India's efforts to reduce dependence on China and regulate economic relationship

This chapter discusses the current efforts made by the Indian government to resolve border tensions with China and reduce their economic dependence on China. It highlights the challenges faced by the Chinese economy, such as a property sector crisis and youth employment hitting record lows, while acknowledging its overall financial performance. The chapter also examines India's lack of goods for export to China due to a focus on the service sector rather than industrialization and manufacturing. It concludes by mentioning the steps taken by the Indian government to reduce the trade deficit and increase exports, including in industries like sugar and pharmaceuticals. The chapter discusses various measures taken by India to regulate the financial relationship with China. This includes cracking down on unpaid taxes and Chinese companies making payments through their own apps instead of the Indian banking system. The Indian government has also banned several Chinese apps over privacy and security concerns. Despite these restrictions, India and China are still negotiating economic and trade ties in various sectors such as pharmaceuticals, high tech, power, and oil. This chapter explores the potential implications of the competition between China and India, particularly in relation to their nuclear powers. The speaker discusses how China perceives India, the role of other governments in monitoring the situation, and the United States' efforts to align with India against China. The chapter also mentions a defence technology deal announced during Prime Minister Modi's visit to the White House. In this chapter, the discussion focuses on the assumption that India will ally with the United States to counter China. However, the speaker argues that India prioritizes its own interests, and its collaboration with Russia further undermines the possibility of aligning with the US against China. The speaker highlights the significance of Russia to China and suggests that Russia's disruptive actions in global affairs are advantageous to Xi Jinping's ambitions. Additionally, the speaker discusses India's reliance on Russia for energy and supplies, which explains why India did not criticize Russia's invasion of Ukraine. The chapter concludes with the observation that while there are structural difficulties and tensions between China and India, Xi Jinping and Modi have a good personal relationship. The chapter questions whether China and India can improve their relationship given the limited influence of the rest of the world.