31 July 2024

India-China warming pops US pipe dream

Spengler

India’s Finance Minister Nirmala Sitharaman on July 25 endorsed her economic advisor’s proposal to open the country to direct investment from China, effectively frozen since the Sino-Indian border clashes of 2020.

Earlier this week, Reuters reported, “India’s Chief Economic Adviser V Anantha Nageswaran said…that to boost its global exports New Delhi can either integrate into China’s supply chain or promote foreign direct investment (FDI) from China.

“Among these choices, focusing on FDI from China seems more promising for boosting India’s exports to the US, similar to how East Asian economies did in the past,’” Nageswaran said according to Reuters.

The proposed opening to China—a rebuke to American diplomacy in the region—followed Russian President Vladimir Putin’s visit to New Delhi earlier this month.

Asia Times’ newsletter Global Risk-Reward Monitor reported exclusively July 11, “Modi asked Putin to help India resolve its longstanding border dispute with China. This is the most important military conflict in Asia, limited as it is, because it puts the region’s two largest countries at odds. Russian mediation, however informal, would entail a diplomatic revolution, and make a mockery of America’s hope of rallying Asian countries against China.”

No comments: