I c (may june 2015) final

An India-China Economic and Cultural Council publication

May–June 2015 x ` 100

Modi’s China Visit:

Road to Pragmatism BI-LATERAL

INTERVIEW: DR J SULLIVAN

FIRST PERSON

Border: An Elusive Settlement?

“Asia for Asians reflects Chinese Resentment of the US’s Influence”

Meeting Modi in China: A Unique Experience

www.icec-council.org

Mr. Modi’s Visit to China: Style or Substance?

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Vol 5, Issue 3, May-June 2015 EDITOR-IN-CHIEF Mohammed Saqib EXECUTIVE EDITOR Urmila Rao EDITORIAL BOARD Mani Shankar Aiyar P.S. Deodhar Dilip Cherian Amir Ullah Khan Chen Si (China) EDITORIAL TEAM Irfan Alam Shawahiq Siddiqui Manish Vaid Monish Tourangbam Amrita Jash DESIGN Manoj Raikwar OWNED, PRINTED AND PUBLISHED BY Mohammed Saqib Registered with the Registrar of Newspapers of India under RNI No: DELENG/2011/43423 PUBLISHED FROM A-82, Zakir Bagh, New Delhi - 110025 ADDRESS FOR ALL CORRESPONDENCE India-China Chronicle B-59 (GF), South Extension - II, New Delhi - 110049 Telefax: 011-46550348 PRINTED AT Aleena Prints Mr. Naved Rasheed Block Z-II, 378, Shahadra, Delhi-110053 Mobile:+91-9582345886 E-mail : aleenaprints@gmail.com All Rights Reserved. Reproduction in whole or in part without written permission is prohibited.

All advertising enquiries, comments and feedback are welcome at info@icec-council.org The information contained in this magazine has been reviewed for accuracy and is deemed reliable but is not necessarily complete or guaranteed by the Editor. The views expressed in this digest are solely that of the writers and do not necessarily UHĂ HFW WKH YLHZV RI WKH PDJD]LQH

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Editor-in-Chief Mohammed Saqib

CONTENTS

6

Brief News

8

Letters

approximately $95.3bn last year with a hope of expansion to $100bn in 2015. Year 2014 also saw $400 billion gas deal signed between the two countries. Are the two powers knitting closer economic ties owing to Western sanctions on Russia? Does this coalition mark a step towards a new international order, a multi-polar world where the United States is no longer the dominant power?

ECONOMY 10 Modi’s China Visit Economic Questions That Need to Be Raised India clearly has emerged as one of China’s largest markets. However, the trade relationship between the two countries is not a win-win situation one, and is not viable for India. Is it time for India to resort to import substitution and reduce the volumes imported from China?

COVER STORY

Modi’s China Visit: Road to Pragmatism Prime Minister Modi’s visit to China was an attempt to revitalize strategic and economic ties. He highlighted ‘Brand India’ for Chinese investment in infrastructure and energyrelated projects. He emphasized on establishing “strategic trust” between the two nations. Can this visit be termed as historic that could forge new synergies in the bi-lateral relationship and reshape Asian geo-politics?

SOUTH ASIA 13 Emerging India-China Relations: SAARC and India’s Policy Options India is keen to uphold its status as a South Asian power; China’s ambition is to emerge as a ‘Greater Power’ in South Asian region. Is India-China relation entering to a new mode of power politics in South Asia? Is there a middle rational approach for both to follow?

Find out.

18

DIPLOMACY | INTERVIEW

“Both India and China Have to Strive to Realise the Asian Century, One or the Other Can’t be Absent” |2| India-China Chronicle May-June 2015

22

Xi’s recent visit to Pakistan has been dubbed as “fate-changing visit” in China-Pakistan relations. India feels uneasy with this “allweather strategic cooperative partnership” which it finds difficult to assess as well as ignore even as both the countries celebrate 2015 as China-Pakistan Year of Friendship.

INTERVIEW 32 ³$VLD IRU $VLDQV UHÀHFWV Chinese Resentment of the 86¶V (QGXULQJ ,QÀXHQFH LQ WKH Region” - Would it Mean Asia for the Chinese?

Dr Jonathan Sullivan is Associate Professor of Contemporary Chinese Studies and Deputy Director of the China Policy Institute at the University of Nottingham, UK. He regularly writes on China matters that includes China’s relations with its neighbors, its expanding global role, crossStrait relations, Taiwanese politics and more. In an interview with Urmila Rao, he articulates on a wide range of issues including the US conduct in Asia, China’s wariness of the US presence in the region, Beijing’s active role in international society, among others.

FOREIGN POLICY 40 Demystifying China’s Silk Road Diplomacy Through ‘One Belt, One Road’ (OBOR) project, Beijing plans to expand ties with developing countries in a bid to exert economic influence and secure its foreign policy goals. Many experts consider OBOR as ‘China’s Marshall Plan’. With several countries part of OBOR, has China set out to reshape the international system? How is India responding to Beijing’s Maritime project in Indian Ocean Region? Read on.

INTERNAL AFFAIRS 44 State Response to Separatist Movement: Xinjiang and Kashmir The internal and international aspects of the Kashmir and Xinjiang conflicts must be analyzed and addressed not in isolated terms, but in critical dialogue with shifts in the global order of things

DIPLOMACY 35 Responding Alike: India and China on Western Sanctions

ECONOMY | INTERVIEW

“India Can Provide Better Return 20 to Chinese Companies”

FOREIGN POLICY 29 ‘All-Weather Friendship’ Between China and Pakistan: Implications for India

BI-LATERAL 26 Border: An Elusive Settlement?

A breakthrough on boundary talks was expected during Modi’s visit to China. There were several signs since the beginning of the year, including visit of Ms Sushma Swaraj to Beijing who stated that boundary dispute should not be left to future generations and there was a need to find ‘out of the box’ solutions. However, no concrete steps took place in May.

Despite mutual differences, there are instances where India and China have taken similar positions. Two cases in point are Western sanctions on Iran and Russia where India and China have conveyed their opposition to these sanctions.

DIPLOMACY 37 China’s Diplomacy Caught between Europe and Russia Russia and Chinese trade amounted to

INFRASTRUCTURE 48 Nepal’s Engagements with China Nepal requires investments and in all likelihood, is getting the benefits of Chinese

investments. But what is the nature of China’s venture in Nepal and the geopolitical implications thereof ? What are India’s concerns on China’s engagement with Nepal?

51 Exhibitions & Trade Show In India and China

CULTURE 53 Boosting Soft Power in China Soft power is India’s most promising tool in its foreign policy kit. New Delhi can successfully wield it to add more strength to its relationship with China. Mr. Modi’s visit attempted to do this when Beijing and Delhi signed agreements in fields of yoga, education and youth exchange and established media forum and think-tanks forum among other things.

CINEMA 56 My Favourite Movie and &KLQD¶V $QWL WUDI¿FNLQJ (IIRUWV ‘Dearest’ is my favourite movie, not because of its stars or awards, but because of its nearaccurate portrayal of tensions in the current Chinese anti-trafficking movement. As an advocate dealing with children’s issues in China for many years, I am impressed with the efficiency with which the movie brings out the challenges related to anti-trafficking movement.

FIRST PERSON 60 Meeting Modi in China: A Unique Experience The Chinese leadership reciprocated Mr. Narendra Modi’s ‘hometown diplomacy’ very well; Mr. Modi became the first ever foreign leader to be received outside Beijing in President Xi Jinping’s birthplace, Xian. Mr. Modi’s selfies with Premier Li Keqiang received millions of hits on Chinese social media. India now means a lot in terms of tourism, education and business for the Chinese.

EVENTS 62 ICEC Council Booth Receives ‘Outstanding Exhibitor’ Award at Shenzhen Fair

May-June 2015 India-China Chronicle |3|

CONTENTS

Dear Readers, :DV 0RGLœV YLVLW WR &KLQD VXFFHVVIXO" ,W GHSHQGV RQ KRZ RQH GH¿QHV VXFFHVV LQ WKH 6LQR Indian context. Different experts analysed Modi’s visit differently; some called it a step IRUZDUG LQ EL ODWHUDO UHODWLRQV RWKHUV UXHG WKH ODFN RI PHDQLQJIXO SURJUHVV ,QGLD &KLQD UHODWLRQVKLS LV D FRPSOH[ RQH JLYHQ WKH KLVWRULFDO EDFNJURXQG DQG SUHVHQW GHYHORSPHQWV +HQFH FULWLFDO LVVXHV RQ WKH WDEOH IRU H[DPSOH ODQG ZDWHU DQG VHFXULW\ KDYH QR simple solutions either. The fact that the mood of both the countries vacillate between confrontation, FRRSHUDWLRQ DQG FRPSHWLWLRQ PDNH PDWWHUV HYHQ PRUH NQRWWHG ,W LV XQGHUVWDQGDEOH WKDW IRUHLJQ SROLF\ FRQFHUQV KDYH QR TXLFN DQVZHUV ,Q WKLV EDFNJURXQG WKH YLVLW ZDV D VROLG IRRWZRUN GRQH WR IRUJH IXWXUH DPLFDEOH DQG IUXLWIXO SDWK %XW VHHQ IURP WKH SULVP RI DFWXDO UHVXOWV WKH YLVLW VDZ OLWWOH SURJUHVV 7KH HFRQRPLF GLSORPDF\ PD\ ZHOO WXUQ RXW WR UHVROYH OLQJHULQJ VWUDWHJLF LVVXHV %XW IRU WKDW RXWFRPH PXFK GHSHQGV RQ KRZ EXVLQHVV 0R8V DFWXDOO\ WUDQVODWH RQ JURXQG ZKHQ LPSOHPHQWHG India’s infrastructural and institutional unpreparedness may play the spoilsport. India has to readily provide comfort to Chinese business sense. In the past, we have seen MoUs on hydrocarbon projects between ONGC Videsh Limited (OVL) and China National Petroleum Corporation (CNPC) fall apart. &KLQD UHFHQWO\ ZLWKGUHZ HQHUJ\ SURMHFWV IURP LWV ³DOO ZHDWKHU´ IULHQG 3DNLVWDQ )RU HFRQRPLF WLHV WR GHYHORS WKH EXVLQHVV HQYLURQPHQW KDV WR EH PDGH FRQGXFLYH *UDGXDOO\ SDWKZD\V IRU FR RSHUDWLRQ LQ RWKHU DUHDV LQFOXGLQJ FXOWXUH FDQ IROORZ WR SURYLGH IXOO VWHDP WR 0RGLœV HFRQRPLF GLSORPDF\ &RPLQJ EDFN WR WKH DQDO\VLV RI 0RGLœV WDNHDZD\ IURP WKH &KLQD YLVLW WKLV LVVXH SDFNV YDULRXV YLHZV IURP GLIIHUHQW TXDUWHUV 7KH FRYHU VWRU\ E\ 'U 0RQLVK 7RXUDQJEDP DVVHVVHV KLWV DQG PLVVHV RQ D EURDG SHUVSHFWLYH ZKHUHDV LQWHUYLHZV RI 'U 5DKXO 0LVKUD DQG 0U 5DYL %KRRWKDOLQJDP LQVWLOO RQH ZLWK KRSH DQG RSWLPLVP RQ WKH EL ODWHUDO UHODWLRQVKLS 6WHSKHQ :HVWFRWW HYDOXDWHV ERUGHU GLSORPDF\ SRVW YLVLW ZKHUHDV 'U 6ULSDUQD 3DWKDN H[SORUHV WKH HFRQRPLF DQJOH 7LODN -KD SUHVHQW DW 0RGLœV 6KDQJKDL VSHHFK FDSWXUHV WKH VHQWLPHQWV OLYH $VPD 0DVRRG DSSUDLVHV 6RIW 3RZHU G\QDPLFV WKDW KDYH WKH SRWHQWLDO WR VWUHQJWKHQ WKH FXOWXUDO WLHV %H\RQG 0RGLœV YLVLW WKH LVVXH KDV RWKHU JULSSLQJ DUWLFOHV WRR $UXVKL *XSWD DWWHPSWV DW GHP\VWLI\LQJ &KLQDœV 6LON 5RDG GLSORPDF\ ZKHUHDV $PULWD -DVK ORRNV DW ¾$OO :HDWKHUœ IULHQGVKLS EHWZHHQ &KLQD DQG 3DNLVWDQ DQG LWV LPSOLFDWLRQV IRU ,QGLD 'U -DJDQQDWK 3DQGD LQYHVWLJDWHV WKH HPHUJLQJ ,QGLD &KLQD 5HODWLRQV 6$$5& DQG ,QGLDœV 3ROLF\ 2SWLRQV DQG 'U 3UDYHHQ 6DKL IRFXVHV RQ &KLQD 1HSDO G\QDPLFV 'HVSLWH PXWXDO GLIIHUHQFHV WKHUH DUH LQVWDQFHV ZKHUH ,QGLD DQG &KLQD KDYH WDNHQ VLPLODU SRVLWLRQV ZKHUH H[DFWO\ 5LVKLND &KDXKDQ WHOOV XV +LPDQL 3DQW ZHLJKV KRZ &KLQDœV GLSORPDF\ LV FDXJKW EHWZHHQ (XURSH DQG 5XVVLD 6KDJXQ 6KDUPD DUWLFXODWHV RQ &KLQD DQG ,QGLDœV UHJLRQDOLVW DQG VHFHVVLRQLVW PRYHPHQWV 3URIHVVRU DW 8QLYHUVLW\ RI 1RWWLQJKDP 8. 'U -RQDWKDQ 6XOOLYDQ WDONV RQ WKH 86 FRQGXFW LQ $VLD DQG &KLQDœV ZDULQHVV RI WKH 86 SUHVHQFH LQ WKH UHJLRQ DPRQJ RWKHU WRSLFV 'U :HQMXDQ =KDQJ H[HFXWLYH GLUHFWRU IRU WKH ¾&HQWHU IRU ,QGLD &KLQD 6WXGLHVœ DW -LQGDO *OREDO 8QLYHUVLW\ JLYHV KLV IDYRXULWH PRYLH WUHDW RI ¾7KH 'HDUHVWœ ZKLOH GLVFXVVLQJ DQWL WUDI¿FNLQJ HIIRUWV LQ &KLQD ZKLFK LV WKH WKHPH RI WKH PRYLH ,Q DOO WKH LVVXH SDFNV SXQFK DQG SURPLVH RI DQ LQWHUHVWLQJ UHDG

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Look Forward to Modi’s Visit to China

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he essay “Opportunity of the &HQWXU\"´ ZDV D ÂżQH EXLOG XS WR 3ULPH 0LQLVWHU 1DUHQGUD 0RGLÂśV YLVLW WR &KLQD 0RGLÂśV IRUHLJQ SROLFLHV KDYH EHHQ NHHQO\ ZDWFKHG WKH ZRUOG RYHU QRW RQO\ E\ ,QGLDQ H[SDWULDWHV EXW DOVR WKH JRYHUQPHQWV RI YDULRXV FRXQWULHV +LV RQH \HDU DW WKH KHOP also gives him sort of platform WR VKRZFDVH KLV JRYHUQPHQWÂśV DFKLHYHPHQWV DQG WKH IDFW WKDW WKH

|6| India-China Chronicle ƒ May-June 2015

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India-China Chronicle Rocks!

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Modi’s Dynamism to be Watched

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The Importance of BRICS

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UH ,QGLD DQG &KLQD WKH UHDOO\ LPSRUWDQW SOD\HUV LQ %5,&6" 7KDWÂśV WKH WKRXJKW WKDW FRPHV WR P\ PLQG LPPHGLDWHO\ 1R GRXEW WKDW FRXQWULHV OLNH %UD]LO 6RXWK $IULFD DQG 5XVVLD DUH DOVR LPSRUWDQW WKH two Asian giants have the capacity WR JR IDUWKHU ,I &KLQD KDV WKH DGYDQWDJH LQ UHJDUG WR LQGXVWU\ ,QGLD KDV DQ HGJH GXH WR WKH ODUJH XVDJH RI WKH (QJOLVK ODQJXDJH , IHHO WKH WZR KDYH D JUHDW IXWXUH DQG WKH\ FRXOG EH SDUWQHUV LQ VXFFHVV 7KH ZKROH RI $VLD QD\ WKH ZKROH ZRUOG LV ORRNLQJ DW WKHP Siddharth Thyagarajan, Bangalore May-June 2015 ƒ India-China Chronicle |7|

INFOCUS | INDIA-CHINA | NEWS

China Sets up Gold Sector Fund

C

hina, has set up a gold sector fund, led by Shanghai Gold Exchange, and is expecting to raise $16.1 billion in three phases. The fund, set up in China’s northwest Xi’an, will be part of Beijing’s ‘Silk Road’ initiative to expand trade and transport infrastructure across Asia and beyond.

About 60 countries have invested in the fund that will help

to facilitate gold purchase for the central banks of member states to increase their holdings of the precious metal. The fund involves 65 countries along the routes of Silk Road Economic Belt and the 21st-Century Maritime Silk Road. ³7KH &KLQHVH JRYHUQPHQW VHHNV WR LQFUHDVH WKH LQÀXHQFH of RMB in gold pricing by opening the domestic gold market to international investors,� said Tang Xisheng of the Industrial Fund Management Co. Two leading gold producers, Shandong Gold Group, the parent of Shandong Gold Mining Co Ltd, and Shaanxi Gold Group will take stakes of 35 percent and 25 percent respectively, China is the world’s biggest producer of gold and its top consumer.

