China's geographic proximity and growing power remain the core reasons ASEAN clings to its long-standing hedging and neutrality strategy. Fear of retaliation—whether economic or military—has deterred ASEAN from adopting a firm position against Beijing, which could compromise the region’s economic survival.
The Chinese making inroads into Pakistan for a while now may also be a significant factor behind President Donald Trump not taking an unambiguously supportive position towards India. Trump’s comments have been calibrated to achieve equivalence between India and Pakistan and quite strikingly handed Islamabad some bragging rights by offering to intervene in resolving the Kashmir issue.
Over the past 40 years, the U.S. has transitioned from an industrial to a consumption-driven economy. Manufacturing, which contributed about 25% to GDP in 1970, now accounts for just 10%. The outsourcing of production to China, Mexico, Vietnam, and others has led to the loss of nearly 5 million factory jobs between 2000 and 2020 alone.
A landmark event in 2023 was the MoU with Japan’s Rapidus Corporation to establish semiconductor manufacturing in India. Backed by Japanese giants like Sony, Toyota, Kioxia, NEC, NTT, and MUFG Bank, this move could be a game-changer for India’s electronics ecosystem, which currently lacks indigenous chip production.
The debt phenomenon is so significant that nearly half the African Union member states are in debt – mostly to the state-owned banks of China. Countries in South America and Asia are also being caught up in this debt slide. While the New Delhi G20 summit only appealed to countries to address this serious debt issue, that China is now being seen as a part of the problem seems to be hanging over it like a Sword of Damocles.
Given the growing power differentials and China’s global hegemonic ambitions, it is observed that Xi attends mega events where his country has some clout and skips those that could put China in a tight spot and raise questions related to its accountability and responsibility.
India is increasingly being courted by the US-led West as a bulwark to Beijing, and China will want to send a two-pronged message to Delhi and Washington as well as regional neighbours that Beijing still holds the economic and security upper hand, although its economic credentials have taken a serious hit.
Facing encroaching Chinese naval presence and power projections in the Pacific Island states on its eastern flank, and an assertive bid by Beijing to challenge the naval presence of Delhi and Washington in the Indian Ocean to its western flank, Australia is faced with its highest threat level in decades.
In the last decade, one has observed repeated and serious attempts by Chinese research vessels to collect data in the Indian Ocean Region (IOR). The year 2018, saw 24 research cruises by Chinese vessels in the IOR, whereas during the same period six other nations, including US, India, France and others, have undertaken only 26 such cruises in the IOR.
Indian media may do any amount of spin doctoring, including claiming that the bilateral meeting was requested by the Chinese side, but the noteworthy issue is that none of the two Chinese statements mention disengagement and de-escalation.
The influence of China and its grip on the region remain a predominant factor that has divided ASEAN. One-sided economic dependence on Beijing and the fear of inciting its potential wrath and economic retaliation and potential hard-power measures have stymied the full capacity of the region in managing regional power parity.
Maritime security and stability remain of utmost importance to both Brunei and Malaysia, and Brunei has enhanced its preparedness in this regard by joining the Cooperation Afloat Readiness and Training (CARAT) maritime exercise with the US.
This gradual decline of the environment - with disastrous consequences for the region including northeastern India and Bangladesh - cannot be arrested without the cooperation of the military rulers who are neck-deep in corruption and self-aggrandizement.
The growing maritime competition between China and Japan along with the West will result in the growing militarization of the Indo-Pacific.
The Indian Navy remains a highly trained, disciplined and proficient force that has stepped up cooperation with other navies in the Indo-Pacific through the annual Malabar exercises. India’s naval modernisation are a strategic response to Beijing’s muscle-flexing in the region, including in the Indian Ocean, especially with Beijing’s strategic penetration into India’s neighbours Sri Lanka, Pakistan and Bangladesh through the 'strings of pearls' encirclement with its wider regional ramifications.
Thus, China views PM Modi’s visit to the US as a gathering storm for its ambitions to dominate Asia in military, economic and technological spheres. That these are due to China’s recent political and strategic choices is ignored.
Bangladesh expressed its commitment to walk alongside Japan, a leading creator of the QUAD alliance in the Indo-Pacific strategy, for the sake of a peaceful Indo-Pacific region.
Unlike in the Indo-Pacific region, where China poses a security issue for India and US, the challenge in the Middle East is from Beijing’s subtle economic and political push through its Belt and Road Initiative.
Japan now wants to provide its leadership role in the region for the Western world. Washington, which was so long seeking to counter China through India, has now turned to Japan as it felt that New Delhi was not living up to that role.
