India’s Unique China Challenge: Jaishankar Calls for Rigorous Scrutiny of Chinese Investments

External Affairs Minister S. Jaishankar recently highlighted India’s distinct challenges with China, emphasizing that the country’s issues extend beyond the global concerns commonly associated with China. Speaking at the ET World Leaders Forum, he stressed the need for India to exercise heightened vigilance when scrutinizing Chinese investments, given the ongoing border tensions and the broader state of bilateral relations.

Jaishankar explained that while nations worldwide are grappling with their own economic and security debates concerning China, India’s situation is particularly complex due to its unique geopolitical and economic dynamics. “China is a unique problem because it is a unique polity and economy,” he noted, underscoring the importance of understanding these unique characteristics to formulate effective policies.

He pointed out that India’s border situation with China over the past four years has been difficult, necessitating a cautious approach to economic engagements. “It is common sense that investments from China would be scrutinized,” Jaishankar said, adding that other countries, even those without direct borders with China, are also increasing their scrutiny of Chinese investments.

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The minister clarified that the Indian government has never opposed doing business with China but insists that the current geopolitical climate demands a higher level of scrutiny. “The issue is not whether to have investments with China, but what should be the appropriate level of scrutiny and how to handle it,” he remarked.

Jaishankar also discussed the broader global context, noting the major conflicts in Europe, the Middle East, and Asia, all of which contribute to increased geopolitical risks. He emphasized that governments worldwide are now focused on “de-risking,” with national security concerns becoming more intertwined with economic considerations. In this evolving landscape, he argued, managing and mitigating risks is crucial for shaping international relations and policies.