Greetings, Gary, the highlighted part is the author's interpretation of the German word Realpolitik - a type of politics and diplomacy based on purely economic, practical considerations that neglected ideological matters. It probably means that reconstruction contracts as an instrument of Realpolitik can help China 'outsmart' India, just as it presumably happened in 1962. 'Geo' refers to the relationship between two big countries linked geographically and competing for dominance on the continent.
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