Following Friday’s talks in Moscow between the Defence Ministers of India and China, the prospects of an imminent diplomatic solution to the continuing stand-off along the LAC do not appear bright. The statements issued by the two sides have underlined the sharp differences in how New Delhi and Beijing have continued to view the unprecedented developments along the border since May, when China deployed troops in large numbers and sought to unilaterally redraw the LAC in several areas. Defence Minister Rajnath Singh “categorically conveyed” India’s stand, emphasising that China’s actions “were in violation of the bilateral agreements”. He also expressed hope that both sides would be able to resolve the ongoing situation “peacefully through dialogue”. His Chinese counterpart, General Wei Fenghe, appeared to only reiterate the stand conveyed by China in recent statements that it had no blame to bear for this summer’s developments. He said “the responsibility lies entirely with the Indian
Prime Minister Modi last week elaborately pitched India as an investment destination that could serve as a manufacturing hub at the heart of global supply chains. The pitch made at the U.S.-India Strategic Partnership Forum comes in the backdrop of the government’s keenness to use the disruptions the COVID-19 pandemic has caused to the cross-border movement of goods as an opportunity to lure potential investors, especially those looking to relocate from China, to India. This tack is consistent with recent initiatives to explore supply-chain synergies with other economies, including Japan, as an escalating border feud casts a shadow over India’s economic and trade ties with its northern neighbour. The reasoning appears to be that if even a few multinational enterprises can be drawn to set up manufacturing bases, either by shifting facilities or as new additional plants, then not only does the Indian economy stand to gain FDI, new jobs and tax revenue but it also makes a statement.
