Col
R Hariharan
[This
is the full text of a presentation made at a conference on "China
in Transition: Implication for Asia" organized by the Chennai Centre for China Studies on 8th
March 3014 at Chennai.]
Introduction
China’s presence in South Asia is now firmly
established. Most of the South Asian countries including India are trying to
take advantage of China’s desire to increase its trade and economic relations with
the subcontinent. China’s readiness to invest and execute infrastructure projects
speedily has generally been welcomed by South Asian countries to improve their
poor infrastructure development.
China’s economic
prosperity has enabled it to emerge as the global leader not only in
manufacturing but also in consumption of raw material. This has triggered
China’s appetite for energy and natural resources enormously, setting it on a
global quest to meet its needs. And South Asia’s natural resources are likely
to be increasingly exploited to meet China’s needs.
The global economic downturn four years ago has had
its adverse impact on China’s export based economy slowing down its double
digit growth rate. China has taken a number of corrective measures including
improving internal consumption and opening up new markets of Asia, Africa and
South America. China is also increasing its trade and investment in these new
markets. The modernisation of the PLA during the last two decades in tandem
with its economic growth has increased China’s confidence in its capability to
protect the country’s economic and strategic interests worldwide.
China’s
increasing strategic presence in South Asia has to be viewed in this global
environment. China’s moves would undoubtedly contribute to optimize the rapid
growth of the vast underserviced South Asian markets while increasing the
import of Chinese products. However, these developments would progressively
reduce India’s dominant influence in the sub continent and Indian Ocean Region
(IOR) with the progressive increase in China’s strategic reach to the Indian
Ocean littorals.
Strategic impact of leadership
change
These
activities have increased ever since President Xi Jinping and Premier Le
Keqiang came to power in March 2013. They are
functioning under the guidelines set by the Chinese Communist Party (CCP) 18th
National Congress held in November 2012. In accordance with these guidelines, Xi Jinping’s development targets for
China are:
•
Strategic vision: “Realizing a prosperous and strong
country, the rejuvenation of the nation and the well-being of the people”
(combining personal ‘dreams’ with national dream). [i]
•
Strategic goal - economy: Establish an ‘affluent, strong,
civilized, harmonious, socialist modern country’ by 2050 around the year around
the 100th anniversary of the CCP. In economic terms to achieve a GDP
$ 4 trillion by 2020, and to provide per capita income of $ 3000.
•
PLA: To make PLA a loyal force of the CCP command and
provide reliable and professional support to protect China’s core interests during
the strategic development
Xi
has set about clean up the public image of the CCP and the PLA launched the
ongoing large scale anti-corruption drive to weed out and prosecute corrupt
party bosses and army officers.
Xi is also paying special attention to bring the
PLA’s professional competence on par with the modern armies of the West. The
modernisation of the PLA is focused on intense training for joint operation
skills in a C3IS networked system.
Increasing attention is being given to improve
PLA Navy’s fleet operation skills with the addition of an air craft carrier, and
submarine and surface ships. Thus the PLAN is emerging out of the South and
East China seas to meet its aspirations to become blue water naval force by the
next decade.
PLA’s progress has enabled President Xi to
assert China’s power in support of its territorial claims in South and East
China seas and India. This has caused concern not only among China’s Asian neighbours,
but also to the U.S. as it poses a direct threat challenge to the U.S.’ allies
and poses a challenge to America’s domination of the Asia-Pacific region.
The emergence of China as a major power has
increased its profile in the international arena including the UN. The U.S. has
made extremely cautious in dealing with China. Countries like Japan, India,
Korea, Vietnam and Russia, who have unpleasant historical experiences with
China have also become equally cautious. China has tried to rework its
strategic equation with the U.S., European Union, Japan, ASEAN region and India
in keeping with the changing global environment. These developments also have
strategic connotations for India.
China-South Asia connectivity
China’s South Asia
connectivity projects underway also have a broader context to the ambitious China
Western Development (CWD) plan started in 2000. It involves six provinces
(including Yunnan) and five autonomous regions including Tibet and Xinjiang
bordering India. As per 2002 estimate this backward region forms 71% of China’s
area but contains only 28.8% of its population contributed only 19% of China’s
economic output as of 2009.
The multi-faceted CWD plan
involved development of transport, hydropower plants, and telecommunications
infrastructure, improve ecological protection, promotion of education and
retention of talent within the region for exploiting the abundant natural
resources.