India Graduates from “Look East� to “Act East�

I

ndia’s leading daily Times of India reported that India has dispatched four warships, including a frontline destroyer and a stealth frigate, on a long overseas deployment to the South Indian Ocean and South China Sea in consonance with the country’s “Act East� policy.

As part of the endeavor, two of the warships — stealth frigate INS Satpura and anti-submarine warfare corvette INS Kamorta - also kicked off the four-day SIMBEX exercise with the Singaporean Navy on Saturday. “The visits are aimed at strengthening bilateral ties and enhancing interoperability between navies as well as show-

|8| India-China Chronicle ƒ May-June 2015

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China’s New Regulations on Smoking and Other Areas

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hina has introduced new regulations on smoking, PHGLFLQH SULFHV WUDIÂżF FRQWUROV DQG RWKHU DUHDV starting June 1. Ban has been put in place to stop smoking in public spaces like restaurants, public transportation and LQ RIÂżFHV 2Q PHGLFLQH SULFHV WKH JRYHUQPHQW KDV GHFLGHG to change its role from decision maker to supervisor and let the market forces set the cost. It is viewed that market competition will lower the medicine prices and consumers will have access to good quality medicine at more affordable cost. From June 1 onward, import tariff rates have been cut on clothing, shoes, skincare and diapers with an average decrease of 50 percent. Footwear such as short boots and sports shoes will attract 12 per cent customs duty rather than 22 percent to 24 percent, says the news report. Further, Beijing announced that electric vehicles with licenses will not be subject to peak time WUDIÂżF FRQWUROV

UK uses Chinese expertise in its High Speed Train Project, HS2

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hina will supply United Kingdom state-of-the-art WUDLQV WKDW FDQ UXQ RQ WKH FRXQWU\ÂśV ÂżUVW KLJK VSHHG rail. The high-speed train project, HS2, is slated to link London with the English Midlands and Northern England.

The factors that led China to work on the project is cost HIÂżFLHQF\ H[SHULHQFH DQG DGYDQFHG WHFKQRORJ\ “Western companies, such as Germany’s Siemens AG and France’s Alstom, entered the high-speed rail sector earlier, but no countries in the world have a high-speed rail network as extensive as China’s,â€? Yu Weiping, vicepresident of CNR Corp, told China Daily at a recent rail exhibition in the UK.

The UK government’s project, HS2, will be built in two SKDVHV 7KH ¿UVW SKDVH ZLWK DQ HVWLPDWHG FRVW RI billion, will link London and Birmingham and is likely to commence construction in 2017 and start operations in 2026. Phase two will be an extension to Manchester and Leeds to be opened in the year 2033.

Code of Conduct on Line of Actual Control

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ccording to News Agency Press Trust of India, China has virtually rejected Prime Minister Narendra Modi’’s proposal to clarify positions on the Line of Actual Control and said it prefers an agreement with India on a Code of Conduct to maintain peace along the border. Outlining &KLQDœV ¿UVW SXEOLF UHDFWLRQ WR WKH 30œV SURSRVDO 'HSXW\ Director General of the Asian Affairs at the Foreign Ministry, Huang Xilian, said previous attempts to clarify PXWXDO SRVLWLRQV RQ WKH /$& KDG ³HQFRXQWHUHG GLI¿FXOWLHV´

China’s Vision for Education Military Servicemen

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ccording to Chinadaily. com.cn, Chinese President and Chairman of the Central Military Commission (CMC) Xi Jinping’s vision for the educating of servicemen has been published, the military authority said Wednesday. The book was published by the People’s Liberation Army (PLA) Publishing House and was distributed to company-level military units.

The book includes the president’s remarks and written instructions from November 2012 to February 2015, in which he underscores that military personnel must have spirit, capacity, courage and morality. The military FRPPLVVLRQ VDLG WKH ERRN ZRXOG KHOS VROGLHUV DQG RI¿FHUV to actively contribute to the Chinese Dream of rejuvenating the Chinese nation and a strong army.

China: Going Green in 2015

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ccording to Xinhua News Agency, China aims to reclaim 10 million mu (almost 670, 000 square kilometers) of farmland and return it to forest and grass in 2015, according to the country’s top economic planning body on Thursday. The target was unveiled by the National Development and Reform Commission, ministries of

ÂżQDQFH DJULFXOWXUH ODQG DQG UHVRXUFHV DQG WKH 6WDWH Forestry Administration.

In 18 provincial regions, 94 percent of reclaimed farmland will be turned into forest and six percent into grassland to protect the ecosystem, according to the statement. The target is double the previous year’s 5 million mu.

61 , 3 3 ( 7 6 I

ndian technology major Infosys will establish its first overseas centre outside India in China with an investment of about $120 million. An MoU was signed between Infosys and the local Chinese provincial government at the India-China Business Forum, which was addressed by Prime Minister Narendra Modi in Shanghai. The development center, likely to be ready by next year, will be established in Guizhou province. ................................................................................................................. recently released white paper states that about 8,000 Chinese students were dismissed from the US schools at all levels from 2013 to 2015. The study found that more than 57 per cent were dismissed because of poor academic performance. ‘The white paper also informed that academic dishonesty, including cheating in exams and plagiarizing was the secondlargest cause of dismissal,with nearly 23 percent of dismissed Chinese students expelled for this reason’, Chinadaily.com.cn reported. ................................................................................................................. mir Khan starrer Bollywood movie PK, garnered $ 5.14 million in its opening three days, a record for an Indian film, by ousting the previous record holder, Dhoom 3. The movie, released on May 22, had 51,281 shows and 1.05 million admissions. ................................................................................................................. he Chinese Foreign Ministry spokesperson Hua Chunying recently said that South China Sea issue doesn’t concern the US and that it should stop taking sides on territorial disputes. The US remarks are “ harmful both to regional peace and stability and to USChina relations� she said. The Chinese Foreign Ministry issued a six-point response on US comments wherein it mentioned that “China is sticking to its path of peaceful development and its defensive security policy� and “code of conduct in the South China Sea should be negotiated between China and ASEAN nations.�

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May-June 2015 ƒ India-China Chronicle |9|

INFOCUS|INDIA-CHINA|ECONOMY

Modi’s China Visit Economic Questions That Need to Be Raised India clearly has emerged as one of China’s largest markets. However, the trade relationship between the two countries is not a win-win situation one, and is not viable for India. Is it time for India to resort to import substitution and reduce the volumes imported from China?

Dr. Sriparna Pathak Raimedhi & Ms. Priyanka Dey

I

ndian Prime Minister Narendra Modi’s visit to China in May remained a hot topic for discussion in the media and among academicians ever since the announcement of the visit. For China as well, the visit generated some basic amount of discourse in the country. Moving beyond the common rhetoric of India and China being inevitably caught in military FRQÀLFW ZKLFK LV SHUPHDWHG ZLWK WKH classical security dilemma, a closer look at trade relations in the more current times needs to be focused on.

In the aftermath of the subprime mortgage crisis which emerged in the U.S. in 2008 and wreaked economic havoc globally, China lost its prime export destinations in the U.S. and the EU. The Chinese economic model- an export driven growth model- needs a source for its manufactured exports, which has to be in places outside the U.S. and EU. India with a booming PDUNHW ÂżWV WKH SLFWXUH ,QGLD WKHUHfore, becomes an important destination for Chinese investment, a market for its goods, and the low end segment of its supply chain. India, for similar reasons requires China- particularly once the ‘Make in India’ campaign comes into full play. However, bilateral trade relations between the two

countries have not been smooth. Rapid economic engagements did emerge between the two countries in the decade of the 2000s, but closer observation reveals the story ( See Graph 1) In 2003-04, the gap between imports and exports was USD 1098.13 millions, with the balance tilting in &KLQDœV IDYRXU ,Q WKH GH¿FLW grew to USD 36,210.26 millions, and the balance still tilts in China’s favour.

7KH JURZWK LQ GHÂżFLW IRU ,QGLD WKHUHfore, in a span of ten years has been 319.74 per cent. If the current situation persists then India will experiHQFH DQ XQVXVWDLQDEOH WUDGH GHÂżFLW RI USD 60000 million. The high trade

|10| India-China Chronicle ƒ May-June 2015

INDIAN IT SERVICES ARE UNABLE TO MAKE A BREAKTHROUGH IN CHINA’S OPAQUE STATE- CONTROLLED STATE-OWNED ENTERPRISES. ADDITIONAL ISSUES FACED ARE THOSE OF BANKING AND FOREIGN EXCHANGE REMITTANCE PROCEDURES, LACK OF INTELLECTUAL PROPERTY STANDARDS AND THE LACK OF TRANSPARENCY

imbalance between India and China is a long lasting concern.

Trade facilitation between any two countries can be optimised in two methods. Firstly, export promotion wherein domestic manufacturing is endorsed. Most commonly used arguments for trade promotions are infant industry argument, quantitative restrictions and tariff impositions. In the case of trade between India and China all these measures seem to have IDLOHG JLYHQ WKH KXJH WUDGH GHÂżFLW ,QGLD has overused infant industry arguments for the manufacturing industry and in some cases of primary industry which has led to immature industries after decades of protections. Second method is by indigenous production of import substitutes in which case imports are reduced and local commodities DUH XVHG 7KLV GLYHUVLÂżFDWLRQ RI manufacturing also helps in trade GLYHUVLÂżFDWLRQ LQ WKH ORQJ UXQ ,QGLD has failed to provide enough time and concern towards what is entering the country. The cheaper prices of Chinese imitation commodities have captured domestic markets. Concerns over Banarasi silk imitations and rice crop improvisation show what can happen in future trade scenario.

In the long cherished goal of ‘Make in India’ Indian highly focuses on exportable commodities but equivalently important are imported

goods. The lack of domestic options of imported commodities helps in foreign producers to capture domestic market and home country to lose a level playing ground. According to the Hecksher-Ohlin trade theory, a country should produce commodities in it has input factor abundancy.

Given the multilateral trade situation LW LV QRW RQO\ GLIÂżFXOW WR VWLFN WR D OLVW of commodities but also essential that constant growth in disadvantageous segments is undertaken to build up pace in competition.

7KH PRVW SHUWLQHQW PHWKRG WR ¿[ WKH WUDGH GH¿FLW ZRXOG LQHYLWDEO\ EH increasing India’s exports to China, particularly in those commodities in which India has a comparative advantage over China.

These

ZRXOG GHÂżQLWHO\ LQFOXGH ,QGLDÂśV pharmaceuticals, IT services, automotive components, media, entertainment, outbound tourism and farm products. However, the past experience that companies dealing with these products have had, shows there are high levels of non-tariff barriers existing for Indian companies in China. In the case of pharmaceuticals, for example, while license and registration timelines for Chinese Active Pharmaceutical Ingredients (API) are granted by the Indian Drug Regulatory Authority in a time span not exceeding six months, it takes DERXW ÂżYH WR VL[ \HDUV IRU HVWDEOLVKHG ,QGLDQ SKDUPD ÂżUPV WR UHJLVWHU WKHLU products to China. China insists that there are no barriers for Indian

Graph 1: Bilateral trade between India and China 2004-14 Unit: USD millions Source: Export Import Bank, Ministry of Commerce, India

ÂżUPV WR HQWHU +RZHYHU DFFRUGLQJ to interviews conducted with various Indian companies operating in the industrial city of Yiwu, Zhejiang, entry LV YHU\ GLIÂżFXOW LQ WKH &KLQHVH PDUNHW which is heavily skewed in favour of PXOWLQDWLRQDO ÂżUPV ZKLFK KDYH DQ overbearing presence in China. As such, Indian companies are averse to risk-taking due to issues of market access, pricing and drug registration.

Indian drugs in advanced economies of the U.S. and EU are cleared by the Food and Drug Administration.

However, this is not the case in China. Even in the case of IT/ITES and agricultural commodities, there exist a series of non-tariff barriers for Indian exports. Indian IT services are unable to make a breakthrough in China’s opaque state controlled state owned enterprises. Additional issues faced are those of banking and foreign exchange remittance procedures, lack of intellectual property standards and the lack of transparency. A series of Memorandums of Understanding have been signed in the past on allowing more bovine meat, IT services and pharmaceuticals from India to enter China. However, ground realities are that no progress has taken place at all.

May-June 2015 ƒ India-China Chronicle |11|

INFOCUS|INDIA-CHINA|ECONOMY

Graph 2: Problems Faced by Indian Entrepreneurs in Yiwu Unit: %

Source: Personal Interviews conducted in Yiwu on June 5, 6, 7 2013; April 16, 17 2014.

(Notes: CGFII is the Catalogue for the Guidance of Foreign Investment in Industries)

\ HD UV QH VH 3 DU WQ HU 5H JL && VW UD * W LR ), , Q 3U 3U RE RE OH OH P P V V LQ 3U ( RE [S OH RU P W LQ V J LQ 5H ,P OLD S RU EO H WLQ OH J JD O V \V WH P 6W UR QJ ,3 5X 5 OH V +L Âś & JK OD U LW ,P \ SR U W 'X WLH V

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In an interview conducted in Yiwu, 20 Indian business entrepreneurs and investors were asked questions on various aspects related to their business undertakings in China. The results are displayed in Graph 2.

While 50 per cent had conducted EXVLQHVVHV LQ &KLQD IRU PRUH WKDQ ÂżYH years, 50 per cent had done the same IRU OHVV WKDQ ÂżYH \HDUV $OO KDG D &KLnese partner. 98 per cent knew (even if it was vaguely) of the CGFII. 95 per cent encountered problems in registering the enterprise, 95 faced problems in importing goods from their countries or from anywhere outside China, while none faced any issues in exporting goods. 80 per cent stated that the legal system was not reliable, 90 per cent stated Intellectual Property Rights protection was weak, only 5 per cent agreed that rules were clear, and 95 per cent of the respondents complained of the duties on imports as being too high. Clearly, a lot of non-tariff measures exist in the Chinese market.

The other method to tackle the EXUJHRQLQJ WUDGH GHÂżFLW ZRXOG EH that of increasing Chinese investment in India. An action plan by the Confederation of Indian Industries called for prioritisation of Chinese Foreign Direct Investment (FDI) in LGHQWLÂżHG LQGXVWU\ VHFWRUV DQG establishing a sovereign deal to attract investment in Indian infrastructure.

During Chinese President Xi Jinping’s visit to India in September 2014, China had committed an investment of USD ELOOLRQ LQ ,QGLD RYHU WKH QH[W ¿YH years, which included setting up of industrial parks. However, the parks have not seen much development at all. As such, empty promises need to be taken up as a point during future RI¿FLDO GLVFXVVLRQV &XPXODWLYH )', LQÀRZV ZKLFK LQFOXGH HTXLW\ UH invested earnings and other capital from China in the period April 2000 to February 2014, are USD 321.81 billion. China represents 0.19 per cent in the total FDI received by India in the period April 2000 to February 2014, and ranks at 28 in the list of countries with highest FDI in India.

This miniscule amount is not capable

Graph 3: FDI inflows from China Source: Department of Industrial Policy and Promotion, Government of India

Emerging India-China Relations

SAARC and India’s Policy Options India is keen to uphold its status as a South Asian power; China’s ambition is to emerge as a ‘Greater Power’ in South Asian region. Is India-China relation entering to a new mode of power politics in South Asia? Is there a middle rational approach for both to follow? Find out.

ONE METHOD TO TACKLE THE BURGEONING TRADE DEFICIT WOULD BE TO INCREASE CHINESE INVESTMENT IN INDIA. THE CONFEDERATION OF INDIAN INDUSTRIES (CII) CALLED FOR PRIORITISATION OF CHINESE FDI IN 18 IDENTIFIED INDUSTRY SECTORS. FDI FROM CHINA HAS DECLINED IN THE LAST COUPLE OF YEARS. RI KHOSLQJ WKH WUDGH GHÂżFLW WXUQ LQWR D favourable one for India in any way. A closer analysis reveals that FDI from China has actually declined in the last couple of years.

7KH PD[LPXP )', HTXLW\ ÀRZ IURP &KLQD ZDV LQ WKH ¿QDQFLDO \HDU RI 7KH SUHYLRXV KLJK ZDV LQ WKH ¿QDQcial year of 2008-09. Between 2011-12 DQG WKH GHFOLQH LQ )', LQÀRZV from China was of 56.62 per cent. The LQFUHDVH LQ WUDGH GH¿FLW LQ WKH VDPH time period was that of 3.96 per cent.

|12| India-China Chronicle ƒ May-June 2015

Dr. Jagannath Panda

Overall, the period only saw declines which have not been in India’s favour.

