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Economic Interdependence Since COVID-19: China and South Asia

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  • Khanindra Ch. Das

Abstract

In the backdrop of COVID-19-induced geo-political backlash against China, the article makes an assessment of the nature of economic interdependence of South Asian nations with China. Though COVID-19-induced lockdown led to a decline in trade with China, it recovered quickly in subsequent months. In the case of India, even after imposing restrictive measures, trade with China was found to bounce back indicating to a greater dependence on China. Further, asymmetry in economic engagement with China could be observed for several of the South Asian nations. Chinese investment in the region remained muted during the pandemic. However, strategic involvement in South Asia by China, and other powers, increased considerably which has been manifested by her provisioning of economic incentives and COVID-19-related aid. In the light of increasing strategic influence, South Asian countries desirous of benefitting from foreign trade and investment in their respective economies will need to encourage free and fair competition rather than towing geo-political lines so that sustainable economic gains can be made, which will require strengthening of various market supporting institutions in the respective economies. India’s economic strategy will also assume significance in boosting confidence and increasing the level of integration within South Asia.

Suggested Citation

  • Khanindra Ch. Das, 2022. "Economic Interdependence Since COVID-19: China and South Asia," China Report, , vol. 58(2), pages 131-151, May.
    • Handle: RePEc:sae:chnrpt:v:58:y:2022:i:2:p:131-151
    DOI: 10.1177/00094455211039106
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    References listed on IDEAS

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    1. Khanindra Ch. Das & Nilanjan Banik, 2015. "Outbound Foreign Direct Investment from China and India," China Report, , vol. 51(3), pages 204-229, August.
    2. Sethi, Narayan & Bhujabal, Padmaja & Das, Aurolipsa & Sucharita, Sanhita, 2019. "Foreign aid and growth nexus: Empirical evidence from India and Sri Lanka," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 1-12.
    3. Smruti S. Pattanaik, 2018. "Geo-strategic Significance of Bay of Bengal and Andaman Sea: Leveraging Maritime, Energy and Transport Connectivity for Regional Cooperation," South Asian Survey, , vol. 25(1-2), pages 84-101, March.
    4. Nilanjan Banik & Khanindra Ch. Das, 2014. "The Location Substitution Effect: Does it Apply for China?," Global Business Review, International Management Institute, vol. 15(1), pages 59-75, March.
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