The China reality check: Why India needs calibrated engagement

Like it or not, India and China will be engaging more in the coming months and years. We like it, because stable, predictable and constructive bilateral relations between the two means New Delhi making strategic use of the undeniable reliance Indian industry has on China.

At the sidelines of the BRICS National Security Advisers’ Meeting in New Delhi this week, China’s foreign minister Wang Yi’s call ‘to accelerate the resumption of dialogue mechanisms and promote exchanges’ in trade, finance and other fields reflected India’s statement that progress was being made ‘towards gradual normalisation of ties’.

India has been more guarded, for obvious reasons. But the reality of supply chains, trade and need for investment requires New Delhi to calibrate engagement, and not oscillate between ‘bhai-bhai’ and ‘bye-bye’. In April, recognising that the post-Galwan response failed to slow down flow of Chinese goods but managed to turn off the investment tap, GoI eased some restrictions.

More needs to be done. Beijing is looking for new markets driven by overcapacity and markets like the EU seeking to diversify from China. Thus its call to accelerate dialogue to prevent the ‘boundary issue’ from affecting overall ties. This is an opportunity for India, not to overlook difficulties in this relationship but to navigate it to its advantage.

The relationship is asymmetrical. Which means Beijing will see itself as more capable to set contours and boundaries in India-China ties. Matters like Beijing’s relationship with Pakistan and its efforts to ‘control’ the Bay of Bengal-Indian Ocean region can’t be overlooked. But India needs to take a leaf out of Sun Tzu’s book and know the wisdom of his line: ‘He will win who knows when to fight and when not to fight.’