India clearly has emerged as one of China’s largest markets. However, the situation which has emerged in the relationship between the two countries as far as trade is concerned is not a win-win situation one, and is not viable for India. For India, there is an urgent need to change the trade basket and to introduce elements where India has a proven competence. However, if these are being restricted, then it is time that India resorts to import substitution and reduces the volumes imSRUWHG IURP &KLQD $ KLJK WUDGH GH¿FLW weakens the fundamentals of the econRP\ DV LW LV FRPSOLFDWHG WR ¿QDQFH WKH excess demand for foreign exchange which in turn destabilises the Indian UXSHH ,Q LWVHOI WKH WUDGH GH¿cit with China works out to a quarter RI ,QGLDœV GH¿FLW ZLWK DOO RWKHU WUDGLQJ countries, and this is clearly not economically viable for India, and needs a serious rethink on India’s foreign trade policies with China which has RQO\ VHHQ GH¿FLWV LQ WKH ODVW GHFDGH ‰ Dr. Sriparna Pathak Raimedhi is an Associate Fellow at the Observer Research Foundation, Kolkata.

Ms. Priyanka Dey is a Research Associate at Millward Brown, Mumbai

A

mong many immediate neighbourhood politics, IndiaChina relations in South Asian region have been quite rocky. India’s keenness to uphold its status as a South Asian power and China’s ambition to emerge as a ‘Greater Power’ in South Asian region which will facilitate its global power strategy, is prime factor in India-China bilateral dynamism today.

Important aspects that further shape this balancing propensity between India and China in South Asia are: resource politics, bilateral connectivity to regional infrastructural SURMHFWV DQG FRQĂ€LFWLQJ LVVXHV ZLWK ‘third party’ states including Pakistan. To see objectively, the character, course and dynamism of South Asia have never before been matters of such resolute importance for India and China as it is now. New nuances like the renewed importance of SAARC, demands of smaller but resource-rich countries for a better place in Asian power politics, persisting border row between India and China, unceasing antagonism between India and Pakistan on the issue of Kashmir, the Bangladesh-China-India-Myanmar

(BCIM) Economic Corridor initiative, the South Asian countries’ proximity to the Indian Ocean Region (IOR), Beijing’s Maritime Silk Road (MSR) to Silk Road Economic Belt (SREB) and the evolving security conditions in $IJKDQLVWDQ PDNH WKH UHJLRQ D ÀDVKpoint of regional power politics. What should be India’s approach to manage China in South Asia? This calls for a greater deliberation in India-China context.

Narendra Modi, India’s South Asia Policy and China Under the Narendra Modi government, India’s South Asia policy seems to be receiving a renewed life through a strong diplomatic engage-

CHINA HAS ALWAYS PURSUED ITS SOUTH ASIA POLICY UNDER TWO BROAD TERMINOLOGIES, THROUGH A DIALOGUE OF “GOOD NEIGHBOUR DIPLOMACY�

(MULINWAIJIAO) AND THROUGH A DIALOGUE OF “PERIPHERAL OR REGIONAL DIPLOMACY�

(ZHOUBIANWAIJIAO)

ment. Narendra Modi’s decision to invite all the SAARC members to attend his oath-taking ceremony as the new Prime Minister was an indication of this, which the Chinese media saw as a part of India’s “stronger regional diplomacy� and as “an extraordinary step�. Three factors probably explain this new policy boldness. First, the economic potential of the South Asian market in terms of enabling India to brighten up its economy within a premise of ‘Make in India’ initiative.

Modi had hinted about this during his election campaign. India’s exports to the South Asian market remain unimpressive compared to its total global exports. Even though India is a local power and the biggest economy in South Asia, India’s exports to the SAARC countries account for a meagre 4.9 per cent of its global exports.

In 2012-13, India’s exports to the other South Asian countries were around $17.3 billion, compared to its global exports, which totalled around $312 billion. India seems to be now pursuing a strategy where economic diplomacy will simultaneously move with strategic reach.

6HFRQG WKH VWUDWHJLF VLJQLÂżFDQFH of South Asia is realised well enough today in Indian diplomacy. Prime

May-June 2015 ƒ India-China Chronicle |13|

INFOCUS|INDIA-CHINA|SOUTH ASIA

Minister Modi’s invitation to all the South Asian leaders explained the case that India wants serious engagement with its neighbours, where Mr. Modi wants to carry forward more “positive and respectful relationsâ€? with India’s South Asian neighbours. His travel to %KXWDQ LQ KLV ÂżUVW RYHUVHDV WULS DIWHU DVVXPLQJ RIÂżFH DQG WKHUHDIWHU DQ RIÂżFLDO YLVLW WR 1HSDO LQ $XJXVW further emphasise this sentiment. The Bhutan visit was seen as an “unconventional policyâ€? choice which carried the message that India wants to FDSLWDOLVH ÂżUVW RQ LWV QHLJKERXUKRRG policy. This perception got further strengthened when External Affairs Minister Ms Sushma Swaraj visited Nepal and Bangladesh.

Third, the NDA government’s South Asia policy factors in China. A FOHDU UHÀHFWLRQ RI WKLV ZDV 0U 0RGLœV invitation to the Prime Minister of the Tibetan Government in Exile (TGIE), Lobsang Sangay, to attend his swearing-in ceremony. This gesture was clearly intended as a strategic signal to China that India valued the cause of Tibet and the Tibetan community.

The Chinese government took up this message and sent a demarche to India protesting this move.

Although India does not have any diplomatic ties with Taiwan, the new government invited Taiwan’s Economic and Cultural Council (TECC) representative in New Delhi, seating him with other ambassadors. It may be recalled that Mr. Modi had criticised China on his election campaign trail for its “expansionistâ€? policy and mindset. Ms Swaraj has gone on record stating that China must appreciate “One-Indiaâ€? policy and that “for India to agree to a One-China policy, China VKRXOG UHDIÂżUP D 2QH ,QGLD SROLF\´ and that “China should appreciate and understand India’s sensitivities on Arunachal Pradesh while raising issues like Tibet and Taiwanâ€?.

China’s South Asia Policy under Xi Jinping In recent times, South Asia has acquired a new “strategic focus� in the Chinese power building dialogue. This |14| India-China Chronicle ƒ May-June 2015 5

is partly because most of the South Asian states share land with China. In addition, in the recent Chinese foreign policy understanding, the strategic milieu of South Asia as a region and the standing of the countries in this region have increased in regional politics. The Chinese strategic community foresees the region of South Asia as vital in the overall regional stratagem of power politics and neighbourhood politics where Beijing must aim to have a strong position. SAARC member countries like India, Pakistan, Bangladesh and Afghanistan are catalogued as important in China’s transnational projects under a “neighbourhood strategy�.

A number of other factors that have shaped China’s South Asia outlook in the process are: strategic and economic standing of South Asia in today’s context; connections between China’s two arduous regions – Xinjiang and Tibet – with the South Asian region; tactical dynamism of Pakistan and India in its strategic interests; and the vitality of infrastructural linkages along with economic tie-ups with the South Asian countries. The principal objective of China’s South Asia policy is to expand “multi-dimensional strategic cooperation� with the region that is the key to the successful pursuit of Beijing’s overall regional strategic interests.

THE CRUX OF THE DEBATE FOR INDIA IS HOW TO MANAGE CHINA’S EVENTUAL ENTRY INTO SAARC BY ENGAGING WITH THE ISSUE OF RATIONALLY. BEIJING EVEN WITHOUT SAARC MEMBERSHIP, IS A POWERFUL PRESENCE IN SOUTH ASIA, A FACT INDIA CANNOT REALISTICALLY IGNORE Compared with China’s conventional outlook vis-Ă -vis South Asia, has a new policy evolved under the leadership of Xi Jinping? It would appear that neither China has an entirely new South Asia policy nor is China’s strategic thrust on India in its South Asia policy has anything new. The newness seems to be only in the strategic focus, the mode of contacts and the channels of understanding. Essentially, China has always pursued its South Asia policy under two broad terminologies: through a dialogue of “good neighbour diplomacyâ€? (mulinwaijiao) and through a dialogue of “peripheral or regional diplomacyâ€? (zhoubianwaijiao).

Both essentially imply a similar approach: take your neighbours serious-

ly. In both these constructs, India has been a factor in China’s overall South Asia outlook. Policymakers in Beijing have mostly seen India as a regional power in the South Asian context.

At the same time, China’s current South Asia policy is distinguished by the fact that Beijing accommodates India under its great-power diplomacy (daguowaijiao), partly because India has emerged as a power both at the regional and the global levels. China’s QHZ ,QGLD IRFXV DOVR VLJQL¿HV D PRGL¿HG DQG UHQHZHG 6RXWK $VLD SROLF\ this is not entirely different from China’s traditional approach. For some time, China has visualised South Asia within its broader construct of world order, where having a nuanced foothold in South Asian affairs is a core aspect of its strategic outlook. Conventionally, China viewed South Asia more as part of its conformist security perspective, with secondary emphasis on its economic interests. Today, China sees South Asia as an economic opportunity concurrently with its strategic intents and security interests.

President Xi has invested strong focus on “neighbourhood� or “peripheral� diplomacy in his endeavour to establish a “prosperous, strong, democratic and culturally advanced, harmonious and modern socialist country by 2049�, as set out by the 18th CPC

May-June 2015 ƒ India-China Chronicle |15|

INFOCUS|INDIA-CHINA|SOUTH ASIA

National Congress in November 2012.

Acknowledging the import of neighbourhood politics in China’s overall foreign policy, President Xi has attempted to employ a multipronged strategy to establish stronger bilateral as well as multilateral relationships with the neighbouring regions across Asia and its sub-regions. Xi emphasises that recently there have been many changes in China’s relations with its neighbours, which must induce China to revitalise its neighbourhood policy through a win-win diplomacy, capitalising on economic bonding with the neighbouring region through inter-

connectivity and Silk Road Economic Belt (SREB) and Maritime Silk Road (MSR) projects. More remarkably, in China’s focus on institutionalising its regional and neighbourhood diplomacy and in the context of South Asia, there is an understandable interest in SAARC, which in a way has become an anchor in China’s engagement with South Asia.

Beijing’s SAARC Attention Beijing has steadily gained clout within SAARC as an observer member and also with its member countries inGLYLGXDOO\ 5HVRXUFHIXOO\ LW Ă€RDWHG WZR constructive dialogues within SAARC: (i) the dialogue of developing countries and (ii) the dialogue of “common interestsâ€?. At the 14th SAARC summit, the year after China was admitted as

an observer member, the Chinese Foreign Minister Li Zhaoxing said: “We all belong to the developing world, are experiencing fast growth and facing geographical location and popular support will greatly boost ChinaSAARC cooperation, which serves our common interests and peace, stability and development of the region.� This articulation allows China to pursue a two-fold strategy of establishing bilateral or multilateral/institutional contacts with South Asia through SAARC. This is a classic foreign policy strategy that China has articulated in the postDeng Xiaoping era.

The Chinese effort to tie up with South Asia institutionally through SAARC incorporates two objectives: ÂżUVW WR UHPDLQ DQ DFWLYH SOD\HU LQ neighbourhood politics and second to maximise its strategic interests by integrating into the region. In effect, institutionalising its regional engagements remains a priority in China’s contemporary thinking. As an institution, SAARC has built up a cooperative framework with various countries, bodies and institutions at the regional and global levels. Taking note of this, China aims to play a leadership position in SAARC itself. Li Zhaoxing, a &KLQHVH RIÂżFLDO VDLG DW WKH th SAARC summit that China was of the view that there should be a “cooperative mechanismâ€? for poverty alleviation between China and SAARC and that this collab-

|16| India-China Chronicle ƒ May-June 2015

RUDWLRQ VKRXOG H[WHQG WR RWKHU ¿HOGV like disaster relief and mitigation. In the last few years, China has steadily increased its economic connections with SAARC. In December 2006, the China South Asia Commercial Affairs Council was founded in Kunming for promoting this economic collaboration. China’s trade contacts with the South Asian countries have also seen a constant rise.

A SAARC Membership for Beijing?

China has recently lobbied hard for SAARC membership for itself, and the case for Beijing becoming a full SAARC member has gathered momentum. But will India like to see China as a prospective partner in South Asian affairs? In India’s perception, inviting China to be a SAARC member would change the dynamics of SAARC since China is not a South Asian country.

To perhaps impede China’s entry into SAARC, India has raised the issue of “institutional reform within SAARC�.

Most of SAARC’s institutional mechanisms operate and function consensually, where members have veto.

Article X, General Provisions of the SAARC Charter, lays down that decisions within SAARC at all levels will be taken on the basis of “unanimityâ€? and “bilateral and contentious issues shall be excluded from the deliberationsâ€?. If &KLQD EHFRPHV D IXOO Ă€HGJHG 6$$5& member, its veto could become troublesome to India’s interests, blocking many of India’s regional planning and infrastructural activities in South Asia.

Thus, India may be open to the idea of granting a more institutionalised dialogue mechanism facility to China rather than SAARC membership.

Since China’s entry into SAARC as an observer in 2005, its presence and LQÀXHQFH LQ 6RXWK $VLD KDV JURZQ from strength to strength, even to the extent of obsolescing the debate whether China is a South Asian power.

President Xi’s visit in September 2014 to South Asia, covering Sri Lanka, Maldives and India elucidated the interests that Beijing currently holds in South Asia. Should India prepare to

Policy Option for India

B

eijing by itself, even without SAARC membership, is a powerful presence in South Asia, a fact India cannot realistically ignore. Sri Lanka, the Maldives, Pakistan, and Bangladesh have already agreed to join China’s SREB and MSR programmes, pushing India into a corner. SAARC membership will allow Beijing to have greater connectivity to South Asia – physically and non-physically – which will change the balance to China’s advantage vis-à -vis India. Can something be retrieved from this situation?

To welcome China as a SAARC member, India could play for its own stakes: (i) SCO permanent membership for itself in return, on similar standards; (ii) asking Beijing to publicly declare its position on the India-China boundary dispute, mainly in terms of ofÀcially retracting its claim on Tawang or Arunachal Pradesh.

Also, India must wait and observe how the India-China boundary negotiations progress in the Modi-Xi regimes, which holds the key to most of the two countries’ bilateral and regional problems. In the alternative, India can block China’s formal entry into SAARC. This is doable. India has been doing this in similar circumstances. A longer-term vision for India has to be in terms of emerging as an alternative power to China in South Asia and create conÀdence and goodwill among its South Asian neighbours. It looks difÀcult, but is not beyond the realm of the possible.

accept China as a permanent SAARC member in the times to come? Can LW EHQHÂżW IURP WKLV SRVVLEOH GHYHORSment? In answer, India needs to note and revisit the changing course of Asia.

Without doubt, China has emerged as a stronger power than India, sharing a wide range of networks with the South Asian countries. China leads the Asian power politics, no matter how much the US “pivot� Asia policy tries to limit its outreach. Ironically,

Beijing is balancing the American reach in Asia, leading regional politics with a number of arrangements like the Asian Infrastructure Investment Bank (AIIB), SREB and MSR. In its FRQÀLFW ZLWK -DSDQ RQ WKH (DVW &KLQD Sea, China holds the strategic edge through joint maritime exercises with Russia to counter any possible joint eventuality from Japan and the USA. Further playing to China’s advantage is the current recession in Japan, with

the Japanese business and industrial lobbies advocating closer engagement with the Chinese economy. Similarly, in South China Sea dispute, no matter how much Vietnam and other Southeast Asian powers grumble, China’s economic supremacy outmanoeuvres them, mainly when China and ASEAN members along with dialogue partners are engaged in RCEP (Regional Comprehensive Economic Partnership) negotiations.

After the 18th SAARC summit held in Kathmandu on November 27-28 last year, China is likely to emerge as “lead dialogue partner� with SAARC. In the circumstances, India needs to follow, at least in the short term, a prudent middle path for a more constructive engagement between China and SAARC. The crux of the debate for India is how to manage China’s eventual entry into SAARC by dealing with the issue rationally and with prudence. ‰

Dr. Jagannath Panda is Research Fellow & Centre Coordinator for East Asia at the Institute for Defence Studies and Analyses (IDSA), New Delhi. He can be contacted at: jppjagannath@gmail.com

May-June 2015 ƒ India-China Chronicle |17|

INFOCUS|INDIA-CHINA|COVER STORY

Modi’s China Visit: Road to Pragmatism Prime Minister Modi’s visit to China was an attempt to revitalize strategic and economic ties. He highlighted ‘Brand India’ for Chinese investment in infrastructure and energy-related projects. He emphasized on establishing “strategic trust� between the two nations. Can this visit be termed as historic that could forge new synergies in the bi-lateral relationship and reshape Asian geo-politics?

Monish Tourangbam

D

ebates are emerging in India’s strategic community and beyond, regarding the momentum that Prime Minister Narendra Modi has arguably brought to India’s foreign policy. Certainly, Mr. Modi has generated rock star like responses wherever he has travelled GXULQJ WKH ¿UVW \HDU LQ KLV RI¿FH 2QH

RI WKH PRVW VLJQL¿FDQW YLVLWV KDV EHHQ the one made to the People’s Republic of China drawing enthusiastic crowds and attention from Indian and Chinese leaders, policymakers and media. The visit was marked by actions that are being seen to lift the relationship to a new level. Modi’s ¿UVW \HDU DV 3ULPH 0LQLVWHU ZLWK D stable mandate in the current political milieu has brought a sense of vigour

|18| India-China Chronicle ƒ May-June 2015

and pragmatic drive in the execution of the country’s diplomacy. There has been immense emphasis paid on the economic rejuvenation of India. Allout diplomatic efforts have been made in the past one year to signal to the developed as well as the developing economies that India means business and that the new government will make all efforts possible to ease doing of business in India.

