Posts Tagged ‘China-India’

A week and a bit later, finally posting my most recent piece for local paper Straits Times. This one explores the Digital Silk Road, something I have been looking at a growing amount for this larger RUSI project I have been working on which has a specific cyber and digital strand to it. In other words more on this to come, though more likely from the policy angle than the technical one which I am continually learning about.

Bumps on the Digital Silk Road

Chinese tech giants are superb builders but feared for their prowess and government links. But what if the greater risk lies in these firms themselves?

A potentially bigger problem the Digital Silk Road faces comes from within China.PHOTO: BLOOMBERG

At the height of the Sino-Indian Himalayan border clash last year, New Delhi suddenly slapped a ban on dozens of Chinese mobile phone apps on security grounds. Most prominent among them was TikTok, the video-sharing app which has taken the world’s teenagers by storm.

The Indian ban came amid a wider wave of pushback against China’s digital and technology companies, led by the United States but taking effect globally in different ways, creating bumps in the building of China’s Digital Silk Road (DSR).

India has always been a major point of interest for Chinese technology firms. With a market size potentially the same as China’s, it offers an opportunity for exponential growth right next door. For TikTok, before the abrupt cut-off, India was its biggest market outside China with some 200 million people on its platform and proof that a Chinese company could take on America’s Big Tech in new markets.

Hardware companies such as Xiaomi and Huawei have long listed India as a major source of growth. In 2018, Huawei announced an “India first” policy and started to establish a growing volume of its manufacturing for the market in the country itself. In 2017, Xiaomi’s sales in India topped US$1 billion (S$1.3 billion), while in the first quarter of this year (notwithstanding political tensions and Covid-19 economic slowdowns) it shipped some 38 million units to Indian customers, accounting for 26 per cent of the smartphone market with an impressive 23 per cent year-on-year growth.

On the software side, Bytedance (TikTok’s parent company) had bet heavily on India prior to the banning, hoping to grow its user base with a local team of around 2,000 staff. Mr Jack Ma’s Alibaba is reported to have invested some US$2 billion in the Indian market since 2015.

This push into India was the realisation of the vision of the DSR, a concept first laid out by Beijing in a 2015 White Paper. At the time, the DSR was somewhat ignored except in specialist circles as it seemed to be the latest variant of the Silk Road nomenclature in the wake of President Xi Jinping’s 2013 Belt and Road speeches in Astana and Jakarta.

Yet this rather dismissive view belies the potential impact of the expansion of the DSR, which sees China, through its technology firms and state loans, helping recipient countries build their telco networks, e-commerce, mobile payment, smart city and other high-tech infrastructure. Chinese technology companies are paving parts of the world’s digital future.

In the global market, China’s technology firms are more than holding their own. Huawei and Xiaomi phones are affordable and of good quality. Huawei is increasingly the only firm that is manufacturing the infrastructure needed by countries to upgrade their next-generation Internet network. Huawei and ZTE are among the dominant providers of telecoms hardware in the countries surrounding China, while firms like Hikvision or Dahua are offering new technologies at accessible rates.

Chinese online payment applications and fintech are at the cutting edge, while across growing swathes of Asia, Alibaba, Taobao and JD.com online sales platforms are competing robustly against Amazon and other online marketplaces. The easy access to cheap Chinese products makes them very attractive.

An entire sub-economy has emerged of local entrepreneurs in countries such as Kyrgyzstan and Indonesia who create websites in local languages that provide people with access to the Chinese platforms. Across Asia (and more widely), these online middlemen set themselves up as interpreters of Chinese platforms to those who are unfamiliar with the language but want access to the bountiful and cheap products on offer.

In some ways, this is a classic win-win. The countries get affordable technology, investment and access to the Chinese market.

DATA SECURITY CONCERNS

Yet there is another side to it which India was trying to address with its abrupt closure of a whole raft of Chinese apps. Part punitive and part defensive, India’s pushback was amongst the sharpest that China had yet encountered as it paved its Digital Silk Road.

Concerns about privacy, access to data and espionage have increasingly dogged Chinese technology firms. Former president Donald Trump’s White House was aggressive in calling out the dangers of Chinese technology, though his scattershot approach did not always deliver the impact that was intended. Chinese firms and the government have repeatedly denied the accusations levelled against them.

Notwithstanding the Chinese denials, there are areas of concern. In 2017, Huawei removed a Wi-Fi module in a surveillance system sold to police in Lahore when it was discovered by locals. The discovery of the module, which provided an option for remote control that the company had not advertised, caused consternation in Islamabad. Not enough, however, to stop the Huawei chief executive from meeting Prime Minister Imran Khan in 2019 and signing a memorandum of understanding for the company to build a giant cloud data centre in Pakistan. And there have been repeated reports that Chinese-installed technology in the African Union’s headquarters in Addis Ababa have been used to send information back to China.

Separately, TikTok has come under fire in various jurisdictions for censoring data, in part to adhere to Chinese government concerns. In Europe, the Italian government is suing the company for not having adequate protection for children’s data.

The biggest fear at the moment, however, is data collection and access. Driving this is the fear that the Chinese government could in theory demand that any Chinese company hand over whatever data it might have on foreign nationals using its application.

The reality, however, is far more complicated than this. In response to different data protection requirements of the countries they operate in, Chinese tech companies have built data centres around the world to store client information. Singapore, for example, is a particular beneficiary of this trend in Asia, offering a secure location outside China in the heart of Asia. Such centres should be beyond the Chinese government’s reach, though, of course, it can be difficult to monitor this.

But this is not the most interesting aspect of this data collection. Far more important is the volume of information this provides Chinese firms to hone their technical capabilities.

The current rush in new technology is to develop new artificial intelligence tools. In order to train these tools, you need massive amounts of data for them to learn from – something these Chinese behemoths are increasingly gathering in vast volume from around the world and particularly in Asia.

For countries leery of China’s ambitions, this advantage makes the growth of Chinese tech companies not only a potential national security threat, but also an economic threat that could stymie if not kill off rival plans to develop similar tools.

Given all of these concerns, it is not surprising that India decided to block Chinese penetration of its market. For India and others, the worry is not just the DSR burrowing too deeply into their local economies but also the longer-term risk of taking over their digital futures and exposing them to unknown future problems.

VULNERABLE GIANTS

For all that, a less discussed but potentially bigger problem the Digital Silk Road faces comes from within China. The abrupt defenestration of China’s most famous tech entrepreneur, Mr Ma, after he had carried Beijing’s flag for tech growth and innovation around the world, highlighted how vulnerable Chinese private companies really are. Not even China’s biggest tech company, Alibaba, is immune to political censure and punishment.

So far, it appears a chastened Mr Ma is having his wings clipped for challenging China’s domestic lenders too brazenly. His future remains unclear, but the slapdown halted what would have been the world’s largest-ever initial public offering of Alibaba’s payments off-shoot, Ant Financial.

