China’s might of resources and tireless workforce is building a future that is unimaginable to the outside world. Their drone marvels, new-age electric cars, breakthrough batteries, astonishing robotics, high-speed construction technology, extreme transportation like maglev trains, the DeepSeek new-gen AI, its heavyweight shipbuilding, pilotless flying taxis, eVTOLs, astonishing quantum computing and 6G, the mammoth step in green tech and renewable energy, its AI driven energy sector… China is like possessed to create such space-age technology and infrastructure that has taken it 50 years hence, from the rest of the world.
Caution to India
Recent developments demonstrate China’s changed mindset and willingness to re-engage firmly with India, as also India’s compulsion to reanalyse its economic partnerships globally. China was India’s largest trading partner before the US overtook it. India has to exercise caution, as on one hand there is a trade surplus of USD 87 billion with America and at the same time an enormous trade deficit with China. We need to see how India is going to tackle this deficit while reengaging with China.
Major outcomes
The major outcomes of the new commitment, especially after Indian external affairs minister Jai Shankar and his Chinese counterpart Wang Yi met, are: the reopening of border trade points, resumption of direct flights and restoration of the Kailash Mansarovar yatra. Above all, the supply resumption of India’s critically needed commodities such as fertilisers, tunnel boring machines and rare earth minerals. This enhanced cooperation will remodel the region’s supply chains on an India-China platform, while heavily facilitating India’s manufacturing sectors, especially electronics, pharma and green energy.
China also seems to accept India’s inevitability for future global economics. India is expected to post USD 38.68 trillion by 2050 with a 17. 21 per cent share of the world GDP, relegating the US to third with a GDP of USD 26.58 trillion. China must be aware of this fact and also of the mutual benefit that this partnership can bring. One hopes China would also dismantle their murky regional arm-twisting tactics while inimically supporting Indian border states. The short-shifted war with Pakistan showed China’s background engagement against India alongside Pakistan. Pakistan was seen shooting down India’s aircraft with Chinese missiles.
Attempt for De-dollarisation
China, India and Russia have realised the importance of de-dollarisation and are advocating a cooperative currency, an outcome of the recent BRICS summit. This is to replace the ‘bullying’ dollar. China’s reiteration of multipolar trading systems and conflict-free world suggests even a sly neighbour wants peace, an eternal peace.
The renewed co-operation between resource-rich nations is closely watched globally as to how fast it would replace the US to move to the number one and two spots as the largest economies, much before 2050.