China’s strategic use of economic relations and trade surpluses to bolster its military capabilities has indeed had significant implications for India:

1. Border Disputes and Military Build-up: China’s assertiveness in border disputes, particularly along the Line of Actual Control (LAC), has heightened tensions between the two countries. The economic strength derived from trade surpluses has allowed China to invest heavily in military modernization and infrastructure development along the borders, including roads, airfields, and military installations. This military build-up has raised concerns in India about China’s intentions and capabilities along the shared border regions.
2. Strategic Encirclement and Influence: Through economic investments and partnerships across South Asia and the Indian Ocean region (such as the Belt and Road Initiative and infrastructure projects), China has expanded its influence and presence. This has raised apprehensions in India about strategic encirclement and the potential for China to leverage economic relationships for geopolitical advantage, including military coercion or influence.
3. Naval Presence and Maritime Security: China’s growing naval presence in the Indian Ocean, facilitated by its economic and trade networks, has prompted India to enhance its own maritime security measures. The development of ports and infrastructure in countries like Pakistan and Sri Lanka under China’s Belt and Road Initiative has raised concerns about Beijing’s potential to establish naval bases in the Indian Ocean, thereby impacting India’s strategic calculations and naval deployments.
4. Economic Competition and Security Concerns: The economic competition from Chinese goods and investments in sectors critical to India’s economic growth, such as technology and infrastructure, has created dependencies and vulnerabilities. This economic interdependence, while beneficial in trade terms, also raises security concerns regarding technological dependence and potential economic leverage that China could exert in times of geopolitical tension.
5. Geopolitical Balancing and Alliances: India has responded by strengthening its partnerships with other countries in Asia, Europe, and North America to balance China’s rising influence. Initiatives like the Quadrilateral Security Dialogue (Quad) with the US, Japan, and Australia have gained momentum as a counterbalance to China’s assertiveness, aiming to uphold a rules-based international order in the Indo-Pacific region.

In conclusion, China’s strategic use of its economic relations and trade surpluses to enhance its military capabilities has significantly impacted India’s security calculus. It has prompted India to reassess its own military modernization, enhance border infrastructure, strengthen maritime security, and forge alliances to maintain a stable and secure regional balance of power.