Countering Chinese influence in the Subcontinent

Ray

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China loves all.

Why do others not all love China?
 

sgarg

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China loves all.

Why do others not all love China?
Honestly India should have invested more in Nepal, Bangladesh and Myanmar. China is doing well because India ignored its neighbors.

India's economic performance has been hampered by pseudo socialism for a long time.

Nothing much can be done right now as no short cut will work. Patience is the key.

China has quite a lot of influence in Asia. India may be liked but countries like Thailand, Myanmar will listen to China first.
 

no smoking

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Honestly India should have invested more in Nepal, Bangladesh and Myanmar. China is doing well because India ignored its neighbors.

India's economic performance has been hampered by pseudo socialism for a long time.

Nothing much can be done right now as no short cut will work. Patience is the key.

China has quite a lot of influence in Asia. India may be liked but countries like Thailand, Myanmar will listen to China first.
No, China is doing well because India doesn't ignored its neighbors.
On the contrary, its neighbors are bring China in to counterbalance India's influence.
They want China to play the same role that American is playing in the SCS.
 

sgarg

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No, China is doing well because India doesn't ignored its neighbors.
On the contrary, its neighbors are bring China in to counterbalance India's influence.
They want China to play the same role that American is playing in the SCS.
People will always have some grudge against a neighbor. Nothing unusual.

Honestly I want to ignore Chinese developmental and military aid to Myanmar, Nepal, Bangladesh, and Sri Lanka. We hope and pray these countries develop well. If Chinese help in stabilization of these societies, good for them.

There is no need for India to feel threatened at every transaction between China and a South Asian nation.

The situation with Pakistan is different and we need to analyze this situation deeply. Any collusion between China and Pakistan will cause concern in India, and will force India to build countermeasures.

It will not be easy for Nepal, Bangladesh and Sri Lanka to ignore Indian concerns.
 
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Screambowl

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http://www.atimes.com/article/afghan-port-shift-adds-pakistans-economic-woes/


A scenic part of Iran's strategic Chabahar Port, which will serve a growing volume of Afghan traffic. Photo: AFP
South AsiaTrade
Chabahar Port lures Afghan traffic away from Karachi


Afghanistan has shifted 80% of its cargo traffic from Pakistan’s Karachi seaport to Iran’s Bandar Abbas and Chabahar ports. The move comes two months after Chabahar, barely 100 kilometers from Pakistan’s Gwadar port, was inaugurated. The shift, prompted in part by a new trade tariff imposed by Islamabad, is expected to greatly reduce Pakistan’s role in the transit of Afghan goods.


Pakistani business leaders believe that more Afghan trade will eventually shift to the strategic Chabahar Port, as it is Iran’s closest sea link to the Indian Ocean. The first phase of Shahid Beheshti Port in the Sistan-Balochistan province was commissioned last year. It is expected that US$5 billion worth of Afghan trade will be conducted solely through the tripartite Chabahar Port – sponsored jointly by India, Iran, and Afghanistan – once it starts feeding the International North-South Transport Corridor (INSTC).

In mid-November last year, Afghan Chief Executive Abdullah Abdullah was quoted by the media as saying that Afghanistan was no longer dependent on Pakistan for the shipment of goods as it can now use Iran’s Chabahar Port for this purpose.


The current fiscal year has seen a US$2 billion drop in trade with Afghanistan due to frequent border shutdowns, military skirmishes and the new trade tariff. The trade volume, which stood at US$ 2.5 billion in 2016, has gradually declined to US$500 million following the deterioration of relations between the South Asian neighbors.

“The leadership of both countries should not mingle politics with trade and discourage the use of bilateral trade as a leverage to settle political and regional disputes,” Zia Ul Haq Sarhadi, director of the Pakistan Afghanistan Joint Chamber of Commerce & Industry (PAJCCI), told Asia Times. He attributed the decline to heightened tensions on the border, tariffs and Chabahar port, where he claimed India offered huge incentives for Afghan traders.

On a reciprocal basis, Afghanistan opened a second aerial corridor for India, enabling her to establish a direct trade link between Mumbai and Kabul. The first flight took 40 tons of dried and fresh fruits and medicinal herbs to India through the aerial route,” Sarhadi said.

The US$2 billion reduction in bilateral trade with Afghanistan is expected to adversely hit the country’s economy, which is already reeling under a widening trade deficit and worsening balance of payments. Data released by the Pakistan Bureau of Statistics (PBS) in December last year point to a dismal economic outlook.

The PBS said Pakistan’s trade deficit surged to an alarming US$15.03 billion in just five months – July to November 2017 – mainly because China-Pakistan Economic Corridor (CPEC)-related imports increased by 16.48% at US$24.06 billion compared to the same period last year. An official from Pakistan’s finance ministry expressed serious concern about the widening trade deficit and pointed out that if growth remains stagnant, it will be a whopping US$35 billion by the end of fiscal 2017-18.

As a widening trade deficit invariably puts pressure on foreign reserves, Pakistan’s foreign exchange deposits figure is gradually sinking. It is presently estimated at US$14.66 billion, which includes US$2.5 billion worth of sales proceeds from euro and Sukuk bonds. Pakistan needs to pay back $6 billion for foreign debts servicing by the end of June 2018. To make matters worse for the country, the US government announced it was freezing military aid to Pakistan.

“The imposition of regulatory duties on Afghan items like fresh and dry fruits, marble and granite has rendered Pakistan uncompetitive for transit trade and made businesses switch over to Iranian ports Bander Abbas and Chabahar,” Daroo Khan Achakzai, PAJCCI’s vice president, told Asia Times. “Misguided policies have hit bilateral trade between Pakistan and Afghanistan, and inflicted a colossal financial loss on the business communities of Balochistan and Khyber Pakhtunkhwa – two of the four provinces of Pakistan.”

The government, it seems, is giving top priority to the CPEC projects, diverting all its energy and resources to completing the Chinese-funded development plans. “It is unfortunate that trade under CPEC is facilitated by the government and Afghan transit and bilateral trade is totally ignored,” Sarhadi lamented.

As bilateral trade continues to shrink, Pakistan is looking at a looming economic crisis, while the Chabahar Port becomes a lucrative alternative for the Afghans. It is doubtful that the CPEC will be able to plug the gap.

 

HariPrasad-1

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India has lost a lot of ground because of it's own internal political compulsions. It's not going to be easy to undo all that has happened between India and Sri Lanka in a negative manner and the positives between China and SL.

The main point of contention in the future is going to be the port China is building. China will not let go of it and already established it's presence there. How will India counter that?
@Yusuf bhai,
This was your comment in 2009. What changes do you see after 9 years?
 

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