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The Yiwu Syndrome: India-China Relations and the Regional Order



For a long time now, India and People’s Republic of China have had uneasy bilateral relationship. In addition to the conflicted history, instances in the recent past have made it extremely difficult for both the countries to set the terms of relationships in place so that the relationship could be taken forward. Instead, what the two have had are the events that have threatened to derail any form of momentum without warning. From the news of trans-boundary intrusions to the denial of proper visas to the residents of Jammu and Kashmir to the denial of any form of visa to the Indian Army’s northern commander, and to an Indian Air Force officer from Arunachal Pradesh in the recent past, China has undertaken activities that have time and again challenged India’s sovereignty by acting against the norms of good international conduct. Consequently, each time the highest leadership has met in the recent past, they have only worked as firefighters by saying that despite repeated acts of belligerence from certain sectors of power they do not see each other as stepping on each other’s toes, at least not as yet. However, there is a danger that India’s accommodative behaviour vis-à-vis China might be seen as a sign of its weakness and it may not augur well from a long term point of view.
The argument here is that the Yiwu episode, where two Indian representatives of a Yemeni trader had to undergo illegal detention and threat to life, not only exemplifies the difficulties of doing unorganized business in China but also showcases difficulties of dealing with a rising China as far as India is concerned. Therefore, in some ways, the Yiwu episode is a symptom of the larger predicament of the India China relations. Like in Yiwu, legal and convention based method is not being followed by one of the actors at the bilateral level, the PRC, that believes in using its power towards arm-twisting the relatively weaker partner into submission. On the other hand, time and again the other actor, India, has tended to act in a manner to give peace another chance. India has chosen to act in a peaceful manner, perhaps believing it as a better alternative to confrontation.
However, it is questionable whether the world views India’s approach in the same way. Afterall, India was well within its rights to register stronger protests than it seems to have done. The Indian government also has some explaining to do in the context of its decision of continuing with the exchange visit by a smaller defence delegation after the denial of visa to an officer of the Indian Air Force from the state of Arunachal Pradesh. India’s decision to go ahead with the delegation’s visit is questionable from the regional posturing point of view, since one actor’s peace can well be viewed as weakness by another. Thus, from the point of view of audit, it must be asked whether this embarrassment was avoidable in the first place.

Chinese Belligerence and Regional Consequences
However, this does not augur well for the power relations in Asia as such. If the smaller countries in the region begin to believe that if India could meet such predicament then at the geostrategic level they would be much less willing to believe China as a peacefully rising power. Therefore they might be tempted to bandwagon alongside another power to secure their national interests. To that extent this seems to be happening with the return of the US with defence agreements with various countries of the Southeast Asian region.
From the point of view of the Indian national interest in the region, this set of cyclical pattern will cause double whammy. Asian geostrategic order seems to be setting in a pattern of acts that seem to include belligerence of China, India’s patience in dealing with China (or hesitance to take hard stance from another perspective) and sustained and increasing US engagement pushing further militarization on part of the PRC. What it does for India is that it does not send right signals either to China or to other smaller Asian countries. India cannot hope to achieve peace with China by sending a wrong message to other smaller countries in Asia that might have been interested in partnering with India to balance China’s rise.
While in itself Yiwu is symbolic of the structure of trade in China, its diplomatic consequences are symbolic of China’s assertiveness. Coupled with the latest visa row, it symbolises the power relations in Asia. However, as far as India is concerned, taking short term view just to sustain peace might be counterproductive from a long term aspirations of becoming an influential actor in the new world order.

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