The Stairway to Progress Needs Constant Servicing The need to maintain a conducive external environment for uninterrupted domestic growth has been reiterated and all diplomatic outreach in recent times have been geared towards increasing economic linkages between India and the rest of the world. It will be an understatement to say that India’s relationship with China is the PRVW VLJQL¿FDQW YHFWRU GHWHUPLQLQJ India’s external environment and hence for the Asian balance of power as well. By dint of their economic rise, there has been resultant geo-political manifestation of the rising importance of India and China not only in the regional scheme of things but also across all dimensions of the international system. A simple cursory browse of the most pertinent issues of the globalized world ranging from climate change to security of the international trade corridors, would show the inevitable importance of these two Asian giants.

The evolution of the Sino-India relationship has shown a level of maturity, in which both the sides understand the importance of the relationship bilaterally and beyond, while also acknowledging the divergences that is manifest most prominently in the unresolved border dispute.

Despite all the bonhomie and camaraderie enveloping the atmospherics of the relationship, the UHFHQW YLVLW ZDV GHÂżQLWHO\ QRW H[SHFWHG to create serious breakthroughs in the relationship in general or for that matter, in the border talks in particular. Nevertheless, Mr. Modi did engage in straight talks besides the usual niceties of any high level visit.

Speaking at the Tsinghua University in Beijing, Modi emphasized the need to resolve the border question, calling it a shared responsibility to the future to â€œâ€Śmove ahead with new purpose and determination.â€? â€œâ€Ś.The solution we choose should do more than settle the boundary question. It should do so in a manner that transforms our relationship and not cause new disruptions,â€? he said.

While acknowledging the

The Joint Statement between India and China issued during Prime Minister Modi’s visit to China stated that â€œâ€Śthe process of the two countries pursuing their respective national developmental goals and security interests must unfold in a mutually supportive manner with both sides showing mutual respect and sensitivity to each other’s concerns, interests and aspirations.â€?

importance of the agreements, protocols and border mechanisms between the two countries, Modi lamented the uncertainty existent over sensitive areas of the border region, KHQFH QHFHVVLWDWLQJ FODULÂżFDWLRQ RI the Line of Actual Control “without prejudiceâ€? to the position of the two countries on the boundary question.

Beijing’s response to Indian leaders’ visits to Arunachal Pradesh and the issuing of stapled visas to residents of Jammu & Kashmir and Arunachal 3UDGHVK KDV VLJQL¿FDQWO\ LPSHGHG progress in mutual understanding.

As such the need to develop creative solutions to irritants concerning visa policies and trans-border rivers were referred to. Ironically as Mr. Modi hinted at the uncertainty regarding the border issue, Chinese media was not to be left too far behind in its anti-India views; China’s national television broadcaster CCTV beamed a controversial map of India during

Modi’s visit that showed Arunachal Pradesh as ‘South Tibet’ and excluded large parts of Jammu and Kashmir. In the context of the Sino-Pakistan ties that has serious security repercussions for India-China engagement, and India’s concerns over China’s encirclement policy in South Asia, the Prime Minister hinted at the need to reshape policies and restructure for a EHWWHU HQYLURQPHQW VSHFLÂżFDOO\ FDOOLQJ for “deeper strategic communication WR EXLOG PXWXDO WUXVW DQG FRQÂżGHQFH ´ He said: ‌.We must ensure that our relationships with other countries do not become a source of concern for each other‌.We both face instability in our shared neighbourhood that can threaten our security and slow down our economies. The spreading tide of extremism and terrorism is a threat we both face; for both, its source is in the same region.

INDIA DECIDED TO PROVIDE ELECTRONIC VISAS TO CHINESE TOURISTS; A PROACTIVE STEP FROM NEW DELHI THAT SHOULD BE RECIPROCATED

BY BEIJING WITH CLEARER COMMITMENTS ON ITS STAPLED VISA POLICY, KEEPING INDIA’S CONCERNS AND SENSITIVITIES IN MIND

No Great Wall between India and China: Connect More Approach China is still seen as India’s chief military adversary. However, this reality and the ensuing competition for resources between the two countries do not negate the fact that India and China are entwined in a complex interdependence and are trading partners of the highest order.

However, the trading ties are highly imbalanced in favour of China, an issue that forms a major component of the deliberations between the two countries, and the recent visit included

May-June 2015 ƒ India-China Chronicle |19|

INFOCUS|INDIA-CHINA|COVER STORY

an emphatic statement by the Indian Prime Minister to allow increased access to the Chinese market. Constant attention at the highest level and reciprocal visits are required to clear differences in the relationship. In this context, breaking the usual protocol, Chinese President Xi Jinping received Mr. Modi at his hometown Xian, in response to Mr. Modi hosting him last year at his home state of Gujarat. The gesture was aimed not only to inject a new life into the relationship but also to highlight the importance of other regions and provinces.

In a bid to capitalise on the increasing role played by Indian states and Chinese provinces, an agreement was struck to establish a State/Provincial /HDGHUVœ )RUXP WKH ¿UVW PHHWLQJ RI which was held on 15 May 2015. Steps have been taken to open a new Consulate General of India in Chengdu and a new Consulate General of China in Chennai. This will facilitate and promote greater cultural, tourism, economic and people-to-people engagement. In addition, an agreement to establish Sister-State/ Province Relations between Karnataka/Sichuan, Chennai/Chongqing, Hyderabad/Qingdao and Aurangabad/Dunhuang in India and China UHVSHFWLYHO\ ZDV PDGH ,Q D VLJQL¿FDQW move, India decided to provide electronic visas to Chinese tourists; a proactive step from New Delhi that should be reciprocated by Beijing with clearer commitments on its stapled visa policy, keeping India’s concerns and sensitivities in mind.

Public diplomacy initiatives have been augmented to increase peopleto-people ties between the two counWULHV SDUWLFXODUO\ LQ WKH ÂżHOG RI HGXcation and cultural exchanges, most recently seen in the collaboration between the Indian Council for Cultural Relations and Yunnan National University. Expanded educational and cultural exchanges will see the annual exchange of 200 youths from each side in the second half of this year. The decision to establish an ‘India-China Think-Tanks Forum’ is a promising start and a much needed step that will |20| India-China Chronicle ƒ May-June 2015

Economy

“India Can Provide Better Return to Chinese Companies�

Prime Minister Mr. Narendra Modi’s visit to China led to signing of 21 business agreements. Donning the cap India Inc.’s CEO, he endorsed ‘Make in India’ and ‘Digital India’ campaigns in China. +RZ GR WKHVH HIIRUWV UDLVH ,QGLDÂśV HFRQRPLF SURÂżOH in China? Ravi Bhoothalingam, Chairman of 0DQDV $GYLVRU\ DQ H[HFXWLYH FRDFKLQJ ÂżUP DQG business consultancy service for Indian and Chinese companies, shares his thoughts with Urmila Rao. Q: Modi’s visit to China saw 21 business agreements signed worth $22 billion. Can you please simplify IRU RXU UHDGHUV WKH VLJQLĂ€FDQFH of $22 billion in terms of what EHQHĂ€WV LW LV OLNHO\ WR EULQJ WR D common man of India?

A: The agreements are actually in the nature of Memoranda of Understanding which will result in concrete investments later, depending on conditions on the ground in India. These projects are largely in the sectors of infrastrucenergy and connectivity-all secture, ene where India badly requires investtors whe and to that extent important for ment an all of us, more so for the common man, because whilst the rich can generate their ow own power or drive their own cars, the ordinary people have to rely on publi public transport and public utilities.

Q: Modi has invited Chinese companies to invest in India. Given the current EXVLQHVV HQYLURQPHQW ODFN RI EXVLQHVV transparency, bureaucratic hurdles, transpar regulatory regulato issues and to top it all ODQJXDJH LVVXHV KRZ NHHQ ZRXOG EH ODQJXDJ Chinese companies to invest in India?

India is a large market, has a A: In st stable polity and a sound legal DQG ÂżQDQFLDO V\VWHP VR WKH D Chinese regard India as a safe investment destination where they can earn a better return than the very poor yield they now get on the

86 7UHDVXU\ ERQGV 2I FRXUVH WKH issues you mention relate to ‘ease of doing business’ and need to be sorted out both for domestic as well as foreign investors. In addition, for foreign investors, security clearances need to be made non-discriminatory, transparent and speedy. The Chinese are concerned here since they are particularly at the receiving end of WKLV VLWXDWLRQ 2QH PXVW UHPHPEHU that investments are decided and operated by people, and at the end of the day people like to feel welcome in the host environment.

Q: Do you view this meeting as a step forward for Indian companies in terms of getting better access to Chinese PDUNHWV IRU WKHLU 3KDUPD DQG ,7 products?

our huge exports of IT and ITenabled services. Having said that, ,QGLDœV ELODWHUDO WUDGH GH¿FLW ZLWK China has become a political hot potato and needs tackling. My own IRUHFDVW LV WKDW WKLV GH¿FLW ZLOO QRW improve even if India’s exports to China increase. But Chinese inward LQYHVWPHQWV ZLOO GH¿QLWHO\ KHOS WKH bilateral balance of payments, since LQYHVWPHQW LQÀRZV RQ WKH FDSLWDO DFFRXQW ZLOO UHGXFH WKH GH¿FLW RQ WKH trade account.

Q: New business deals are being VLJQHG 7KH FKDQFHV IRU H[LVWLQJ and new companies getting into business disputes are also very real.

Is there any bi-lateral agreement on arbitrage of business disputes FXUUHQWO\" ,I QRW GR \RX WKLQN WKHVH

THE SETTING UP OF TASK FORCES TO EXAMINE IN DETAIL THE ACTUAL GROUND CONDITIONS IN CHINA PREVAILING IN THE PHARMA AND IT SECTORS IS A VERY WELCOME STEP A: The setting up of task forces to examine in detail the actual ground conditions in China prevailing in the pharma and IT sectors is a very welcome step. Like India, China is a vast and complex country, and any problems or entry barriers for Indian industry that exist at the local or provincial levels cannot be removed simply by an order from Beijing. These task forces with domain knowledge should be able to get into granular detail and ÂżQG VROXWLRQV WR WKH SUREOHPV Q: 7R ZKDW H[WHQW &KLQHVH LQĂ RZ RI Chinese FDI help narrow down the biODWHUDO WUDGH GHĂ€FLW" A: To start with, it is misleading to ORRN DW WUDGH VXUSOXVHV RU GHÂżFLWV only on a bilateral basis. They should always be examined holistically as part of the overall national accounts.

For instance, telecom imports from China have improved India’s teleconnectivity and thus made possible

nuances too ought to be discussed on the high table for continuity of cordial economic relationship?

A: Generally, joint venture agreements, loan agreements and the like have a clause stating how business disputes between the parties will be resolved, the arbitration procedures, FRXUWV RI MXULVGLFWLRQ HWF 2EYLRXVO\ it is far better not to have a dispute LQ WKH ¿UVW SODFH $V D VDIHJXDUG both parties must have a clear mutual understanding of each others’ goals and intentions well before signing any agreement. This requires some mundane but necessary business support systems like effective interpretation and translation, good legal and tax advisory services, YHUL¿FDWLRQ DQG GXH GLOLJHQFH SURFHGXUHV HWF 2WKHU FRXQWULHV RSHUDWing in China do have such support, so we in India must also develop it quickly by a government-industry partnership. ‰

help incubate fresh ideas to bridge divergences and create convergences. Moreover, the ‘High Level Media Forum’ to be convened on an annual basis by India’s Ministry of External Affairs and the State Council InformaWLRQ 2IÂżFH RI &KLQD LV UHTXLUHG WR EULQJ more nuanced and sober perspectives in each other’s media vis-Ă -vis the bilateral relationship, and also to help build positive perceptions about each other in both the countries. A Memorandum of Understanding (MoU) has been signed between India’s Doordarshan and China Central Television &&79 WR FRRSHUDWH LQ WKH ÂżHOG RI broadcasting through exchange of television programmes, promotion of co-production on themes of mutual interest and training of production and technical staff. The establishment of the Center for Gandhian and Indian Studies at Fudan University, Shanghai is also a welcome step towards better understanding of each other’s history and culture.

The Economic Narrative that Needs a Strategic View Increasing trade volume between India and China has also come with highO\ LPEDODQFHG WUDGH ÂżJXUHV LQ IDYRXU RI China, which has become a prominent matter of concern for India. The trade GHÂżFLW ZDV LQ WKH WXQH RI ELOOLRQ in the last one year (and cumulatively DERXW ELOOLRQ VLQFH 0RVW analysts have pointed out the need for China to open its market access to Indian products, particularly in pharmaceuticals products and IT services, as a way out from this highly skewed statistics. Joint measures have been discussed to resolve this unsustainable situation, including cooperation on pharmaceutical supervision including registration, speedier phytosanitary negotiations on agro-products for two-way trade, stronger links between Indian IT companies and Chinese enterprises and increasing services trade LQ WRXULVP ÂżOPV KHDOWKFDUH ,7 DQG logistics. Moreover, issues pertaining to tariff reduction in respect of relevant Indian products under the frameZRUN RI $VLD 3DFLÂżF 7UDGH $JUHHPHQW May-June 2015 ƒ India-China Chronicle |21|

INFOCUS|INDIA-CHINA|COVER STORY

Diplomacy

With respect to the trans-boundary ZDWHU LVVXHV LQ 2FWREHU GXUing Manmohan Singh’s China visit, both countries had signed a MoU on Trans-boundary rivers in which Beijing agreed to provide hydrological data on the Brahmaputra River durLQJ WKH ÀRRG VHDVRQ 7KH DJUHHPHQW LV still in place and during Modi’s China visit; the Indian side also appreciated and acknowledged China’s efforts to provide hydrological data during the ÀRRG VHDVRQ

“Both India and China Have to Strive to Realise the Asian Century, One or the Other Can’t be Absentâ€? Âľ6HOÂżHVÂś ZHUH WDNHQ DQG FUHDWLYH VROXWLRQV WR OLQJHULQJ LVVXHV ZHUH GLVFXVVHG during PM Modi’s visit to China, but talks on ‘One Belt, One Road Project’ and ‘One China Policy’ was given a miss. Overall, what progress did India make?

Dr. Rahul Mishra, Research Fellow at the Indian Council of World Affairs (ICWA) assesses Mr. Modi’s visit in an interview with Urmila Rao Q: Prime Minister Narendra Modi received a warm welcome in China, WKH EL ODWHUDO WDONV ZHUH FRQGXFWHG LQ D IULHQGO\ HQYLURQPHQW VHOÀHV ZHUH WDNHQ LQWHU JRYHUQPHQWDO agreements and 21 business agreements worth $22 billion were signed. Would you term this visit a watershed in the history of Sino-Indian relationship?

A: Mr. Modi’s China visit was highly successful and was certainly different from the past visits on at least four counts. Prime Minister made Xian his stopover in China. This was the ÂżUVW WLPH WKDW %HLMLQJ DFFRPPRGDWHG a departure from the protocol, that of receiving a foreign leader outside Beijing. During his three-day visit, Mr. Modi also visited Beijing and concluded the visit at Shanghai. While his one-day stay at Xian proved fruitful in reinforcing cultural ties and underscoring the newfound salience of 'hometown diplomacy', political relations were strengthened in Beijing. Finally, the two sides pledged to elevate economic relations in Shanghai. This is indicative of India-China cooperation at different levels. Secondly, the ÂľVHOÂżH GLSORPDF\Âś ZDV DGRSWHG E\ 0U 0RGL +H ZDV VHHQ WDNLQJ VHOÂżHV ZLWK the Chinese Premier Li Keqianq and &KLQHVH VWXGHQWV 0RGL /L VHOÂżH DWtracted as many as 32 million ‘likes’ on China’s microblogging website,

a separate joint statement on climate change was issued that signaled India DQG &KLQDÂśV FRQÂżGHQFH LQ HDFK RWKHU It also manifested that that both the countries realise the importance of cooperating with each other to address issues of global concern.

Sina Weibo. This suggests that Mr. Modi is gaining popularity among the Chinese wherein he is being viewed DV RQH RI WKH PRVW LQĂ€XHQWLDO IRUHLJQ leaders in China.

