Second Indo-China summit may alarm US

Comment

By Javad M. Goraya

Chinese President Xi Jinping has emphasized upon the need to safeguard an international system with United Nations as its core and an international order based on international law in the informal summit with Prime Minister Modi.

These remarks are attributed to President Xi in the official press release issued by Chinese foreign ministry at end of summit. Indian Foreign Secretary Vijay Ghokle in his post summit press conference mentioned that during their one on one sessions, the President of China talked with Prime Minister Modi about the recent visit of Pakistan Prime Minister to China. Mr Ghokle added on repeated questions about talks over Kashmir, “ the Chinese President talked about Imran Khan visit and Prime Minister Modi listened to it”.

In the joint statement after Prime Minister Imran Khan visit, China had stressed upon resolution of the Kashmir issue on basis of UN Resolutions and reaffirmed to protect Pakistan’s interests in this regard.

Both sides, especially the Chinese seemed more confident and aggressive on new initiatives at 2nd informal summit with India to “brighten up” each other’s countries as mentioned in Chinese press statement. There seems to be a noticeable shift from the rather conservative mood at the first informal summit in China. President Xi said that to achieve “Dragon & Elephant Dance” is in interest of people from both countries. The summit is named “Chennai Connect” by the Indian side.

As per official statement, President Xi vowed to map out a “hundred-year strategic plan” to promote and strengthen China India partnership. Both countries have decided to establish a new High-Level Economic and Trade Dialogue mechanism to rationalize trade issues, promote new manufacturing ventures and investments in specified sectors. The new Mechanism will work under Chinese Vice Premier Hu Chunhua and Indian finance minister Nirmala Sitharaman. Chinese President welcomed Indian companies to invest in Pharmaceutical and IT sectors in China.

For a first in the informal summits, both sides expressed intent to conclude negotiations for the Regional Comprehensive Economic Partnership (RCEP). RCEP is a landmark agreement launched in 2012 and is a proposed 16 country free trade agreement between Ten Member ASEAN states and its six FTA partners including India and China. This extra ordinary Pan Asia partnership will be one of worlds biggest trading bloc.

The Chinese President as per official statement issued by Chinese Foreign Ministry pressed the need to explore the gradual expansion of the "China-India Plus" cooperation to South Asia, Southeast Asia and Africa. And to strengthen coordination under framework of G-20, the BRICS, the Shanghai Cooperation Organization, and the China-Russia-India cooperation.

Although the Chinese side expressed the desire to expand partnership with India to South Asia and beyond, there is no mention of any talk on the Chinese flagship Belt & Road Initiative (BRI) project in the press statement from both sides. India opposes the BRI project on grounds that it includes CPEC projects in Pakistan which are built on territory illegally occupied by Pakistan in the Kashmir region. India also raises concern about BRI project on basis of “openness, transparency and financial responsibility”. There is a proposed Economic Corridor under BRI project covering China India Myanmar and Bangladesh as well.

Both sides vowed to follow a rules based international order in dealing with trade disputes. Both are in negotiations with USA over trade related issues and seem to have laid a joint emphasis on WTO based settlements.

There is no mention of any Afghanistan related points in the press statements. There is emphasis on higher engagement between the military of both countries and Chinese press statement mentions India’s willingness to strengthen anti-terrorism cooperation with China.

Both sides agreed to celebrate 70 years of diplomatic relations in a befitting manner next year with an event each week in both countries. The 3rd informal summit will be held next year in China and is turning into a good platform for major formal decisions.

The significant decisions between China and India and Chinese president’s intent for the 100-year strategic partnership with India at 2nd informal summit would raise heavy concern in the power corridors in Washington. USA Defense Department in June this year issued a “Indo Pacific Strategy” which targets Chinese “predatory economics” and “military expansion”. India is mentioned as an important partner in USA’s Indo Pacific strategy and is engaged with USA in many forums and partnerships. India has already gone ahead to buy Russian S-400 missile system despite threat of US sanctions. Chinese diplomatic out-reach through trade and development in Asia, Africa, Europe and beyond continues to grow. China acceptability in its immediate neighborhood continues to increase as well. However, the greatest test and challenge in South Asia remains the Kashmir issue without which peace and development will remain uncertain.