Most recently, China hosted its third multilateral dialogue via a virtual platform with several South Asian countries for the purpose of fostering cooperation in combating Covid-19 and coordinating economic agendas. This meeting reflects a significant shift in Beijing’s regional approach. Notably, it included all South Asian countries except India, Bhutan, and the Maldives. The dialogue focused mainly on anti-pandemic cooperation and poverty reduction initiatives. The dialogue was attended by Pakistan, Nepal, Afghanistan, Sri Lanka, and Bangladesh – these five nations have participated in all three occasions of the dialogue.
Prior Engagements and Future Initiatives
Previous diplomatic events such as the July quadrilateral dialogue, saw China proposing an extension of the China-Pakistan Economic Corridor (CPEC) to Afghanistan. This proposal also included the development of an economic corridor with Nepal, titled the Trans-Himalayan Multi-dimensional Connectivity Network.
In addition to these diplomatic engagements, the American Enterprise Institute’s China Global Investment Tracker shows that China has committed approximately $100 billion to the economies of Afghanistan, Bangladesh, the Maldives, Pakistan, Nepal, and Sri Lanka. Given these financial investments, China now stands as the largest overseas investor in the Maldives, Pakistan, and Sri Lanka.
Country-Specific Engagements
China’s unique engagement strategies include facilitating Afghan domestic political reconciliation, enhancing regional connectivity, and improving regional development. For Bangladesh, China is bolstering defense cooperation, particularly in areas like defense trade, training, equipment, and technology. Additionally, China’s relationship with the Maldives involves the Belt and Road Initiative (BRI) aimed at developing the Maldives and increasing Chinese influence there.
While no diplomatic relations are established with Bhutan, China’s relations with Nepal were elevated by a presidential visit in 2019, resulting in several infrastructure-build deals and improvement of connectivity. Sri Lanka, too, has significant strategic value for China due to Hambantota port’s location on the Indian Ocean.
India’s Concerns and Approaches
The growing cooperation between China and several South Asian countries, particularly Pakistan and Nepal, raises security issues for India. The increasing acceptance of the China-Pakistan Economic Corridor by South Asian countries adds to these concerns. Furthermore, India is losing its position as a major trading partner to various South Asian countries, replaced now by China in several cases.
Despite these challenges, India should consider cooperating with China for the collective development of these countries. This would allow the benefits of development to reach South Asia while ensuring India retains its influence in the region. Nevertheless, India needs to voice strong criticism against the planned extension of the China-Pakistan Economic Corridor. To maintain a strong presence in the region, it’s crucial that India invest in aspects where China falls short.