The Far-Reaching Dragon

Little history before we begin- the Sino-Indian War of 1962 started primarily on two counts: the border dispute and the alleged Indian role in weakening of Chinese dominance in Tibet. After about a month of fighting, then Chinese premier, Zhou Enlai declared a unilateral ceasefire which India decided not to upset.

Fast forwarding to June 2020, clashes erupted between the Chinese and Indian troops that media houses have dubbed as the deadliest in the region in decades. Efforts have been on to resolve the standoff at multiple levels between the armies, but with little to show.

The Indian government banned 59 Chinese apps in what is presumably an indirect response to the Chinese incursion, though the government has dubbed the action as a measure to counter the threat the apps posed to national security and sovereignty. This remains but a statement.

Looking at major start-ups in India, we see huge amounts of the Yuan all over. Everyday names like Zomato, Paytm, BigBasket, Ola, Swiggy... are all toe to toe in the list. Now, it is not just the start-ups that Chinese companies hold sway, but a variety of sectors. Xiaomi, Vivo and Oppo have established a strong presence in the smartphone market, sidelining decade old incumbents Samsung and Apple. Indian auto and pharmaceutical industries are heavily reliant on Chinese parts and Active Pharmaceutiacal Ingredients (APIs) respectively. On the backdrop of Atmanirbhar Bharat and current geopolitical scenario, initiatives are being prioritized to reduce import dependency on China but the current system has been established across decades, it would be foolish to think the status quo can be changed in no time.

China has made huge inroads in the world order. Chinese presence in infrastructure sectors is particularly pronounced in the smaller and poorer southern Europe with stakes in airports, ports and even sporting teams. Trade-wise, UK and Germany feature in the top trading partners of China while the USA is numero uno. Trade with China is in fact so important to the European economy that their leaders have been content with just releasing statements condemning the erosion of autonomy of Hong Kong. America has become increasingly wary of Chinese influence as evident from the “trade war”, with episodes of back-to-back tariffs and stand-downs. The restrictions on American companies from doing business with Huawei are another case in point.

All things considered, it cannot be refuted that China has grown leaps and bounds on the global stage in terms on economic clout or military might. It would be interesting to see how the pecking order shapes up on the backdrop of waning American influence and expansionary Chinese policies. It would be even more interesting to see India’s place in this order.