Interpreting India

China's Influence in South Asia with Deep Pal

11.11.2021 - By Carnegie IndiaPlay

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In this episode, Deep Pal joins Shibani Mehta to delve deep into China’s influence in South Asia. In recent years, China’s engagement in South Asia has expanded significantly beyond commercial and development projects to encompass political and security interests. While this interaction often targets the needs of specific countries, even states with relatively robust state institutions and civil society struggle to grapple with the implications of China’s expanded footprint. Those without strong governance remain even more vulnerable to external interference in national affairs.

China’s meteoric economic rise has resulted in a massive expansion in its international economic aid and development programs. China is thus emerging as an attractive alternative to the established players in the global development space, such as the IMF and the World Bank. However, analysts suggest that development aid is often unsustainable for the host country, creating onerous debt obligations while making only marginal contributions to local employment.

How has China's profile as a key economic partner developed in the South Asian region? What impact has China’s economic aid had on its political influence in the region? And finally, how should India respond to China’s economic clout in South Asia?

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