Bang Galore
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If you think it can help your economy overall, then you should do it regardless of any other political issues.
Nope. Doesn't work like that. Sanctioning countries with whom you seek a better relationship is not done. As it is, many Chinese companies having been working hard, probably with the Chinese government's backing to erase doubts about security considerations in many areas to enable them to enter lucrative sectors. That took a serious beating now. Any sanction will be driven by the state of bilateral ties. It is not to suggest that India does not benefit from cheaper Chinese imports but that GoI was anyway worried about the skewed nature of trade ties & this will only give the hawks a lift. As I said an absolutely disastrous move for the ties between India & China. If India was circumspect before on siding with the Japanese & the Americans, you can bet that this has pushed them more that way. Any opposition to such a tie-up probably got a body blow with the recent events.
Personally,looking at it objectively (as much as I can), I still don't understand the Chinese rationale & thinking on this incident. No matter how I look at it, I simply cannot see how this helps China in the long run. Making it clear to India that China remains a threat is completely befuddling if the Chinese wanted to stop India from joining any anti-China alliance. I have no idea how you see this but I believe this was among the most bizarre moves that China has done among a whole series of such (involving other neighbours) in the last couple of years.