Economic Interdependence Since COVID-19: China and South Asia

Abstract

In the backdrop of COVID-19-induced geo-political backlash against China, the article makes an assessment of the nature of economic interdependence of South Asian nations with China. Though COVID-19-induced lockdown led to a decline in trade with China, it recovered quickly in subsequent months. In the case of India, even after imposing restrictive measures, trade with China was found to bounce back indicating to a greater dependence on China. Further, asymmetry in economic engagement with China could be observed for several of the South Asian nations. Chinese investment in the region remained muted during the pandemic. However, strategic involvement in South Asia by China, and other powers, increased considerably which has been manifested by her provisioning of economic incentives and COVID-19-related aid. In the light of increasing strategic influence, South Asian countries desirous of benefitting from foreign trade and investment in their respective economies will need to encourage free and fair competition rather than towing geo-political lines so that sustainable economic gains can be made, which will require strengthening of various market supporting institutions in the respective economies. India’s economic strategy will also assume significance in boosting confidence and increasing the level of integration within South Asia.

China’s Belt and Road Initiatives (BRI) in South Asia and Its Policy Challenges to India in the Region

“…This research concludes that as India has granted its overland routes to Nepal, access to Kolkata and Vizag ports could alleviate some of the difficulties (Das, 2021). This kind of access can never be provided by China easily because the debt-trap policy could harm Nepal's great aspiration from China, and countries such as Sri Lanka, the Maldives and Pakistan's economy are suffering.…”

Revisiting the Nexus between Economic Policy Uncertainty, Financial Development, and FDI Inflows in Pakistan during Covid-19: Does Clean Energy Matter?

“…Additionally, the health sector required foreign assistance due to inadequate healthcare facilities, which were not available promptly. According to (Das, 2022), Pakistan has faced numerous challenges since the outbreak of COVID-19, including a sharp decline in FDI inflows and economic growth. However, the situation improved when China provided much-needed medical supplies.…”

New OTC Derivative Instrument for BRI Grand Strategy Integration: Case of ‘China, Mongolia and Russia’

“…With the 10th anniversary of the BRI, tensions are rising over China's financial policies, which are controversial among neighbouring countries and global financial powers. Moreover, since 2015, the Chinese economy has shown a slowdown, and many experts have labelled the Chinese project a 'debt trap' meme (Das 2022;Lai, Lin and Sidaway 2020), concealment of corporate social responsibility compliance in favour of profit-maximisation (Carrai 2021). Also, at the regional level, the financial capabilities of the countries along the route do not always allow for the realisation of the BRI project scenario.…”