Thirdly, while there was a personal touch to the visit, Modi did not shy away from discussing issues of difference openly and candidly. For instance, while delivering his speech at Tsinghua University on May 15, KH HPSKDVL]HG RQ WKH QHHG WR ÂżQG ‘creative solutions’ to the lingering issues of stapled visas, China-Pakistan Economic Corridor (CPEC), and trans-boundary rivers. Additionally, he spoke of settling the question of boundary dispute quickly. Fourthly,

|22| India-China Chronicle ƒ May-June 2015

Q: Agreements and MoUs have been signed but when the spotlight fades DZD\ WKHUH LV D WHQGHQF\ WR VOLS EDFN on signing of formal agreements and if done, implementation tends WR VHH D GRZQZDUG VSLUDO 7KLV LV especially true of inter-governmental agreements. Would you agree? How would you rate the sustainability and success of these agreements/ MoUs? A: A careful analysis of the past events reveals that MoUs signed between India and China during the earlier visits have not been religiously implemented, both the sides are to be blamed for that. Furthermore, Border Defence Cooperation Agreement (BDCA) signed during the former Indian Prime Minister Manmohan Singh’s YLVLW WR &KLQD LQ 2FWREHU KDV DOVR been taken as a rhetorical pledge to a great extent. However, Modi’s style of diplomacy which includes inter-alia giving personal touch to a proactive approach in strengthening ties with RWKHU FRXQWULHV LV VLJQL¿FDQW 7KLV KDV been seen in cases of US, Japan, China and South Korea, to name a few.

SEEMINGLY, THE BORDER QUESTION WILL REMAIN UNRESOLVED FOR YEARS TO COME WITH OR WITHOUT BORDER CLASHES. WHAT REMAINS TO BE SEEN IS WHETHER BOTH THE COUNTRIES WILL BE ABLE TO MAINTAIN STATUS QUO TILL A MUTUALLY AGREED SOLUTION IS WORKED OUT Mr. Modi wants to give a boost to infrastructural development in different states and attract foreign investments in India. Chief Ministers of different states accompanying a Prime Minister during foreign visits has not been a common practice in India. However, during Modi’s China visit, Chief Ministers of Gujarat and Maharashtra were a part of Modi’s KLJK SURÂżOH GHOHJDWLRQ $GGLWLRQDOO\ China-India State/Provincial Leaders’ Forum got established which is seen DV D ÂżUVW RI LWV NLQG LQLWLDWLYH 8QGHU Modi government, inter-governmental agreements are closely linked with Modi’s campaign of ‘Make in India’ or 'make, market and research in India'. Modi has also been taking steps WRZDUGV VLPSOLÂżFDWLRQ RI LQYHVWPHQW processes to facilitate investments.

Therefore, it seems that MoU signed under Modi government will be successfully implemented, though one cannot overrule the possibility of some issues getting overlooked.

Q: 7R ZKDW H[WHQW FDQ ZH VHH WKH YLVLW SUHYHQWLQJ IXUWKHU ERUGHU VNLUPLVKHV and rarely openly discussed transboundary water issues?

A: In the past few months, the num-

ber of border incursions has VLJQLÂżFDQWO\ FRPH GRZQ 7KH ODVW border skirmish took place in Chumar valley during the visit of Chinese President Xi Jinping’s India visit in 6HSWHPEHU ,Q VR IDU WKHUH has been no major stand-offs along the India-China border. In fact, in March 2015, Chinese Foreign Minister Wang Yi’s assured that “there will be no incursions across the IndiaChina border and that the border dispute has been containedâ€?. Unfortunately, in the recent past, almost all the visits exchanged between Indian and Chinese leaders were overshadowed by the border skirmishes. For instance, in April-May 2013, Li Keqiang’s maiden visit to India was overshadowed by almost a three-week long border clash at Depsang. Thankfully, Modi’s visit to China got over smoothly. India-China border dispute is a long drawn out conĂ€LFW DQG WKH VROXWLRQ WR WKH TXHVWLRQ LV not easily achievable. Seemingly, the border question will remain unresolved for years to come with or without border clashes. What remains to be seen is whether both countries will be able to maintain status quo over the border DQG ZRUN WRZDUGV ÂżQGLQJ D PXWXDOO\ agreeable solution.

Q: It seemed that the leaders touched upon almost all top-of-the list matters; border dispute, water issues, trade GHÀFLW FXOWXUH RXWHU VSDFH PHGLD infrastructure‌ was any issue missing from the high table?

A: Most of the important issues were discussed between the two sides and considering the state of India-China relations, expecting more would have been ambitious. Perhaps, in the next meetings, Modi and Xi would be more candid and discuss issues of convergence and divergence with equal ease.

Finesse in Indian diplomacy was evident when just a few days before Modi’s China visit, the Indian side expressed its concerns with respect to China-Pakistan Economic Corridor.

The statement was made just before the visit, so that the China-Pakistan issue does not get hyped in the media. Thus, the timing was most apt to highlight the issue and yet do not let that spoil the visit. During his visit, Modi also refrained from mentioning China’s growing infrastructural development in Pakistan and India’s apprehensions. The corridor holds immense importance in China’s strategic and economic calculus as it aims to secure and diversify its routes to energy-rich countries towards its west. Nevertheless, several countries believe that the corridor will be another means for China to establish its foothold in the Central, West and South Asia.

Additionally, there was no menWLRQ RI Âľ2QH &KLQD 3ROLF\Âś LQ WKH

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INFOCUS|INDIA-CHINA|COVER STORY

joint statement. This suggests that ,QGLD KDV VWRSSHG HQGRUVLQJ WKH 2QH China Policy which is mainly due to China’s continued claim on Arunachal Pradesh as Southern Tibet. Perhaps it signals that China has to understand India's concerns on sovereignty and territorial integrity. A quid pro quo has to be arrived at between New Delhi and Beijing on this issue.

Q: 7KH 2QH EHOW RQH 5RDG SURMHFW GLGQ¡W VHH GHWDLOHG WDONV :RXOG \RX say the reason could be India’s guard on China’s motives with regard to H[SDQVLRQ DV D KHJHPRQ" A: Though before the visit speculations were rife that India will enGRUVH &KLQDœV ¾2QH %HOW 2QH 5RDG 3URMHFWœ 2%25 KRZHYHU WKH WZR VLGHV GLG QRW HYHQ PHQWLRQ WKH 2%25 India is still hesitant in extending its support for China’s ambitious project, which may also be termed as one of the biggest Chinese initiatives in the ZRUOG KLVWRU\ :LWK WKH 2%25 SURject, what China aims to achieve is the greater connectivity between China and Europe, Central Asia, and West Asia. Bangladesh-China-India-Myanmar (BCIM). The reasons behind India’s hesitant approach vis-à -vis 2%25 DUH PDQLIROG JLYHQ WKDW ,QGLD and China are still involved in a protracted border dispute, India does not wish to endorse any of China’s proMHFWV ZKLFK PLJKW KDYH UDPL¿FDWLRQV on its border dispute with China later.

6HFRQGO\ 2%25 LV FRQFHSWXDOLVHG WR serve two purposes: to re-energise relations with neighbours through effective use of naval diplomacy and to respond to the US’ rebalancing towards Asia in diplomatic terms. While China and the US are stuck in cooperationconfrontation mode, India might not want to get involved in any regional or global rivalry situation. Thirdly, CPEC LV YHU\ PXFK D SDUW RI 2%25 DQG ,Qdia has its own apprehensions with respect to the corridor. India cannot approve of a Chinese investment in a disputed territory between India and 3DNLVWDQ 2QH PD\ VD\ WKDW &KLQD V

stance on CPEC and stand on IndoVietnam joint oil exploration project off-the-Vietnam coast, are not in harmony. This causes concerns in Indian corridors of power.

Q: &KLQD¡V QDWLRQDO SDSHU UHPDUNHG that Western elite don’t want to see India and China drawing closer to each other because it will confront their vision for Asia’s future. What DUH \RXU WKRXJKWV RQ WKLV UHPDUN" A: It has been inherent in China’s strategic thinking that India is used by western countries and adversaries of China primarily as a counterweight against China. It is noteworthy that while India and China have a few issues of differences, India is not a threat to China’s national interests. China is at loggerheads with Japan on the ownership of islands in the East China Sea; whereas Vietnam and the Philippines are equally assertive in the South China Sea dispute. As far as the US is conFHUQHG &KLQDœV 2%25 DQG &KLQD led Asia Infrastructure Investment Bank (AIIB) are seen as answers to the US’ Pivot to Asia and the US-led 7UDQV 3DFL¿F 3DUWQHUVKLS 733

In such a situation, where China is confronted by rivals and adversarLHV &KLQD ÂżQGV LW VXLWDEOH WR PDLQtain cordial relations with India.

So far as India is concerned, maintaining strategic autonomy through the practice of an independent foreign policy is the cornerstone of its foreign policy.

India has proved it over and again that it does not believe in alliance politics. India has gone out of its way to befriend China. From unilaterally endorsing China's claims for United Nation Security Council (UNSC) to supporting its AIIB and BRICS Bank plans, India has been looking at China as a partner in the long run. Both India and China have to strive honestly to realise the Asian Century; a dream that cannot be realised in the absence of one or the other. ‰

|24| India-China Chronicle ƒ May-June 2015

have been put forward by both sides as an important agenda in the days to come. In recent times, business deals worth several billion dollars have been VWUXFN EHWZHHQ WKH WZR FRXQWULHV ELOOLRQ VLJQHG DW %HLMLQJ DQG ELOlion at Shanghai during Modi’s visit, DQG ELOOLRQ DQQRXQFHG GXULQJ President Xi Jinping’s visit to India in IRU WKH QH[W ÂżYH \HDUV 7RS &KLQHVH &(2V GXULQJ D PHHWLQJ ZLWK WKH Indian Prime Minister, expressed optimism and enthusiasm about India’s dynamic work force and huge market and saw a lot of potential in the ‘Make in India’ campaign.

India and China have shown intent to use the Strategic Economic Dialogue (SED) to explore new areas for economic cooperation in crosscutting ¿HOGV LQFOXGLQJ LQGXVWULDO LQYHVWPHQW infrastructure development, energy conservation and environment protection and sustainable urbanisation, including partnership in smart cities’ development. For instance, the Gujarat International Finance Tec-City (GIFT) in India and Shenzhen in China have EHHQ LGHQWL¿HG DV SLORW VPDUW FLWLHV IRU joint demonstration projects. The India-China Joint Economic Group has IRU LQVWDQFH LGHQWL¿HG YDULRXV VWUDWHgic areas of cooperation and has signed a Five-Year Development Program for Economic and Trade Cooperation that lays out a roadmap for deepening and balancing bilateral economic engagement.India seems to be on a mission mode concerning development trajectory which involves revitalizing economic ties with China. )RU LQVWDQFH VLJQL¿FDQW SURMHFWV are in pipeline in the railway sector such as speed-raising on the existing Chennai-Bengaluru-Mysore line, proposed feasibility studies for the DelhiNagpur section of high speed rail link, station re-development planning for Bhubaneswar and Baiyappanahalli, heavy haul transportation training and setting up of a railway university. %XLOGLQJ &RQ¿GHQFH $PLGVW Lingering Mistrust Alongside the narrative of economic connectedness between India and

China, a parallel narrative of distrust runs between the two countries. The leaderships in India and China have LQWHQGHG WR LPSURYH FRQÂżGHQFH EXLOGing measures, to prevent sourness in relationships; border or elsewhere.

A geospatial reading of international affairs shows a shift of attention towards Asia, and numerous analyses have inferred that the growth trajectories of India and China and their bilateral relationship will be consequential across the board. In this sense, there is

DURING THE MEETING WITH INDIAN PRIME MINISTER, TOP CHINESE CEOS EXPRESSED ENTHUSIASM ABOUT INDIA’S DYNAMIC WORK FORCE AND HUGE MARKET AND SAW A LOT OF POTENTIAL IN THE ‘MAKE IN INDIA’ CAMPAIGN

been put forward as areas of substantial interest between the two countries.

China’s mega proposal in the form of WKH ¾2QH %HOW 2QH 5RDGœ 2%25 LQLWLDWLYH GLG QRW ¿JXUH LQ WKH DJHQGD RI India-China discussions perhaps owing to the possibility that New Delhi has not clearly subscribed to this idea till date. The joint statement reiterated cooperative engagements to mitigate climate change, committing to work together and with other relevant parties under the United Nations Frame-

Prime Minister Modi during his keynote address at the India-China Business Forum in Shanghai noted: “You are the ‘factory of the world’. Whereas we are the ‘back ofĂ€ce of the world’. You give thrust on production of hardware, while India focuses on software and services‌The component design expertise of Indian engineers and low cost mass production by China can cater to the global markets in a better way. This industrial partnership of China and India can bring about greater investment, employment and satisfaction of our people.â€?

a growing realization, in the words of the Indian Prime Minister that “issues that lead to hesitation and doubts, even distrust� in the relationship should be addressed. Referring to concerns of alliances and counter-alliances in the region aiming to contain each other’s growth, Prime Minister Modi said: ‘‘If the last century was the age of alliances, this is an era of interdependence. So, talks of alliances against one another have no foundation. In any case, we are both ancient civilizations, large and independent nations. Neither of us can be contained or become part of anyone’s plans. So, our partnership in international forums should not be determined by the concerns of others, but the interests of our two countries.’’ India has hardly counted on China’s support when it comes to India’s aspirations for permanent membership at

the United Nations Security Council (UNSC) or multilateral export control regimes like the Nuclear Suppliers’ Group (NSG). And as such, no breakthroughs were expected on these areas and Beijing remained true to rhetoric such as China â€œâ€Śunderstands and supports India’s aspiration to play a greater role in the United Nations including in the Security Councilâ€? and that it â€œâ€Ś took note of India’s aspirations to become a member of the NSG, in a bid to strengthen international non-proliferation efforts.â€?

Cooperation in regional forums and initiatives were also highlighted.

Increased cooperation at the ShangKDL &RRSHUDWLRQ 2UJDQLVDWLRQ 6&2

South Asian Association for Regional Cooperation (SAARC), Bangladesh, China, India and Myanmar (BCIM) Economic Corridor and towards establishment of the Asian Infrastructure Investment Bank (AIIB) have

work Convention on Climate Change (UNFCCC). In addition, cooperation in the space domain was sought too along with the need for securing the sea lanes of communication for maritime trade and commerce.

The 21st century is being already labelled an Asian century in which the two rising giants, India and China will GH¿QLWHO\ SOD\ D ELJ UROH 8SJUDGLQJ economic diplomacy and making India a favoured destination for business and investment is the way forward. It seems that Mr. Modi is on the right road. ‰

Monish Tourangbam is Assistant Professor at the Department of Geopolitics and International Relations, Manipal University

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Border: An Elusive Settlement?

A breakthrough on boundary talks was expected during Modi’s visit to China. There were several signs since the beginning of the year, including visit of Ms Sushma Swaraj to Beijing who stated that boundary dispute should not be left to future JHQHUDWLRQV DQG WKHUH ZDV D QHHG WR ¿QG ¾RXW RI WKH ER[œ VROXWLRQV +RZHYHU QR concrete steps took place in May. Stephen Westcott

P

rime Minister Narendra Modi’s much anticipated three day visit to China in May 2015 can be seen as a success on many levels.

Several new trade deals worth $22 billion were signed, new e-visas to enable the Chinese to visit India were announced and several historical and cultural links between the two countries were strengthened throughout the visit, demonstrating the growing connections between the two counWULHV +RZHYHU WKH SURJUHVV RQ UHVROYing China and India’s disputed border once again has proven elusive. Though Modi conducted cordial discussions

concerning the border dispute with Chinese President Xi Jinping and Premier Li Keqiang, there was no hint of DQ\ QHZ GHDO RQ ZKDW LV RIÂżFLDOO\ FDOOHG the boundary question.

No Progress on Boundary Talks This lack of progress is somewhat GLVDSSRLQWLQJ JLYHQ WKH VLJQL¿FDQW degree of speculation in the international media that some agreement to move the border dispute forward would be announced during this visit. Indeed, there were several signs since the beginning of the year that some form of breakthrough was in the making. India’s External Affairs Minister Sushma Swaraj in her

|26| India-China Chronicle ƒ May-June 2015

February visit to China stated that the dispute should not be left to future generations and there was a need to ÂżQG ÂľRXW RI WKH ER[Âś VROXWLRQV WR WKH dispute. In addition, the 18th round of Special Representatives Talks held in March and the 7th Defence and Strategic Dialogue held in April were conducted smoothly, with both seemingly laying the foundation for talks during the state visit. Modi also recently demonstrated his determination to resolve troublesome longstanding border disputes when he insisted on WKH UDWLÂżFDWLRQ RI /DQG %RXQGDU\ Agreement with Bangladesh that will see mutual exchange of enclaves despite the opposition of Assam and

Bengal BJP members.

Yet, during Modi’s visit, little was said with regard to the dispute other than the usual platitudes from both sides declaring that it is their intention WR VHHN D ÂľIDLU DQG UHDVRQDEOHÂś VROXWLRQ to the boundary question and in WKH LQWHULP PDLQWDLQ ÂľSHDFH DQG tranquillity’ at the border. To be sure, the only notable development was Modi’s call to clarify the Line of Actual Control (LAC) “without prejudice to our position on the boundary questionâ€?. Why did Modi’s visit result in no movement despite the promising indicators of progress? What factors are currently delaying a possible solution to the dispute?

Inertia is partly to blame for any lack of progress. Negotiations over the border dispute have progressed only JODFLDOO\ VLQFH WKH\ ZHUH ÂżUVW LQLWLDWHG in 1981. Indeed, there has been no sigQLÂżFDQW SURJUHVV WRZDUGV UHVROXWLRQ since the Agreement on the Political Parameters and Guiding Principles for the Settlement was signed in 2005.

