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Source– The post is based on the article “BYDing Time” published in “The Times of India” on 27th July 2023.
Syllabus: GS2- Bilateral groupings and agreements
Relevance: India and China bilateral relationship
News- Indian government has decided to reject Chinese EV giant BYD’s $1 billion investment plan for a car and battery manufacturing plant.
What compelled India to take this step?
The approach of using market access and economic cooperation to encourage positive behaviour from China has proven ineffective.
Under the leadership of Xi Jinping, China’s actions are different from previous expectations. The Chinese Communist Party has even targeted successful Chinese businesses that do not align with its political goals.
The situation along the LAC since 2020 has led to a trust deficit with China.
What is the current Chinese approach towards India?
The Chinese government continues to separate the border dispute from the overall relationship. It insists that both sides should consider the broader context.
However, Beijing should acknowledge that the border issue is indicative of a larger problem affecting India-China relations.
China has adopted an extremely authoritarian approach. It is determined to challenge democracies and reshape the rules-based international order.
In China’s perspective, India is viewed merely as a country that needs periodic reminders of its subordinate position in Asia.
As a result, China shows little interest in addressing Indian interests. It is evident in its ongoing support for a belligerent but financially troubled Pakistan.