The
1956 km long Qinghai-Tibet rail link between Xining and Lhasa was completed and
now trains regularly run from Beijing, Chengdu, Shanghai, and other important
cities to Lhasa. They have increased PLA’s strategic mobility to the sparsely
populated areas of Xinjiang and Tibet which have been facing unrest among
Uyghur and Tibetan ethnic minorities. Similarly China’s logistics and military
capability have been augmented with the road communication to the Sino-Indian
borders improving the access to support China’s territorial claims in India.
These developments carried out under the 12th
Five Year Plan (2011-2015) is giving form to the country’s vision to
economically integrate its backward western regions with the hope of neutralising
separatist separatist influence.
China’s
influence will further increase in South Asia on the completion of the four
road links and port infrastructure it is building. These are designed to
improve China’s physical and maritime access to Pakistan, Nepal, India and Sri
Lanka. China also has plans to construct railway lines from Xinjiang and Tibet
to provide rail connectivity from China to South Asia. China has also started promoting the 21st
Century Maritime Silk Road to ensure the port infrastructure it has created in
Pakistan, Sri Lanka and Bangladesh are made commercially viable. Chinese
projects to construct pipelines for transporting petroleum resources using some
of these ports would also increase China’s strategic sustainability free of
choke points in sea lanes of communication in Southeast Asia.
Pakistan Economic Corridor (PEC)
The
PEC now under construction with China’s aid and assitance is an ambitious
development programme that connects
Gwadar port in Southwestern Pakistan with Kashgar in Xinjiang autonomous region
by road, rail and pipelines for transporting petroleum resources. It consists
of three segments –
a.
Karakoram
Highway (KKH): The 1300 km long KKH
runs through the Khunjerab Pass linking Xinjiang with Gilgit-Baltistan region
in Pakistan. The highway now being upgraded will open up Pakistan’s backward
region to trade and tourism from China and increase trading opportunities for
Xinjiang. At the same time it also opens up China’s access to India’s western
flank bordering Pakistan. It runs in the close vicinity of Siachen increasing India’s
threat potential from both China and Pakistan either singly or collectively.
b.
Indus
Highway: The four lane 1264 km
long Indus Highway (N-55) runs along the Indus River and connects Karachi Port
with Peshawar. The highway completed in 2008 provides China an alternate route
to Afghanistan border using the PEC. It is a vital road as it runs through the
rich heartland of Pakistan parallel to Indian border.
c.
Makran
Coastal Highway (MCH): The 653
km long MCH known as N-10 forms part of Pakistan’s national highway
network connecting Karachi with Gwadar Port. The road running along the Arabian
Sea coastline is now being upgraded. The road from Gwadar has now been extended
to provide alternate road connectivity to Iran. China now enjoys direct access
to Arabian Sea and Straits of Hormuz particularly after China Port Holdings
gained control of Gwadar port operations in 2013. This could be valuable in increasing
PLAN warships capability and reach.
China-Nepal connectivity
Among South Asian nations, India’s relations
with Nepal are perhaps the most complex, subjected to periodic crests and
troughs. Nepal is sandwiched between the two Asian giants India and China. This
makes it vulnerable to political changes in either country. In a way Nepal may
be called “India-locked” as former Nepalese Prime Minister Bhattarai once
described as the country’s socio-economic interactions have been almost
exclusively with India. For some years now, Nepal had been trying f to free
itself from India’s overwhelming influence. Geographically Nepal remains the
soft underbelly of India’s strategic security because of its domination of the fertile
Gangetic plans of India linking Eastern India.
China does not have the historical socio-political
baggage India carries in its relation with Nepal. China has used Nepal’s desire
to follow an independent foreign policy to step up its influence after the fall
of monarchy in Nepal. China has now mustered Nepal as a partner in its
ambitious plans to extend its strategic land and railway links to South Asia.
The Friendship Highway links Lhasa to Zhangnu on
China-Nepal border leading to the Sino-Nepal friendship bridge at Kodari in
Nepal. This 800 km long road also forms part of the China National Highway 318
from Shanghai to Zhangnu. From Kodari the Araniko Highway provides road access
to Nepal’s capital Kathmandu.
In 2007-08, China began constructing a
770-kilometre railway connecting Lhasa, the Tibetan capital, with the border
town of Khasa in Nepal which was completed last year. Nepal had requested China
to extend the rail link to Kathmandu. When China fulfils this project, it would
significantly improve China’s strategic access to India’s most populated
regions in the North. Chinese are also involved in other communication projects
now underway beyond Kathmandu.
