‘The West is fostering India as an alternative to reduce dependence on China’s supply chain and as a strategic ally to counter China’s political and economic dominance.” Explain this statement with examples

Over the past few decades, China has emerged as a global manufacturing hub and a major economic power. However, in recent times, the West is seeking a China+1 strategy. In this context, India is being fostered as a strategic ally and an alternative to China’s supply chain. 

Why west is reducing dependence on China?

• • Hegemonic Rivalry: The U.S.-China trade war escalated during the Trump administration, leading to increased tariffs on Chinese goods. 
  • National security concerns: China’s dominance in critical technology sectors, such as 5G telecommunications (dominated by Huawei) and semiconductors, has raised national security concerns among Western nations
  • Human rights violations: The West has increasingly criticized China’s human rights record, particularly with respect to the treatment of the Uyghur minority in Xinjiang.
  • Salami slicing strategy: China’s construction of artificial islands and military installations in disputed waters. 

• Debt trap diplomacy: Sri Lanka’s Hambantota Port lease to China for 99 years.
• Strategic Encirclement of Indian Ocean by China’s “String of Pearls”: Ports in Pakistan (Gwadar), Sri Lanka (Hambantota), and Djibouti.

Ways in which West is reducing dependence on China:

• Re-sho​​ring and Near-shoring of Manufacturing:
  • In 2023, Intel announced plans to invest $20 billion in two new semiconductor manufacturing plants in Ohio, USA.
• Supply Chain Diversification in Critical Sectors: The U.S. and European Union are increasingly adopting the China-plus-one strategy to diversify supply chains. 
• Development of Alternative Rare Earth Mineral Supply Chains: 
• Western Push for Technological Independence:
  • The EU’s Digital Sovereignty Strategy, launched in early 2023, emphasises on developing homegrown technologies and reducing reliance on non-European tech firms.
• Strategic Alliances and Trade Agreements: Countries in the Five Eyes alliance (U.S., UK, Canada, Australia, New Zealand) are actively working to decouple from China in critical sectors like pharmaceuticals and electronics.

India’s Potential as an ally of the West:

• Growing Manufacturing Capacity:
• Demographic Advantage:
• Incentive Schemes:
• Geopolitical Alliances – QUAD, Indo-Pacific partnerships:
• Defense Partnerships and Military Cooperation:

Conclusion:

India can help in balancing of power in Asia, and create another pole of startegic and economic alliance. While on one hand, this will help reducing dependencies on a single nation for all the needs of both East and the West, it will also help ensuring multipolarity helping sustain stability and development likewise.

Sharing is caring!