India Has 'Special China Problem'; It's 'Common Sense' To Scrutinise Chinese Investments Amid Border Standoff: Jaishankar

India has a “special China problem” and the border tensions and the current state bilateral ties call for precautions including scrutiny of Chinese investments, External Affairs Minister S Jaishankar said on Saturday (1 September).

Jaishankar, who has consistently argued that the normalisation of India-China relations is tied to peace and stability on the border, made these remarks during a discussion on foreign policy at a conclave in New Delhi.

The relationship between India and China has hit a six-decade low since the LAC standoff began in April-May 2020.

Jaishankar pointed out that India is not alone in facing challenges related to China, as the country is a significant topic in economic and national security discussions in Europe and the US.

“India has a China problem, a special China problem, that’s over and above the world’s general China problem,” he said.

He said that when dealing with China in areas like trade and investment, the “basics start to go off track” if one neglects to consider that “this is a very unique country with a very different way of working”.

Jaishankar emphasised that India has had a “very difficult situation on the border for the last four years” and the sensible response is to take precautions.

“It’s common sense that investments from China would be scrutinised. I think the border and the state of relations between India and China call for it,” Jaishankar said.

Even countries that do not share borders with China, such as the US and European states, are also scrutinising Chinese investments, he noted.

“Now it has never been the government’s position that we should not be having investments from China or doing business with China...The issue is not do you have investments from China or not, it’s not a yes or no answer. It is what should be the appropriate level of scrutiny, how should you handle it,” he said.

He argued that national security considerations have broadened, questioning whether heavy reliance on Chinese pharmaceuticals or technology would not have serious national security implications.

Jaishankar also noted the complexity in separating economic interests from security concerns when dealing with certain countries, describing the distinction as a “very thin line.”

He highlighted that the trade deficits many countries, including India, face with China, stem from decisions made decades ago to "overlook the nature of Chinese production and the advantages which they enjoyed in a system where they got a level playing field".

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