While the scenarios are speculative at this stage, some questions about the relationship between the central government and Chinese tech companies need looking at. What are the implications for contracts or activities run by these companies should they fall foul of the government? What if the Chinese government was to abruptly nationalise or take over parts of Alibaba’s global empire? Countries could find themselves suddenly facing a situation where their entire online payments system was in fact owned by a foreign government.

In other words, the Digital Silk Road’s greatest dangers may not necessarily lie in the possibility of Chinese firms secretly accessing private data or the Chinese state using the infrastructure to hack people around the world, but the political vulnerabilities these firms face back home. If they are less stable than they appear and given the world’s growing reliance on digital economies and infrastructure, the unravelling of key parts of this silk road is a far graver threat than meets the eye.

Raffaello Pantucci is a senior fellow at the S. Rajaratnam School of International Studies and has a forthcoming book looking at China’s relations with Central Asia.

Going to quickly upload a couple of pieces now in that netherworld between Christmas and New Year, both China focused, but for very different outlets. This first one is for the China-India Brief, which is a bi-weekly newsletter published by the Centre on Asia and Globalisation at the Lee Kuan Yew School of Public Policy, National University of Singapore. Am not totally content with everything here to be honest, but China-India relations are going to stay complicated for the near future whatever happens. My understanding is both sides have now factored in a higher level of tension as the established norm between the two of them. It will just be a question of how effectively they are able to manage this.

Washington Focuses on China While Delhi Drifts

  
CIB173Image credit: Flickr/Gage Skidmore

There is a sense in Asia that the arrival of the Biden administration in Washington foreshadows a softening of the US’s stance towards China. Nowhere is the concern more acute than in Delhi, where India fears it might find itself without its preeminent ally against China at a moment when confrontation is all the vogue. But India’s concerns are misplaced. The problems Delhi may have with Washington are not likely to be the product of a shift in America’s view on China. Rather, they will emanate from a more coherent and focused American approach towards dealing with Beijing, as towards Delhi over its numerous domestic problems. 

There will be a change in Washington’s approach towards China, but it is more likely to be a tactical shift than an adjustment in perspective. Beijing has been formally classified in American strategic thinking as the principal adversary in a global confrontation (Moscow scores as a problem just behind it). President Trump’s attempt to cast his political adversary as ‘Beijing Biden’ never resonated. Comment pages and think tank output over the past few years have gone to great lengths to emphasize that the aggressive posture towards China emanating from Washington was in fact a bipartisan push. Few on either side of the aisle has dared to articulate a narrative of cooperation or engagement, with a hawkish perspective that portrayed China as a new Soviet-style adversary on the world stage being the dominant view. 
 
But while this firm shift against China took place in Washington in the shade of an erratic Trump administration, Delhi found itself getting into an ever-tighter fix with Beijing. Constant border irritations escalated to the point that in the summer of 2020 Indian and Chinese soldiers fought a medieval-style battle in contested territory leading to unknown numbers of dead. Fury boiled over as hawks screamed for vengeance and confrontation.  
 
Yet the result has been as inconsistent as could have been expected. On the one hand, there has been a sharpening. The security establishment in Delhi is now minded towards confrontation with greater alacrity. Visions of cooperation with China in Afghanistan are gone, the long-dormant Bangladesh-China-India-Myanmar (BCIM) Economic Corridor is stalled (if not defunct), and Delhi is seeking to slowly push China out of its domestic cyber infrastructure in every possible way. India’s military establishment is using this moment to burnish its budget and buy as many new tools as it can. 
 
On the other side of the coin, however, India has continued to engage with China. Most specifically through various multilateral formats that the two share. At the recent Shanghai Cooperation Organization (SCO) and BRICS Summits, India has appeared at the appropriate level and sought to avoid bringing its bilateral clash with China to the table. This reflects a broader reality that Delhi continues to acknowledge, namely, that no matter what happens, it will still find itself bordering China, a country on its way to being the world’s second (or possibly) largest economy.  
 
India has always been amongst the most hesitant partners of the Australia-India-Japan-US Quad. Its defence arrangements with the US have improved considerably over the past few years with a series of major agreements, but remain quietly complicated by India’s close relationship with Moscow. Delhi has always sought (understandably) to have its cake and eat it: it engaged with Russia and the US at the same time. It benefitted from stratospheric Chinese growth while also hinting at joining anti-Chinese alliances. And since Beijing saw its future as one intimately bound to Delhi in some way and did not see India as much of a threat, China was willing to let this prevarication go, until the recent confrontation which seems to have tipped the scales in both Delhi and Beijing towards the hawks. 
 
But Delhi’s hedging is going to become more complicated under a Biden administration, though not necessarily for reasons of Biden softening on China. Far from Washington changing on China, we are likely to see a continuation of an aggressive policy towards Beijing under President Biden. The difference will be that it is likely to be delivered with greater coherence and consistency than under President Trump. In fact, we are likely to see a more hardnosed and transactional relationship between the US and China – one  that no longer looks with optimistic lenses towards a world they would like to build together or fantastical bargains that cannot be maintained, but rather a relationship built on realpolitik focused on national interests. Biden will be more able to work with China on certain issues, but these will be framed through a context of importance to Beijing rather than being about American nationalism or global goods. Trade relations will be dealt with in a way that genuinely prioritizes American industries and holds China to account for promises that it has failed to fulfil. The US will continue to push on human rights and will not offer any break on these in exchange for other issues. This will all be delivered alongside Western allies who have been desperately waiting for American leadership. And crucially, the President will not personally hint in meetings at offering a break in his policies to China and will stand behind what his staff have negotiated. 
 
Beyond the difficulties India will have hedging with China is that the Biden hardliners will also come down on Delhi. While India has largely gotten a pass on domestic problems which have been bubbling up under Prime Minister Modi during the Trump administration, under President Biden human rights questions in Kashmir as well as problems in domestic political discourse will be raised. And it is unlikely that Washington will be willing to bargain these away in exchange for a deeper partnership against China. In addition, Washington might actually ask for a harder line towards Russia, something President Trump refused to broach, while fissures between Washington and Delhi on issues like technology openness and access might become bigger. Delhi will find itself under greater pressure from Washington and be unable to exploit space between China and the US.  

Delhi may look at a new Biden administration as a spanner in the works of its relationship with China, casting blame on soft Democrats unwilling to confront Beijing. But this will miss the real problem, which is that the US’s perspective on India has shifted while clarifying on China. Delhi will find itself still hedging with China while Washington has marshalled a new clarity and direction in its policy towards Beijing and the world.


Raffaello Pantucci is a Senior Associate Fellow at RUSI and a Senior Fellow at RSIS.

