Chapter 3
India's geopolitical issues with String of Pearls
Rear Admiral K Raja Menon (Retd) has summed it up as the following areas of geopolitical concern for India wrt the string of pearls [9]
Figure 7 - Areas of geopolitical concern
If we see this figure, it is easier to understand that both India and China basically square off and have no advantage over the whole area of concern. For India one side its the high mountains in the East, Planes in the West and Sea in the South. Each of the places with distinct advantages and disadvantages. For China, the whole of IOR is a long distance away from mainland requiring a formidable Blue Water Fleet to actually protect it. The Tibetan region dispute is well known for both India and China and thus it remains a status quo. The movement if it happens deep inside Myanmar literally will also stretch their supply line. The Myanmar government in spite of Chinese overtures also wishes to be in good books with India for the road and connecting infrastructure enabling it to have land transit routes too. Thus all types of chess games as of now basically point to a draw status.
The change in the strategic strength happens via fundamental instability of
Pakistan and China’s huge investment in CPEC or China Pakistan Economic Corridor. [10] Over the last few years slowly the Chinese investments and buying of Stakes in Pakistani State Enterprise mean there is a dramatic increase in controlling form over Pakistan. With the further extent of military cooperation, assets being supplied with long-term loans and establishment of proxies to control state machinery, China's control and changeover of Pakistan into its own province or vassal state is almost complete. The issue of proxy elements is already well known with the usage of terror proxies and aiding them with arms and financial aid in North East India. With the radicalised religion based proxies in Chinese hands, there seems a greater stability-instability paradox. On the side it keeps India engaged with constant de-stabilisation aspects and on the other side, the same radicalised elements can also cause a religion based extremism elemental increase in Chinese provinces closer to Pakistan. The extent of the fallout from such a situation is a worrisome factor and coupled with mainstreaming the terror elements into the political front to gain legitimacy and recognition points to a grave concern. On one side the Chinese investments and underlying security make its investments very much secured yet they further went ahead and ensured the income generated via this whole project, trade increase and even transport plus transit benefit China far greater than Pakistan. This implies over time, there will be a deep grudge built up which can be exploited by radicals and can unite all under the name of one religion to fight against this oppressive stance of China. This will throw the whole Western Border of India and the adjoining geopolitical concern into chaos and possibly lead to Syria 2.0 scenario all over again.
The other area of concern is the
Middle East. The house of almost all problems exists as of today in spite of Oil being the largest resource allowing them to manipulate the whole world economy as per their whims. Yet there is Saudi Arabia Qatar issue, Iran hotbed, Syria- ISIS, Turkey NATO to and fro stances, Israel-Palestine, Hizbollah-Hamas, Nuclear Weapon and continuous quest for an Islamic Bomb under their control – the list is pretty long. The illegal trading and proliferation of Oil and changing the small guidelines to hurt Import dependent economy like India is a big risk. The challenge for India is that each side will insist on a mutually beneficial relationship with India but also insist on differentiating between their own friendly and enemy nations wrt to India's relationship. As India is dependent on ME for Oil, our stance and our strategies have to be very careful of this aspect.
Other potential areas of concern include the identifying more such Pearls in
Bangladesh: A container port facility at Chittagong is coupled with extensive Naval and Commercial Access. Bangladesh reliance on Chinese military assets like submarines via soft loans is a step in that direction. In total for over 34 projects, a sum of USD 25 Billion has been committed by China. [11] The challenge for a growing economy like Bangladesh is soft loans help in creating less stress over any commercial loans which may have stringent terms and a higher rate of interest. Smartly, China has been trying to convert such loans into commercial loans and trying to make Bangladesh default like in the case of Sri Lanka, it wishes to use the secured assets as a way of consolidating its hold once the default occurs. Dhaka has been resisting this attempt knowing well the fate of Hambantota port and China taking it fully for failing to repay the debt and thereby buying it to square that loan off from its books.
Nepal: The India-Nepal relationship has seen several ups and downs but last few years have seen possibly multiple bottoms. With the sharing of culture and majority religion same like India, the differences emanating between Kathmandu and New Delhi are very surprising. Chiefly these issues have been taken advantage by lack of communication and strategic compromises to find a middle path to solve the challenging issues. China had made several in-roads into Nepal by taking advantage of these discomforts and had fuelled up the anti-India stance even more. The last few issues of rights of Madhesi people, access to fuel & Oil and basic transport routes, the communication and internet access for local Nepalese people had only created a bigger divide which China took full advantage by providing quick telecommunication and broadband coverage, maintaining neutral stance for ethnic group’s rights and even trying to open a new path for transport via Friendship Highway. This coupled with quick rehabilitation and aid when the earthquake struck Nepal helped China consolidate its position in the minds and heart of Nepalese people.
Figure 8 – Map of the Friendship Highway – Kathmandu to Lhasa [12]
With China in Nov 2017 taking the cross-border railway plan very seriously [13], this implies Nepal will rely greater on China and any adverse relationship impact is easily offset by Nepal Chinese communication and accessibility. Nepal thus gains a route via OBOR easily and looks at OBOR for its own survival and directly plays into the hands of the waiting China who will use Nepal then easily to open another front wrt India. In Nepal investment summit 2017 held in Kathmandu, India committed USD 317 million while China proposed to invest USD 8.3 billion. Such is the stark difference in the financial aid that Indian strategy in Nepal needs urgent attention and smart play to maintain some control and protect India’s interest.
