The game of water right between China and India in the development and utilization of the Yarlung Zangbo River (the Brahmaputra River) shows that the national sovereignty is threatened, the regional order is disturbed, and the national image is stigmatized as “water hegemony”. Therefore, the economic game has become a prominent contradiction in the relationship between the two countries. Under the structure of power dimension, India plays the role of soft power, which causes soft balancing on the development of water rights in China's basin and hinders the effective cross-border water cooperation between the two countries. Through the analysis of dynamic game economic model, China and India should achieve long-term benefits through basin development cooperation. But India's soft power role hinders effective cross-border water cooperation between the two countries. China should adhere to the principle of sovereignty to carry out rational development and utilization, promote political mutual trust under the promotion of pragmatic cooperation between the two sides, and enhance the international discourse power to give full play to the role of soft power. In this way, the basis and model of cooperation in the Yarlung Zangbo River (the Brahmaputra River) basin itself will be constructed, and a positive symbiotic relationship will achieve common prosperity for all countries in the basin.