A longer piece for my current local newspaper the Straits Times on a topic that have been doing a lot of work on of late, China in Afghanistan. It has been something of a running theme for some time and this tries to focus the analysis specifically through the lens of the pending US withdrawal. When I started to first really dig into this topic in the early 2010s, the discussion was Obama’s potential withdrawal which seemed to accelerate Chinese thinking. This time, it does not seem to be having the same effect.

In addition, a quick media catch up. Spoke to the Financial Times in the wake of the Austria and France terror incidents (which was picked up in Croatian), to RFE/RL about Central Asian decisions to repatriate more of their people from the Syrian camps, and on the other side of the coin spoke to David Wertime for his excellent Politico China Watcher column.

Will China be better off as the US withdraws from Afghanistan?

A US Chinook helicopter flying over Kabul in 2017. Beijing may now be enjoying America’s withdrawal from Afghanistan, but it is the one that is most likely to feel the longer-term repercussions, says the writer.PHOTO: AGENCE FRANCE-PRESSE

China is enjoying the United States’ precipitous withdrawal from Afghanistan. From Beijing’s perspective, America’s abrupt dash for the exit as the conflict continues to rage reinforces the argument that the US is an erratic and unreliable player on the world stage.

This glee, however, should be tempered by the fact that the trouble that is likely to follow America’s withdrawal is going to cause Beijing more trouble than the seemingly never-ending conflict which it has been able to observe from the sidelines.

In the short term, China has comfortably hedged itself against all direct threats from Afghanistan.

In the wake of declarations under the Obama administration that the US was going to withdraw from Afghanistan, China started a programme of investment into the military and border capabilities of Afghanistan, Pakistan and Tajikistan, countries with which it shares the Wahkan Corridor, China’s direct border with Afghanistan.

It established a forward base for the People’s Armed Police in Tajikistan, as well as built a base for Afghan forces in Badakhshan, where in the first few years Chinese forces would also patrol. The Chinese also inaugurated a new regional multilateral structure, the Quadrilateral Cooperation and Coordination Mechanism, that brought together the chiefs of army staff of the countries with which it shared the Wakhan Corridor.

China also started to more openly cultivate its relations with all of the factions on the Afghan battlefield. Previously Beijing would rely on its “iron brother” Pakistan to facilitate contacts with the Taleban. This included visits to Kabul pre-2001 to meet Taleban leader Mullah Omar and offers by companies like Huawei to help build infrastructure in the country. But while this outreach was initially done behind the scenes, from 2014 onwards China started to openly host Taleban delegations in Urumqi and Beijing, while its special envoy for Afghanistan Sun Yuxi would help organise meetings involving Pakistan, Afghanistan, the US and China.

In addition, every senior visit by a Chinese official to Afghanistan was accompanied by photo calls with all of the major political leaders in the city. The result of all this engagement was statements by the Taleban that they would help protect Chinese infrastructure investments in the country, as well as regular support for Chinese perspectives by all factions in the Afghan government.

Neither side – Taleban or the Afghan government – said they would provide support for Uighur militant groups using Afghanistan as a base to launch attacks in China. In fact, both said they would actively eject such groups from their territory.

All of this has given Beijing the sense of having effectively shielded itself from the Afghan conflict. It has hardened its direct and indirect borders and has won friends across the board. Theoretically, China is well-placed no matter what happens in a post-America Afghanistan.

INDIA, U.S. AND THE UIGHURS

Yet this happy situation for China is now vulnerable to the broader tensions it has engendered through its recent aggressive foreign policy. Afghanistan used to shine for China as a place where it could cooperate with even its most difficult partners. During the Obama years, China and the US had developed a series of cooperative projects in Afghanistan, including a diplomat training programme which involved courses in Beijing and Washington. When President Xi Jinping and India’s Prime Minister Narendra Modi met first in Wuhan in April 2018 and then later near Chennai in October last year, they discussed Afghanistan as a place for cooperation, with infrastructure as a possible area of particular focus.

But the souring of ties with the US and India has largely put paid to these efforts. The Sino-US joint programme was suspended earlier in the year purportedly because of Covid-19 restrictions, but seems unlikely to start again. And anyway, any cooperative activity between the US and China in Afghanistan is going to be complicated by the fact that the US government made a decision in October this year to remove the East Turkestan Islamic Movement (ETIM) from its list of terrorist organisations.

An organisation whose specific existence has long been disputed, ETIM is the catch-all term used by the Chinese authorities to describe Uighur militants. For years the US had acceded to the group’s inclusion on its list of banned terrorist groups, in part to ensure China’s support for Washington’s broader war against terrorism. But what Uighur militants do exist tend to use a different name, fighting in Afghanistan and Syria under the banner of the Turkestan Islamic Party. They talk about attacking China in their videos, and have historically claimed links to incidents in China (though the evidence of actual responsibility is limited).

Washington’s decision to remove ETIM from its list of proscribed groups hardens the rupture between China and Washington in Afghanistan. One of Beijing’s biggest stated concerns about Afghanistan is the possibility of Uighur militants operating as ETIM using the country as a staging point from which to attack China.

Yet now Washington does not even acknowledge that the organisation exists, meaning it formally disputes one of the fundamental reasons for Chinese engagement in Afghanistan. For the US to reverse this decision would require the State Department to push through legislation targeting Uighur militants at the same time as the entire US government is attacking China’s broader policy towards Uighurs through an escalating sanctions regime.

India’s position is less complicated, though it is unlikely that the government in Delhi will be very interested in engaging China over Afghanistan given current broader tensions as a result of the border clashes earlier this year.

The Taleban’s continued hostility towards India as well as Pakistan’s long shadow and close ties to China suggest it is unlikely that we will see cooperation between Delhi and Beijing soon. In fact, there are indications that we might even see the opposite.

BALUCHISTAN SEPARATISTS

One of the irritants that China has noticed over the past few years is the growing instances of violence by Baluchi separatist groups in Pakistan targeting Chinese projects in the country. These groups loudly tout their anger against Islamabad and Beijing, accusing them both of raping their land in Pakistan’s Baluchistan province while launching attacks on prominent targets linked to China such as a busload of Chinese engineers, or a hotel in Gwadar (the Pakistani port that is spoken of as the “jewel” of the wider China Pakistan Economic Corridor). They do this from bases in Afghanistan, particularly in Kandahar.

Pakistani, and increasingly Chinese, experts blame much of this Baluchi violence on Indians and their Afghan proxies. From their perspective, Delhi is playing an old game of manipulating militants based in Afghanistan against them. Place this activity alongside the American decision about ETIM, and it can look to Beijing like Afghanistan is becoming a place where two of its biggest adversaries are lining up to support anti-Chinese militant groups.

Whatever the merits of the accusations, the fact remains that Afghanistan’s geography and porous borders make it an inviting base from which militant fighters can strike at Pakistan and Xinjiang province.

TALEBAN PROMISES

China may draw comfort from Taleban statements about not supporting foreign militants in using their territory, but the Taleban’s history of reliability about such statements is quite thin.

