In a research report titled How China Engages South Asia: In the Open and Behind the Scenes, published by Centre for Social and Economic Progress (CSEP) in July 2025, editors Dr. Constantino Xavier and Dr. Jabin Jacob present the second instalment of a multi-year project that examines the growth of China’s influence across South Asia, from Afghanistan and Myanmar to Nepal and Sri Lanka. The report offers a detailed framework to analyse the breadth of China’s methods and their consequences for the region’s political, economic and security landscape.
The study argues that while China’s high-profile economic and military presence often draws the most attention, it is equally important to understand quieter, long-term strategies that shape local regulations, cultural narratives, and political relationships. These less visible tools include party-to-party engagement, heritage conservation, media partnerships and educational exchanges, all of which deepen China’s presence in ways that are not immediately apparent.
The report is built around twelve case studies, each contributed by different experts covering sectors such as civil society, conflict mediation, defence cooperation and influence operations. It finds that South Asian countries are not merely passive recipients of Chinese engagement but often actively encourage it to advance domestic priorities, reflecting a complex mix of agency and dependence. Examples include temple restoration and cultural tourism initiatives in Nepal, targeted media training and investments in Afghanistan, and changes to legal frameworks in Sri Lanka to support Chinese-funded infrastructure. In Bangladesh, the research highlights a move from basic arms sales to sustained defence-industrial collaboration, while in Nepal’s northern border regions, infrastructure development has bolstered China’s security interests at the expense of local cross-border ties.
Despite these successes, the editors also highlight the limits of Beijing’s approach. China’s attempts to mediate in Afghanistan’s peace process between 2014 and 2021 achieved limited results due to a lack of direct leverage over key actors. In Myanmar, China’s parallel relationships with the military government and insurgent groups have exposed tensions within its policy. Meanwhile, digital campaigns aimed at shaping the views of the Tibetan diaspora and coordinated social media messaging in Sri Lanka reveal both the sophistication and potential backlash of such influence operations.
A central observation in the report is that China’s engagement is marked by adaptability. China adjusts its tools according to local conditions, shifting from direct political involvement to subtler means when it encounters resistance. This flexible approach helps China sustain influence even in unstable or contested environments.
The study concludes by urging South Asian states to deepen expertise on China’s internal politics, party structures and foreign policy tools. It also calls on other actors, including India, Japan and the EU, to move beyond reactive strategies and develop alternatives based on local needs and democratic principles.
Overall, the report shows that China’s impact in South Asia is not defined only by visible infrastructure or trade deals but by a layered strategy that embeds itself within the region’s political, social and informational spheres, carrying significant long-term implications.