The annual Central Economic Work Conference (CEWC) in China that lays down economic policy priorities for the coming year took place from 19-21 December 2018. The effects of the trade war with the US was apparent with Xi Jinping noting that the ‘The achievements we have made have not come easily’ and that ‘the external environment is complicated and severe, and the economy faces downward pressure’. This pessimistic note was in marked contrast to the previous year’s CEWC and when at the beginning of the trade war, Chinese official media claimed that the Chinese economy was ‘resilient enough to cope’.
US Vice-President Mike Pence delivered a key speech on his country’s China policy early this month on 4 October 2018. His speech drove home the message of the burgeoning challenge to American interests from China. Using specific examples, he pointed out how the Chinese sought to influence American domestic politics, stole American technology, and undermined other countries through debt-trap infrastructure projects under its Belt and Road Initiative.
Implications for India
Pence’s speech on China has also been read as being politically motivated given the November mid-term elections to the US Congress. While this may be so, it also offers Indians an opportunity to think why their country’s foreign policy challenges from China do not form more of an issue at least during parliamentary elections. Continue reading Raising China as an Issue in Indian Elections
There are several aspects of the recently concluded 19th Congress of the Communist Party of China (CPC) that are noteworthy for India.
First, CPC General Secretary Xi Jinping has attempted to redefine what acceptable economic growth is in China. The expression ‘contradiction’ is an important one in the Chinese communist lexicon and until the 19th Party Congress, the ‘principal contradiction’ was the one between ‘the ever-growing material and cultural needs of the people and backward social production’ or, in other words, China’s inability to provide for the basic material needs of its people. Following nearly 40 years of economic reforms, this challenge has now been met with China eradicating poverty at the most massive scale and at the quickest pace in human history.
This process has, however, also resulted in rising income inequalities between individuals and between regions in China, and massive environmental damage and health crises across the country. Continue reading China’s 19th CPC Congress: Redefining Economic Growth
Jabin T. Jacob and Hoang The Anh (editors), China and Its Neighbourhood: Perspectives from India and Vietnam (New Delhi: Pentagon, 2017).
Vietnamese edition: Trang Quoc voi lang Gieng: Quan Diem Viet Nam va An Do (Hanoi: Vietnam Social Sciences Press, 2017).
This volume is an attempt to develop a more nuanced understanding of China’s foreign, security and economic policies by bringing together perspectives from two of its most important neighbours, India and Vietnam. This is a unique exercise because these two countries have a long history of both contending and cooperating with the People’s Republic of China. Even as India’s boundary dispute and Vietnam’s maritime territorial disputes with China have persisted, both countries have, in recent decades, also managed to successfully develop close economic relations with their northern neighbour as well as cooperated extensively with Beijing on regional and global issues of significance and mutual interest. Yet, the growth of China’s capabilities and ambitions, and the decline of its impulse towards multilateralism present challenges for India and Vietnam in their neighbourhood. It is against this backdrop that the authors in this book examine China’s bilateral relations and its role in regional multilateral organisations as well as the balancing behaviour of other powers in the region. In the process, this work also seeks to strengthen the sinews of the comprehensive strategic partnership between India and Vietnam by building closer ties between the research communities in the two countries and giving it greater analytical heft.
In India, Vietnam has the image of an uncompromising bulwark against China and almost any discussion of India’s external options vis-à-vis China is not complete without bringing Vietnam into the picture. Hanoi, meanwhile, sees India as a big neighbour to China and that while the relationship between the two countries has had its ups and downs in history, New Delhi now seems to be both cooperating and competing with China. India’s experience of dealing with China holds lessons for Vietnam. At the same time, it is extremely essential for policymakers and strategic analysts in India to keep a close eye on the dynamics of the China-Vietnam relationship itself. How relations between the two most successful communist regimes in the world – politically and economically speaking – will develop remains to be seen. There are both lessons to be learnt and cautionary tales here. New Delhi should have a realistic assessment of the lengths to which Vietnam will go in countering China’s assertiveness in the region given that it is the smaller country. At the same time, given Vietnamese history, there is also scope for calibrated measures to support Vietnam’s national capacity.
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Based on a presentation made at a conference on The US Rebalance and Asia Pacific Region, organized by the Centre for Public Policy Research, Kochi, Kerala, 7 March 2015.
The questions asked of China about whether it is engaged in a regional hegemony project in the Asia-Pacific are deeply problematic. For one, there is a great deal of ignorance about China and so the starting assumptions are underlined by misinformation or lack of knowledge of China’s internal political dynamics, its external concerns as well as of its policy processes. For another, similar questions are not asked of the United States. Is the United States engaged in hegemony or is it a power that maintains peace and stability in the Asia-Pacific? Or is it both? Can the responsibility to maintain regional or global peace be separated from the need to also be hegemonic in order to actually successfully carry out that role? These are big questions but the more interesting one from an Indian point of view is why this question today is asked more of China than of the United States. Continue reading Regional Hegemony or Peaceful Rise? China’s New Silk Roads and the Asia-Pacific