Why China is eagerly waiting for Gujarat election results

According to reports, China is closely watching Gujarat Assembly elections.

Beijing, Dec 16: A few things in life can't be restricted within a boundary. The Gujarat Assembly election is one such mega event, the results of which will not only have a national but an international impact. The results of the Gujarat polls will be out on Monday.

Yes, you have heard it right, the recently concluded elections, conducted in two phases on December 9 and December 14, are not just about the people and politicians of Gujarat. It has wide-scale national and international implications.

Internally, the results of elections in Gujarat will decide the future course of action for the Bharatiya Janata party (BJP) government at the Centre. A win (especially a thumping victory) in Gujarat polls for the BJP means a direct approval of the Narendra Modi government in Delhi, which in a way means India agrees with the Prime Minister's economic policies.

The economic measures taken by the BJP government at the Centre, including the demonetisation and the Goods and Services Tax (GST), have come under severe scrutiny by the opposition political parties and a few economists.

The win for the BJP in Gujarat also implies that the PM's home state is backing their man fully in all his decisions. A defeat, well, it looks unlikely given the weak opposition and a unanimous verdict of the exit polls declaring the BJP a clear winner in both Gujarat and Himachal Pradesh (which voted on November 9).

Internationally, it is China which is closely watching all election-related developments in Gujarat. The result of Gujarat elections has nothing to do with border disputes between the two nations (something we witnessed in the recent past during the Doklam stand-off), but the Chinese experts feel that the election results in the home turf of Modi would hugely impact its vast investment in India.

One of the major reasons why the Doklam stand-off did not turn out to be a full-fledged confrontation between India and China is because of the kind of business and trade relationships both the nations share with each other.

The Indian market is hugely dependent on Chinese goods. Secondly, China has invested massively in the Indian economy which is growing faster than several of the developed countries.

The Chinese experts feel that a win for the BJP in Gujarat will have a direct impression on the reform policies initiated by Modi. With the BJP's win in Gujarat, the Modi government with much more confidence can carry forward its economic policies without any interference which in a way is good for all Chinese investments.

"Modi's reforms have drawn fierce opposition from other parties and some economists, but those most qualified to evaluate the 'Gujarat model' are the people of Gujarat. Whatever the election result is, it will have a great impact on the public opinion environment for the implementation of the rest of Modi's reform agenda," says an article in state-run media outlet, Global Times.

The article states that China's direct investment to India in 2016 has been many times higher than in the year before. "The outlook for India's economic reforms is deeply related to a good number of Chinese companies doing business in India such as Xiaomi and OPPO. If the BJP wins an overwhelming victory in Gujarat, the Modi administration may take more radical approaches to economic reform. China's companies will feel the changes no later than India's," the article adds.

Looking into the deeper economic influence of Gujarat elections results, the Global Times writes, "It's possible that voters in other Indian states might be influenced by a BJP loss in Gujarat and Modi's economic reforms might then be abandoned halfway due to a possible domino effect."

The opinion piece in the English daily begins with the claim that China is closely watching the Gujarat elections.

"The western Indian state of Gujarat went to the polls for the second phase of the Assembly elections on Thursday, and many observers in China are watching the outcome closely, with the results due out on Monday.

"The Gujarat election may be a litmus test for Indian voters' attitude toward Prime Minister Narendra Modi's reform agenda. That's an issue of deep concern to China because of its increasing economic interaction with India," it adds.

Looking at the Chinese interest in Gujarat polls, it seems the neighbouring country wants the BJP to win the crucial elections before the 2019 Lok Sabha polls.

OneIndia News