As India prepares to announce its election results, the world's largest authoritarian country, China, is closely monitoring the outcome. The relationship between these two neighboring giants has been tumultuous in recent years, marked by territorial disputes, economic competition, and geopolitical tensions.
Following Prime Minister Narendra Modi's initial election victory in 2014, India and China enjoyed a period of warming relations, resulting in significant investment and trade deals. However, this cordiality has since waned, with both countries engaging in deadly clashes along their disputed border.
India's strategic decisions, such as banning Chinese apps on national security grounds and strengthening ties with the United States, have further strained its relationship with Beijing. The competition between these nuclear-armed powers extends beyond their borders, as they seek to assert influence in the Global South and secure alliances in a shifting international landscape.
India's demographic and economic growth pose a challenge to China's longstanding position as a global economic powerhouse. With Modi's ambitions to elevate India to the third-largest economy globally, China is keenly observing India's economic policies and efforts to attract foreign investment away from Chinese markets.
As India emerges as a potential alternative to China for investors, Beijing faces its own economic challenges, including capital flight and slowing growth. The rivalry between these Asian giants is not just confined to their immediate region but has broader implications for the global economic order.
