China’s Rising Influence in South Asia

#GS2 #InternationalRelations

  • Chinese-funded tax-free enclave in Sri Lanka is all good to go as the Supreme Court in Colombo ruled it could continue.
  • It is the largest single foreign investment in Sri Lanka. 

China’s Rising Influence in South Asia


  • China had previously held its third multilateral dialogue with South Asian countries citing closer cooperation on dealing with Covid-19 and coordinating their economic agendas. This shows a redefined approach in China's outreach to this area.
  • China is going to put around 100 bn USD in the economies of Afghanistan, Bangladesh, the Maldives, Pakistan, Nepal and Sri Lanka.
  • Presently, China is the largest overseas investor in South Asian countries like the Maldives, Pakistan, and Sri Lanka.

India's Concern:

  • Strengthening relation between Pakistan and China, Nepal and China, and acceptance to China-Pakistan Economic Corridor by South Asian countries are a security concern for India. 
  • Increasing Chinese domination in South Asia posses a threat to Indian leadership in the area. 
  • In the previous 10 years, China has been able to outmatch India as the major trading partner for many South Asian countries.
  • China’s trade with Bangladesh is presently around double that of India. China’s trade with Nepal and Sri Lanka is still less compared with India’s trade with those countries but the gap has shrunk.
Print Friendly and PDF
blog comments powered by Disqus