Recent Changes in US-China relations
U.S. President Joe Biden and Chinese President Xi Jinping is meeting this week at Sanfransico.
The meeting is unlikely to resolve any of the major differences that plague relations between the world’s two biggest powers.
The summit, on the sidelines of APEC, yielded two significant takeaways.
The first involved several concrete agreements, including to restart military-to-military direct dialogue and to discuss risk and safety issues involved with artificial intelligence.
The second is, both sides have described as establishing a floor to the relationship.
The Bali consensus was, blown away by the “spy balloon” incident.
This time there is cautious optimism that this attempt at stabilisation has been built on more solid ground.
In January next year, Taiwan goes to the polls, and the outcomes could see a further ratcheting up of tensions across the strait.
On Taiwan, both sides reiterated their stands, with China cautioning against interference, and the U.S. saying it opposed any change in the status quo.
Meanwhile, the U.S. will, next year, go into election mode ahead of polls in November 2024, and campaign season inevitably brings heated rhetoric on China.
What can India learn from it
The importance of diversifying trade relationships: Over the past few years, the US has been increasingly wary of its economic dependence on China. This has led to a push to diversify trade partnerships, including with India. India can take advantage of this by positioning itself as a reliable and attractive manufacturing hub.
The need to carefully manage geopolitical alliances: The US and China are engaged in a complex geopolitical rivalry. India can benefit from maintaining good relations with both powers, while avoiding being drawn into their conflict.
The importance of investing in domestic manufacturing: The US is seeking to reduce its reliance on Chinese technology and manufacturing. This presents an opportunity for India to invest in its own manufacturing capabilities, particularly in areas such as semiconductors and pharmaceuticals.
The need to focus on cybersecurity: Both the US and China are increasingly concerned about cybersecurity threats. India can collaborate with both countries on developing cybersecurity measures and protecting critical infrastructure.
The importance of promoting regional stability: The US and China are both vying for influence in the Indo-Pacific region. India can play a constructive role by promoting regional stability and cooperation.
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