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Well China interfering in Jammu-Kashmir, asserting that south china sea is its exclusive economic zone and supporting N.Korea even when the blatanly attacked a S.Korea ship does not inspire confidence.
Moreover, China particularly its leadership CCP is very opaque. No one know's what their intentions. There is no politcal freedom and media freedom to know what the CCP is thinking. And since they are not directly accountable to the people they might not necessrily do what the people want but what special interest groups want.
S. Korea, japan, ASEAN countries, India are all democracies and their policies and concerns are out in the open published in daily parlimentary debates and media reports.
It is upto China to instill confidence in its neighbours. Particularly in the case of India, GoI has been co-operating with China on a range of issues like Climate change e.t.c. and helping it out but China has to reciprocate by addressing core interests of its neighbours.
China has for more than a decade tried very hard to build confidence in the neighborhood, and to a large extend our efforts have been very successful.
But unfortunately for some, we're not in the business of self-denial. We have our own interests to defend and if some of our neighbors do not take our interest into account I do not see why we should pursuit a policy of appeasement toward them.
Earlier this year South Korea decided to ignore China's interests in the region and conducted an investigation on the Cheonan sinking with its allies without inviting either China or Russia. They got the U.S on-board and kind of presented their conclusions to China and expected us to just accept it. After a few month of diplomatic armwrestling, I think they now realize they have to work with us, which is a good outcome.
As for India, the ball is in India's court. India can't expect China to have much trust and confidence in it while continue to host the Tibetan government-in-exile.
A while ago Thaksin, after being overthrow by the Thai military, decided to use Hong Kong as his base of operation and hold a number of press conferences there. The new Thai government was very nervous and expressed their concern to China, and guess what, we asked Thaksin to not use Hong Kong for his political activities and he never hold another press conference on Chinese soil again. Unless India decide to show some similar courtesy, I don't think we can pursuit anymore confidence building measures, because to put it bluntly we can not trust you.