Replied by Kota Mallikarjuna Gupta, Research Associate, VIF
Chinese assertiveness in SCS and IOR can be balanced with increased diplomatic, economic and military engagements with countries in the region. Many countries in SCS and IOR have large trade deficits with China in their bilateral trade. China also emerged as major arms supplier to few countries in both SCS and IOR. Chinese assertiveness in this region can only be balanced by decreasing the economic interdependence of many countries on China for their development and infrastructure requirements. Chinese investments through its Belt and Road Initiative (BRI) worsened the economic conditions of many countries in Indo-Pacific region.
Global / Regional Financial Institutions must provide more financial support and investment for building infrastructure in Indo-Pacific region to counter Chinese economic activities. The emphasis of economic investments must be on providing sustainable solutions and opportunities for local population/ companies. There is a need for coordination and cooperating between military powers in the region to balance Chinese aggressive postures with security dialogues, military exercises and exchanges.