Donald Lu, the Assistant Secretary of State for South and Central Asia, has expressed concerns that China's loans to neighboring countries of India, such as Pakistan and Sri Lanka, may be used for coercive leverage.
In a statement ahead of US Secretary of State Antony Blinken's visit to India, Lu said that the US is "deeply concerned" about the situation and is urging India and other countries in the region to make their own decisions and not feel compelled by outside partners, including China.
Lu stated that the US has had serious conversations with India about China, both before and after the recent scandal involving a surveillance balloon. He expects these conversations to continue as the US aims to promote activities and values that support a free and open Indo-Pacific that is prosperous and supports the values represented by the Quad, an alliance between the US, Japan, India, and Australia.
Lu spoke on India's relationship with Russia
In response to a question regarding India's military relationship with Russia, Lu stated that Russia is struggling to fulfill military contracts globally, and refuted allegations that India avoids using the term "war" when discussing Russia. Lu cited recent statements by Indian officials, including Prime Minister Modi, External Affairs Minister Jaishankar, and Defense Minister Rajnath Singh, which frequently use the term "war."
China approved $700 million loan for Pakistan
Lu's statements come after Pakistani Finance Minister Ishaq Dar announced that the Board of China Development Bank (CDB) approved a $700 million credit facility to the country. Lu's concerns highlight growing tensions between India and China over the latter's increasing influence in the region. India has also expressed concerns over China's Belt and Road Initiative, which aims to create a network of infrastructure linking China with other parts of Asia and beyond.
In response, India has sought to increase its own influence in the region, with Prime Minister Modi launching the "Neighborhood First" policy, which aims to strengthen ties with neighboring countries. The policy also involves increased investment in infrastructure and development projects in the region.
Overall, Lu's comments underscore the ongoing geopolitical tensions between the US, India, and China, as well as India's efforts to assert its influence in the region.
