Current Status Quo and Future of Interconnectivitybetween China and South Asia

　　ABSTRACT: The goal of interconnectivity between China and South Asia is to promote the free flow of commercial goods, capital, information, and culture across borders. Interconnectivity stands to benefit both China and South Asia in terms of their complementary comparative advantages, by reducing transaction costs, by narrowing regional developmental disparities, enhancing regional competitiveness, consolidating and deepening regional cooperation, and strengthening regional identity and cooperative logic. The concept of “seamless connectivity” between China and South Asia has already won the approval and support of the Chinese leadership, and is expected to be implemented in the near future. Nonetheless, interconnectivity between China and South Asia face a number of challenges, including: a harsh natural environment; non-traditional security threats; maintaining balanced and mutually beneficial border trade; and geo-political risks. In order to truly realize interconnectivity, both sides need to invest significant political capital, coordinate across stakeholders, consolidate cooperative frameworks, and establish a Committee for Interconnectivity which can simultaneously promote both tangible and abstract linkages.