Changing Dynamics of China-US Relations

• 25 Nov 2023

For Prelims: Changing Dynamics of China-US Relations, Asia-Pacific Economic Cooperation (APEC), Artificial Intelligence (AI), Clean Energy, World Trade Organization (WTO), South China Sea, Human Rights.

For Mains: Changing Dynamics of China-US Relations, Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Source: IE

Why in News?

Recently, China and the US have held a Bilateral Meeting on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, in San Francisco, US, raising concerns for India about Changing Dynamics in China-US Relations.

• China-US relations have undergone significant shifts and complexities over recent decades, reflecting a mix of cooperation, competition, and periods of tension.

What are the Key Highlights of the Meeting?

• New Areas of Engagement:
  • The summit discussed emerging areas of US-China collaboration, particularly in regulating Artificial Intelligence (AI), which could profoundly impact global AI regulations and technological advancements.
• Agreement on Energy:
  • The US and China announced an agreement to sharply increase Clean Energy, displace Fossil Fuels and reduce emissions that are warming the planet.
    • Together, they account for 38% of the world’s greenhouse gases.
  • The countries agreed to “pursue efforts to triple renewable energy capacity globally by 2030,” with the intention “to accelerate the substitution for coal, oil and gas generation.”

How have China-US relations been in Recent Years?

• In recent years the US adopted a more confrontational approach, initiating a Trade War, targeting Chinese tech firms, and challenging China's territorial claims. Human rights issues, especially regarding Xinjiang and Hong Kong, further strained relations.
• The US has maintained a tough stance on various fronts, particularly on trade, technology, and human rights, while seeking cooperation on global issues like climate change.

What are India’s Concerns over Changes in US-China Relations?

• Potential G-2 Dynamics:
  • India remains cautious about the emergence of a dominant Sino-American collaboration in Asia (termed 'G-2') that might sideline other global players, affecting India's strategic interests.
• US-China Engagement in AI Regulation:
  • India is attentive to new areas of US-China engagement, particularly in regulating Artificial Intelligence (AI).
  • Potential understandings between the two nations in this field could significantly impact Global AI Regulations and technological advancements, influencing India's tech landscape.
• US Business Relations with China:
  • China’s attempts to allure US business leaders back to China raise concerns for India. If successful, it might undermine India's attractiveness for Western capital, affecting economic engagements and investments.
  • India cannot afford complacency assuming the 'China option' is no longer viable for Western businesses.
  • Sustaining India's appeal for Western capital remains crucial, necessitating continuous efforts to engage productively with Western economic interests.
• Indo-Pacific Dynamics and Taiwan Issue:
  • The lack of substantial breakthroughs in regional security discussions, especially on sensitive issues like Taiwan, is a concern.
  • India observes the US-China dialogue on the Indo-Pacific closely, understanding its implications for regional stability and security dynamics.

Way Forward

• India must continuously assess the changes in great power relations, especially among the US, China, and Russia.
• India’s emphasis should be on taking advantage of the new possibilities to strengthen its ties with the US, maintaining its long-standing ties with Russia, and managing the difficult ties with China.
• India's forward path involves a balanced and proactive approach, leveraging global partnerships, economic growth, strategic maneuvering, and robust diplomacy to navigate a changing world order while safeguarding its national interests and contributing positively to global stability and progress.