Since that time the objective of the WDONV JUDGXDOO\ VKLIWHG IURP ÂżQGLQJ D solution to managing the dispute and smoothing over the latest crisis or conWURYHUV\ +RZHYHU LQ FRQWUDVW WR WKH regular skirmishes on Indo-Pakistan or in the South China Sea, the Sino-Indian border is relatively placid ensuring that the leadership of both countries lack the impetus to actively seek a solution. Thus the temptation to retain

the status quo has repeatedly proven just too great in the past and Modi’s recent visit clearly was no exception. $ QRWDEOH WUXVW GH¿FLW EHWZHHQ WKH China and India also has exacerbated the efforts by both sides to constructively negotiate. There have been nuPHURXV UH¿QHPHQWV RI WKH PXWXDO SURtocols of conduct and joint exercises conducted in an effort to build up trust DQG FRQ¿GHQFH EHWZHHQ WKH WZR VLGHV +RZHYHU PRUH RIWHQ WKDQ QRW WKH LQN is barely dry on a new agreement or WKH PRVW UHFHQW H[HUFLVH ¿QLVKHG EHfore one country is antagonising the other again. While both sides have avoided having any serious confrontations since 1987, the bilateral relations are frequently stirred by provocative speeches or actions in the disputed WHUULWRU\ UDQJLQJ IURP RI¿FLDO YLVLWV WR actively patrolling to erecting observation posts. Such behaviour, often conÀDWHG ZLWK PXWXDO FRQFHUQV RYHU HDFK other’s geopolitical ambitions, are

THERE WAS SIGNIFICANT DEGREE OF SPECULATION IN THE INTERNATIONAL MEDIA THAT SOME AGREEMENT TO MOVE TOWARDS SETTLING THE BORDER DISPUTE WOULD BE ANNOUNCED DURING MODI’S VISIT TO CHINA

thus poisoning the atmosphere surrounding the negotiations and even damaging progress in other areas of the bilateral relationship.

Intractable Disagreements $W D GHHSHU OHYHO WKHUH DUH VLJQLÂżFDQW and intractable disagreements between China and India that has impeded any effort to come to a solution thus far.

In essence, the boundary question LV GHÂżQHG DV DSSUR[LPDWHO\ km2 of contested territory with an undelimitated LAC stretching a little over 4000km and acting as the de facto ERUGHU +RZHYHU WKHVH ÂżJXUHV DUH based on the possible interpretation of the disputed border. Both countries disagree with the length of the LAC ZLWK RIÂżFLDO ,QGLDQ ÂżJXUHV SXWWLQJ the border at 3488 km whereas China acknowledging it to be only 2000 km long.

Both sides have formally recognised that the border dispute should be UHVROYHG ZLWK D ¿QDO VHWWOHPHQW WKDW would cover all sections and that each would have to make concessions to DUULYH DW D ¾SDFNDJH GHDOœ +RZHYHU the clear disparities between the WZR VLGHœV GH¿QLWLRQV RI ZKDW LV actually disputed make it inherently GLI¿FXOW IRU DQ\ SURJUHVV WR EH PDGH &RPSRXQGLQJ WKHVH GLI¿FXOWLHV DUH the different understandings of how to approach the border negotiations and the role the dispute should have on the bilateral relationship.The Chinese longstanding position has been that the border dispute should not impede improvements in other areas of the bilateral relationship, especially improving economic connections. As such the Chinese have been keen to incorporate India in its new Maritime Silk Route and raised it during Modi’s visit. In response, Modi reiterated India’s equally longstanding position that, while there are areas to cooperate, WKH ERXQGDU\ TXHVWLRQ SOD\V D ¾OLPLWLQJ factor’ on the bilateral relationship and its resolution is needed for deeper economic ties.

Though Modi’s visit was something of a missed opportunity for a breakthrough on the boundary question, the

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INFOCUS|INDIA-CHINA|BI-LATERAL

obstacles outlined above make such a shortcoming understandable. Indeed, in face of these problems former Chinese Premier Wen Jiabao fatalistically REVHUYHG LQ WKDW D ¿QDO UHVROXtion to the border dispute may be unachievable and that every attempt to ¿QG D VROXWLRQ WHQGHG WR GDPDJH &KLQHVH ,QGLDQ UHODWLRQV +RZHYHU LW LV WR be noted positively that both sides are still actively engaged in negotiations DQG FRQ¿GHQFH EXLOGLQJ PHDVXUHV This visit may yet prove to be a catalyst for the next step towards resolution if Modi’s suggestion to clarify the LAC is pursued.

The Chinese have avoided clearly delimiting the LAC as they were concerned it would involve at least the tacit recognition of the McMohan Line, which it denounces as illegal, and will undermine its territorial claims south of the line by effectively turning it into a permanent border. As this would entail China relinquishing approximately 90,000 of the 128,000 km2of contested territory, including the Tawang Tract which it has been primarily interested in acquiring due to its strong links to

INFOCUS|CHINA|FOREIGN POLICY

THE CHINESE LONG-STANDING POSITION HAS BEEN THAT THE BORDER DISPUTE SHOULD NOT IMPEDE IMPROVEMENTS IN OTHER AREAS OF THE BILATERAL RELATIONSHIP, ESPECIALLY IN ECONOMIC CONNECTIONS Tibet, the Chinese have been hesitant to agree to any such deal in the past.

Modi’s proposal, seemingly still at a conceptual stage, explicitly stated that WKH FODUL¿FDWLRQ RI WKH /$& ZRXOG QRW imply any relinquishing of territorial claims from either side. Both sides are keenly aware that the ambiguous and unmarked LAC is a leading cause of misunderstandings and paranoia on the border with patrols regularly inadvertently straying onto the wrong side. With a notable increase of border incidences over the past two years, this suggestion might be taken seriously by the Chinese.

|28| India-China Chronicle ƒ May-June 2015

The two sides’ special representatives are expected to meet on the sidelines of the upcoming BRICS summit in Russia where it is likely they will explore Modi’s proposal. During this visit, Modi put the onus for settlement on China by calling for it to “reconsider its approach on some issues that hold XV EDFN´ +RZHYHU LI DQ\ DJUHHPHQW is to be reached it would require a deJUHH RI Ă€H[LELOLW\ IURP ERWK VLGHV EXW there is little public evidence at the moment that India has seriously considered to change its position. Yet it is still relatively early in Modi’s Prime 0LQLVWHUVKLS +LV JRYHUQPHQW WKXV IDU has shown that it is willing to consider a wide range of options to revitalise stagnating relations. As such, with the rapport that Modi has ostensibly built with the Chinese leadership and the potential that increased trade could have for both economies,it is likely that some form of agreement is now not a matter of if, but when. ‰ Stephen Westcott is a PhD student at Murdoch University, Western Australia. His major area of study international border disputes

‘All-Weather Friendship’

Between China and Pakistan:

Implications for India Xi’s recent visit to Pakistan has been dubbed as “fate-changing visitâ€? in ChinaPakistan relations. India feels uneasy with this “all-weather strategic cooperative SDUWQHUVKLS´ ZKLFK LW ÂżQGV GLIÂżFXOW WR DVVHVV DV ZHOO DV LJQRUH HYHQ DV ERWK WKH countries celebrate 2015 as China-Pakistan Year of Friendship.

Amrita Jash

T

he ‘All-Weather Friendship’ between China and Pakistan, PHWDSKRULFDOO\ GHÂżQHG DV “higher than the mountains, deeper than the oceans, stronger than steel, dearer than eyesight and sweeter than honeyâ€?, has taken a new high. The

phenomenal shift has been bestowed

by Chinese President Xi Jinping when he made his maiden visit to Pakistan (April 20-21, 2015) to the land of its “iron friendâ€?, Pakistan. It also marks WKH ÂżUVW YLVLW E\ D &KLQHVH 3UHVLGHQW to Islamabad after an interregnum of 9 years. In an attempt to reassure the durability of the long-standing

friendship to the world at large, Xi Jinping prior to his visit stated in an op-ed titled “Pak-China Dosti Zindabadâ€? in Pakistan Daily Times : Âł7KLV ZLOO EH P\ ÂżUVW WULS WR 3DNLVWDQ but I feel as if I am going to visit the home of my own brotherâ€?- thereby adding great symbolism to the act of diplomacy.

May-June 2015 ƒ India-China Chronicle |29|

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In total consensus, both sides elevated the bilateral relations to a new dimension, as the 20 point Joint Communique signed between Xi and Pakistan’s Prime Minister Nawaz Sharif pointed out: “The two sides agreed to elevate the Pakistan-China relationship to the All-Weather Strategic Cooperative Partnership, enriching the PakistanChina Community of Shared Destiny, to ensure the perpetual continuity in Pakistan-China friendship from generation to generation�. Further, prioritizing their foreign policy agenda, both countries upheld that “the friendship and cooperation between Pakistan and China serve the fundamental interests of the two countries and peoples, and contribute to peace, stability and development in the region and beyond�. In addition, applauding the two countries success in evacuating their citizens from war torn Yemen, Xi noted that “China and Pakistan have always trusted, understood and supported each other, and are all-weather friends�.

The Heights of Balancing Interests It is an accepted fact that international politics is driven by national interest, wherein survival is the primary goal. In this view, in understanding the importance of Xi’s visit to Pakistan, it is imperative to analyse the motives that drive China’s interests in Pakistan. In doing so, one needs to assess the achievements and outcomes of this high-level visit.

One of the high points of the visit was the honour conferred to Xi to address a joint sitting of the Pakistani Parliament, at the National Assembly and the Senate. In his address, Xi described Pakistan as China’s “dependable� friend, with an emphasis that bilateral ties are based on mutual trust and support. Xi pledged to work hand-in-hand with the South Asian nation, praised Pakistan’s counterterrorism activities and pronounced China’s keen interest to support Pakistan in overcoming its security challenges. In addition to this, Pakistan

also honoured Xi with Nishan-ePakistan, the highest civilian award for “outstanding contribution in the promotion of the relationship between the two countries.â€? In response, Xi remarked that “China considers Pakistan as its ‘Iron Brother’â€? for Islamabad stood by Beijing at a time when it stood isolated on the world stage. Xi also added that China would continue to support Pakistan for its “sovereignty, independence and territorial integrityâ€?. Weighed by heavy political symbolisms, these behavioral dynamics cannot be overlooked as they FDUU\ VWURQJ VLJQDOV ,W LV UHĂ€HFWLYH RI

THE MOST SIGNIFICANT AND CHARACTERISTIC FEATURE OF XI’S VISIT TO PAKISTAN WAS SIGNING UP ISLAMABAD FOR CHINA-PAKISTAN ECONOMIC CORRIDOR (CPEC). CPEC IS AN INTEGRAL PART OF BEIJING’S MAMMOTH SILK ROAD PROJECT THAT AIMS TO CONNECT EUROPE, ASIA AND AFRICA THROUGH ROADS AND PORT NETWORKS WKH JUHDW VLJQLÂżFDQFH WKDW 3DNLVWDQ and China attach to each other in their foreign policy agenda. It is an act of reassurance of the pillars of strength of their long standing friendship, thus epitomizing their “all-weather friendshipâ€?. %XW DERYH DOO WKH PRVW VLJQLÂżFDQW and characteristic feature of Xi’s Pakistan visit is the signing up of the agreement on the construction of China-Pakistan Economic Corridor (CPEC). Highlighting the centrality of CPEC, Xi in his op-ed remarked: “The China-Pakistan Economic Corridor is located where the Silk Road Economic Belt and the 21st Century Maritime Silk Road meetâ€?. In this light, CPEC is an integral part of Xi’s’s mammoth Silk Road Project that aims to connect

|30| India-China Chronicle ƒ May-June 2015

Europe, Asia and Africa through roads and port networks.

Under this initiative, China plans to build a $46 billion 3,000 kmlong strategic economic corridor through the PoK (Pakistan occupied Kashmir). It aims to comprise a planned network of roads, railways and energy projects linking southwest Pakistan’s deepwater Gwadar Port with northwest China’s Xinjiang Uygur Autonomous Region. Being an important leg of China’s visionary “One Belt, One Road� Initiative, Xi pointed out the “need to form a ‘1+4’ cooperation structure with the CPEC at the center and the Gwadar Port, transport infrastructure, energy and industrial cooperation being the four key areas to achieve a win-win result and common development�. Here, China’s motive behind building the $46 billion CPEC is primarily driven by its strategic interest wherein by building the Gwadar Port, it wants to link it to the western city of Kashgar in order to secure its trade and energy imports from the existing chokepoints.

It is argued that the CPEC will shorten the route of China’s energy imports from the Middle East by about 12,000 kms and would also provide China with a direct access to the Indian Ocean, while for Pakistan, the CPEC opens the window of opportunity to end its chronic energy crisis as well as build itself into a regional economic hub.

In this aspect, as pointed out in the Joint Statement that both sides will “actively facilitate the important cooperation projects including the Karakoram Highway (Phase II) Upgrade and Reconstruction, the Gwadar Port, the Karachi-Lahore Motorway (Multan-Sukkur section), the Lahore Metro Orange Line, the Haier-Ruba Economic Zone, the Suki Kinari Hydropower Project, the Pakistan-China Cross-border Fiber Optic Cable, the Landing of DTMB in Pakistan, as well as a number of energy, infrastructure and power generation projectsâ€?. In putting CPEC into function, Pakistan’s Karot K\GURSRZHU SURMHFW EHFDPH WKH ÂżUVW

recipient of funding from China’s $40 billion Silk Road Infrastructure Fund.

On the bilateral trade front, both the countries agreed to raise the trade to $20 billion in three years from WKH H[LVWLQJ ÂżJXUH RI ELOOLRQ ,Q total, Xi and Nawaz Sharif sealed 51 Memorandum of Understanding (MoUs) for cooperation in various ÂżHOGV VXFK DV WUDQVSRUW LQIUDVWUXFWXUH HQHUJ\ DJULFXOWXUH WUDGH ÂżQDQFH health, local affairs, media, ocean sciences and education. Of the 51 agreements, 30 were centered on the strategic corridor, which is to be the biggest connectivity project between the two countries after the Karakoram highway that was built in 1979.

Adding to the strategic partnership, both sides agreed to further strengthen strategic communication and cooperation, continue to give mutual support on issues related to each other’s core interests and major concerns, strengthen coordination and cooperation on international and regional issues of common concern, maintain the victorious achievements of World War II as well as the contemporary international order and system on the basis of the United Nations Charter, and jointly build a new type of international relations with win-win cooperation at the core. China also agreed to support Pakistan’s full-time membership at the Shanghai Cooperation Organization (SCO). Besides, it was also jointly agreed by the two countries to enhance cooperation on the Afghan issue and play a positive role in the reconciliation process RI $IJKDQLVWDQ ZKLFK UHÀHFWHG WKH width and depth of China-Pakistan strategic cooperation.

Therefore, these strategic collaborations between China and Pakistan exemplify the new heights of their “allweather strategic cooperative partnership�. From these well-calibrated goals and strategic objectives, it can be strongly stated that President Xi’s Pakistan visit strategically mapped out the future trajectory of China-Pakistan relations, giving a new thrust to the diplomatic ties.

C

hinese President Xi Jinping’s Pakistan visit does mark a historic turn in the China-Pakistan friendship. It is reà ective of the mutual strategic trust and priority that each holds for the other. It opened a window of opportunity for Pakistan by the launch of the China-Pakistan Economic Corridor, which holds greater potential in reconstruction of Pakistan’s economy and stabilization the state.

Both literally and Ă€guratively, Xi’s Pakistan visit does assure China’s unconditional ties with Pakistan, with symbolic underpinnings for the world at large. Therefore, an elevated China-Pakistan friendship to an “all-weather strategic cooperative partnershipâ€? does come with strategic signiĂ€cance, which is difĂ€cult to assess as well as ignore.

Strategic Implications for India In this gamut of cooperation, it is clear that the China-Pakistan axis is representative of a strong partnership.

Pakistan, being a strategic card for China in South Asia, is mainly used by China to counterweigh India’s balance of power in the South Asian region. In this line of thought, Xi’s visit to PakiVWDQ GRHV KROG VLJQL¿FDQW LPSOLFDWLRQV for India. As Kautilya in Arthashash-

tra suggested “enemy’s enemy is your IULHQG´ 7KLV GLFWXP DSSURSULDWHO\ ÂżWV into the dynamics of China-PakistanIndia nexus. Xi’s’s India visit in September 2014 was mainly centered on the economic domain, whereas Xi’s Pakistan visit was characterised by poOLWLFDO DQG VWUDWHJLF VLJQLÂżFDQFH +HUH India stands at the centre stage where both China and Pakistan can accordingly shift their policies to strategically counter India’s might in the South Asian region.

The main concern lies with respect to the China-Pakistan Economic Corridor, which creates a strategic discomfort for India. This is because it is an accepted fact that ChinaPakistan relationship is mainly anchored by the military quotient of both sides. Therefore, the 3,000 km long economic corridor that aims to pass through PoK with port facilities at Gwadar holds severe strategic and security implications for India.

