China wants to expand its influence in South Asia -- in all of it, the land, the sea, and the air. That’s something foreign investors should watch closely, as a clash between India and China would have devastating effects on the economic integration of South Asia and the performance of the financial markets of the region. But unofficially, India and China are moving further apart, due to Beijing’s miscalculation of India’s capability to spoil its plans. India’s economy is gaining momentum, as China’s economy losessteam. A strong Indian economy will further help India strengthen its naval capabilities and up its participation in joint naval exercises with America, Japan and Australia in the South China Sea and the Indian Ocean, irking China.

Source: Forbes April 27, 2018 00:56 UTC