China Foreign Minister Wang Yi has just finished his visit to South Asia. The trip took place at a critical time, as two nuclear powers, Pakistan and India, had just come close to nuclear war. However, the situation remains unstable. India is once again trying to intimidate and draw Pakistan into a new conflict. Although Pakistan is avoiding any new war, it is ready to fight if needed.
Pakistan has warned India war is not an option, as it would be devastating for both countries and have global consequences. The sensible voices in India are also urging their government to avoid war, which would lead to mutual destruction. Unfortunately, the inflated egos of PM Modi, his party and RSS are pushing them towards starting a new war. As a result, a new conflict threatens the region.
Besides, India is facing severe challenges from its Western allies. The US, the most celebrated Western friend of India, is at the forefront of creating problems for India. Once a poster boy of the West to contain China, it has become a new punching bag for the US.
On the other hand, Afghanistan is still searching for peace and stability. The economic and social challenges are a constant irritant for Taliban government. The government is making every effort to control the situation and is achieving initial success, but much remains to be done.
In this context, Wang Yi’s visit was highly significant. Analysing his meetings with Pakistani, Indian and Afghan foreign ministers shows he arrived in the region with a strong message of peace and prosperity. He emphasises importance of dialogue and cooperation to resolve issues and create a path for sustainable development. He argued the time is right to work together and build a community with a shared future for the region. However, the most important message he delivered was that China is ready to cooperate and share benefits of its prosperity by following principles of non-interference, respect for sovereignty and equality.
The Chinese offer is very timely and aligned with the region’s needs. It’s well known South Asia faces a triple challenge: investment shortages, high vulnerability to climate impacts and instability. The Asian Development Bank (ADB) report estimates South Asia requires $5.5 trillion for infrastructure development from 2015 to 2030. The annual investment needed is about $365 billion, roughly 7.6pc of GDP. Climate-related investments will boost South Asia’s financial needs.
According to the ADB study, incorporating climate change requirements increases total investment need to $6.4 trillion, with an annual requirement of approximately $423 billion, about 8.8 percent of South Asian GDP. Unfortunately, South Asian countries lack sufficient financial resources to meet this target. The problem worsens as the investment gap continues to grow, with estimates indicating the annual infrastructure investment gap has risen to $200 billion. It is important to note these figures were published in 2017. Therefore, current needs are likely higher, especially given the region’s vulnerability to climate disasters like 2022 floods and pandemic-triggered floods in Pakistan in 2025.
On the other hand, the region is unstable and faces challenges like terrorism and ongoing disputes such as Kashmir. These issues, combined with poor governance, have led to high poverty rates, limited industrial growth, food insecurity and low-quality human capital in South Asia. It is estimated nearly 33.4pc of world’s poor live in South Asia, which is a concerning figure. Food insecurity remains a significant problem, with data showing nearly 300 million people are undernourished in the region. The human capital score is only 0.48, which is quite low. Additionally, it is a volatile area where conflicts periodically erupt, as seen in recent war between Pakistan and India.
The situation urges all South Asian countries to sort out their differences and join hands to solve their problems. However, for that purpose, the region needs a partner who can help them manage their difference and offer opportunities to grow together. In this context, China is an ideal candidate, as it has the will to promote and share prosperity, prioritise dialogue over confrontation to resolve problems, and a commitment to build a community with a shared future by sticking to principle of non-interference. Besides, it offers numerous avenues to bridge the investment gap and pursue a prosperous and peaceful South Asia.
BRI offers enormous investment opportunities. China has invested nearly $1 trillion over the past decade through BRI programmes. It has also helped mobilise almost $2.49 trillion in investments from other sources. The new approach of cooperation under BRI, focusing on green growth and development, will support efforts to address climate change. Green industrialisation and promotion of clean energy will help reduce GHG emissions.
For South Asia, China has launched two specific corridors under BRI, CPEC and BCIM. Pakistan, being a member and home to CPEC, is already benefiting from BRI opportunities. Now, China and Pakistan are to facilitate inclusion of Afghanistan in CPEC. India, due to Western influence and an inflated ego, has refused to join the initiative and is missing the huge opportunity. However, in new dynamics, it is hoped India will consider joining it. If it happens, then connecting CPEC with BCIM will turn around state of connectivity and economic linkages for South Asia.
South Asia can benefit from financial resources of Asian Infrastructure Investment Bank (AIIB). The AIIB has become an alternative to Western financial institutions, which aim to promote green economic development, improve people’s welfare, respect natural laws and avoid creating a debt trap. It is a non-political organisation that adheres to sound financial principles. For example, despite all the differences between China and India, Delhi is the largest beneficiary of AIIB.
China International Import Expo (CIIE) provides an excellent opportunity to South Asian countries to showcase their products and enhance their exports.
China can help solve disputes through dialogue at SCO platform, as Beijing did with Central Asian States (CAS). China solved its border issues with CAS through dialogue and development at the SCO.
In conclusion, South Asian countries need to move past the conflict mentality and work towards mutually beneficial cooperation both among themselves and with China to take advantage of Chinese offer. Unfortunately, the Indian media is once again playing a negative role by undermining this opportunity.