Chinese officials and experts alike love to chuckle about how Afghanistan is the graveyard of empires. They point to the futility of previous British, Russian and now American efforts to assert their might over the country. They would never be so silly as to get caught in that trap, they say.

Yet simply standing back is not going to make Afghanistan’s problems go away. China’s large mineral extraction projects in Afghanistan (a copper mine in Mes Aynak and an oilfield in the north) have not brought the Afghans the benefits hoped for. Beijing cannot but be on the watchout for its adversaries latching on to local disgruntlement against failed projects to stoke a bigger backlash.

China may not want to get dragged into Afghanistan’s troubles, but it may find itself unable to avoid them. Whether America completely withdraws or not, China will still be Afghanistan’s wealthiest neighbour with growing economic interests in every country that Afghanistan borders. Its concerns about domestic and regional threats from terrorism and instability have links into the country.

Beijing may now be enjoying America’s embarrassing withdrawal, but it is the one that is most likely to feel the longer-term repercussions.

Raffaello Pantucci is a Senior Fellow at the S. Rajaratnam School of International Studies and has a forthcoming book looking at China’s relations with Central Asia that draws on almost a decade’s worth of travel and research across the region.

As ever, have let a lot of time pass since my last posting, but have not been delinquent in my writing. Am struggling with some longer pieces, this time of enforced immobility has been of mixed usefulness in being productive in this regard. In any case, first up another short piece for the South China Morning Post, this time looking at the China-India clash which has not resolved itself but seems to be settling in to a higher level of tensions as the norm.

Crumbling China-India relations suggests escalation will continue

China has never taken India seriously, while New Delhi has never made a clear choice about what it wants from relations with Beijing. The possibility of miscalculation is growing

China and India continue to talk past each other. China still does not regard India as a serious power, while New Delhi is prodding Beijing in areas of great sensitivity.

Security planners on both sides appear willing to accept higher tensions in their bilateral relationship, but the clash in the Galwan Valley shows this can get out of hand. The space between escalation and miscalculation is closing, and a dangerous new normal is establishing itself across the Himalayas.

China has never taken India seriously. This irritates New Delhi, which can feel Beijing’s condescension. China has also increased activity around India without considering what that looks like to its neighbour. With growing Chinese economic and security activities in almost every country around India, it is no wonder New Delhi sees what looks like encirclement.

India, on the other hand, has continually hedged and never defined what it wants from its relationship with China. In some contexts, its choices speak to a desire for close engagement – from entering the BRICS bloc, the Russian-India-China grouping or the Shanghai Cooperation Organisation, to Prime Minister Narendra Modi’s love-in meetings with President Xi Jinping.

At an economic level, Delhi has welcomed some Chinese investment. It tried to engage with parts of China’s Belt and Road Initiative it liked, such as the Asian Infrastructure Investment Bank or the Bangladesh-China-India-Myanmar Economic Corridor.

At the same time, India has bristled at China’s close relationship with Pakistan, sought a closer strategic relationship with the United States and other Chinese adversaries and tried to limit some Chinese investment in the country. The global backlash against TikTok first emerged in India, which accounts for a huge part of the application’s users.

The two Asian giants bump into each other across the Himalayas, where they share an unclear border. Both claim they want to resolve this, yet little movement has been achieved. This border has become the focus of the current clash in which soldiers on both sides have died and no clear resolution appears likely any time soon.

Rather, the discussion now appears to be an acceptance of higher tensions across this disputed border, with both finding ways of strengthening their position and jostling against the other. The tensions have moved into every other part of their bilateral relationship.

The result has been a confused emboldening by Delhi. Planners talk about how things cannot go back to normal with Beijing, but it is not always clear where they want them to go. Economic resistance to China is tempered by reality, while there is a clear limit Delhi sets to the other alliances it wants to forge against China. It wants confrontation with Beijing, but maybe not as aggressively as Washington is pushing.

Worryingly, Delhi has injected Tibet into the narrative. The press is full of stories of Tibetan soldiers in the Indian armed forces. The death of one Special Frontier Force officer, Tenzin Nyima, in an explosion near Pangong Tso turned into a major news story following leaks in the Indian press about the unit. A political leader in Modi’s Bharatiya Janata Party, Ram Madhav, attended and tweeted about the funeral.

All of this led to more posturing by Beijing. Official media reports ever grander military statements and exercises in the region near the border with India. Ministry of Foreign Affairs spokespeople continue to reject any Indian claims while calling their own bellicose posturing merely routine behaviour.

From Beijing’s perspective, the confrontation with India is being manipulated by Washington. Rather than treat Delhi as a direct competitor with agency, it sees India being pushed towards such action by the United States.

The result is a repeat of a continued Chinese position on India – one of faint derision. Beijing does not take India seriously but rather sees it as acting at others’ behest.

This means Beijing does not seriously engage with Indian concerns while overlooking the provenance of potential threats. Now that Beijing has created a new context of tension on its border with India, it will not back down – especially as it does not think India is doing this on its own behalf.

It seems unlikely tensions will escalate into nuclear conflict. However, India playing the Tibet card prods Beijing in a very sensitive place. Meanwhile, China’s refusal to take India seriously exacerbates Delhi’s sense of needing to do more to get China’s attention.

The space for miscalculation is growing, and both are increasingly doing things to the other in a way in which they are more likely to misjudge reactions. This fisticuffs over the Himalayas has the potential to escalate further.

Raffaello Pantucci is senior associate fellow at the Royal United Services Institute (RUSI) in London

A new article for Prospect magazine in the UK which ran in the magazine with the slightly more apt title ‘Great Power Play at Himalayan Heights’. Continuing the spate of China related pieces have been working on, this looks at the current dust-up between China and India in Doklam. Have a few longer Central Asia pieces in the pipeline (as well as a Webinar or so which are being planned as I type), as well as some bigger terrorism pieces coming soon. As ever, welcome any feedback!

Could China and India be heading for war?

Flare ups at the border need to be handled with caution
by Raffaello Pantucci / June 11, 2020 / Leave a comment

Indian National Security Adviser Ajit Doval, right, talks with Chinese State Councillor Yang Jiechi before their delegation-level meeting in New Delhi, India. Photo by Manish Swarup/AP/Shutterstock

In the late summer of 2017, I was sat in the sumptuous lobby of one of Beijing’s luxury hotels with a Chinese military contact, catching up about current events over tea and cakes. A dust-up between China and India over Doklam, a plateau high in the disputed mountain ranges that China shares with India and Bhutan, was winding down, with both Beijing and New Delhi eager to calm tensions. With a dismissive wave my Chinese colleague said it did not really matter anyway as “winter is coming and it will resolve the situation. The Indian soldiers are old, while our PLA [People’s Liberation Army] boys are young and fit.”

