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China has a willing partner in India on the belt and road, but only on fair and open terms
- Cooperation between the two on the infrastructure plan would benefit both, but will remain a step too far as long as Indian fears over the initiative’s aims and financing are not assuaged
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China’s multibillion-dollar infrastructure development plan, the Belt and Road Initiative, straddles three continents, with over 80 countries expressing an interest in the projects. It is estimated that China has already pumped US$200 billion into the initiative. In spite of US misgivings, many of its own allies, including the UK and Italy, have shown a willingness to be part of the initiative. There are indications that more members of the European Union will join.
Many Asian nations are part of the initiative. India, however, in spite of repeated overtures from China, has steadfastly refused. India was upset when the China-Pakistan Economic Corridor, a major belt and road project, passed through Pakistan-occupied Kashmir, which India claims to be its territory. Indian Prime Minister Narendra Modi, while addressing the Shanghai Cooperation Organisation summit held at Qingdao, China, in June 2018, had said that any connectivity project must respect the sovereignty and territorial integrity of a country.
Further, India is fearful of the “debt trap” associated with belt and road projects in Sri Lanka, Venezuela and other countries. In India’s view, China played the role of a loan shark in the way it compelled Sri Lanka to lease its Hambantota port to a Chinese organisation when it failed to service its debt.
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In Malaysia, the government has renegotiated a planned China-backed rail link, with the costs cut by about one-third, after the previous deal became unpopular because of the inflated costs and links to a corruption sandal. Experts have warned that the deal could also become a Chinese debt trap.
India also worries that the Belt and Road Initiative will thrust China into a position of strength in South Asia. Although Beijing claims it is only a commercial initiative, the hidden geostrategic implications are not lost on India. It views China’s attempts to build ports, surveillance posts and naval bases in its neighbourhood as an attempt to encircle it. India’s concerns are real and can’t be wished away.
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Given its anxieties that the projects would benefit China more than its partners, New Delhi needs reassurances on the objectives, nature and financing of the initiative.
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