ANNUAL REPORT

CHAPTER 3
CHINA AND THE WORLD
SECTION 1: CHINA AND SOUTH ASIA
Introduction
Although China’s assertiveness in Southeast Asia—particularly
when it comes to the South China Sea—tends to dominate discourse
about China’s growing global ambitions, China has also been active
in cultivating influence among South Asian countries (Afghanistan,
Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri
Lanka). This section surveys China’s economic, diplomatic, and security
engagement with South Asia. In addition to discussing China’s
overarching objectives in the region, it profiles China’s relationships
with South Asia’s two largest countries: India and Pakistan. It
concludes with an examination of how China’s South Asia policies
impact the United States, which also has significant and evolving
interests in the region. This section draws from the Commission’s
March 2016 hearing on China-South Asia relations; its June 2016
fact-finding trip to China (Beijing and Kunming) and India (New
Delhi and Mumbai); consultations with experts on Chinese and
South Asian economics, foreign policy, and security affairs; and open
source research and analysis.
China’s Objectives in South Asia
China has not publicly articulated a formal South Asia “strategy,”
although Beijing’s key objectives and interests in the region can be
observed in its activities in and diplomacy toward these countries.
The key interests, concerns, and objectives of China’s South Asia
strategy fall into four broad categories: (1) checking India’s rise by
exploiting the India-Pakistan rivalry, (2) expanding economic activity
and influence in the region, (3) enhancing access to the Indian
Ocean, and (4) countering terrorism and religious extremism (often
at the expense of religious freedom and other human rights). These
objectives enable China to compete with potential rivals, increase
China’s overall influence in the region, and diminish the influence
of the United States. 1
Check India’s Rise by Exploiting the India-Pakistan Rivalry
The overall balance of power between China and India currently
is in China’s favor, 2 and Beijing intends to keep it that way. Although
India lags behind China in most categories, from economic
growth to military might, it is still the most powerful South Asian
country, and its influence in greater Asia is expanding. China exploits
the longstanding rivalry between India and Pakistan to en-
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