This image of a vigorous China and creaky India is one that Beijing loves. Both may be rising Asian powers, but China is leaps and bounds ahead of India economically. And it is hard not to form such an impression from a visit to the respective capital cities. Beijing is a booming metropolis where the old has been swept away for the new. Giant glass skyscrapers loom over a crowded web of concrete. In contrast, New Delhi is green and dusty, with unfinished or ageing construction linked by bumpy and poorly marked roads.

But it was India’s desire to improve its infrastructure that set off the latest flare up between the two nations in May. The construction of a road on the Indian side of the disputed Line of Actual Control (LAC) led to a Chinese reaction, with Chinese soldiers suddenly appearing to pick fights with their Indian counterparts at various points on the disputed border. Stones, sticks and punches were thrown with some reports suggesting that soldiers on both sides had to be evacuated due to their injuries.

The state-controlled Chinese press downplayed the incident, blaming the Indians for trying to change the situation on the ground. The more vibrant Indian media was full of chatter, with retired Indian officials competing with guesstimates as to how many Chinese soldiers had invaded Indian territory. A row over a road has now turned into the most serious flare-up between the two powers in years.

The question is, why? India and China are not natural allies, but both realise there are economic benefits to be had by working together. As Chinese foreign minister Wang Yi put it, “the Chinese ‘dragon’ and the Indian ‘elephant’ must not fight each other, but dance with each other. In that case, one plus one will equal not only two, but also eleven.”

The answer is likely to be found in the China that Xi Jinping has been building—a country that sees itself as a strong and leading power on the world stage; that no longer feels it needs to bow down to others and is able to stand up to the omnipotent United States. This helps explain China’s aggressive push out in every direction—menacing Taiwan, asserting itself over Hong Kong, strengthening maritime claims in the South China Sea—and the combative “wolf warrior” diplomacy that has captured international imagination.

Xi has telegraphed his intent a number of times. At an Army Day celebration in 2017, he told gathered military leaders: “Today, we are closer to the goal of the great rejuvenation of the Chinese nation than any other time in history, and we need to build a strong people’s military now more than any other time in history.”

The current standoff is the end product of this aggressive mood and a desire to lash out in the wake of Covid-19. What is perhaps most worrying is that it is not certain whether Beijing was aware of the details of the attack until it had happened. While it is unlikely that PLA commanders in China’s south would have the temerity to launch an attack against their neighbour without orders, it is possible they pushed further than their bosses may have initially intended. Given the low regard they have for Indian forces, a quick prod across a disputed border would both show Beijing they were doing their bit while also reminding the Indians of their dominance in the region.

The problem is the ill will that is generated. As Tanvi Madan, an expert at the Brookings Institution, put it, even before the current clash “anti-China sentiment has gone mainstream” in India. An app that promised to remove all Chinese apps from a smartphone was downloaded 4.7m times in just five days in India before it was banned by Google.

China has likely strengthened the hands of its enemies over its southwestern border. This is an entirely unnecessary outcome that is mostly the product of Beijing’s arrogance towards Delhi and the hubristic mood that President Xi has been fostering.

A couple of quick posts begin the year of separate pieces that emerged towards the end of last year. On a more geopolitical bent than some of my previous work, but reflects a broader trend in my work. First up is an interview that I did with the magazine Fortune in India about India’s views and response to the Belt and Road.

‘To suggest that India rejects the Belt and Road Initiative in its entirety would be wrong’

Raffaello Pantucci from the London-based think tank The Royal United Services Institute explains what India has got right and what it has got wrong about the initiative.

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China’s ambitious Belt and Road Initiative (BRI) has created a stir around the world. Will this multi-country infrastructure and investment project, which conservative estimates put at around $1 trillion, transform the global power structure or will it trap numerous countries in debt leading to chaos? And what does it mean for India? In London, Hindol Sengupta spoke to Raffaello Pantucci, director of international security studies at The Royal United Services Institute, for some answers. Edited excerpts:

What do you think most people are getting wrong about the Belt and Road Initiative (BRI)?

What’s most missing in the discourse is often perspective from these countries (the countries through which the project runs) and which reflects their interests. We should be wary of superimposing our external interpretation or perception on them. For instance, this entire point about debt traps. Now there are issues about debt, but it is not really about China trying to trap these countries into debt. It is more about the capacities and issues within these countries. Two problems happen while analysing the BRI: one, people tend to think of it as one grand strategy as opposed to lots of things happening in diverse ways in lots of places; and [two], try to superimpose that view or superimpose the view of the bigger U.S.-China clash that is happening now onto this. But both are not quite correct. There are many nuances that get lost when we cut in that way.

What are the most interesting nuances in the Indian subcontinent that are being missed out in the BRI analysis?

On the India side, there is a tendency to think that India does see this as a big, hostile thing [in] its entirety, whereas I would say that the reality is in fact India can never sign up to the BRI project in its entirety because the China-Pakistan corridor cuts through disputed territory [Pakistan-held Kashmir]. But there are other elements in the vision like the Asian Infrastructure Investment Bank (AIIB), like investment into third locations, and like Chinese investment into India that the Indian government quite likes and would like to foster. In Pakistan, once again we talk about the China-Pakistan Economic Corridor (CPEC) as one overarching thing whereas, in reality, these are a number of smaller projects. And even the loans are of various kinds—some are loans given by Chinese banks to Chinese companies to complete projects, others are loans given to the Pakistani government as a concessionary rate, and then the Pakistani state hires companies on projects. We have a habit of treating these as one big block whereas actually these are a bunch of different projects being handled in different ways and with different kinds of reactions on the ground in Pakistan. In some regions, you see some tensions and local pushbacks on the ground in Pakistan like in parts of Balochistan; in some others, like in parts of Punjab, people are quite happy about these projects.

In this scenario, how do you look at the insurgent attack on the Chinese consulate in Karachi (in November 2018) for which Pakistan blamed India?

That incident did not surprise me in the least. If you track recent incidents in Pakistan, there have been more and more direct attacks on Chinese interests in Pakistan by militant groups. We recently had an incident where a bomber of the BLA (Balochistan Liberation Army) targeted a busload of Chinese engineers. The BLA has been very clear that they are targeting Chinese interests in the country. The accusations against India have a long history. The thing that worries me is that while it is impossible to say whether there is any merit to these accusations, what is certainly true is that there is a lot of anger in Balochistan, which has been there for a long time. What they have now realised is that attacking the Pakistani state hasn’t really delivered any results. They have realised that if we attack the foreigners we will get more attention internationally, and we are attacking the Pakistani state’s biggest ally; and that in itself might deliver some results for us. It is erroneous to blame this on India or Afghanistan, and it is impossible to know for sure if there are any elements from these countries lurking in the background, but what we can say for certain is that there is real anger in Balochistan, and it has now decided that targeting the Chinese gets some sort of a reaction.

