{"id":68303,"date":"2026-01-29T09:27:12","date_gmt":"2026-01-29T12:27:12","guid":{"rendered":"https:\/\/tech.einnews.com\/article\/887581832"},"modified":"2026-01-29T09:27:12","modified_gmt":"2026-01-29T12:27:12","slug":"caught-in-tech-crossfire-economic-survey-flags-risks-for-india-as-us-china-rivalry-deepens","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/01\/29\/caught-in-tech-crossfire-economic-survey-flags-risks-for-india-as-us-china-rivalry-deepens\/","title":{"rendered":"Caught in tech crossfire? Economic survey flags risks for India as US-China rivalry deepens"},"content":{"rendered":"
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India faces mounting geopolitical and economic risks as the United States and China intensify their confrontation over technology<\/a>, trade, and strategic resources, the Economic Survey 2025\u201326 has warned.<\/p>\n<\/div>\n

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The Survey argues that New Delhi<\/a> must urgently recalibrate its global economic posture and strive for \u201cstrategic indispensability\u201d or risk being marginalised in a world increasingly organised around artificial intelligence, semiconductors, and critical minerals.<\/p>\n

According to the Survey, the global economic order is undergoing a structural shift that leaves little room for fence-sitting. <\/p>\n

Nations that fail to embed themselves deeply within future-facing value chains may find their strategic relevance sharply diminished.<\/p>\n

Rise of \u2018Pax Silica\u2019 and end of old order<\/strong><\/h3>\n

At the heart of this transformation is what the Survey terms \u201cPax Silica,\u201d a US-led framework aimed at consolidating dominance across the entire AI and advanced technology ecosystem. <\/p>\n

This includes securing access to energy, rare earth elements, chip fabrication capabilities, cloud infrastructure, and foundational software models.<\/p>\n

The Survey describes this shift as the definitive end of the oil-and-steel era. <\/p>\n

In its place emerges a new order where \u201ccompute\u201d power\u2014control over data, algorithms, and processing capacity\u2014becomes the principal determinant of national strength and geopolitical influence.<\/p>\n

Washington and Beijing redraw global tech map<\/strong><\/h3>\n

The United States has moved aggressively to reshape global technology flows by imposing stringent export controls that limit China\u2019s access to advanced semiconductors, chipmaking equipment, and related technologies. <\/p>\n

These measures are designed to slow Beijing\u2019s progress in critical sectors such as artificial intelligence and high-performance computing.<\/p>\n

China, in response, has weaponised its dominance over rare earths and permanent magnets, essential inputs for advanced manufacturing, clean energy technologies, and defence systems. <\/p>\n

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Beijing has also expanded the use of its \u201cUnreliable Entities List,\u201d targeting foreign firms it perceives as acting against its national interests.<\/strong><\/p>\n<\/blockquote>\n

The Survey stresses that these actions represent more than tactical trade measures. <\/p>\n

They signal a decisive move away from efficiency-driven globalisation towards politically motivated economic decision-making.<\/p>\n

Strategic rivalry replaces economic pragmatism<\/strong><\/h3>\n

The Economic Survey characterises the current phase of US-China relations as a full-blown strategic rivalry. <\/p>\n

Both powers are increasingly willing to absorb economic costs to secure long-term technological and geopolitical advantages, even if that means fragmenting global supply chains.<\/p>\n

In this environment, trade and investment decisions are no longer neutral market outcomes but instruments of statecraft. <\/p>\n

The Survey cautions that this shift fundamentally alters the rules governing global commerce.<\/p>\n

China\u2019s internal pressures and export push<\/strong><\/h3>\n

The Survey also highlights China\u2019s domestic economic challenges, pointing to persistent deflationary pressures, weak consumer demand, and a prolonged property sector downturn. <\/p>\n

As internal growth drivers falter, Beijing has leaned more heavily on manufacturing exports to sustain economic momentum.<\/p>\n

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In a notable policy move, China launched a Free Trade Port initiative in Hainan in December 2025. <\/strong><\/p>\n<\/blockquote>\n

The experiment aims to ease customs procedures and liberalise investment norms, allowing China to mitigate external trade frictions while sustaining export competitiveness.<\/p>\n

America\u2019s ‘exclusive’ tech alliance takes shape<\/strong><\/h3>\n

While China seeks workarounds, the United States is moving quickly to consolidate a closed, trusted technology bloc. <\/p>\n

Through Pax Silica, Washington is building alliances with like-minded nations to create secure and geopolitically aligned AI and semiconductor supply chains.<\/p>\n

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The Survey warns that in this emerging ecosystem, power will increasingly reside with countries that control advanced materials, semiconductor fabrication, and critical digital interfaces. <\/strong><\/p>\n<\/blockquote>\n

Strategic relevance will depend on whether nations can offer capabilities that others cannot easily replace.<\/p>\n

Why India cannot afford strategic comfort<\/strong><\/h3>\n

For India, the Survey delivers a stark message.<\/p>\n

Continuing as a back-office economy or remaining dependent on foreign digital infrastructure carries significant long-term risks. India must embed itself in global value chains through unique, high-value products and services that make it indispensable to multiple partners.<\/p>\n

This, the Survey argues, requires building deep domestic innovation capacity, reducing reliance on external digital systems, and securing positions in critical technology segments. <\/p>\n

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Failure to act decisively could leave India vulnerable in a world increasingly defined by technology denial, strategic leverage, and exclusionary alliances.<\/strong><\/p>\n<\/blockquote>\n

As the US-China rivalry accelerates, the Economic Survey makes clear that strategic neutrality alone will not shield India. Relevance, resilience, and indispensability will.<\/p>\n<\/div>\n

<\/a><\/strong> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

… China intensify their confrontation over technology<\/span>, trade, and strategic resources, the … tech<\/span> map The United States has moved aggressively to reshape global technology<\/span> … a world increasingly defined by technology<\/span> denial, strategic leverage, and exclusionary …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-68303","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/68303","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=68303"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/68303\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=68303"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=68303"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=68303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}