China Hints at Economic Costs After India Deploys Tanks, Troops to Border
22:01 21.07.2016(updated 03:21 22.07.2016)
After India mobilized tanks to the Chinese border, Beijing has warned that the move could threaten potential investment opportunities.
On Wednesday, reports surfaced that New Delhi deployed nearly 100 Russian-made T-72 tanks to the Chinese border, in the northern region of Ladakh. Indian military officials cite a Chinese buildup on its side of the border as necessitating the move.
On Thursday, China’s Ministry of Commerce warned against the provocation, arguing that Beijing may rethink its Indian investment strategy.
According to Global Times, China’s outbound investments have increased dramatically in the first half of this year, up approximately 59%.
“In this regard, a great number of Chinese firms, including smartphone manufacturer Xiaomi and PC computer maker Lenovo, have turned their eyes toward India,” Global Times reports.
Beijing’s increased exports coincide with New Delhi’s need to meet rising import demands. Indian Prime Minister Narendra Modi has been working to attract overseas firms.
“However, it is puzzling that while deploying tanks near China’s border, India still strives to woo Chinese investment,” Global Times reports.
“In an index on the ease of doing business, from the World Bank, India currently ranks 130 out of 189. Despite India’s stated goal to rise to within the top 100 this year, the nation still has its work cut out for them.”
In order for China and India to work together, the paper asserts, political disputes must be set aside and regional tensions put to rest.
“In the long run, there is large potential for a successful relationship between China and India, especially in the manufacturing sector,” Global Times notes.
“In order for that possibility to become a reality, both China and India will need to work hard to clear up misunderstandings in a bid to lay a solid foundation for the sustainable development of economic and trade cooperation.”
Tensions have been building between Beijing and New Delhi in recent months. In the midst of the South China Sea dispute, the Indian Navy deployed three vesselsto conduct joint military exercises with Malaysia.
In Nepal, Prime Minister Khadga Prasad Sharma Oli has expressed an interest in working more closely with the Chinese government, a move that has irked India.