Advertisement
China-India border clash spills over into trade, another obstacle keeping New Delhi from RCEP
- Regional economic partnership had hoped to bring India back into the fold, but June 15 skirmish overshadows India’s trade grievances
- New Delhi has started measures to punish China economically, including stepping up goods inspections and halting car plant deal
Reading Time:3 minutes
Why you can trust SCMP
The China-India border row could close the door on New Delhi rejoining the Beijing-backed Regional Comprehensive Economic Partnership (RCEP), analysts say, as the conflict spills over into trade and investment.
China and the 14 other countries involved in the deal had pledged to address India’s outstanding grievances after New Delhi pulled out of negotiations last November, leaving hope that it might rejoin.
But the bloody clash between Indian and Chinese troops in the Galwan Valley on June 15 has led to growing calls in India to boycott Chinese goods and to bring in policy moves that would punish Beijing on trade.
Advertisement
“The border situation will impact the entire spectrum of activity between India and China,” said Madhav Nalapat, a professor of geopolitics at India’s Manipal Academy of Higher Education.
“When it comes to signing RCEP, after June 15 this seems like too big an ask.”
India pulled out of the agreement in November following rising concerns from domestic producers who feared they would be undercut by the inflow of Chinese goods. But the remaining 15 members agreed to sign the deal by the end of this year, and to further consult India over its objections.
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x