Bhutan: India and Bhutan share a special relationship over decades. Here also China has attempted to try its level best to meddle in some manner. With the redrafted 2007 India-Bhutan friendship treaty, Bhutan has slowly got the right to follow an independent foreign policy. China has tried to showcase its economic muscle here also with an open carrot of a huge economic package in case Bhutan agrees to settle all disputes bilaterally with China and not involve India with whom Bhutan is committed via Friendship treaty. The recent Doklam crisis was a tussle due to these overtures only with China-Bhutan border disputes in 3 different pockets out of which Doklam is strategically most important from India’s perspective. China has offered to relinquish its claim over two pockets in northern Bhutan in exchange for the Doklam pocket in the western Bhutan, where Indian and Chinese armies were engaged in eyeball encounter. India is the security provider for Bhutan had to step in to safeguard both Bhutan's sovereignty and India's security. The flared up issue had been solved by the peaceful climb down from both China and India but this dispute, in reality, is far from being solved. This will be a potential point of crisis over time and will need adequate attention from India's perspective.
Myanmar: India-Myanmar relationship has been healthy for a long time but the government has always been closer to China than India. In spite of turning democratic, the elections have not been fair and elected candidates always are by the support of China overtly or covertly. Primarily a commodity resource-rich country, China has invested huge sums in Myanmar in infrastructure and mining in last 3 decades. One of the controversial projects is the port development of Kyauk Pyu port in Bay of Bengal with an estimated Chinese investment of USD 7.3 billion. With China having, by all means, a controlling stake of over 75%, this is a very big threat to India. With Chinese arms and military assets, Myanmar is dependent completely on China for its survival. This port will see subsequently berthing of Chinese nuclear submarines and with electronic intelligence gathering facilities on islands in the Bay of Bengal and near the Strait of Malacca, this makes it a grave risk for India.
Sri Lanka: The island nation had been in a stable relationship with India until the IPKF movement and subsequent Tamil Eelam issues which ate up almost decades of time and gave an opportunity for outside nations to use Sri Lanka as a political tool to counter India. Sri Lanka owes almost USD 8 bn to China and that is estimated to be approximately 12%+ of its overall debt. These loans are commercial in nature and hence attract a significant rate of interest. These loan based projects and the port opened for commercial purpose 7 years ago had generated limited revenues and hence Sri Lanka has struggled to repay its due. In 2016, Sri made a deal to sell an 80 percent stake in the port to the state-controlled China Merchants Port Holdings. With vociferous protests from all sides, in July 2017, the deal was amended to give Chinese company 70 percent stake in a joint venture with Sri Lanka Ports Authority owned by Sri Lankan government.
Figure 9 – Hambantota location on a map
This December Sri Lanka has formally handed over its southern port of Hambantota to China on a 99-year lease, which government critics have denounced as an erosion of the country’s sovereignty. [14] The Sri Lankan government has given assurances that the port will not be used for military ends. Despite Sri Lankan assurances, Indian observers express concerns that Beijing could operationalize Hambantota as a resupply node for the People’s Liberation Army-Navy in the future. [15]
Maldives: India-Maldives shared a healthy relationship for a good amount of time till there was a change in regime which is very much pro-China. China via way of economic subsidies for tourism market has controlled the local government's major source of revenue. With the cancellation of GMR building the infrastructure project and giving it out finally to a Chinese company, the shift was more or less made public. Last year, China acquired an uninhabited island near Maldives capital Male on a 50-year-lease at the cost of USD 4 million. Some reports claimed that Chinese will build a military infrastructure there and an air force base will be built up. Airstrips under construction are now seen in satellite images.
Figure 10a – Road bridge, 2nd runway and reclamation
Figure 10b – New runway under works and reclamation [16]
In addition to all this Beijing has made important inroads in the Maldives, which concluded a free trade agreement with Beijing at the end of November, last month.
With a military base in Djibouti, troops stationed in CPEC, Maldives airstrip opens up another area of concern for India.
Some smaller notable mentions
Cambodia: China signed a military agreement in November 2003 to provide training and equipment. China has funded close to USD 2Bn since then with loans for Cambodia and about 70 % of roads and bridges are built with these funds only. [17]
South China Sea: China has built up considerable infrastructure in man-made islands. In 2017, China built underground storage areas, administrative structures and "large radar and sensor arrays, according to the Washington-based research group named Asia Maritime Transparency Institute of the Center for Strategic and International Studies. The construction covered about 290,000 square meters "of new real estate." Beijing built most actively at Fiery Cross Reef in the Spratlys including work to finish tunnels that are likely for ammunition storage. High-frequency radar gear also appeared on the reef, China has enough installations to land fighter jets, refuel, rearm and let crews rest, according to Collin Koh, maritime security research fellow at Nanyang Technological University in Singapore. [18]
Thailand: Thailand is deeply dependent on Chinese capital for its economic growth. recently it has also purchased 3 Chinese submarines for almost USD 1.2 Bn as well deepening its military times. High-speed railways, power projects, Eastern Economic Corridor and OBOR are the main themes of the present-day government of Thailand and China. [19]
As seen the geopolitical concerns are at multiple levels with many entities. In the next chapters, we further analyse and present what could be inferred and we can explore the possible solutions to this issue.