Thursday, March 4, 2010

China Calling

We have already heard enough about what Chinese are up to courtesy Barack Hussain Obama in his regular addresses to motivate American students. Often, he clubs China with India and labels them as threat to the US and Europe in areas related to science and mathematics. The whole world, to some extent, shares the same views. But there is more to the world if we start looking without an American Eye.

For years, China has been developing ports in Pakistan, Bangladesh and Myanmar. China is also planning to build a rail network in Nepal, apart from already built roads and bridges to connect Chinese occupied Tibet via Nepal route. Now I read China is developing a small fishing town in Srilanka into a new port, investing millions!

It would be naïve to think that all these projects are to help these small and poor South Asian countries. There is going to be a huge impact on long term political climate of the region if China continues in this way and at this speed. No doubt, the threat to India is now both on security and economy front.

These projects show a resolute attempt by China and Chinese companies to invade these smaller markets and make long-lasting relationships. This would serve many purposes. One, it would help China gain political might in the South Asian region, including coming in nearer to India and counterbalancing the Indian might. It would also help remove dependence of Chinese companies on European or American markets to some extent and in the same time help develop new market for same or outdated (may be outdated at other places; as we know quality constraints in Chinese products) or even for newer products and services. In the short term this is a win-win situation for both China and the other small South Asian countries. But in the long term it is the Chinese who would eat the cake.

Despite all this, I don’t see much effort from government of India to do something proactively. Last time I heard the Maoists in Nepal had stopped Indian firms (most recently GMR Energy) from work at a hydroelectric power project. The future of the whole South Asian region popularly called Indian subcontinent is at the brink of a change in course.

- Rahul

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