“China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia.” In the light of this statement, discuss its impact on India as her neighbour. (Answer in 150 words)

China’s trade, infrastructure finance and supply-chain centrality generate strategic leverage. For India, economic interdependence therefore coexists with security competition.

• Trade dependence, a persistent deficit and critical-import concentration create economic vulnerability and reduce strategic autonomy.
• Belt and Road projects, including the China-Pakistan Economic Corridor, raise sovereignty and connectivity concerns.
• Military modernisation, border pressure, Indian Ocean presence and influence in neighbouring countries intensify a two-front strategic challenge.
• Competition can also encourage Indian manufacturing, infrastructure, regional partnerships and supply-chain diversification.

India should combine calibrated engagement with deterrence: strengthen border infrastructure and maritime partnerships, diversify technology and trade, improve domestic competitiveness, and use forums such as the SCO, BRICS and ASEAN-led mechanisms for risk reduction.

Economic statecraft; trade deficit; BRI; CPEC; strategic autonomy; Indo-Pacific.