ABSTRACT
This chapter examines the growing role of China in South Asia over the last decade and its regional impact, especially on Indian foreign policy priorities. For a long time, only Pakistan among India's neighbours used China to further its strategic agenda regarding India. China-Pakistan collusion on the nuclear issue represents perhaps the high point of this relationship. Although counter-terrorism co-operation between China and Pakistan has gained traction, and Pakistan has taken a number of steps to assuage the concerns of Beijing, the rise of Islamist extremism in China remains an irritant in an otherwise strong Sino-Pakistan relationship. India has failed to capitalize on the propitious political circumstances in Bangladesh in recent years with the coming to power of Sheikh Hasina Wajed of the Bangladesh Awami League, who has taken political risks to restore momentum in bilateral ties. Nepal emerged as a secular republic in 2008 when its Constituent Assembly voted by an overwhelming majority to abolish the 239-year old monarchy.
