Business Standard

Formalise India-China border

It would be pointless for India to make any concession­s to China unless Delhi and Beijing agree to resolve all outstandin­g border issues within an accelerate­d time frame. Until then, the staring war between Indian and Chinese troops in the Doklam bowl wil

- MATHEW MAAVAK

While the media is abuzz with various analyses on how the current India- China military stand-off in the Doklam bowl may pan out, they generally miss the larger issue at stake, namely the need for a permanent border resolution between both nations.

Any temporary resolution over the 89-square kilometre yak-grazing ground claimed by China and Bhutan would be complicate­d by the lack of a general border consensus between all three nations in the area. Doklam represents only a dot along the thousands of square kilometres of contested lands straddling the Line of Actual Control (LAC) between India and China. Even if the Doklam stand- off is resolved today, another sore spot along the LAC may flare up tomorrow.

Under these circumstan­ces, it would be pointless for India to make any concession­s to China unless Delhi and Beijing agree to resolve all outstandin­g border issues within an accelerate­d time frame. Until then, the current eyeball-to-eyeball staring war between Indian and Chinese troops in the Doklam bowl will be repeated across various peaks along the Himalayas. Singed borders or synergised economies? Despite China’s military superiorit­y, India knows that it is digging in from a position of strength. The Chinese economy is maxing out, primarily due to debts incurred by its numerous stateowned enterprise­s (SOE), which amounted to 65 per cent of its gross domestic product (GDP) in 2016. According to the Bank for Internatio­nal Settlement­s (BIS), the total outstandin­g debt incurred by China’s government, corporate and household sectors amounted to $26.6 trillion in 2015, representi­ng a staggering 255 per cent of its GDP.

China, therefore, can ill-afford a major war with India whose long-overdue infrastruc­tural boom has only begun to rev up. Beijing also urgently needs alternativ­e export markets before various debt bubbles, worth tens of trillions of dollars in the United States alone, implode à la the Great Recession of 2008. The global stabilisin­g role played by China from 2008 onwards may even be replicated by India in 2018 — if both nations can move beyond their singed borders to synergise their economies.

So far, little has been studied or published about the economic potential unleashed by a hypothetic­al border treaty between India and China. With a collective market of 2.7 billion potential consumers, backed by a historic strangleho­ld over 50 per cent of the global GDP from 1,000 AD to 1,600 AD, there is no reason why both nations cannot return to their rightful places under the sun. In the light of the West’s gradual decline, China’s export- oriented industries need Indian consumers for the next few decades. Incidences like the Doklam stand-off, however, have resulted in strident calls for the boycott of Chinese products in India and the substituti­on of Chinese raw materials through an accelerate­d industrial programme. A stable geostrateg­ic continuum It is an open question as to who will benefit more from a final border resolution between China and India. China’s primary Belt and Road (B&R) arteries have been laid across territorie­s that may be prone to Islamic fundamenta­list disruption­s and geopolitic­al blackmail in the near future. A trans-Himalayan economic corridor into India, post-border treaty, may, however, provide a secure and enduring economic corridor for China in a way the China-Pakistan Economic Corridor in Pakistan cannot. It also creates a formidable geostrateg­ic continuum between the RIC nations of Russia, India and China.

Such a game-changing developmen­t may also neutralise jihadi secessioni­st movements from Xinjiang to Kashmir to southern Thailand. Turkey, aware of its ability to stoke pan-Turkic discombobu­lation across Central Asia, is already eyeing a military base along the Strait of Malacca through which 80 per cent of China’s maritime oil imports and 60 per cent of Japan’s total oil imports flow.

While the proposed Melaka Gateway joint developmen­t project by a Chinese-Malaysian consortium may help secure the Strait of Malacca for Beijing, there is no guarantee that Turkey will not establish a wild-card presence in the region. With a growing military presence in the Strait of Hormuz, courtesy the ongoing QatarSaudi Arabia rift, Ankara may be tempted to encircle the B&R in order to extract trade and geopolitic­al concession­s out of China. And this is just one short-term geopolitic­al risk facing China.

It is, therefore, in Beijing’s longterm interest to seek a permanent border resolution with Delhi. India is already benefittin­g from the fallouts of China’s unresolved territoria­l disputes with 18-odd nations — one that may even involve the Jiandao region in a future unified Korea. Nations feeling the brunt of China’s revanchist policies are rapidly boosting trade and military ties with India.

A final India- China border treaty should be future-proof. It should securitise the Tibetan fonts of India’s downstream water lifelines and cut out Pakistan from being used as a spoiler in future India- China bilateral equations.

At the of the day, it may take a Himalayan effort for both nations to sign a secure and lasting treaty but once both nations stop bickering and start cooperatin­g, it is their destiny to move mountains beyond their current redoubts.

 ?? REUTERS ?? MUTUAL GAIN A game-changing developmen­t such as a final border solution between China and India may neutralise jihadi secessioni­st movements from Xinjiang to Kashmir to southern Thailand
REUTERS MUTUAL GAIN A game-changing developmen­t such as a final border solution between China and India may neutralise jihadi secessioni­st movements from Xinjiang to Kashmir to southern Thailand
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