The world should prepare for possible war in the Taiwan Strait, should China attack Taiwan, a former Reserve Bank of India governor said in a podcast over the weekend.
“I do think we should be prepared for the possibility that China may act on Taiwan and the Western world will push back. That is a possibility,” Raghuram Rajan, a professor of finance at the University of Chicago Booth School of Business, said in an interview on the podcast Figuring Out With Raj Shamani, released on Saturday.
Although Rajan said he hoped a war was not imminent, he urged caution on China.
Photo: Bloomberg
The Chinese he engages with say their country would not start a war, “but who knows?” he said.
“The problem with more authoritarian countries is — it’s all in the mind of the leader,” which is unpredictable, he said.
The world order is changing with the rise of China and India, and possibly Brazil, Rajan said, adding that China, the US and the EU might be India’s biggest competitors in the new world order.
Other fast-growing nations of rising importance include Indonesia, Mexico and Nigeria, he said.
However, the UN is too weak to establish peace, so “a stronger organization for global peace” is needed, he said.
Regarding India’s development, he said the country should focus on “opening up and engaging with the world,” as well as creating a friendly image to avoid being seen as an “ugly superpower.”
China’s “wolf warrior” behavior, which aims to create fear in other countries, has provoked adverse reactions from nations, such as tariffs imposed on Chinese goods and international disputes, Rajan said.
China has become increasingly authoritarian, which stifles innovation and creativity, and, in turn, drags down its economic growth, he said.
India should avoid acting like China on the world stage or it would drive away investment, trade and talent, he said.
India should also use its soft power to present itself as “a microcosm of global civilization” that is diverse, open and inclusive, he said.
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