Can China Afford a Conflict with India? Today India and China have one of the largest combined markets and economies of the world and is invariably the future of the global economy. While India needs a huge amount of investments and including those from China, it is China too who would need the Indian market to reduce its dependence on the stagnating West. Given the increasing economic interdependence and investments of one country in another, given the massive sensitivities of global markets to such possibilities of war, China can ill afford to start a needless conflict. Given its extreme dependence on export markets, any kind of global sanctions on China for its intransigence may cost it dearly in terms of economy. China is also looking to tap major investment opportunities in India and is planning to make India as base for manufacturing many of the sub components which it now manufactures in countries like Vietnam. Thus, it is well nigh impossible for China initiate a conflict leave alone a regional war. Chinas economy would be crippled if exports from China find no takers or are barred by sanctions. Possibility also remains high that the statement was aimed at making it clear to India that her increasing bonhomie with Japan or US may not be to the liking of China. - Pathikrit Payne
Posted on: Wed, 24 Sep 2014 11:07:11 +0000
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