The
current stand-off between China and the United States over trade presents a
breathing space, and possibly an opportunity, for India to solidify its position
in the Asian power game being played out between the two giant nations.
For the
moment at least Beijing’s attention is fixed westward, angered by President Donald
Trump’s increasingly protectionist stance, struggling to moderate its mercurial
neighbour, North Korea, and with an inevitable eye on the manoeuvres of its ‘renegade
province’, Taiwan.
This means
that, for the moment at least, the momentum is off China’s much heralded Belt
and Road Initiative (BRI), which New Delhi believes is actually a not so subtle
attempt to isolate it by turning its near neighbours into compliant client
States.
In fact
BRI is currently giving China more headaches than advantages. Clumsy attempts
to cajole countries into paying for much of the infrastructure needed for the
project have forced many into significant indebtedness to Beijing.
This has led
to increased anti-China sentiment among local populations, a questioning of
China’s real intentions and a growing feeling that Beijing is not the
benevolent provider of largesse it has been trying to portray.
As Shahidul
Haque, the Foreign Minister of Bangladesh, one of the BRI’s prime targets,
pointed out: “There is a need to balance economic integration with
sovereignty”.
As if to
emphasise this, Bangladesh cancelled a Chinese project to develop a new port at
Sonadia in favour of a Japanese offer of a similar project at Matarbari just 25
kilometres away.
This has
delighted the Government in New Delhi which viewed Sonadia has a key part of
the ‘string or pearls’ strategy to encircle India in its own maritime backyard,
as well as threatening its position on the nearby Andaman and Nicobar islands.
However,
Bangladesh is just one nation which is beginning to have doubts about the BRI.
A report from the Washington-based Centre for Global Development says eight of
the 68 countries involved in the project are in grave financial difficulties
because of it, with another 15 “significantly or highly vulnerable to debt
distress”.
“Djibouti
already owes 82 per cent of its foreign debt to China, while China is expected
to account for 71 per cent of Kyrgyzstan’s debt as BRI projects are
implemented,” the report stated.
“There is
concern that debt problems will create an unfavourable degree of dependency on
China as a creditor. Increasing debt, and China's role in managing bilateral
debt problems, has already exacerbated internal and bilateral tensions in some
BRI countries,” the report continued.
These and
other concerns are the subject of intense focus in New Delhi. Realists in the
Government of Narendra Modi know that it will be many years before India has
the economic and military strength to challenge China, and in the meantime it has
to rely on others — and Beijing’s own missteps — while it gets on with the
business of catching up. With a little help from its friends this strategy may produce
the required results.