Beijing has been attempting to change the status quo in Asia which New Delhi

Beijing has been attempting to change the status quo

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Beijing has been attempting to change the status quo in Asia, which New Delhi wants Washington to maintain China’s offer to India to join OBOR is tactically aimed at coercing India into submission under a China-dominated order in Asia India should look for opportunities that best fit its foreign-policy objectives, and reflects the nation as a benevolent soft power to countering the inevitability of China’s dominance of Asia WTO & Trade Policies, IGTC Mumbai 2016-18. Impact on Indian Trade Pros: China has the financial capital, technology to accelerate the development of other countries and India also need resources and funds for its own development. More links of trade between India and other countries therefore more business. Cons: BRI Project: Trade diversion from India to China Increased dependence on China on every other trade issue Loss of opportunities in Existing Markets & Share in global capital inflows may come down Blow to make in India campaign.
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10 Threat of becoming dumping ground of Chinese overproduction. WTO & Trade Policies, IGTC Mumbai 2016-18. Current Response of India to OBOR India has isolated itself both regionally and globally when all its neighbours are participating in “the project of the century” cause in the future, as in the recent past, China’s foreign policies can be susc eptible to spells of adventurism in the name of national greatness. India’s participation in the initiative is not a prerequisite for reaping the benefits of regional connectivity, which may happen with or without China. In OBOR, there is no blueprint of a multi- nation connectivity plan that India is losing out on. China’s refusal to listen to Indian arguments and address them in a proper manner WTO & Trade Policies, IGTC Mumbai 2016-18. OBOR and the PPP model With a lot of OBOR projects being regularly launched, a lot of issues and questions will arise as to how best to structure them. Few of the more difficult large-scale projects will be funded through government-to-government grants and the rest will utilize the traditional export credit models, such as supplier credits and buyer credits, and, some will use the increasingly popular “EPC+F” structure (engineering, procurement and construction plus financing). But many will utilize the Public Private Partnership model (PPP) for structural, economic and legal reasons, such as the following: 1. Infrastructure gaps - A lot of the nations along the Silk Route are underdeveloped nations that requires foreign investment, with a focus on infrastructure, particularly through the Asia/South Asia segments of the route. With increasing populations and failing infrastructure, many of these nations are seeking out for partnerships with those who currently have the appetite for financial investment on a similar scale to China. This can be clubbed with the difficult position in which many of the oil-based economies find themselves, with the stagnation of international oil prices, particularly in the wider Middle East and Arabian Gulf region. The outcome is that many of the projects in such countries which are looking to fill
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  • Fall '19
  • jane smith
  • People's Republic of China, OBOR

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