Among them, China’s plans to build a road link
between Kathmandu and Lumbini, an important Buddhist pilgrimage site located
very close to Indian border, is the most important one. The Chinese
government-backed Asia Pacific Exchange of Cooperation Foundation (APECF) agreed
to provide $ 3 billion assistance for the Lumbini Development Project (LDP).
The APECF had also to begin a survey for construction of a direct fast railway
link between Kathmandu and Lumbini as part of the LDP. Though the funding got
mired in controversy and stalled the project, it is likely to be revived when
the concerns of India, Japan and South Korea are resolved on its impact on the
holy seat of Lumbini.
Strategic concerns on Northeast connectivity
China has been keen to promote its direct
connectivity to India’s northeast through two major routes. These are the
Chumbi Valley route (from Lhasa-Shigatse-Chumbi Valley-Natula) and the
Burma-China-India-Myanmar (BCIM) Corridor. Both have significant economic and
strategic implications for both India and China. These are related to China’s
dispute over the alignment of Mc Mahon Line which forms the Indo-Tibet border
in Arunachal Pradesh as well as China’s claim over the entire Arunachal Pradesh
(termed as Southern Tibet by the Chinese).
The Chumbi Valley geographically forms a wedge
between Sikkim and Bhutan. India’s traditional trading route runs through the
Chumbi Valley to Shigatse, an important communication centre. After the
Lhasa-Shigatse road was developed Shigatse has become a strategic communication
hub as it connects the roads from North, South, West and East increasing PLA’s
logistics and mobility to Indian border.
Sikkim is strategically situated astride the
narrow land corridor linking Northeast states with the rest of India. In case
of a military confrontation with India, development of China’s road and rail
access through Chumbi Valley in conjunction with the opening up of BCIM
corridor will increase China’s strategic options cut off India’s Northeast from
the rest of the country. It could also compromise India’s control over
Arunachal Pradesh.
BCIM Corridor
The BCIM is a multi-modal infrastructure
initiative to increase sub-regional economic cooperation among the member
nations (Bangladesh, China, India and Myanmar). It envisages the development of
the infrastructure facilities and road, rail, water and air connectivity to
improve interconnectivity for free movement of goods and promote trade among
the four member nations. It is estimated to benefit approximately 440 million
people from Yunnan Province of China to Myanmar, Bangladesh, and India’s
eastern states including Bihar.
India had been reluctant to join China in
promoting Northeast connectivity. On the other hand land connectivity with
China looks inevitable as it will trigger economic development of Northeast
states contributing to the neutralisation of separatist insurgencies in this
neglected region of India.
This has induced India to agree in principle to
join China to promote the BCIM Economic Corridor after Prime Minister Dr
Manmohan Singh and Chinese Premier Le Keqiang met in May 2013. They signed a
MoU to establish their own study groups on the BCIM economic corridor to
promote this initiative.[ii]
India’s Northeast states as well as Bangladesh
have been upbeat about the BCIM corridor. The BCIM concept also fits in well
with India’s ‘Look East Policy’ as well as its multimodal connectivity projects
to link north eastern states with ASEAN region and to provide them sea access
to Myanmar’s Sittwe port.
However, India has concerns about
the
BCIM corridor because it would open up a direct eastern axis from Yunnan to
support China’s large territorial and border claims in Arunachal Pradesh. The
BCIM passes through vital communication bottlenecks astride logistic routes of all
the seven states in the region. China had in the past supported separatist insurgencies
of this region. Though it has ceased to do so since 1989, it will have the
option to do so easily when the BCIM corridor comes up. Moreover, the progress
of the BCIM corridor as well as its optimal use could be affected unless separatist
conflicts are neutralised. So the BCIM may take some time to come to fruition.
Reviving the Maritime Silk Route
In October 2013, President Xi Jinping announced
China’s intention to launch the 21st Century Maritime Silk Road (MSR)
plan to link the Pacific and Indian Ocean during a visit to Southeast Asia.
After Premier Le Keqiang announced the setting up a $ 495 million (Yuan 3
billion) maritime cooperation fund to support MSR, its promotion has become
China’s key diplomatic initiative. China has sounded most of the nations of
Asia-Pacific including Malaysia, Singapore, India, Sri Lanka and the Gulf
countries on the initiative.
