Xi, Modi Summit in China Comes to an End With a Postscript: ‘It Takes Two to Tango’

Indian Prime Minister Narendra Modi and Chinese President Xi Jinping have agreed to undertake a joint India-China economic project in Afghanistan at their first informal summit, reports Indian news agency PTI citing official sources in Wuhan.

IRSHAD SALIM (April 28, 2018) — China and India seek predictability and control in their bilateral relationship– both have major border and regional issues to tackle along with balance of trade on the table–on give and take basis, and therefore are jostling to delink geoeconomy from geostrategy- a lesson we all could possibly learn going forward by following the developments in our neighborhood.

While China says it won’t push India on its ambitious 3-continent spread Belt and Road Initiative (BRI), the two Asian rivals’ bilateral trade has hit a historic high– in 2017 it was $84.44 billion and Beijing seeks to expand it further, so does India. The uptick is a 19 percent year-on-year jump, with Indian exports to China seeing a near 40 percent increase in 2017.

Notwithstanding trade, Indian public perception of Chinese state and government seems to be the inhibiting factor in Beijing’s pursuit for people-to-people diplomacy– an outreach program finely meshed with debt-diplomacy in BRI.

According to Pew Research Center’s 2017 Global Attitudes Survey last year, China’s image among Indian public (and other countries in the Asia-Pacific region) has been less than favorable.

Indians name the U.S., not China, as the top global economic power– China’s socialist market economy is the world’s largest economy by purchasing power parity according to the IMF, and has according to some experts already overtaken the U.S. as numero uno in global economy.

On whether China’s growing economy is more of a good thing or a bad thing for their country, 51 percent of the Indian public polled said it was a ‘bad thing’, and 56 percent said China’s growing military was not a ‘good thing’ for their country.

The survey also revealed that 44 percent among Indian public see China’s power and influence in the region and in the world as a major threat to their country.

This was even before a recent border dispute between the two neighbors in the Himalayas– people had a negative view of Beijing by a more than three-to-one margin.

The Indian public also see Pakistan, its western neighbor, in a similar perspective. Both China and Pakistan are ‘iron brothers’ and have embarked on BRI’s flagship project, the $62 billion China Pakistan Economic Corridor (CPEC), much to the dismay of India, more specifically the Modi government.

According to Khurram Husain writing for Dawn on the Xi-Modi meetings, “something very important appears to be changing between China and India. It is worthwhile for Pakistan to pay attention, especially bearing in mind that the Indian Ministry of External Affairs was the first to publicly congratulate China on getting the vice presidency of the Financial Action Task Force (FATF) on that Friday when the rest of Pakistan was busy trying to figure out what exactly happened during those meetings.

“Congratulations to China on its election as Vice President of Financial Action Task Force at the #FATF plenary mtg. on 23 February 2018. We remain hopeful that China would uphold & support the objectives & standards of FATF in a balanced, objective, impartial & holistic way” is what that midday tweet from the official spokesperson of the ministry said, leaving us all wondering what exactly had happened there in Paris.

“But it doesn’t end here. More recently, the Indian government called on all its officials to refrain from attending a ‘Thank you India’ rally being organized by the Dalai Lama in Delhi, which is an annual affair and always sees attendance by high-level Indian officialdom, as well as searing rhetoric directed towards China during the speeches that take place there. This time the event has been rescheduled and moved back to Dharamsala, where the Tibetan organization is based, and will hold the rally on April 1.

“There was no open advisory from the government to do this apparently, just a quiet word whispered to the Dalai Lama to keep things tame, and an internal communication letting government officials (including from the states) to refrain from attending. The gesture has been interpreted by columnists and observers of Indian foreign policy as a clear bow to Chinese sensitivities.

“What is interesting is that this bow comes after a flurry of articles in the Indian media announcing that China is hardening its positions in the Doklam plateau, the most sensitive point along the 4000 kilometer-long border between India and China because it is where three countries meet: China, India and Bhutan. The Chinese acknowledged the building of the new infrastructure on the plateau as early as January, saying in an official statement that they are building in their own territory (the area is, in fact, disputed with Bhutan, while India supports Bhutan’s claim).

“In the first few days of March, reports in the Indian media began to talk of new helipads being built in Doklam, housing sufficient to put up 1,800 troops, artillery, trenches and increased air defenses. Even in late February, there was mounting concern in India over these developments, with reports circulating that this was the first time that the Chinese hosted troops at that altitude, implying that their presence at the positions they held since August 2017, when last summer’s stand-off had come to a standstill, may be permanent.

“As of a few days ago, this hardening of the Chinese positions in Doklam was officially acknowledged by the India’s defense minister. Yet, India’s diplomacy continues to favour going soft on Chinese sensitivities, by pulling away from the Dalai Lama as well as staying out of the ongoing crisis in the Maldives.

“So what’s going on? One take is that India is doing all this with an eye to the forthcoming Shanghai Cooperation Organization (SCO) summit to be held in China this June. Additionally, reports are also circulating that a high-level visit from Beijing to Delhi could take place later this year, possibly with President Xi Jinping or Premier Li Keqiang. These are unconfirmed reports, but it is interesting to see that those Indian journalists who regularly interact with the external affairs ministry in Delhi are coming away with a sense that Indian diplomacy is now in pursuit of objectives that go beyond Doklam, the Maldives, Bhutan or Bangladesh or any of the other traditional regional issues that drive its foreign policy. And in the course of doing so, Indian diplomats appear to be willing to look past a few trenches and helipads in Doklam, and ‘Thank you India’ rallies in Delhi.

“What might these objectives be? One clue might be provided by another fact that hit the headlines at the same time as all these other developments. “India-China bilateral trade hits historic high of $84.44 billion in 2017” the Times of India declared on Wednesday. This is a 19 per cent year-on-year increase, with Indian exports to China seeing a near 40pc increase in 2017.

“Beneath the surface, we see other indications that something larger than a regional flashpoint and a few irritants might be in the driving seat in Delhi’s equation with Beijing. The appointment of Vijay Gokhale as the new foreign secretary in January of this year is another indication. A seasoned China hand, the diplomat who played a key role in defusing the Doklam stand-off of last summer and the former Indian ambassador to China, Gokhale has been placed in the position for a reason, and given his track record, heightening tensions with China is unlikely to be that reason.

“Any warming of ties between China and India, or more specifically, any graduation of ties beyond the border dispute and overlapping regional agendas, has deep implications for Pakistan, as the events in the Paris meeting of FATF might have just given us a glimpse of. And such a warming of ties, if you look at the history, is almost inevitable, provided emotion doesn’t hold rationality hostage.

“China and India don’t have a history the way China and Japan do, or even China and Korea. So whatever is pulling them apart is nowhere near as powerful as what is bringing them together: the growing ties of trade and investment. It is a matter of time before pragmatism prevails, and with the United States’ growing belligerence now spilling over into the economic realm with Mr Trump’s new tariffs, the pragmatic moment may well open up in 2018.”

In the case of a potential triangular relationship  (led by Beijing) between China, India and Pakistan–SCO and CPEC provide such platforms, it could possibly develop in the region on a minimum agenda of ‘counterterrorism’ to begin with–without the postman always ringing twice!

Is (or will) China be returning favor to Pakistan for having acted as bridge between the U.S. and China in the early 70s?. It takes two to tango.

One of the key takeaways/giveaways of the Xi/Modi informal summit was the announcement that the two countries have agreed to undertake a joint India-China economic project in Afghanistan, the Indian news agency PTI has reported citing official sources in Wuhan.

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