China's Challenge to India's Economic Hegemony over Mauritius: A Tale of Two Giants and a Pigmy

Abstract

Abstract This paper documents how China is crowding out India's presence in the Mauritian economy by presenting a comparative analysis of Mauritius' engagement with the Asian drivers in terms of trade, investment and aid. China has surpassed India to become Mauritius' second most important import partner. Chinese investments have significantly increased, with China setting up a special economic zone in Mauritius. China's presence is also remarkable in aid, with the Chinese winning several tenders for construction and public infrastructure works as part of a strategy of aid. In contrast, India is virtually absent at this level. The paper flags some critical issues raised by China's unfolding economic dominance and offers policy options for dealing with them.

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