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Business and Trade news

For US, India is the only partner to counter Chinese dominance in Asia: Report

  • BY India News Newsdesk
  • August 23, 2025
  • 0 COMMENTS

Washington, Aug 23 (IANS) India’s geography, economy, and demographic trajectory position it as the “only realistic counterbalance” to Chinese dominance in Asia, a report highlighted on Saturday.

“In the shifting chessboard of 21st-century geopolitics, the Indo-Pacific has emerged as the decisive arena for global power. For the United States, containing Beijing’s ambitions requires more than naval patrols and economic sanctions; it demands a partner with scale, proximity, and political legitimacy. Among all contenders, India stands alone,” Stacey Glaser wrote in One World Outlook.

India, the report details, is uniquely situated to challenge Beijing’s reach as it shares a 2100-mile land border with China and sits astride the Indian Ocean — through which a significant share of global trade, including China’s energy imports, must pass. Unlike US allies such as Japan or Australia, India can influence both continental and maritime theatres in any strategic equation, it states.

“India’s economic rise is not merely a domestic success story; it is a geopolitical asset. A stronger Indian economy broadens New Delhi’s ability to fund military upgrades, withstand Chinese coercion, and present itself as a viable alternative hub for trade and investment,” writes Glaser.

However, trade disputes, policy mismatches, and divergent strategic instincts threaten to undermine the full potential of the promising US-India partnership.

The report mentions that former US Ambassador to the UN, Nikki Haley has been vocal about the issues and has warned that undermining decades of US-India economic cooperation is a “strategic disaster”. She had singled out recent tariff disputes, such as the Trump administration’s steep import duties, as “self-inflicted wounds” that risk driving India toward China and Russia.

“The reality is that both nations need each other. For Washington, India is the only partner in Asia with the scale and democratic credentials to credibly balance China. For New Delhi, US capital, technology, and market access accelerate its growth and help diversify away from Chinese supply chains. Disagreements over trade policy must be seen in the context of this larger, strategic necessity,” the writer emphasises in the One World Outlook report.

India’s most enduring advantage over China may be its people, Glaser asserts, citing that with a median age of just 29 and a 2025 population estimated at 1.44 billion, India’s labour force is both youthful and expanding. China, by contrast, is aging rapidly, with shrinking workforce numbers and rising labour costs.

“India’s economic rise is not merely a domestic success story; it is a geopolitical asset. A stronger Indian economy broadens New Delhi’s ability to fund military upgrades, withstand Chinese coercion, and present itself as a viable alternative hub for trade and investment,” the report titled ‘Partner, Not Pawn: India’s Place in America’s Asia Playbook’ details.

–IANS

/as

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