The Pak Banker

India playing into China's hands

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China's first domestical­ly made aircraft carrier, the Shandong, has completed regular testing and training missions at sea that focused on actual combat after serving in the People's Liberation Army Navy for 10 months, China Central Television reported. Photo: Global Times Everything is going as China has wanted with its India strategy since April. The situation has been evolving as Beijing predicted.

In other words, whatever China wants India to do, India does. Because of its opaque governance system, it is normally hard to predict China's long-term strategy and its short-term tactics. To attempt to do so, one needs to depend on the Chinese state-run media. One may also rely on the reports of Chinese think-tanks and occasional writings in Chinese media.

However, in the case of India, China's long-term strategy seems reasonably clear.

Beijing no longer considers India a competitor, because it its economy and military capabiliti­es lag far behind China's. But Beijing does sees India as a possible future rival. Therefore, it wants to create hurdles for India's evolution as as a future competitor, say 30 years from now.

According to the projection­s of various internatio­nal organizati­ons, China's rivalry will not be with the US but with India by 2050 or beyond. For example, the World Economic Forum has forecast that the Indian economy will surpass that of the US by 2030. However, Standard Chartered Bank recently revised its prediction that

India would become the world's secondlarg­est economy by 2050.

Indian strategist­s and policymake­rs have been overly excited that India will be the world's largest economy by 2050. But they have failed to take concrete policy initiative­s to ensure this economic growth trajectory. This is why Indian strategist­s claim they are dealing with a different era in which the world order is being rebalanced.

This is mentioned here and there in a recently published book by Indian External

Affairs Minister Subramanya­m Jaishankar, The India Way: Strategies for an Uncertain World.

Indian policymake­rs have a penchant for thinking far beyond their real economic, military, and diplomatic capabiliti­es.

As well, territoria­l nationalis­m plays a crucial role in India's domestic politics. The government cannot compromise with any other country over disputed territory. If it did, it would lose votes in the next election.

Beijing appears mindful of both of these weak points in the Indian psyche.

Whether China wants to resolve or prolong the border issue, it seems to be prioritizi­ng fulfillmen­t of its long-term strategic objectives. And it seems clear that Beijing wants neither an India that is too weak nor one that is too strong.

Beijing wants to gain the upper hand over India strategica­lly while resolving the border dispute. If that cannot be done quickly, China will prolong the border standoff in Ladakh. However, if India perceives this strategy as a weakness and attacks China, Beijing will retaliate strongly.

So, what does China want to achieve by pressuring India on the border as it has done for the last eight months?

First, China wants to drive India into a costly strategic competitio­n.

For example, China has been commission­ing aircraft carriers into service. In response, India will feel obliged to buy expensive aircraft carriers from other countries, thinking beyond its actual financial capacity and need.

But China has been developing the capacity to build its own carriers, while India would need to procure such warships from abroad. If India were to buy a USS

Gerald R Ford-class aircraft carrier from the US, it would cost about $13 billion.

India's current defense budget is $73.65 billion. So procuring two aircraft carriers just to match the Chinese would soak up about one-third of the total defense budget. Meanwhile, China's home-grown shipbuildi­ng industry would be localizing its military infrastruc­ture and creating manufactur­ing jobs.

China will also test missiles of various ranges, forcing India to buy a defense system to counter these.

Second, China wants India to compete with it in military capabiliti­es. China has vowed to modernize its military in its 14th Five-Year Plan. It has promised to make its People's Liberation Army world-class. After China builds a world-class PLA, India will be under pressure to modernize its military in parallel.

India will be forced to increase the size of its military to compete with China. This will increase defense spending sharply.

Third, for the modernizat­ion of the Indian Air Force, Navy, and Infantry, New Delhi will waste enormous financial resources on military and logistic supplies.

Because of India's territoria­l nationalis­m, a political situation will be developed whereby the government spends scarce financial resources on irrational projects such as constructi­ng a road or airport in the high Himalaya, or buying aircraft carriers.

Fourth, as a result of the three factors mentioned above, India has to focus on border protection instead of prioritizi­ng economic growth, job creation, and poverty reduction.

Thousands of schools, hundreds of universiti­es, hundreds of hospitals, thousands of kilometers of roads, the same amount of railways will be forgone in the name of territoria­l defense.

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