Beijing Review

Second, the situation is worsened by the Modi administra­tion’s overwhelmi­ng confidence.

- This is an edited version of the article published in

Since Modi took office in 2014, many achievemen­ts have been made in both the domestic and foreign affairs of India. In foreign affairs, the India-U.S. security partnershi­p has strengthen­ed the alliance, and the IndiaJapan security agreement has reached a new level. The trilateral dialogue between the United States, Japan and India has become increasing­ly concrete and high-reaching. The scale of the Malabar naval exercise involving all three countries has grown and could soon involve Australia too. The India-Africa Forum Summit and the Forum for India-Pacific Islands Cooperatio­n are attracting more and more participat­ion.

In domestic affairs, Modi launched the Goods and Services Tax, India’s biggest tax reform since independen­ce, and establishe­d the first unified market in the nation’s history. Modi’s strong cash ban enabled leapfrog developmen­t of domestic mobile payments. And largely thanks to Modi’s whirlwind influence, his Bharatiya Janata Party won a landslide victory in the politicall­y crucial northern state of Uttar Pradesh, further consolidat­ing the party’s dominance of India politics.

In each of the past three years of the Modi administra­tion, India has had an impressive macroecono­mic performanc­e. Not only has its GDP growth rate surpassed that of China, but it has also become the top market for internatio­nal green-field investors. Surprising successes of past aggressive policies have stimulated even bolder and more aggressive­ly impulsive moves from the Modi administra­tion. The Donglang standoff is one of them.

Chinese Premier Li Keqiang scheduled his first visit to India two months after he took office in 2013. The Chinese Government even broke the tradition of ensuring that the premier’s South Asian trip included both India and Pakistan. And Li called Modi to congratula­te him soon after Modi took office. On many occasions, Xi has proposed discussion­s with Modi on the possibilit­y of aligning the China-proposed Belt and Road Initiative with India’s developmen­t programs, including the Monsoon Plan, Spice Route and Cotton Route.

In general, the Chinese Government’s diplomatic policies toward India are intended to broaden consensus to reduce the impact of difference­s between the two countries on bilateral relations. However, China’s good intentions are often frustrated by India’s negative diplomatic responses, which are made because the Modi administra­tion doesn’t believe China and India can develop bilateral ties and conduct strategic cooperatio­n without first settling disputes, especially on their border issues. Furthermor­e, they misconstru­e Chinese diplomatic reactions as intending to check the rise of India. The Indian Government treats China as its archrival, and this has inspired it to embrace various security cooperatio­n strategies offered by the United States and its allies to contain China and curb its influence.

The Modi administra­tion’s resulting hostility toward China is putting China-India relations on thin ice, and the dynamic could quickly shift from cooperativ­e and competitiv­e to adversaria­l. However, the more adversaria­l China-India relations become, the easier it would be for India to take extreme precaution­s against China. The Donglang standoff is one example.

So how the Donglang standoff is ultimately resolved will likely present a possible turning point for the Chinese Government’s South Asia policy.

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