China_Report_Issue_51_August_2017

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railways and highways, not only in China’s
prosperous coastal area, but also its border re-
gions including the Himalayan frontier.
While India has also increased its infra-
structure investment, it has lagged far behind
China in what many call an“infrastructure
race” between the two countries. India has
long been concerned that China’s stronger

infrastructure on its side of the Himalayan
frontiers could give China a logistical ad-
vantage in the event of military conflict with
India.
Thanks to the BRI, India also has to worry
about China’s increasing ability to project its
power in the South Asian sub-continent and
its rising influence over India’s neighbours.

When India closed its major border pass
to Nepal in late 2015 in response to Nepal’s
constitutional amendment which refused to
allow the Madhesi, an ethnic group of Indian
origin, to form their own province, effective-
ly imposing a road blockade and leading to
a shortage of fuel and medicine in the land-
locked Himalayan country, Kathmandu
turned to China to meet some of its supply
needs.
Although Nepal eventually had to concede
to Indian pressure by tabling the constitu-
tional amendment, improved infrastructure
connecting China and Nepal in the future
could greatly reduce India’s traditional influ-
ence over smaller neighbours like Nepal. It is
not a surprise that recent reports that Nepal
will soon get its Internet service from China
as early as August, have again become an is-
sue for concern in India about losing its mo-
nopoly over the country’s online services.
Besides the overland Silk Road Economic
Belt (the Belt), China’s 21st Century Mari-
time Silk Road initiative (the Road), is per-
ceived to pose a similar, if not greater threat
to India. China’s investment and presence in
ports across the Indian Ocean in Sri Lanka,
Pakistan, Myanmar and Bangladesh, dubbed
the “string of pearls” by many Indian strat-
egists, are often seen as a plan to “encircle”
India.

Moving East
In response, India has launched its own
connectivity and cooperation initiatives,
such as the “Act East” strategy, which New
Delhi said aims at developing close economic
synergies with Southeastern Asian countries
and East Asia. But rather than linking with
China’s Belt and Road initiative, as some
Chinese experts have called for, India’s “Act
East” strategy is more about competition and
counter-reaction to China’s moves in South

s PECIAL REPORT


Chinese soldiers stand at a post on the Chinese side of the border at Nathu La pass, July 5, 2006


Chinese and Indian army officers shake hands over the border at the Nathu La pass, July 5, 2006


Photo by The India Today Group / VCG

Photo by The India Today Group / VCG
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