Pakistan’s latest economic survey reveals the extent of the country’s indebtedness to China. High-interest Chinese loans, reckless multilateral borrowing, and ever-increasing defence budgets have deleteriously impacted Pakistan’s finances. Any lasting solution to these problems will have to involve China.
China has now clearly emerged as a major world power and India needs to seriously think about how it will engage its neighbour over the twenty-first century. The future of the Sino-Indian relationship will be both competitive and collaborative as the same time.