implications for the Sino-Indian rivalry. First, the positional and territorial dimensions of their rivalry are now intertwined and will be difficult to resolve. Second, this is not just a dyadic rivalry as it will interact with their relations with the United States, Japan, and Pakistan, thereby creating new uncertainties. Finally, the military undertones of this rivalry are spilling over into other regional countries. This rivalry will intensify if India pursues internal or external balancing, or if India charts a distinct path to politico-economic modernisation.


 lky-cag-logo

Compiled and sent to you by Centre on Asia and Globalisation and the Lee Kuan Yew School of Public Policy, National University of Singapore.

Have any feedback or comment? Email us at decb64_Y2FnQG51cy5lZHUuc2c=_decb64
Subscribe

NAGY, Stephen

NAGY, Stephen

SURYANARAYANA, P. S.

SURYANARAYANA, P. S.