Fighting Monopolies: The Chinese Belt and Road Initiative, India, and the Competition for the Marketplace of International Development

“Fighting Monopolies,” co-authored by Mr. & Mrs. S.H. Wong Center for the Study of Multinational Corporations Non-Resident Senior Fellow Dr. Amitendu Palit, explores India’s reluctance to participate in China’s Belt and Road Initiative (BRI) looking beyond traditionally emphasized factors like bilateral security concerns, domestic politics, and economic considerations. It contends that the BRI represents China’s bid to establish itself as the dominant player in the global development market, historically dominated by Western nations. Contrary to the expectation regional actors would cooperate with the BRI due to its potential economic benefits, India’s opposition is seen as part of a broader resistance by rising powers against China’s attempt to monopolize this market. The analysis draws on economic theory regarding monopolistic markets and international relations theories, shedding light on why rising powers engage in competition rather than cooperation, even when mutual benefits are possible. The article examines the costs India may incur by shunning the BRI and suggests, given China’s economic prowess, India may find it more efficient to build alliances with other partners to contest the BRI. The paper concludes by exploring India’s strategies, emphasizing cooperation with advanced economies and leveraging the expertise of the private business community to challenge China’s dominance.

This article appeared in Amitendu Palit, Ph.D. and Preety Phogal, “Fighting Monopolies: The Chinese Belt and Road Initiative, India, and the Competition for the Marketplace of International Development,” Asia Pacific Business Review, Vol. 30, No. 2 (2024), pp. 350-375. Copyright remains with the original holders.