China vs India: How are the two countries trying to outplay each other in the Indo-Pacific?

Bilateral relations between China and India have witnessed a significant deterioration in recent times, marking a troubling phase in their long history. Several factors have contributed to this deteriorating dynamic, including territorial disputes and economic confrontation, leading to heightened tensions and strained diplomatic ties between the two Asian giants.

In order to play off each other politically and economically, China and India have two different strategies aimed at encircling the region. In this post, we touch on the Indian program called "Necklace of Diamonds".

🔻 What is it?

The "Necklace of Diamonds" strategy is a phrase first used by former Indian Foreign Minister Lalit Mansingh in August 2011. He used the term to refer to India's efforts to protect its interests in response to China's String of Pearls strategy, which will be discussed in the next post.

It involves the creation of a competitive network of alliances – with military, security and economic considerations.

 

🔻 What are the key destinations?

The key countries with which India cooperates are shown on the map. These include Iran, Mongolia, Indonesia, etc. With each state depicted, India has joint projects, agreements or just deals with them diplomatically in one form or another. Much of the attention, however, is – as in China – focused on infrastructure.

🔻 The main projects are:

🇸🇬 Changi Naval Base in Singapore. Following an agreement with Singapore in 2018, India ensured an Indian Navy presence at the base. This allows naval vessels to use logistical support such as refueling and replenishment of supplies.

🇮🇩 Port of Sabang in Indonesia. In 2018, India gained military access to the port, which is located right at the entrance to the Strait of Malacca. However, progress on the construction of the port has been slow and negotiations have been going on for several years, so there are no results at the moment.

🇴🇲 Port of Duqm in Oman. This port is located between Pakistan and Djibouti, where two important strategic Chinese installations are located. It connects Asia with Africa and Europe. Despite the fact that India has gained access to the port, Oman is currently one of China's top investment destinations, making it very difficult for New Delhi to compete with Beijing.

🇮🇷 Port of Chabahar in Iran. India has served as the primary investor in Chabahar Port, as New Delhi sees the port as a way to access Afghan and Central Asian markets without relying on Pakistani land routes. At the same time, China is gaining more and more influence in Iran, seeking access to critical natural resources and shipping lanes.

🔻 What awaits us in the future?

Despite some success, India's overall strategy has not been implemented in an effective manner. And there are several reasons for this.

1️⃣ China is increasing its economic influence around the world, including countries that are part of the Diamond Necklace. It is very difficult to compete with Chinese money.

2️⃣ Lack of vision. The "Necklace of Diamonds" strategy is not an officially announced strategy, but rather a phrase used by commentators to interpret certain government policies. This, in my opinion, has a negative impact on the results of this project.

3️⃣ Lack of investment. China's investment in String of Pearls exceeds India's investment in its diamond necklace. So China's allies are likely to be stronger than India's.

In case India resolves the above issues, the strategy may have some more positive results. As China engages countries in its long-term development strategies such as the BRI, New Delhi will continue to face critical difficulties.