But it may be the smaller South Asian states that feel the most pressure. Countries such as Bangladesh, Sri Lanka, Nepal and the Maldives are faced with a more polarised geopolitical environment. They want Chinese investment to boost development and keep close diplomatic and security ties with India and western partners.

A big development happened in 2025. Nepal started exporting electricity to Bangladesh through India's transmission network. This was the first time Nepalese hydropower was commercially transmitted to Bangladesh via Indian territory. The initial export volume was 40 megawatts. The significance of the agreement is much bigger. It showed that regional energy cooperation can overcome political barriers.  

In the effort to combat this multi-dimensional challenge, democratic states are faced with deep policy constraints, many of which can be paralyzing. The fundamental paradox is how to maintain the open, democratic character of the digital commons while at the same time countering more advanced opponents who are not held back by democratic principles. Disseminating disinformation is a tactic governments use to influence public opinion that has the potential to conflict with the strong constitutional freedoms of expression that exist in liberal democracies.