Concern will always loom regarding the military activities in these areas in order to balance India’s might in South Asian Region as well as in the Indian Ocean. In this way China will check and balance India in its own strategic backyard, Pakistan. ‰

Amrita Jash is a Doctoral Candidate at the Centre for East Asian Studies (Chinese Studies), School of International Studies, Jawaharlal Nehru University, New Delhi.

May-June 2015 ƒ India-China Chronicle |31|

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´$VLD IRU $VLDQV UHà HFWV &KLQHVH 5HVHQWPHQW RI WKH 86¡V (QGXULQJ ,Qà XHQFH LQ WKH 5HJLRQ¾ Would it Mean Asia for the Chinese?

Dr Jonathan S Sullivan is Associate Professor of Contemporary Con Chinese Studies and Deputy Director Dir of the China Policy Institute at the University of Nottingham, UK. He regular regularly writes on China matters that includes China’s Ch relations with its expanding global role, crossneighbors, its ex Strait relations, Taiwanese politics and more. In an inter interview with Urmila Rao, he articulates on a wide range of issues including the US U conduct in Asia, China’s wariness of the US presence in the region, Beijing’s active role in region international society, among int others. o

|32| India-China Chronicle ƒ May-June 2015

Q: ,Q $SULO 3UHVLGHQW ;L ZDV LQ ,QGRQHVLD WR FRPPHPRUDWH WKH WK DQQLYHUVDU\ RI WKH %DQGXQJ FRQIHUHQFH RI $VLDQ DQG $IULFDQ QDWLRQV :LWK VXFK FRPPHPRUDWLYH GLSORPDWLF PRYHV LV %HLMLQJ VHWWLQJ RXW WR FODLP D GHĂ€QLWLYH OHDGHUVKLS UROHV LQ $VLD LQ D VRUW RI XQGHUPLQLQJ 86 DOOLDQFHV LQ $VLD" A: China was a major actor in the non-aligned movement and a participant at Bandung in 1955, thus it is only natural that it should take part in the commemorations.

I wouldn’t read too much into President Xi’s attendance at the event last month. China’s commitment to many facets of the Bandung Declaration remain in force (at least rhetorically). Through the extraordinary increase in the scale of its engagement with the developing world in the past 15 years, combined with the fact that China is a role model, economic partner and/or benefactor for many countries, it has emerged as a de facto leader of the developing world. Wary of potential misinterpretation, Chinese leaders have assiduously denied that they are pursuing a deliberate policy to provide leadership to the developing world or an alternative “Beijing Model�. Many Chinese feel that some kind of “leadership role� is its natural position in Asia, but I don’t see a deliberate attempt to undermine American alliances.

Q: $W WKH &RQIHUHQFH ;L $EH SOHGJHG EHWWHU UHODWLRQV WR ZRUN IRU UHJLRQDO VWDELOLW\ WKH PHHWLQJ ZDV VHHQ E\ VRPH H[SHUWV DV D VLJQ RI WKDZLQJ RI -DSDQ &KLQD UHODWLRQVKLS +RZHYHU Ă&#x20AC;YH GD\V ODWHU -DSDQ¡V GHIHQFH FRRSHUDWLRQ ZLWK WKH 86 HQVXHG XSVHWWLQJ &KLQD ,Q WKH QHDU IXWXUH LW VHHPV WKHUH LV QR SRVVLELOLW\ RI WKDZLQJ RI UHODWLRQVKLS EHWZHHQ %HLMLQJ 7RN\R <RXU FRPPHQWV A: Sino-Japan relations are complicated by longstanding issues that do not look like they can be resolved any time soon. The memory of imperial aggression, occupation and war is a genuine (and sometimes

instrumental) obstacle. Chinaâ&#x20AC;&#x2122;s rise to a position of economic strength has given rise to a feeling in some quarters that it is now able to take a leading role in Asia. Japanâ&#x20AC;&#x2122;s military alliance with the US being an obstacle to that. The two sides are important participants in many issues affecting the region-the East China Sea territorial disputes, Taiwan, North Korea to name a few- and they are also major economic partners. Thus the near and mid-term relationship will be about reducing the possibility IRU FRQĂ&#x20AC;LFW DQG PDQDJLQJ WHQVLRQV when they arise. Beijing and Tokyo have domestic constituencies that

JAPAN IS THE USâ&#x20AC;&#x2122;S MOST IMPORTANT ALLY IN THE REGION AND A CRUCIAL ANCHOR FOR RE-BALANCE. MANY CHINESE BELIEVE THE USA SHOULD REMOVE ITSELF FROM ASIA AS THE ENDURING STRENGTH OF THE USA-JAPAN ALLIANCE IS A CAUSE OF GREAT FRUSTRATION FOR CHINA

Q: ´,I ZH GRQ¡W ZULWH WKH UXOHV &KLQD ZLOO ZULWH WKH UXOHV RXW LQ WKDW UHJLRQ ¾ 3UHVLGHQW 2EDPD VDLG LQ DQ LQWHUYLHZ ZLWK 7KH :DOO 6WUHHW -RXUQDO UHFHQWO\ ,V WKLV 86 SDUDQRLD FRPLQJ RXW FOHDUO\ WR WKH IRUH" ,V WKDW WKH UHDVRQ ZK\ 86¡V FRVLQHV LV LQFUHDVLQJ ZLWK -DSDQ D QDWLRQ LW FDQ HDVLO\ FR RSW LQ LWV FDPS LQ D ELG WR FRQWDLQ D ULVLQJ &KLQD" A: This is an unusually frank

expect a certain kind of interaction with the other, which can exacerbate the friction of interactions. But leaders should keep in mind the unalterable fact that they are geographical neighbors and have to ÂżQG D ZD\ RI FR H[LVWLQJ

Q: &KLQD LV VHHQ WR EH NHHQ WR FRQVROLGDWH $VLD EXW LW KDV WHUULWRULDO DQG PDULWLPH GLVSXWHV ZLWK VHYHUDO RI LWV QHLJKERXUV $JDLQVW WKLV EDFNJURXQG GR \RX YLHZ UHJLRQDO FRRSHUDWLRQ LQ $VLD DV SRVVLEOH XQGHU &KLQHVH OHDGHUVKLS" A: Chinaâ&#x20AC;&#x2122;s foreign policy since Deng Xiaoping has emphasized securing borders and establishing a peaceful environment for the

economic modernization of the country. With peaceful external conditions and relative stability domestically, the Chinese economy has been transformed and the China of 2015 is a far cry from the one that emerged battered from the Cultural Revolution and the Mao era. China under Xi Jinping is more aware of its economic power and is very FRQÂżGHQW LQ LWV JURZLQJ GLSORPDWLF and political clout. Some analysts have interpreted this as manifest in growing â&#x20AC;&#x153;assertivenessâ&#x20AC;?. But that doesnâ&#x20AC;&#x2122;t mean China will abandon the attitudes that previously served it so wellâ&#x20AC;&#x201D;China is strengthening militarily but there is no evidence that it seeks or is preparing for FRQĂ&#x20AC;LFW &RRSHUDWLRQ ZLOO FRQWLQXH because economies in the region are interlinked and China is in many ways still a developing country that has many issues that require attention at home. Disputes and tensions are common in foreign relations, China and other countries in the region need to develop the skills and infrastructure to manage WKHP ZLWKRXW UHVRUWLQJ WR FRQĂ&#x20AC;LFW

admission of American thinking.

There is awareness that China believes Asia to be its own backyard and therefore it should have the right to lead. But to a greater or lesser H[WHQW WKH 86 FRQVLGHUV LWVHOI D 3DFLÂżF nation and is not ready to withdraw from the region and allow China to step into the vacuum. Many countries are glad that the US thinks like this and support the pivot/re-balance for that reason. Whether the re-balance is simply rhetoric or will be backed up by action remains to be seen. Chinaâ&#x20AC;&#x2122;s

May-June 2015 Â&#x192; India-China Chronicle |33|

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INFOCUS|INDIA-CHINA|DIPLOMACY

Responding Alike: India and China on Western Sanctions

actions in the East and South China Seas in the last two years, including construction on dispute territories, can be interpreted as testing American resolve. Japan is clearly the USâ&#x20AC;&#x2122;s most important ally in the region and a crucial anchor for the re-balance.

Many Chinese believe the US should remove itself from Asia, and the enduring strength of the US-Japan alliance is a cause of great frustration.

Between â&#x20AC;&#x153;containmentâ&#x20AC;? and ensuring that a rising power adheres to existing rules and norms there is broad scope for policy and action.

Q: :RUOG %DQN DQG ,0) YHUVXV &KLQD OHG $VLDQ ,QIUDVWUXFWXUH %DQN $,,%

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YHUVXV &KLQD EDFNHG )UHH 7UDGH $UHD RI WKH $VLD 3DFLĂ&#x20AC;F )7$$3 $UH ZH DJDLQ KHDGLQJ WR DQ HUD RI WZR GLVWLQFW FDPSV" A: The US made a strategic mistake in not joining the AIIB, which led to an informal popularity contest and emergence of what now looks like two contending blocs. It didnâ&#x20AC;&#x2122;t need to be the case. In the end it provides Chinaâ&#x20AC;&#x2122;s self-image and prestige a ÂżOOLS DQG D IXUWKHU GHPRQVWUDWLRQ that China thinks big and is able to get things done. It is an impressive accomplishment. Not enough is known about the AIIB to say with certainty how it is going to operate.

With such a wide membership, and with many partners having dual membership, it is unlikely to act in the short term in ways that challenge or overturn the existing status quo. /RQJHU WHUP LW LV PRUH GLIÂżFXOW WR predict how these initiatives will pan out. However, I can say with some FRQÂżGHQFH WKDW &KLQD LV JRLQJ WR become an increasingly active and pro-active member of international society and in many sectors where the existing regime is dominated by the US (and to a lesser extent the other developed economies). This represents a changeâ&#x20AC;&#x201D;whether one perceives this change in a positive or negative light probably depends on how one feels about the current status quo.

SOME COUNTRIES IN THE ASIAN REGION FEAR THAT â&#x20AC;&#x153;ASIA FOR ASIANSâ&#x20AC;? WOULD ULTIMATELY MEAN â&#x20AC;&#x153;ASIA FOR THE CHINESEâ&#x20AC;? AND HENCE THEY CONTINUE TO SUPPORT AMERICAN INVOLVEMENT Q: &KLQD LV LQYHVWLQJ ELOOLRQV RI GROODUV WR DFFHOHUDWH HFRQRPLF JURZWK LQ WKH $VLD UHJLRQ XQGHU LWV 6LON %HOW 5RDG LQLWLDWLYH 3ROLWLFDOO\ &KLQHVH OHDGHUVKLS KDV VWXFN WR WKH VORJDQ RI Âś$VLD IRU $VLDQV¡ D

GR \RX IHHO WKH HFRQRPLF LQLWLDWLYH ZLOO DGG D QHZ HFRQRPLF YLJRXU LQ WKH FRPLQJ \HDUV LQ WKH UHJLRQ E

EDFNHG E\ HFRQRPLF SURVSHULW\ LV WKH GUHDP RI Âś$VLD IRU $VLDQ¡V OLNHO\ WR FRPH WUXH" A: China has the motivation and resources to ensure that its vision for Asian development succeeds, at least in terms of physical infrastructure and â&#x20AC;&#x153;hardwareâ&#x20AC;?. Whether it has the â&#x20AC;&#x153;soft powerâ&#x20AC;? required to make others buy into its vision is another issue, particularly if -and Iâ&#x20AC;&#x2122;m not saying it necessarily does- accepting the

|34| India-China Chronicle Â&#x192; May-June 2015

Chinese vision requires rejecting a role for America. I donâ&#x20AC;&#x2122;t think, at the moment, there is a necessity to â&#x20AC;&#x153;choose betweenâ&#x20AC;? China and the US. But changes are afoot. The US has been invested in the region for a long time; Chinaâ&#x20AC;&#x2122;s interest and ability to engage and shape the regionâ&#x20AC;&#x2122;s development is a more recent phenomenon. In the abstract, Chinese investment is a good thing for developing regions, but the practice and practical effects of Chinaâ&#x20AC;&#x2122;s engagements around the world have not been universally positive.

The idea of Asia for Asians plays on Chinese (and other Asian nationsâ&#x20AC;&#x2122;, including Russia) resentment of Americaâ&#x20AC;&#x2122;s strong and enduring LQĂ&#x20AC;XHQFH RQ WKH UHJLRQ ,W LV D rhetorical change after years of tacitly accepting the US role in Asia and following it through in practice would entail a challenge to the existing order, particularly the economic and security realms. Many Asian countries are deeply apprehensive of a Chinese challenge to the existing order and hope that the US will retain its interest and presence. It is reasonable that some countries in the region fear that â&#x20AC;&#x153;Asia for Asiansâ&#x20AC;? would ultimately mean â&#x20AC;&#x153;Asia for the Chineseâ&#x20AC;? and to forestall such a possibility they support continued American involvement. Â&#x2030;

Despite mutual differences, there are instances where India and China have taken similar positions. Two cases in point are Western sanctions on Iran and Russia a where India and China have conveyed their opposition to these sanctions.

Rishika Chauhan

I

n the last few decades the simultaneous rise of India and China and their overlapping interests have constantly fuelled debates about competition between the two countries While contestations and divergences have often been discussed, there are issues where India and China have taken similar positions. One of the subjects where their stands have been

congruent is Western sanctions. In early 2000s India and China shared their discomfort regarding unilateral sanctions imposed on Iran. As regards sanctions against North Korea, India was relatively supportive of the sanction regime compared to China, however, both the states later conveyed their opposition to enhancement of sanctions. India and China have again announced their reservations

to sanctions against Russia. While several countries have checked their interaction with the sanctionee, the two emerging Asian powers have UXVKHG LQ WR ÂżOO WKH YRLG Iran Sanctions In the 2000s several unilateral and multilateral sanctions were imposed on Iran to change its nuclear behaviour. Iran was accused of possessing

May-June 2015 Â&#x192; India-China Chronicle |35|

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undeclared nuclear materials, refusing to allow International Atomic Energy Agency to inspect its uranium enrichment facilities and rejecting diplomatic solution. Iran was said to be creating nuclear proliferation risks. In addition to multilateral sanctions, unilateral sanctions were also placed on Iran.

While India and China mostly supported the sanctions imposed by the United Nations (UN), they were critical of the sanctions enforced unilaterally by the US and other states. In 2010 after the US selected Robert Einhorn as its new coordinator to implement sanctions against Iran, Nirupama Rao the then Foreign Secretary of India said that India was â&#x20AC;&#x153;concerned that the extra-territorial nature of certain unilateral sanctions recently imposed by individual countries, with their restrictions on investment by third countries in Iranâ&#x20AC;&#x2122;s energy sector, can have a direct and adverse impact on Indian companies and more importantly, on our energy security and our attempts to meet the development needs of our people.â&#x20AC;?

China too expressed its dissent.

While talking about Iran in 2009, the Chinese foreign ministry spokesperson, Jiang Yu said, â&#x20AC;&#x153;We believe that sanctions and exerting pressure are not the way to solve problems and are not conducive for the current diplomatic efforts on the Iran nuclear issue.â&#x20AC;? In 2012 the Chinese Foreign Minister, Yang Jiechi lucidly explained,â&#x20AC;&#x153;..all along we have been opposed to unilateral sanctions. When such sanctions affect other countries and damage other countriesâ&#x20AC;&#x2122; interests, it is something we cannot accept.â&#x20AC;? The two also opposed unilateral sanctions on Iran as part of the BRICS (Brazil, Russia, India, China and South Africa) Group, especially when the West pressurized states to reduce their crude oil imports from Iran.

Though China has taken a tough stand on sanctions imposed against North Korea, India has been lukewarm, however the two have conveyed their opposition together in Groups as well.

Speaking for Russia, India and China (RIC) Russiaâ&#x20AC;&#x2122;s Foreign Minister Sergei

INFOCUS|INDIA-CHINA|DIPLOMACY

Lavrov insisted, â&#x20AC;&#x153;We do not believe in new sanctions â&#x20AC;&#x201D; they will not help in any way to resolve the situation.â&#x20AC;?

Russian Sanctions The Russian policies on Crimea and ÂżQDOO\ LWV DQQH[DWLRQ LQ 0DUFK invited Western sanctions on Russia.

7KH 86 ÂżUVW LPSRVHG VDQFWLRQV RQ March 2014 through Executive OrGHU WKDW SDUWLFXODUO\ LQYROYHG â&#x20AC;&#x153;blocking property of certain persons contributing to the situationâ&#x20AC;?. According to the White House, the sanctions were a reaction to Russia asserting, â&#x20AC;&#x153;governmental authority in the Crimean region without the authorization of the Government of Ukraine.â&#x20AC;? Later,

IN 2013, RUSSIA PRODUCED ABOUT 10.7 MILLION BARRELS OF OIL A DAY, WHICH IS AROUND 12 PER CENT OF THE GLOBAL OIL PRODUCTION OF ABOUT 90.88 MILLION BARRELS. THUS IT WAS IMPERATIVE THAT SANCTIONS TARGET THE RUSSIAN ENERGY SECTOR President Obama used Executive OrGHU WR WLJKWHQ VDQFWLRQV DQG impose new ones. The International Emergency Economic Powers Act and the National Emergencies Action Ukraine were the primary Acts under which the US sanctioned Russia. European Union (EU) placed sanctions on Russia in September 2014. According to news broadcaster BBC, the sancWLRQV SULPDULO\ IRFXVHG RQ WKH ÂżQDQcial, energy and arms sector, including 5XVVLDQ RLO ÂżUPV OLNH 7UDQVQHIW 5RVneft and Gazprom Neft. As per the US Energy Information Administration, Russia is among the highest producers of oil in the world. In 2013, Russia produced about 10.7 million barrels of oil a day, which is around 12 per cent of the global oil production of around 90.88 million barrels. Thus it was imperative that sanctions target the

|36| India-China Chronicle Â&#x192; May-June 2015

Russian energy sector.