If this flares up, what does it mean for CPEC?

The underlying logic of CPEC would remain and this will remain an irritant to that. If the Chinese put more pressure on the Pakistanis to stop this kind of attacks, you will see a much stronger crackdown on the Balochi groups by the Pakistani forces. CPEC remains important and within Pakistan, CPEC has become kind of synonymous with Pakistani national economic rejuvenation, and that’s important for the whole region. Chinese companies will have much greater security around their assets and they might struggle on sending large numbers of engineers to Pakistan if these sorts of attacks escalate. But China is big; they will still find some people to send and its unlikely that these kinds of attacks would bring some sort of a grinding halt to the CPEC. A major attack might mean that the Chinese might [have] some of their security forces on the ground, but largely they would want the Pakistanis to solve this.

What ramifications does China’s stringent actions on the Uighur Muslims—including ‘re-education camps’—in the Xinjiang region have on its ties with Central Asian countries, Pakistan and the BRI?

What has been depressing is the lack of response from the Muslim world on this issue. Whatever comments there have been has largely come from Western capitals, and some from Malaysia. This is mainly because those countries do not want to upset China. But there have been some tensions in Central Asian countries some of whose citizens live in China and who are getting caught up in these issues in the Xinjiang region. What we have seen is concern, for instance, in Kazakhstan, where people are worried about these measures in China making their influence felt in their own country. There is pressure from the people in some of these countries for their governments to bring up these issues with China. This is not what the governments want to do because they want economic ties with China. This friction will grow.

How will the BRI project impact India’s future relations with China and Pakistan?

Clearly, in the Indian strategy vision, China is the biggest threat they look out and see. You see this in all kinds of things, in the strategic military purchases of India, in the so-called ‘necklace of diamonds’, in its relationship with Japan and the U.S. But notwithstanding all of this, we still see India hesitate to let the relationship with the Chinese to blow up into a full-fledged confrontation. That’s why we haven’t seen the Quad [Quadrilateral Security Dialogue; the strategic coming together of the U.S., India, Japan and Australia] really live up to its expectations. This is because none of the countries want this to become very confrontational and seem like a great front against China. Because they realise that they have other business with China. The U.S. has been trying to push things towards a confrontational direction, but the other countries realise that they must engage with China, its rise is happening around their borders. It is a very complicated picture. The real question going forward is how India will accommodate China’s rise, but also that China must learn to handle India’s rise and take its concerns more seriously. They have historically really looked down on India and treated India in a really disparaging fashion. This has led to angry confrontations and a sense in India that it just not taken seriously enough. I think there is a rebalancing that will happen [between the two]. And if that happens successfully, it could be massively beneficial to both. But at the moment it seems to be that national pride in both countries means that they are butting against one another but if these two great powers can figure out a way to work together and how, their growth models would intertwine with another.

What is the low-hanging fruit that India and China can pick off to better their relationship?

The low-hanging fruit could be Afghanistan. If India and China could agree that they would partner in Afghanistan, you could see a real game changer on the ground in that country with hugely positive effects. The other is why does India and China have to see projects in the surrounding island countries as threats? Why not jointly build infrastructure projects using the AIIB or the BRICS Bank, which could again lead to cooperation.

More belated catch up posting from my occasional column in the South China Morning Post, this one published at the same time as the SCO Summit and G7 in Charlevoix.

From China to Central Asia, a regional security bloc’s long, slow march towards an alternative world order

The world’s attention was on Singapore and Charlevoix but the future may have been in the Chinese city of Qingdao

PUBLISHED : Monday, 18 June, 2018, 8:45am
UPDATED : Wednesday, 20 June, 2018, 2:18pm

While the world was captivated this week by the globetrotting show of US President Donald Trump, another summit just days earlier suggested what an alternative world order might look like.

Various heads of state from member nations of the Shanghai Cooperation Organisation (SCO) met in the Chinese city of Qingdao for the bloc’s annual heads of state meeting.

The SCO’s activities have been limited in the decade and a half since it was formed but this year’s summit had some significant moments.

First and foremost was the presence of – and handshake between – Indian Prime Minister Narendra Modi and Pakistani President Mamnoon Hussain. While the membership of the two regional rivals is likely to be a major block to future activity, the presence of their leaders showed some of the organisation’s potential. Modi’s attendance alone signalled that the world’s biggest democracy wanted to maintain strong links to this archetypal non-Western institution to make sure it had all of its international bases covered.

The event was also an opportunity for two of the West’s biggest pariahs, Iran and Russia, to grandstand.

In the past Beijing has sought to tamp down efforts by Iranian leaders to transform the summit into a chance to bash the West. Back in 2010, President Mahmoud Ahmedinejad was so disappointed by the SCO’s refusal to admit Iran over fears of antagonising the West that he skipped the summit in Tashkent and instead attended the Shanghai Expo. But in Qingdao, the group chose to unite to highlight their displeasure at renewed Western sanctions against Iran and the collapse of the Iran nuclear deal.

Russian President Vladimir Putin has also regularly used high-profile summits in China to show disregard for Western sanctions and the optics around Putin’s attendance were similar to many other previous events, though this time are topped with a medal for his “friendship” with China.

On the sidelines of the summit, Chinese President Xi Jinping announced that “no matter what fluctuations there are in the international situation, China and Russia have always firmly taken the development of relations as a priority”. On live television he then proceeded to give the Russian leader a gold medal lauding him as “my best, most intimate friend”.

Awkward phrasing aside, this is a clear signal that China is siding with Moscow in tensions between Russia and the West. While Beijing might not always approve of Moscow’s disruptive behaviour on the international stage, the reality is that the two powers will, under their existing leaderships, always stand together against the West.

And this signal by Beijing was the most notable point about this entire summit.

China has long treated the SCO with the reverence required of an institution that brings together the heads of state of a number of its allies and which it helped name, while at the same time disregarding it as a functional organisation. Beijing has been unable, for example, to realise some of its key ambitions with the group. China has sought to push the SCO towards greater economic integration and activity, something resisted by other members fearful of China’s further encroachment into their territories.

Moscow sees the SCO as a way to try to control Chinese efforts in Central Asia while the Central Asians broadly view it as a possible way to maintain a balanced conversation with their giant neighbours. Meanwhile, powers like Iran, India or Pakistan see it as an alternative international forum that they want to be involved in.

With the accession of India and Pakistan most observers in China fear that the organisation’s already limited ability to operate is going to be even further reduced.

Yet none of this detracts from the fact that for Beijing it is a forum which they are hosting which now brings together the leaders of over a third of the planet’s population. They are clearly the dominant player within it, and it is a forum in which Western powers cannot meddle.

This gives Beijing the perfect opportunity to show its stature on the world stage and its efforts to offer a more stable alternative world order to the chaotic one that is most vividly expressed by the Trump administration.

