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SAARC turns down Chinese money

China’s case for observer status was pushed by both Nepal and Bangladesh. Pakistan is a close ally and Beijing has had traditional ties with Colombo.

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A DNA Analysis

NEW DELHI: China’s entry into SAARC, where India is the big player, is an indication of the future balance of power in Asia. The two largest nations in the continent are natural rivals but for the moment it suits both sides to emphasise the need to work together.

Prime Minister Manmohan Singh has always shrugged off suggestions of rivalry with China, stressing instead the huge opportunities there are for cooperation between the two Asian giants. The fact that India has finally agreed to have China as observer and China accommodating India in the Shanghai Cooperation Organisation (SCO) is the way the two nations will work in Asia and other part of the world.

China’s wish to be part of SAARC fits in well with Beijing’s ambitions to make its presence felt worldwide. Beijing was keen to be part of the South Asia bloc, despite having excellent relations with several member states like Pakistan, Bangladesh, Sri Lanka and Nepal. China’s case for observer status was pushed by both Nepal and Bangladesh. Pakistan is a close ally and Beijing has had traditional ties with Colombo. In fact, it was India which held back for a while because China had done the same about New Delhi’s entry as observer to the Shanghai Cooperation grouping. Finally, India gave in as China made way for India for the Shanghai grouping.

Analyst Yangdon Wong sees this as a first step in the “balance” of power in Asia between the two largest countries in the continent. He says China wants to play a constructive role in South Asia, but it wants to assure New Delhi that it is in no way trying to upstage India’s rightful role in its backyard. Conscious of India’s latent wariness of Chinese intentions, China’s foreign minister Li Zhaoxing, who attended the SAARC summit, sent out a reassuring signal.

“The Chinese government follows a foreign policy of building friendships and partnerships with its neighbours. A peaceful, stable and prosperous South Asia and a SAARC of unity, cooperation and progress are in the interests of all countries in the region and of China.’’ He went on to add, “As the biggest neighbour of South Asia, China hopes that all South Asian countries will live in harmony and pursue common development… SAARC must play a bigger role in regional and world affairs.’’

“South Asia’s international standing is rising and it is full of vigour and vitality,’’ China’s foreign minister Li said during his address at the opening ceremony. He was obviously referring to Asia’s growing economic clout and the fact that the world regards Asia with much greater respect today. Li made some generous offers to SAARC member countries. Beijing wants to cooperate in infrastructure building and in the energy sector. China has been scouring the world for oil, from Africa to South America, Chinese leaders have been travelling to ensure steady supply of oil.

Chinese enterprises are keen to invest in SAARC member states. China can help Bangladesh, Nepal or Sri Lanka bilaterally, but Beijing now believes it is more diplomatic to work with South Asian states through SAARC. It does not want India’s hackles up. Beijing was keen to give a substantial amount of money for the SAARC Development Fund, but India turned down the offer, saying it was too early for donations. There was enough money in the kitty for now.

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