As many countries take steps to oppose a belligerent China, they face an economic roadblock. With China’s vast resources and position as th...
As many countries take steps to oppose a belligerent China, they face an economic roadblock. With China’s vast resources and position as the world’s factory, the country can use its economic power as a foreign policy tool. For example, as relations with Australia plummeted over the question of where the coronavirus had originated, China banned beef from four major plants in Australia and slapped a steep tariff on barley. Both were devastating blows to Australia’s economy, which is now closely connected to China – Canberra’s largest trade partner.
India faces a similar problem – of even greater magnitude. The Chinese People’s Liberation Army has intruded into Ladakh and last fortnight launched an attack that killed 20 Indian soldiers. Paradoxically, even as the Chinese display military aggression against India, the Indian economy itself is significantly dependent on China. Chinese brands, supply chains and investments dominate the Indian markets. Experts argue that any sudden decoupling will hurt the Indian economy grievously.
Chinese money in Indian politics
While the economic effect of this Chinese dominance has sparked concern, so have uts political consequences. The past week has seen two of India’s largest political parties trade charges about accepting Chinese money. The Bharatiya Janata Party alleged that the Rajiv Gandhi Foundation, a charitable...
