NEW DELHI: Chinese President Xi Jinping’s statement on integrating markets and developing an open-source AI platform, along with other initiatives he proposed, is unlikely to enthuse policy circles here, given the wariness over such proposals from across the border.Ahead of China taking over presidency of Brics, Xi’s speech at the concluding session of the summit is being seen as an indication that he would make a push for incorporation of these aspects into the agenda for next year’s conference.For a long time, Brics has stayed away from becoming a trading bloc, and integrating markets through tariff cuts and investment protection regimes comes with the risk of opening markets to Chinese goods and companies with few guardrails, risking the development of homegrown technologies and players.India has maintained strict checks on Chinese investments, approving them on a case-by-case basis, and has refused to drop its guard despite the intense lobbying by sections of industry.The fear of Chinese cannibalisation of markets is not limited to India but is recognised globally – from Japan to Europe and the Americas – with countries trying to reduce their dependence and diversify sourcing. In fact, the rush of free trade agreements India has signed is partly driven by the strategy to diversify imports and govt’s push to tap demand for Indian products through lower tariffs and reduced entry barriers.Ever since India walked out of RCEP in Nov 2019, fearing it would have to open the floodgates to Chinese imports, trade deals have become a crucial policy tool for India. It was China’s dominance in RCEP that finally prompted India to opt out of the agreement, given that it had trade deals with countries such as Japan, South Korea and Asean members. Since then, India’s portfolio has expanded to include FTAs with Australia, New Zealand, UAE, the UK, the EU and EFTA nations.The president’s AI push in his five-point action plan, proposed Sunday, is among the biggest fears, given concerns about Chinese players and their development model. The push for Chinese LLMs, part of the proposals, is a sure-shot red flag and will be seen as an attempt to infiltrate countries amid global scrutiny of Chinese apps and technologies. India itself has blocked several apps and is on guard when it comes to allowing technologies in China-made cameras and other devices.
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Similarly, policymakers will be sceptical over the Chinese push for the SEZ initiative and the pitch to upgrade factories, especially when Belt and Road Initiative turned into a plan to corner key projects and use the funding to arm-twist governments into giving up control over the assets.