Though details of the MSR came out much later
China’s intentions in taking up this project in South Asian perspective appear
to be three fold.
a.
To assist China’s increasing profile in South
Asian countries and protect China’s growing economic and strategic interests in
the region.
b.
To profitably use maritime assets created with
Chinese investment in developing port infrastructure in Gwadar (Pakistan),
Hambantota and Colombo (Sri Lanka) and Myanmar. It is poised to develop Chittagong
port (Bangladesh) also. The MSR would enable China to promote its interests
among Indian Ocean littorals
c.
The MSR could facilitate the PLAN’s ambitious
plan to assert its strength in Indian Ocean as well to protect China’s sea
lanes of communication in the region
Though MSR will also promote India’s economic
activity it would increase China’s threat to India’s maritime power projection
in Indian Ocean Region. It could also enhance China’s electronic snooping and
human intelligence capabilities.
Conclusion
China has developed a large network of roads
both to the border and laterally between key communication centres of Xinjiang
and Tibet while India has lagged behind in doing so in its border territories.
This gives China a definite advantage in protecting and securing its
territorial interests relating to India. Conscious of this China had objected when
India embarked upon development of road infrastructure in border areas.
This situation has continued even after both the
countries signed a Border Defence Agreement (BDA) to manage such differences.
Thus India’s vital border communication development continues to be subject to the
vagaries of China’s interpretation of the agreement. This has to be borne in
mind while handling China’s desire to increase connectivity to India and the
rest of South Asia.
In spite of this, India should encourage and
foster cooperation with China to improve road and transportation connectivity because
it would contribute to the rapid development of trade and commerce between the
two countries.
However, there is a need to exercise caution to ensure the
projects do not increase our strategic vulnerability. Suitable caveats should
be included in any agreements on such projects to ensure that they do not
compromise either the security of sensitive areas or assist China in giving
form to its territorial claims over Indian Territory.
There are a whole lot of strategic security concerns for
India on the Western sector bordering Pakistan ever since China started
implementing the PEC project. The PEC on
completion would give China strategic access not only to Arabian Sea through
Gwadar port but also to the sensitive areas of POK and India’s border with
Pakistan. As Pakistan is China’s close strategic ally, the PEC can give form
and content to bring greater convergence in their strategic interests relating
to India.
There are similar concerns about China’s growing
connectivity and linkages with Nepal also. However, Nepal-India relations are
age-old and bound by each other’s interest. While Nepal’s desire to take
advantage of China for its own development is understandable and improvement in
connectivity is inevitable, India needs to factor this while shaping its Nepal
policy.
There is no doubt that the BCIM corridor would
enable the backward regions of both India and China to join national
developmental mainstream. It would tremendously increase two-way trading
opportunities of both China and India, benefitting Yunnan province of China and
Northeast Indian states, apart from Burma and Bangladesh.
China would also gain a more convenient and
direct land access avoiding Himalayan passes to reach the huge Indian market
and also the under exploited markets of other South Asian countries. On the
other hand, India would be able to add more vigour to the Look East Policy by
gaining speedier land access to the markets of ASEAN and Southeast Asia. This
could result in increasing economic opportunities for Indian youth in troubled North-eastern
states, providing them incentive to give up extremism.
On the other hand, BCIM opens up a strategic
axis from Chinese mainland to enter Northeast India. It cuts across chokepoints
on the lines of communication to India’s disputed border areas in Arunachal
Pradesh. In the past China had provided arms and military training to
separatist insurgents from the North-eastern states in the corridor. While
China has given up this policy, it still retains the option to do so.
Even now extremist groups from Nagaland, Manipur
and Assam deal with Chinese gun runners. Such clandestine activities would be
made easier when the BCIM corridor is wide open. India should be strategically
ready to factor these aspects while opening up the BCIM corridor for China.
Overall the issue of China’s strategic connectivity
to South Asia is directly related to India’s security interests in the region. Building
greater understanding and credibility between India and China is the only way
to take advantage of the opportunities it offers to develop India. This process
could take time and present global and regional strategic climate augurs well
for India and China to embark upon this.
[i] http://news.xinhuanet.com/English/indepth/2013-04-29/c_132349167.htm
[ii] Joint
Statement- A vision for future development of India-China strategic and
cooperative partnership, October 23, 2013 http://mea.gov.in