“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. (UPSC 2017)

China’s large trade surplus and deep economic links give it the resources to expand military power and strategic reach in Asia. For India, this creates both security pressure and economic vulnerability.

• Security encirclement: Chinese finance and infrastructure projects in Gwadar, Hambantota, Kyaukpyu and Djibouti can support naval access and intelligence gathering near India.
• Neighbourhood influence: Economic ties strengthen China’s leverage over Pakistan, Sri Lanka, Myanmar and Nepal, widening India’s strategic space constraints.
• Maritime challenge: Chinese research vessels and port activity in the Indian Ocean Region complicate India’s sea lane security and surveillance.
• Economic dependence: India faces a large trade deficit and reliance on Chinese inputs in APIs, electronics, batteries and solar equipment, limiting policy freedom.

At the same time, India can use this challenge to push self-reliance, diversify supply chains, strengthen maritime capability and deepen regional partnerships. The impact is therefore not only a threat, but also a call for sharper economic and strategic preparedness.