ABSTRACT
This chapter discusses China's direct and indirect influence mechanisms in South Asia and the response by regional powers to Beijing's growing projection of power into the region. It discusses how Beijing has sought to readjust its influence mechanisms in the face of local resistance. The chapter examines the counter-mobilisation efforts that China has faced from regional powers, which is often overlaid by the broader dynamics of the Sino-Indian relationship. China has maintained a longstanding history of interaction with South Asia. China’s engagement with South Asia has spanned the hard and soft power divide. In Sri Lanka former President Mahinda Rajapaksa who ruled from 2005–15 emerged as a preferred partner to China, with Beijing often exercising influence in the country through supporting Rajapaksa and currying favour with him and his family. China emerged as the second-largest trading partner and source of foreign tourists to Nepal, as well as a major source of foreign investment for the country.
