tirsdag 29. mars 2022

In Trade, China Has a Sharp Edge Over India, and Sharp Things Can Be Weaponized

If there were to be an India-China conflict, would we see them engage in economic warfare, as now seen between the West and Russia? As I am writing this, in the midst of Russia’s invasion of Ukraine, we can see how easily trade can be used as a political weapon in case of war. In areas where the West could block exports of significant goods to Russia, such as semiconductors, as a stern reply to Moscow, it did so. But in areas in which it was the West, including European countries, that are dependent on crucial imports from Russia – such as oil and gas – Russia so far has largely failed to block them. In simpler words: a steep politicization and weaponization of trade clearly shows who is strategically dependent on whom, and in what areas.