The SCO may have done remarkably little beyond hold big meetings and China’s activity in all of the SCO member states at a bilateral level is infinitely more significant than its efforts through the bloc.

But at the same time, this is a forum that has consistently met and only grown. Under its auspices, China has managed to slowly encroach on Russia’s military and political dominance in its own backyard, and has now persuaded the world’s biggest democracy that it is an important group to be involved in.

This slow march forwards stands in stark contrast to the imagery and disputes to emerge from the G7 summit in Charlevoix. And while the Western media may have largely ignored events in Qingdao for events in Canada and Singapore, the rest of the world is paying attention. An alternative order might be starting to crystallise, or at least one that has potential to deeply undermine the West’s capacity to determine the future of world affairs.

Raffaello Pantucci is director of international security studies at the Royal United Services Institute in London

Have failed to keep up on posting working on longer things. Have a few longer pieces which will eventually land, but in the short run a few opinion pieces in the South China Morning Post, looking at the Belt and Road in various incarnations.  First, a piece about South Asia, intended to be in the wake of the Wuhan Summit meeting between President’s Xi and Modi.

How Beijing, Delhi and the China-Pakistan Economic Corridor could reshape global foreign policy in Asia 

Raffaello Pantucci writes that a China-India symbiosis stemming from the infrastructure projects being built in Pakistan will force the West to rethink its South Asia strategy

PUBLISHED : Monday, 11 June, 2018, 8:02am
UPDATED : Monday, 11 June, 2018, 11:13pm
There is an air of possible change in South Asia. After a positive summit in Wuhan, presidents Modi and Xi both made it clear they wanted the event to be the opening gambit in a rapprochement between India and China.

The modest practical achievements presented from the meeting should be seen as positive, illustrating that both powers are aware of the tensions and limitations of their relationship.

Nevertheless, the decision to focus on Afghanistan as a possible source of Indo-Chinese cooperation highlights the leaders’ willingness to be ambitious in their thinking. In Islamabad, however, there is a sense of concern about Pakistan being the potential loser in this larger regional rapprochement.

This short-sighted logic is founded on the perennial tensions that exist between Delhi and Islamabad. Yet, it misses a few key elements. China is clearly committed to Pakistan. The China-Pakistan Economic Corridor is the flagship project of the broader “Belt and Road Initiative” concept that Xi Jinping has advanced.

The People’s Bank of China’s expansion of the currency swap between the countries highlights a doubling down of China’s willingness to continue to invest in Pakistan.

The imprimatur given to the project by President Xi highlights the degree to which this part of the broader concept has to be delivered on, notwithstanding the sometimes awkward economic logic that underpins some projects.

For China, the undertaking is an important one and tied not only to its domestic security and prosperity, but also to the strategic assets it receives from its interest in the Gwadar Port.

But the China-Pakistan Economic Corridor sometimes does frustrate and worry Beijing. While Chinese diplomacy is an exemplar of keeping disputes out of the public eye, there are some issues.

Workers have been murdered and various insurgent and terrorist groups around the country have made specific targets of Chinese nationals and the China-Pakistan Economic Corridor in an attempt to undermine the government.

That the Chinese consulate in Karachi had to issue a travel advisory to nationals earlier this year, dissuading them from travelling to Quetta, illustrates the security concerns China feels in the country.

That the minister responsible for managing the China-Pakistan Economic Corridor (who is also the interior minister) was injured by an assassin’s bullet does little to inspire confidence in Pakistan’s national security.

None of this is to talk about the awkward economics that exist around some of the corridor’s projects.

And China has proven willing in the past to side with Delhi on security problems. The statement after the BRICS summit last year in which China agreed to specifically single out some Pakistan-based groups for criticism, as well as Beijing’s regular efforts to get Delhi and Islamabad to talk after incidents, highlight the Chinese government’s awareness of the problems that exist.

What Islamabad needs to bear in mind is that the China-Pakistan Economic Corridor is not the only part of the Belt and Road Initiative. It is one strand of Xi Jinping’s bigger foreign policy concept. It is not even the only South Asian corridor (the Bangladesh-China-India-Myanmar Economic Corridor is another slow burning concept), but rather the first to be implemented with vigour.

The ability of China and India to hold a summit and discuss ideas for cooperation sensibly when hawkish administrations are in both Beijing and Delhi, reflects the underlying direction in which South Asia is moving.

For China and its companies, India is in many ways the bigger game to play. The growing number of tech purchases by Chinese firms in the Indian market highlights an awareness of India’s booming potential. And beyond India, China realises that a more interconnected, stable and cordial community of South Asian nations will ensure the prosperity that will help stabilise China’s immediate land peripheries.

Afghanistan needs stability to be prosperous and not export problems to Central Asia, Pakistan and, ultimately, China. From Beijing’s perspective, this will only work if the country is more connected to its region.

Wang Yi and other officials have talked about connecting the China-Pakistan Economic Corridor to Afghanistan, but it is not clear how positively Islamabad views this idea. The corridor will only deliver the prosperity that will help Pakistan grow if it is a truly regional project, and this means it must connect better with its immediate neighbours as well as those in the Khunjerab Pass area.

This is the point Islamabad needs to keep in mind: China and India want to find ways to engage and tap each other’s economic opportunities.

India may be sceptical of the broader belt and road plan, but it remains keen to engage in some aspects of it, such as the Asian Infrastructure Investment Bank and the chance to bring Chinese investment into the country. A nation hungry for investment, Modi’s India is keen to find any way to grow to catch up with its richer Asian neighbour.

For Beijing, this is an opportunity in every direction: a prosperous India would be good for China. A prosperous and stable Pakistan would be a net boon. And a stable and secure Afghanistan would achieve a long-awaited goal for the entire region.

While Beijing is still working out how it will manage to deliver on this vision, the direction of travel is clear – and should be appreciated, not just by the region but the world.

Notwithstanding the tensions that will undoubtedly create some bumps in the road, the ability to hold a summit and discuss ideas for cooperation sensibly when hawkish administrations are in both Beijing and Delhi, reflects the underlying direction in which South Asia is moving.

Islamabad needs to pay attention before casting all its chips in one basket; the West needs to focus on what South Asia’s course means for any attempts to use India as a counterbalance to China.

Ultimately, these Asian giants know their own backyard, and will focus on that over any global ideological confrontation.

Raffaello Pantucci is director of international security studies at the Royal United Services Institute in London

This article appeared in the South China Morning Post print edition as: Islamabad should not fear signs of Sino-Indian rapprochement

Another slightly longer piece about China lands this time in Current History, ‘the oldest US publication devoted exclusively to world affairs’. This looks at China’s growing push into South Asia, and India’s increasingly tense response to it. Somewhat relevant but a bit late for this piece, a Chinese colleague recently described managing relations with India as ‘ticklish’ which struck me as quite apt. This topic is going to grow in significance as time goes on, and am sure will end up doing more about it. In the meantime, for those interested in similar topics, check out the China in Central Asia site. I have posted a version of the paper here, but do check out the Current History site as well for the rest of the excellent journal.

