Context:
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Indian PM greeted the Dalai Lama’s on his 86th birthday.
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The public acknowledgement is a subtle recalibration in the China policy as he’s persona non grata for China.
Dismal state of India- China relations in recent times:
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Last year, China unilaterally invaded the Eastern Ladakh region and violated the border agreements.
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India negotiated a disengagement this year at one friction point – Pangong Tso. However, there has been no progress on disengagement in Demchok, Gogra, Hot Springs and Depsang.
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Chinese President’s speech, delivered on the occasion of centenary celebrations of Communist Party of China (CPC), signalled a strong confrontational attitude against India.
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China’s actions and their scale have altered the bilateral relationship. Due to this, the Indian Government has begun to scale back the economic engagement. Noticeably, in keeping China out of the forthcoming 5G transition and parts of the tech market.
Lesson for India:
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An important takeaway for India is that the size and the sophistication of the domestic economy matters in securing strategic interests.
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China’s increasing belligerence has accompanied its growing economic clout that is backed by a $14.7 trillion GDP.
Way Ahead:
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As India works on its economic transformation, it should deepen its ties with Taiwan, a global leader in semiconductors. Deepening ties will simultaneously serve India’s economic interests and send China a message.