Moody’s has downgraded its rating of the Chinese economy for the first time in 30 years. Moody’s has resisted this move for sometime. But the increasing pressure on the Chinese system is beginning to show. The dragon is not moving/ progressing as it used to, a decade ago. Experts opine China appears a bit over leveraged. The downgrade may not have much impact on the ground, but could certainly be a point for Xi Jinping to think about. The five yearly restructuring of the Communist Party is also due this year.
Phir Bhi Beijing bahut Dhoor Hain
The Indian economy is growing faster than the Chinese in recent months. The Government after a few months of uncertainty over demonetization is again moving ahead with restored confidence. The UP electoral victory has definitely given fresh wind to the BJP government’s sails at the centre.
But it would also be sobering for us all to realize that we have a lot of catching up to do. China slowing helps, but we have no time to take it easy. Beijing being agressive commercially. militarily and politically not to mention its bullying postures on border issues, leaves India with little option. It is not whether India needs to catch up, but when.
The sooner India reaches closer to China in economic strength, the easier it would be counter China. Economic strength no doubt would also help us build military muscle more easily. As US President Roosevelt famously guided, carrying a heavy stick is important. We can then speak softly, without being considered weak.
