With this, Xi will remain, perhaps for life, as a powerful new leader of the world’s second-largest economy.
Xi will head China’s Communist Party, military and presidency, which observers say will have wide-ranging implications for China both internally and externally.
Given the aggressive posturing by the Chinese military in eastern Ladakh along the Line of Actual Control (LAC) in recent years, the elevation of the 69-year-old will certainly have an impact on immediate neighbor India.
Apart from India, Xi’s “coronation” will also have a significant impact on US-China relations as the president pursues his ultra-nationalist agenda of making China the top political, military and economic rival to the US and the main authoritarian challenger to Washington. Are. – Led the democratic world order.
India China relations
Under Xi, China’s relations with India have been on a downward spiral due to rising border tensions between the two countries, which escalated from the deadly LAC conflict in 2020.
India and China have seen several border standoffs and skirmishes in recent years due to Beijing’s salami-slicing strategy and several attempts to change the status quo.
President Xi Jinping has taken a tough stance on the issue and has been less willing to compromise than previous Chinese leaders. This has made it challenging for India to resolve the dispute.
With Xi consolidating power in China, there is a concern that this could lead to fewer checks and balances in the use of Chinese military power.
According to a report by think-tank ORF, “In retrospect, the biggest casualty of the Xi Jinping era is the collapse of the climate of trust patiently built by both sides in the management of the LAC.”
It said Xi’s third term would only strengthen trends associated with his tenure – “assertiveness abroad, no compromise on issues related to China’s borders and a willingness to use the military as an instrument of policy”.
In addition, Xi’s tight grip on power could further exacerbate geopolitical tensions arising from China’s expansionist behavior in the Indo-Pacific region.
Under Xi, China is acting like a bully in the strategic sphere and India is seen as the only regional rival that can match its neighbor’s weight and might.
It is therefore seen as the unifying force behind the Quad security dialogue – a four-nation alliance between India, the US, Japan and Australia that aims to create a “free and fair Indo-Pacific”.
challenges and opportunities
China’s economic dominance under Xi also presents opportunities and challenges for India.
With Xi pushing for an aggressive economic policy, most companies around the world are now consciously considering diversifying their manufacturing operations by investing in China and at least one other country.
This strategy is often used to reduce dependence on China as a manufacturing hub, diversify supply chains, and reduce risks associated with political, economic, or natural disasters in any one country.
We have already seen the significant impact of trade on global supply chains during China’s strict COVID-Zero policy.
With companies looking to diversify their manufacturing operations, India presents a significant investment opportunity.
The country has a large and growing workforce, a competitive cost structure and a fast-growing consumer market, making it an attractive destination for foreign investment.
For example, Apple supplier Foxconn is already looking to boost its operations in India with a new facility in Karnataka.
This comes amid Apple and other US brands leaning on their Chinese-based suppliers to explore alternative locations such as India and Vietnam.
It’s a rethinking of global supply chains that has accelerated during the pandemic and war in Ukraine and could reshape the way global electronics are manufactured.
Foxconn’s decision would be a coup ModiChina’s government, which sees an opportunity to bridge India’s technology gap with China, as Western investors and corporations resent Beijing’s crackdown on the private sector.
India has already offered financial incentives to Apple suppliers such as Foxconn, which last year started making the latest generation of iPhones at a site in Tamil Nadu. Smaller rivals Wistron and Pegatron have also made inroads in India, according to a Bloomberg report, while suppliers such as Jabil have started making parts for the AirPods locally.
US-China relations
Relations between China and the US have declined in recent years on a range of issues from security challenges to trade to global supply chains.
This year, they nearly bottomed out because of US support for Taiwan, the democratically-ruled island Beijing claims as its territory, as well as US allegations that China operates a fleet of spy balloons, a claim Beijing has denied.
Xi’s recent speech suggested he was likely to remain strained for years to come.
Earlier this month, before officially winning a third term, Xi indicated he would take a tough stand against what he sees as an effort by the United States to stem China’s rise.
And he did so in unusually blunt terms.
According to China’s official news agency, Xi said in a speech, “The Western countries, led by the United States, have imposed control, encirclement and repression around China, which brought unprecedented serious challenges to our country’s development.” Is.”
Michael Swain, senior research fellow at the Quincy Institute for Responsible Statecraft, told the New York Times, “This is the first time to my knowledge that Xi Jinping has come out publicly and identified the US for taking such action against China.” ”
US Director of National Intelligence Avril Haines told a Senate hearing on Wednesday that Xi’s speech was “the most public and direct criticism we have seen to date.”
“This likely reflects growing pessimism in Beijing about China’s relationship with the United States, as well as Xi’s growing concerns about the trajectory of China’s domestic economic development and indigenous technology, innovation challenges that he now faces in the United States.” blame America,” she said.
Haines said that Chinese policymakers believe they can only advance Xi’s vision of a powerful China “at the expense of American power and influence”.
Meanwhile, China’s ambitions have also fueled pressure and scrutiny from the United States on trade and technology.
And there are many other triggers on the horizon, such as China’s decision to increase its defense budget, feeding the specter of a Taiwan-like invasion of Ukraine; Possible US ban on blockbuster Chinese-owned video-sharing app TikTok; And a US intelligence report suggests Beijing is considering military aid to Russia to help with its war in Ukraine.
Li Mingjiang, associate professor of international relations at the S Rajaratnam School of International Studies in Singapore, said Xi’s comments showed the Chinese leadership believes the US and the West have no good intentions towards China.
“This clearly indicates that they understand that China’s relations with the Western world will be very difficult in the coming years,” he said.
(with inputs from agencies)
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