“Beijing’s miscalculations regarding India have created conflict with a regional power that has the capability and desire to disrupt China’s outward push.”

China’s South Asian Miscalculation

South Asia: April 2018

April2018

At a conference in China a few years ago, I watched as a Chinese expert gave a presentation laying out Beijing’s view of the military conflict that it faced in nearby seas. It was largely a story about the United States and East Asian competitors, and China’s aggressive assertions of ownership of islands in the South China Sea. At the end of the presentation, a former Indian officer raised his hand and indignantly asked why India had not been mentioned as a competitor.

In a moment of surprising candor, the Chinese expert responded that he did not include India because, from his perspective, it did not pose much of a threat to China. The answer riled the Indian participant, but it reflected a fundamental calculation that exists in Beijing about India. It is a calculation that could cause serious complications for China’s broader South Asian vision, and ultimately provoke a clash between the two Asian giants.

At stake is China’s Belt and Road Initiative (BRI), a much-discussed and puzzled-over concept. It has been variously described as a Chinese power grab; an attempt by China to promote its companies’ overseas interests and build infrastructure to suit its own interests; an effort by Beijing to claim leadership of the international order; or, by Beijing’s own account, a project to bind together a “community of common destiny.” But it is really best understood as an umbrella concept that acts as a central organising principle for China’s foreign policy.

The core of this scheme—building trade and economic corridors that emanate from China in every direction—strengthens China’s position in the global order and across the Eurasian landmass. The aim of these corridors is not only to help Chinese firms go out into the world and increase China’s trade connections. Most importantly, they will help China develop domestically.

Ostensibly, this is a benign concept. By improving trade and transportation links through investments in infrastructure, China is enhancing the global commons. Few would say that more eco- nomic connectivity and prosperity is a bad thing. But the reality is of course very different. China is advancing its own national interests, and is doing so by offering a one-size-fits-all policy—which means that it can appear to be proffering the same opportunity to European powers and Southeast Asian neighbors alike. While this is a perfectly understandable self-interested approach, Beijing has been blind to geopolitical problems that it is exacerbating and which may in the long term disrupt its entire strategy.

For more, go either to Current History or get in touch or download it here.

Catching up posting as ever, this another piece for South China Morning Post looking at China’s problems along the Belt and Road with reference to current tensions with India potentially being an indicator of what could happen more substantially.

China must get along with regional powers to make its New Silk Road plan work

Raffaello Pantucci writes that Beijing is seeking to increase its presence in regions where it is going to need more friends than enemies, including India

Geopolitics matters. As we move deeper into a multipolar world, the importance of grand strategy will only grow. Relations between states at a strategic, economic and even emotional level will all intertwine to create a complicated web that will require sophisticated diplomacy to navigate. For China this is a particularly important lesson to learn, given its keynote “Belt and Road Initiative” that requires an acquiescent and peaceful world to deliver on its promise of building a web of trade and economic corridors emanating from China and tying the Middle Kingdom to the world. China’s current stand-off with India highlights exactly how geopolitics can disrupt Xi Jinping’s foreign policy legacy initiative.

The details of the specific transgression within this context are not entirely important. China is asserting itself in its border regions and changing facts on the ground to solidify claims. Indian push-back is based on strategic relations with Bhutan that go back a long way and a concern about how this changes Indian capabilities on the ground.

It comes at a time when relations between China and India are particularly low, with suspicion on both sides. Most analysts do not seem to think we are going to end up with conflict, but it is not clear at the moment what the off-ramp looks like. But whatever this exit looks like, we are undoubtedly going to see China finding it tougher to advance its Belt and Road Initiative through India’s perceived or real spheres of influence in South Asia.

This is something which is already visible in the broader tensions between China and India over Pakistan. China has focused on the country as a major ally that it is supporting to develop its domestic economy and improve its strategic capacity for a variety of reasons. Yet this approach directly undermines Pakistan’s perennial adversary India’s current approach of isolating Islamabad on the international stage as punishment for cross-border terrorism.

Further, the CPEC route’s cutting through disputed territories in Kashmir provides a further spur to Indian concerns. At a more tactical level, China’s refusal to allow Jaish-e-Mohammed leader Masood Azhar to be included on the list of proscribed terrorists, and its blockage of Indian entry into the Nuclear Suppliers Group, all point to a relationship with which Beijing is clearly playing an aggressive hand. India has also shown itself to be a hardball player in this regard, making public shows of proximity to the Dalai Lama, a source of major concern to China.

Of course, such a posture is either capital’s prerogative. Past relations between China and India have been fraught. The two countries have fought wars against each other. Yet at the same time, the overall tenor between the two is often in a different direction: both are proud members of the BRICS grouping (arguably the two leaders of it), and both have embraced the Asian Infrastructure Investment Bank. India is keen to gain a slice of the outbound Chinese investment, while China is keen to access India’s markets. Both see the opportunities and recognise that as Asian giants they have an upward trajectory over the next few decades. Together they will undoubtedly be stronger than alone.

But this positive message is thoroughly buried under the negative news around the border spat in Bhutan. Rather than being able to build a productive relationship, the two countries now find themselves at loggerheads. This is a problem for both, but has an important lesson within it for China as it seeks to advance its Belt and Road Initiative globally.

To be able to credibly realise the Belt and Road Initiative, China is going to need to have positive relations with partners on the ground, in particular major regional powers. With plans to build infrastructure, expand investments and grow physical footprints on the ground, Beijing is seeking to substantially increase its presence in regions where it is going to need more friends than enemies. When looking across South Asia, this means having a productive relationship with India. Without this, Delhi will find ways of complicating China’s approach or, more bluntly, obstructing it. Given the importance of some of the South Asian routes to the development of some of China’s poorest regions, it is important for Beijing to make sure that these corridors related to the Belt and Road plan live up to their promise.

And this lesson is one that will be relevant outside a South Asian context. For Beijing to be able to deliver on the promise of the Belt and Road Initiative, it is going to need to watch the geopolitics. Similar problems may eventually materialise with Russia, or on the seas as Beijing seeks to turn the 21st Century Maritime Silk Road into a reality.

Without friends along these routes, China is going to find it very difficult to make these visions work no matter how much money they try to throw at the problem. With nationals, companies and interests broadening and deepening, China needs an acquiescent environment and countries that are eager to work with it. Geopolitics is a chess game of many different levels, and as power becomes more diffuse on our planet, Beijing is going to have to learn how to play these games if it wants to deliver on the promise of its grand visions.

Raffaello Pantucci is director of international security studies at the Royal United Services Institute in London.

This article appeared in the South China Morning Post print edition as: It’ll be tough going without friends on the New Silk Road