Why India Can not Afford to Fight China?

1. India can not afford to fight China because of its economic might and the amount of debt which United States of Amrica (USA) owes to China; Thus USA automatically becomes its ally in case of an adverse scenario with India as China is the largest holder of U.S. debt and if it decides to sell its holdings US can be brought to its knees. I hope USA have a plan for such type of an eventuality. Point to note is that China is not dumping dollar as being reported in media as China has increased its US debt from $727 Billions at the end of 2008 to $767.90 as of Mar 2009. Moreover another interesting observation is that China accounts for about 1/4th of the total $3.2Trillion debt owed to foreign countries. keeping in light of above facts it will be in interests of India to negotiate with China diplomatically as dragon is going to rise in due course may be by year 2025 and China may be the new country calling shots in world politics.

2. We will take a holistic view of the debt of USA in these times of recession and one will realize that USA is like a person who is living a life based on credit card i.e.borrowing from one country to repay other country and mind it India has also given more than $30 billion as debt to USA.

3. Department of the Treasury / Federal Reserve Board has released the data related to major Foreign holders of treasury Securities and following is the list of top 10 to USA as of March, 2009. Note that the amount being reflected is in Billions
China $767.90
Japan V686.70
Caribbean banking Centers $213.60
Oil Exporters $192.00
Russia $138.40
United Kingdom $128.20
Brazil $126.60
Luxembourg $106.10
Hong Kong $78.90
Taiwan $74.80

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Update : 26 Sep 2011
Montek Singh Ahluwalia Deputy Chairman, Planning Commission has stated that If we take a 20-year horizon, we know that the world will look very different. The change in relative economic weight calls for changes in the global order and these changes can be brought about faster, and more effectively, if India and China work together along with other emerging market economies. We need to collaborate in new groupings, such as G-20 and the BRICS to ensure there is a regular exchange of views between us."