New Delhi

According to reports, the situation at the face-off points between the Indian Army and the PLA remains unchanged.

Officially both sides have reiterated faith in dialogue and diplomacy. Here are a few steps New Delhi should avoid taking.

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India should not formally stop imports from China. New Delhi and Beijing are members of the World Trade Organization(WTO). India cannot altogether stop imports from China in lieu of their membership, also, the exports from China to India are reportedly just 3 per cent of the total exports to the world, so stopping trade will cause a little dent in the Chinese economy.

Boycotting Chinese companies may also not be a solution. The calls to go local are good, but the reality is China dominates the cellphone market in India. Chinese brands like Oppo, Vivo and One Plus are said to have 40 per cent of the combined market share in the cellphone market.

Calls to boycott the Chinese products may force these companies to wrap up their operations. It may lead to temporary yet significant economic losses. India needs to be strategic in hitting back at China.

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India should take these steps. Number one, use hard power. New Delhi needs to be firm in its dealings with Beijing. It must be prepared to increase its operations in the Malacca Strait and the Indian Ocean.

The Strait of Malacca is a narrow waterway between the Malay Peninsula and the Indonesian island of Sumatra. It accounts for nearly 80 per cent Chinese oil imports. 

Experts say an increase in activites in this region could perturb Chinese overtures on the LAC but in doing so India will have to build consensus with Indonesia, Malaysia, Singapore and Thailand, so that there is no perception of undermining their sovereignty.

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Number two: Use soft power. A strategy that should focus on mining the weaknesses of China. China's image has taken a beating due to the Wuhan virus. A number of companies are shifting base from China. India should attract investments from such companies after all India has similar things to offer - considerable land, low-cost labour and ease of establishing industries.

India must make the most of these advantages. The Indian government should also prioritise signing free trade agreements with other big economies. Trade agreements that will not only increase India's economic power but also increase the world's stake in safeguarding Indian interests.

At present China doesn't seem to have the appetite to wage an all-out war. It cannot afford one since the global sentiments are against it but China is a silent and discreet player, hostile takeovers and low-level military actions are already a reality.

India needs to be alert, watchful and prepared.