Rare Chinese praise for Indian economy showing in FY 21-22

India’s 2021-22 economic performance came in for rare praise by a Chinese government-backed mouthpiece on Sunday, reports Sanjib Kr Baruah.

New Delhi: Engaged in a two-year-old military standoff at the border between the two countries that has led to the massive deployment of soldiers and military equipment, an opinion piece in a leading China government-backed mouthpiece had rare words of praise for the way the Indian economy was recovering from the pandemic induced woes.

On Sunday, the 'Global Times' editorial said: “There is no denying that India’s economy has fared quite well in the past few months. India’s overall exports hit an all-time high of $675 billion in 2021-22, while the Goods and Services Tax collection in April set a new record, with its manufacturing PMI standing at 54.7, all pointing to a revival of the economy.”

“The IMF projected that India is likely to become the world’s fastest-growing major economy in 2022 with a growth rate of higher than 8 per cent. It is very encouraging for the world to see India to continue to recover quickly from the pandemic-induced woes.”

Opinion pieces in the ‘Global Times’ are vetted by the dispensation in Beijing and are usually taken to be reflective of the thinking of the Chinese Communist Party (CCP). In the backdrop of the Ukraine conflict which is likely to lead to a reshaping of the old world order, India is caught in a tug-of-war between the US-led bloc and the emerging Russia-China axis with both sides trying to draw India to their respective sides.

Thus far, India, pursuing a policy of strategic autonomy which prioritizes peace between the warring sides, has refrained from taking sides. India’s stand in the Ukraine conflict has also been influenced by Russia’s growing relationship with China as a pronounced Indian leaning toward the US-led bloc would further push Russia into China’s welcoming arms.

The article in the mouthpiece—known for spewing anti-India rhetoric—also made conciliatory noises. It said: "As long as China and India are on the same page when it comes to major geopolitical eruptions, their voices will become bigger and be heard by the established powers." "Prioritizing competition over cooperation will cause unnecessary distraction and friction for both economies, hurting the growth prospects of the world’s two largest emerging market powers," it added.

Asking New Delhi to render attention to the India-China relationship and to be on the guard against the Western powers, the article said a closer India-China relationship is not something “the strategists in the US and the West would like to see” as they would like the two Asian giants to engage in more competition and rivalry, rather than cooperation and partnership.

But the main theme of the article was the regulatory moves by the Indian government on the Indian branches of Chinese companies that was apparently triggered by the freezing of about $725 million lying in the Indian bank accounts of leading Chinese smartphone maker Xiaomi. Under the Enforcement Directorate’s scanner since February for reportedly making illegal remittances abroad in the guise of royalty payments, Xiaomi denies any illegality.