CUTS International Washington DC Center
Monthly Brief #38, May 2021
Imperative of re-balancing China in the Indo-Pacific
 
With the Chinese economy opening up in the 1970s under Deng Xiaoping’s leadership, the diplomatic focus of the nation and its leader was in making friends and influencing people. But now, under President Xi Jinping and the Chinese Communist Party, under his unfettered command, their diplomats are using ‘wolf warrior diplomacy’ to aggressively push for Beijing’s unilateral interests and in shaping international discourse on issues in its favour.
 
This aggression can now be faced in South of India, as the Chinese have just acquired a 99 year lease of Sri Lanka’s Port City close to its capital Colombo. It is a distance of only 290kms to India’s Kanyakumari. Not that we don’t share a troubled border with China (Tibet) in the North, but this new development has taken all of us by surprise.
 
On a larger scale, a global consequence of China’s confrontational diplomacy is an increasing fear in and of Taiwan’s reunifications by force. This fear has not only increased Taiwan’s defensiveness, but has also reiterated President Tsai Ing-Wen’s commitment to establish alliances with like-minded nations who share similar values. Recently, The Economist has dubbed Taiwan as the most dangerous place on earth in view of the threat from the Chinese Communist Party, noting that the presence of the U.S. military had deterred an armed conflict between Taiwan and China.
 
It is in this context we have to understand the rise of an Indo-Pacific Quad of Australia-India-Japan-United States of America and its pledge to respond and address shared challenges including in cyberspace, counterterrorism and maritime domains. These and many other challenges may have to be subject to test sooner than most of us may have expected.
 
The Indian diplomatic community, too, has been calling to abandon India’s One China policy, amidst the aggravating mistrust in its dealing with China. There is not an iota of doubt that currently India is fighting on three fronts: Covid, Economy and China.
 
For India, the two main consequences of Taiwan being under Chinese control includes putting at risk the security of American allies. Taiwanese control will provide China with an enhanced geopolitical advantage of having undeterred access to the Indo-Pacific.

The conflict between China and Taiwan, and the American administration’s concern over the stability of the cross strait region does not impact just the security architecture in the Indo-Pacific, but also a potential destabiliser to Taiwan’s semiconductor industry that is central to every field, from defence to agriculture.
 
As Mark Liu, the Chairman of TSMC aptly put it, “Taiwan is the Silicon Shield”. With a majority of the world dependent on the nation’s high tech industry support, a war will go against the interest of every stakeholder.
 
It is, thus, an imperative for the Indo-Pacific Quad to look into the Taiwanese perspective, and recognise it accordingly in international space. If the Quad is able to thwart China’s attempt to invade Taiwan, it will prove its relevance in front of the world and will send a strong warning against the imperialist agenda of the Chinese Communist Party.
                                        
Pradeep S. Mehta
Editor

P.S.: Will the Biden-Putin Summit in Geneva next month result in adding new dimensions to the Indo-Pacific saga?

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EU Suspends China Trade Deal As Tensions Grow Over Xinjiang, Hong Kong
European and Chinese leaders are urging swift ratification of the trade deal they agreed to in December, after tensions over accusations of human rights abuses in China delayed approval of the deal by European Union lawmakers. EU Commission Executive Vice President Valdis Dombrovskis said last week that efforts to get the deal ratified by lawmakers in the European Parliament had been halted.

The data never lies - Indian companies are on an UK expansion drive
The number of Indian companies operating in the UK and their job creation levels have registered growth despite the challenges of Brexit and Covid-19 pandemic over the past year, according to the latest ‘India Meets Britain Tracker’. The 2021 tracker, collated annually by Grant Thornton and the Confederation of Indian Industry (CII) to weigh up the contribution of Indian businesses to the UK economy, found that the number of Indian companies operating in the country grew from 842 in the 2020 tracker to 850.
 
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U.S. partnered with India as PM Modi made commitment to deploy 450 GW renewable energy: Kerry
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Four areas of conflict that threaten India-U.S. partnership
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What’s going wrong with India’s Act East policy?
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India’s growing interest in Taiwan
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Preparing army of cyber professionals for Digital India
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Biden calls for new U.S. report on Covid-19 origins in 90 days
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U.S. soft power inextricably linked to global recovery
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India’s infrastructure investments get a boost from Europe’s EIB
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