Nevertheless, the nuclear deal has again provided a stark reminder of the resilience of regional power politics.
China has actively attempted to constrain the expansion of Indian influence in several key areas. Beijing is trying to bring many of India's neighbors, including Pakistan, Bangladesh and Sri Lanka, into the Chinese orbit and has extended its reach well into India's sphere of influence. China recently maneuvered itself into an observer position in the South Asian Agency for Regional Cooperation (SAARC) and unsuccessfully lobbied to keep India, Australia and New Zealand from attending last year's East Asia Summit in Kuala Lumpur.
India's rising status could prove to be an obstacle to China's vision of a unipolar Asia where the PRC exerts a dominating influence. As expected, the PRC has expressed its displeasure with the nuclear deal by calling on India to abandon its nuclear ambitions.
Pakistan and China already signed their own agreement to enhance bilateral energy cooperation last February. Beijing offered to sell Pakistan six to eight nuclear reactors for US$10 billion earlier this year. The extent to which China is willing to risk straining relations with India by offering an extensive nuclear package to Pakistan remains to be seen.
During a time when Indo-Taiwanese relations are closer than ever, this recent round of maneuvering on the part of the US holds several implications for the nation. India has started to relax its once myopic interpretation of the "one China" policy to allow for more bilateral engagement with Taiwan. Economic ties between India and Taiwan have rapidly expanded in the last few years along with exchanges between academics, information-technology professionals and the formation of the Taiwan-India cooperation council.
Taiwan's current economic relationship with India pales in comparison with cross-strait trade and investment. With sufficient energy to support its growth, however, India's economic machine will expand even more rapidly in coming years, providing Taiwan with ample opportunities for meaningful economic interaction.
Taiwan and India share a common culture of democratic values and free enterprise, and both have strong interests in the information technology industry. As attempts by Beijing to actively constrain India's influence continue, India would likewise welcome strengthened relations with Taiwan as a means of applying reciprocal pressure on the PRC.
While the US-India agreement is not likely to spark a regional arms race or a second Cold War, it will make waves throughout Asia. Regardless of the consequences, Taiwan, India and the PRC can all take solace in the fact that the nuclear deal is undeniable evidence of the paramount importance of Asia in foreign affairs.
Mrinal Menon is a researcher at the Institute for National Policy Research in Taipei.
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