The US sees the establishment of the AIIB as an attempt by China to pull South- East Asian countries closer to its orbit and a soft-power play that promises economic benefits while refurbishing its image among its Asian neighbours.
Escalation of tension has scarred relations between Japan and China. The fallout of this has been reflected in the trade and economic ties between the two. Stabilizing China-Japan bilateral relations is critical for peace in the East Asia and it has to be seen how this four-point agreement will translate into action.
The 2014 edition of the air show tried to reinforce the Chinese theme of a rising, strong and technologically advanced industrial base to the domestic constituency, international arms market and adversaries.
Xi Jinping has already recognized the inevitable by stressing that China would adjust to the ‘new normal’ of lower growth and, to ensure stability, he has already cracked down on dissent and strengthened media control measures.
During the Rajapaksa years, Sri Lanka experienced jobless growth, similar to the experience of many African countries where Chinese investment had increased exponentially in the last decade.
Prime Minister Modi has to think beyond the immediate circle and leverage the Himalayas as a bridge for India reaching out to wider Eurasian space the access to which has blocked by Pakistan. A way out could be to promote a regional market across the border, woven by a web of spiritual and commercial interests.
China’s announcement of a 10 billion Yuan ($1.6 billion) fund to finance the “maritime silk road plan” is a clear sign that it is serious about moving ahead with its stated plans. For India, it is instructive that the sales pitch of shared economic gains does not conceal the MSR’s real purpose: ensuring the security of sea lines of communications (SLOCs) in the Indian and Pacific oceans.
On 3rd July 1914 nearly a hundred years ago at Simla, Tibet and India signed the Simla Convention that gave birth to the McMahon Line separating Tibet from India in the eastern sector. Much is made by some that the Simla Convention was not a legal document but from the time of the Convention till 23rd January 1959, the Chinese government never officially, in any document, ever challenged the McMahon Line.
The global thrust on economic integration has certainly accrued greater space to India that the non-alignment actually stands for. It allows India to reach out to both the US and China without fear of taking sides and draw in the benefits from both of manufacturing, investments, trade and commerce.
The principal opposition of the Chinese on the McMahon line is that it is illegal and a mere product of British imperialistic designs on China. Such assessments completely disregard the fact that the McMahon line is entwined with the Tibet issue – the lynchpin of China’s territorial sovereignty and party legitimacy
Geo-strategic Implications of the Asian Infrastructure Investment Bank
The US sees the establishment of the AIIB as an attempt by China to pull South- East Asian countries closer to its orbit and a soft-power play that promises economic benefits while refurbishing its image among its Asian neighbours.