20 November 2014

Editorial: India Needs to Join Asia's Emerging 'Chinese Order'


By Akhilesh Pillalamarri

A new Asian order is emerging and South Asia — including India — needs to be a part of it.

In the aftermath of the G20 and Asia-Pacific Economic Cooperation (APEC) summits, it is becoming increasingly obvious that a new Asian order, complete with an economic architecture, has emerged. Whether this order is referred to as the “Pacific Age” or a New Silk Road or a pan-Eurasian system, all these terms refer to the same thing: a web of economic interdependence in Asia whose hub is the littoral around the East and South China seas, connecting China, Japan, South Korea, Taiwan, and Southeast Asia. This network of economic prosperity is increasingly being spread by Beijing westward to the rest of Eurasia in an initiative called the “New Silk Road.” Thus, it might not be inaccurate to write that the new Asian economic order can be described as described as the “Chinese Order” in which all roads lead to Zhongnanhai. This is because China’s economy and physical location constitute the hub that drives and connects the rest of Asia.
Yet as China invests more than $40 billion in overland routes through Central Asia and Russia into Europe and maritime routes from Southeast Asia to the Middle East and Africa, there is one vital region in Asia that is at risk of missing out on joining this new Asian economic and infrastructure network. This region is South Asia, the region that perhaps needs to become part of this hub the most. This would better integrate South Asian countries with each other as well as with their neighbors in Southeast and East Asia. Economic integration within the region and with countries outside of the region is very low. This is despite the fact that China is both India and Pakistan’s largest trade partner (India and Pakistan hardly trade with each other). Most of this trade is one-sided and has not led to massive Chinese investment in infrastructure in either of these countries. South Asian integration into the Asian economic order would benefit all of the region’s countries and would especially help some of the poorest, like Nepal and Afghanistan. 

Read the full story at The Diplomat