Blame the West for China’s OBOR
to the detriment of extremism.
During his presidential campaign, Donald Trump claimed he would take immediate action against Chinese trade imbalances and currency practices. Instead, following his meeting with Chinese President Xi Jinping in April, a 100-day plan was announced to resolve trade-related frictions. The joint press release saw China repeat some of its earlier commitments on imports of beef, biotechnology products, and access to credit rating agencies and credit card companies.
In return, the US agreed to consider China for LNG export authorisations, welcome Chinese investment, treat Chinese banks on par with other foreign banks and recognise “the importance of China’s One Belt and One Road Initiative” and to send delegates to attend the Belt and Road Forum.
Earlier the US had stayed away from the China-led Asian Infrastructure Investment Bank. The two sides also agreed to begin discussing a one year plan “to further solidify actions in promoting US-China economic engagement and cooperation”. China has also been repeatedly described by Trump as important in addressing the North Korean nuclear and missile challenge.
Thus, India faces a dilemma on many fronts. One of the anchors of India’s foreign policy, Russia, has been pushed into a closer engagement with China because of its difficult relations with the West. President Vladimir Putin was a leading presence at the Belt and Road Forum. European countries, faced with stagnant economies, will look for potential economic opportunity. Countries in south and southeast Asia and Africa are also short of capital, and will find it difficult to resist surplus Chinese capital, even though it has proven to carry heavy baggage in terms of debt and lack of transparency.
India will no doubt have to further step up its diplomatic and economic engagement, particularly through more effective implementation, while avoiding unnecessary competition in areas where it does not have strengths.
In the US, India must deepen further its outreach to the US Congress, think tanks, business and leverage the Indian-origin diaspora.