However, both India and China have conveyed their opposition to sanctions and maintained their ties with Russia.

In March 2014 when sanctions were imposed on Russia, India maintained, â&#x20AC;&#x153;India has never supported unilateral sanctions against any country like Iraq or Iran. Therefore, we will also not support any unilateral measures by a country or a group of countries.â&#x20AC;? When Russian President Vladimir Putin visited India in December to attend the 15th Annual India-Russia Summit in New Delhi the Putin-Modi India-Russia vision document stated,â&#x20AC;? oppose economic sanctions that do not have the approval of the United Nations Security Councilâ&#x20AC;?, which conveyed Indiaâ&#x20AC;&#x2122;s disregard for the Western sanctions against Russia.

Concurrently, China also took a similar stand and not only opposed sanctions imposed on Russia, but DOVR UXVKHG LQ WR ÂżOO WKH YRLG FUHDWHG by the Western withdrawal. Hence it enhanced cooperation with its neighbour. Deals were signed between Chinaâ&#x20AC;&#x2122;s Export-Import Bank and Russiaâ&#x20AC;&#x2122;s Development Bank, and Russian Agricultural Bank. In 2014 on a visit to Russia, Premier Li Keqiangâ&#x20AC;&#x2122;s signed a number of agreements dealing with LVVXHV H[WHQGLQJ IURP ÂżQDQFH WR energy. The BRICS group also reacted strongly opposing sanctions on Russia as they believed â&#x20AC;&#x153;...sanctions and counter-sanctions, and force does not contribute to a sustainable and peaceful solution.â&#x20AC;?

Hence it seems that Indian and Chinese aversion to Western sanctions has been quite consistent with a few departures. It cannot be overlooked that both, India and China have used sanctions themselves at some point.

In the Indian case, Nepal and Pakistan are examples, while in the Chinese case it is Japan and Taiwan. However, it seems that India and China would not keenly support Western sanctions, especially the ones against its trade partners. Â&#x2030; Rishika Chauhan is a research scholar at the Centre for International Politics, Organisation and Disarmament, Jawaharlal Nehru University, New Delhi

Chinaâ&#x20AC;&#x2122;s Diplomacy Caught between Europe and Russia Russia and Chinese trade amounted to approximately $95.3bn last year with a hope of expansion to $100bn in 2015. Year 2014 also saw $400 billion gas deal signed between the two countries.

Are the two powers knitting closer economic ties owing to Western sanctions on Russia?

Does this coalition mark a step towards a new international order, a multi-polar world where the United States is no longer the dominant power?

Himani Pant

T

he West has increasingly showed its discontent with Russian intervention in Crimea, as evident in various sanctions that have been imposed upon Russia. More recently, the West also boycotted the Victory parade in Russia that was celebrated to mark 70 years of Nazi Germanyâ&#x20AC;&#x2122;s defeat in the Second World War. However, Chinese president Xi Jinpingâ&#x20AC;&#x2122;s presence as the guest of honour in the Victory parade in Moscow raised many eyebrows in the West. According to the former US assistant secretary of the Treasury for economic policy, Paul Craig Roberts, the victory day celebration was a â&#x20AC;&#x153;historical turning point,â&#x20AC;? as

â&#x20AC;&#x153;the Chinese were there in their place,â&#x20AC;? at a time when the West was absent from the show. Apart from Xi Jinping, sitting next to President Putin, what also drew attention was the signing of 32 bilateral agreements on the eve of Victory parade, including a pact on cyber security between the two.

China remains an important strategic partner for Russia. As the director of Russia and Central Asian research Centre at the Shanghai Institute of International Studies states, â&#x20AC;&#x153;Russia needs more partners during this period of Western sanctions and China surely remains an ideal oneâ&#x20AC;?. In fact, sanctions against Russia have given China an opportunity to make the best deals in terms of procuring resources

from Russia. As James D.J. Brown of the Temple University, Japan puts it, â&#x20AC;&#x153;Current U.S. policy on the Ukraine crisis is driving Russia into Chinaâ&#x20AC;&#x2122;s embraceâ&#x20AC;?. So, if there is one country which has actually gained economically out of the Ukraine crisis, it is China.

Xi Jinpingâ&#x20AC;&#x2122;s response to strengthen strategic partnership with Russia in spite of the joint sanctions by Europe and the United States against the latter showcases the Chinese leaderâ&#x20AC;&#x2122;s diplomatic way â&#x20AC;&#x153;of maintaining a competition-cooperation relationship with Washington on one hand and reinforcing his countryâ&#x20AC;&#x2122;s strategic cooperation with Russia to secure the safety of Chinaâ&#x20AC;&#x2122;s northern border on the otherâ&#x20AC;?.

However, the present situation also

May-June 2015 Â&#x192; India-China Chronicle |37|

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places China in a â&#x20AC;&#x153;diplomatic bindâ&#x20AC;?.

A strong proponent of the absolute nature of sovereignty, the Peopleâ&#x20AC;&#x2122;s Republic of China does not support VHSDUDWLVW PRYHPHQWV 0RUH VLJQLÂżcantly, Chinese constitution underscores its policy of non interference in other statesâ&#x20AC;&#x2122; internal affairs. Russiaâ&#x20AC;&#x2122;s use of a referendum to break Crimea away from Ukraine contradicts this fundamental tenet of the Chinese foreign policy. China obviously would not want the precedent of Crimean referendum repeated in its own disputes, be it with Tibet, Xinjiang or Taiwan.

Beijing remains caught in the diplomatic bind also because Europe,

initiative. China has also found support from Europe in its Asian Infrastructure Investment Bank Initiative.

Major European nations like France, Germany, Luxembourg, Switzerland, Denmark and Austria have sought membership of the bank inspite of opposition by the United States.

Thus, it seems but natural that China has not been very vocal in international forum in voicing support for Russia. In general, what we see is cautious China that has maintained quite a restrained approach on the crisis.

matter can be gauged from the remarks made by Colonel Fang of the Chinese National Defence University in Beijing where he emphasises that the process of NATO expansion post the collapse of the Soviet Union had been a â&#x20AC;&#x153;bitter pillâ&#x20AC;? for Russia to swallow since its â&#x20AC;&#x153;strategic space was contractingâ&#x20AC;?

What Brings China and Russia Together?

According to Orville Schell of Asia Society, since both Russia and China ÂżQG WKHPVHOYHV DW RGGV ZLWK WKH :HVW

DURING HIS VISIT TO GERMANY IN 2014 PRESIDENT XI JINPING CLEARLY EXPRESSED HIS NEUTRAL POSITION OVER THE UKRAINE CRISIS REMARKING THAT â&#x20AC;&#x153;CHINA DOES NOT HAVE ANY PRIVATE INTERESTS IN THE UKRAINE QUESTIONâ&#x20AC;? which in the past was outside Chinaâ&#x20AC;&#x2122;s VWUDWHJLF LQĂ&#x20AC;XHQFH KDV FRPH FORVHU to the latter in the previous decade.

The EU remains Chinaâ&#x20AC;&#x2122;s biggest trading partner while China is the EUâ&#x20AC;&#x2122;s second largest trading partner. When Xi Jinping visited Germany last year, bi-lateral business deals amounting to about 140 billion Euros took place.

Chinaâ&#x20AC;&#x2122;s 2015 diplomacy is focussed on making all encompassing progress in the â&#x20AC;&#x153;Belt and Roadâ&#x20AC;? initiatives. In this regard, promotion of connectivity, building corridors for overland economic activities and pillars of maritime cooperation top the list of its priorities. It is also speculated that economic ties with Europe is commercially viable for China as it could offset the effects of a falling investment rate and rising overcapacity in Chinaâ&#x20AC;&#x2122;s domestic economy. Cordial relations with Europe thus become important from the point of building the â&#x20AC;&#x153;roadâ&#x20AC;?

Nevertheless, it has consistently called for dialogue and a peaceful resolution.

During his visit to Germany in March 2014, Xi Jinping clearly expressed his neutral position over the Ukraine crisis while remarking that â&#x20AC;&#x153;China does not have any private interests in the Ukraine question,â&#x20AC;? and that â&#x20AC;&#x153;all parties involved should work for a political and diplomatic solution to the FRQĂ&#x20AC;LFW ´ This neutral tone was well evident when China chose to abstain from voting in the UN Security Council last year. In the internal debates however, we see an understanding for Russiaâ&#x20AC;&#x2122;s position by referring to the â&#x20AC;&#x153;historical reasonsâ&#x20AC;? behind the annexation of Crimea. For instance, the tone of internal Chinese discussions on the

|38| India-China Chronicle Â&#x192; May-June 2015

their tendency is to team up. While Russia and China may not be the best of friends, what brings the two powers together at this time is mutual need and prospects of gain. From a fundamental standpoint, the main basis for a possible China-India-Russia coalition is stated to be their common desire to build a multipolar world order within which a rising powers like China can play a larger role. As Gilbert Rozman, a professor of Northeast Asian affairs in Princeton University puts it; Sino-Russian alliance is all about â&#x20AC;&#x153;national identity and the big efforts in both countries to establish a different kind of international order.â&#x20AC;?

This new international order refers to a multipolar world where the focus

shifts from the United States as the central power. According to a Russian security expert, Dmitry Trenin, â&#x20AC;&#x153;the Russia-China rapprochement is a sign of the changing world order, in which the West is still very relevant, but no longer dominantâ&#x20AC;?.

Jolted by the Western sanctions, Russian president was quick to make â&#x20AC;&#x153;a dramatic China pivotâ&#x20AC;?. While it was Russian economic weakness that drove Putin towards China, it was the lure to garner support that evoked positive response from China. So, while it did not support Russia in international forum, it did not oppose the country either.

Russia is in search of new markets post the Western sanctions against it. China is a preeminent Asian power with a great need for natural resources and Russia at this juncture needs market for exports. Hence, a sort of partnership of convenience between the WZR FDQ EH VHHQ ZKLFK LV EHQHÂżFLDO IRU both. So, while China may not be interested in the developments in Ukraine, LW GHÂżQLWHO\ LV LQWHUHVWHG LQ DFTXLULQJ resources for its large population.

Russia and Chinese trade amounted to approximately $95.3bn last year, and Chinaâ&#x20AC;&#x2122;s foreign minister Wang Li had pointed to closer cooperation in 2015 hoping for a close to $100bn bilateral trade in 2015. Thus, it may not be an exaggeration to say that Sino-Russian relations have entered a new phase ever since the West levied sanctions on Russia. During his visit to Shanghai in mid 2014, Russian president Vladimir Putin remarked that bilateral interactions between the two had become â&#x20AC;&#x153;best in all their many centuries of history.â&#x20AC;? The case in point is the $400 billion gas deal signed between China and Russia last year. In 2014 itself, it was reported that Russia ZDV UHDG\ WR VXSSO\ 6X ÂżJKWHU MHWV to China. The two countries also conducted a combined military exercise in the East China Sea the same year. The Russian and Chinese navies have also EHJXQ WKHLU ÂżUVW MRLQW H[HUFLVHV LQ WKH Mediterranean. This portrays growing defence ties between Beijing and Moscow and a demonstration that Chinaâ&#x20AC;&#x2122;s maritime horizons are broadening.

Chinaâ&#x20AC;&#x2122;s Ambition for Central Asia In more ways than one Sino-Russian alliance serves to estrange the latter from the West. The RussianChinese ties may turn out to be more binding than liberating for the former in the long term. It is true that in the wake of isolation from the West, Russiaâ&#x20AC;&#x2122;s inclination with China has been but natural. The sanctions regime KDV EHHQ DFWXDOO\ EHQHÂżFLDO IRU &KLQD DV WKH WHQ \HDU ROG JDV GHDO ÂżQDOO\ concluded last year where Russia

CHINA HAS ALSO FOUND SUPPORT FROM EUROPE IN ITS ASIAN INFRASTRUCTURE INVESTMENT BANK INITIATIVE. MAJOR EUROPEAN COUNTRIES LIKE GERMANY, FRANCE, UNITED KINGDOM , THE NORDICS (DENMARK, FINLAND, SWEDEN, NORWAY),LUXEMBOURG, SWITZERLAND, POLAND AND AUSTRIA AMONG OTHERS HAVE SOUGHT MEMBERSHIP OF THE BANK INSPITE OF OPPOSITION

BY THE UNITED STATES ultimately had to abide by Chinaâ&#x20AC;&#x2122;s prices. As Sijbren De Jong, who is an analyst of Russian and Central Asian affairs at the Hague Institute of InterQDWLRQDO $IIDLUV SXWV LW Âł&KLQD SURÂżWV off the fact that the negotiating position of Russia is weakâ&#x20AC;?.

It is important to note that both 5XVVLD DQG &KLQD DUH Y\LQJ IRU LQĂ&#x20AC;Xence in Central Asia. Xi Jinpingâ&#x20AC;&#x2122;s foreign policy gives acute emphasis in the development of Silk Roads. Hence, it is not surprising that China will try its EHVW WR LQĂ&#x20AC;XHQFH HFRQRPLF DQG SROLWLcal might in the Central Asian region.

According to Sijbren De Jong, â&#x20AC;&#x153;the ChiQHVH ZLOO QRW ZDQW WR SOD\ VHFRQG ÂżGGOH to Moscow in the quest for primacy in Central Asiaâ&#x20AC;?. In more ways than one,

China-Russia relationship is a transactional relationship. China is an emerging economy, but it has not yet reached the top spot in world affairs. What happens to Sino-Russian alliance if &KLQDÂśV LQĂ&#x20AC;XHQFH FRQWLQXHV WR JURZ while Russia gets alienated from the West all the more? Already, Chinaâ&#x20AC;&#x2122;s economy is over four times larger than Russiaâ&#x20AC;&#x2122;s, and the gap is likely to continue, considering the economic woes of Russia. This is important to ponder over because Moscow may not be willing to accept a junior partnership with China, nor is China likely to treat Russia as an elder brother.

It is important to mention here the growth of Shanghai Cooperation Organisation (SCO) is often viewed as a counterbalance to NATO by the West.

Both China and Russia dominate the SCO and try all means to garner support of growing powers like India to consolidate the organisation further.

Moreover, Chinaâ&#x20AC;&#x2122;s â&#x20AC;&#x153;Belt and Roadâ&#x20AC;? initiative has also been under scanner.

Shannon Tiezzi compares the Chinaâ&#x20AC;&#x2122;s initiative with the U.S by stating that just like the latter in 1948, China is a rising global power seeking to use its economic strength in securing foreign policy goals. According to her, just as the Marshall Plan acted as a catalyst in establishing the U.S as a superpower, â&#x20AC;&#x153;Beijing is betting its twin Silk Roads can do the sameâ&#x20AC;?. China, on its part, has continuously reiterated that the â&#x20AC;&#x153;Belt and Roadâ&#x20AC;? initiative should not be compared with the â&#x20AC;&#x153;Marshall Planâ&#x20AC;? of the 1950s. Chinese foreign minister Wang Li has come to the defence by stating that the â&#x20AC;&#x153;Belt and Road â&#x20AC;&#x2DC;initiatives concern the interests of all parties like a symphony performed by all rather than Chinaâ&#x20AC;&#x2122;s solo showâ&#x20AC;?.

Whether or not China intends to imitate the Marshall Plan, Chinaâ&#x20AC;&#x2122;s JURZWK UHPDLQV GHÂżQLWH IURP WKH Âł%HOW and Roadâ&#x20AC;? initiative. There is a huge possibility that China growth might VWLĂ&#x20AC;H 5XVVLDÂśV H[SDQVLRQ SDUWLFXODUO\ in the light of Ukraine related sanctions against Russia. Â&#x2030; Himani Pant is Research Assistant at Observer Research Foundation, New Delhi

May-June 2015 Â&#x192; India-China Chronicle |39|

INFOCUS|INDIA-CHINA|FOREIGN POLICY

Demystifying Chinaâ&#x20AC;&#x2122;s Silk Road Diplomacy Through â&#x20AC;&#x2DC;One Belt, One Roadâ&#x20AC;&#x2122; (OBOR) project, Beijing plans to expand ties with developing countries in a ELG WR H[HUW HFRQRPLF LQĂ&#x20AC;XHQFH DQG VHFXUH LWV IRUHLJQ policy goals. Many experts consider OBOR as â&#x20AC;&#x2DC;Chinaâ&#x20AC;&#x2122;s 0DUVKDOO 3ODQÂś :LWK VHYHUDO FRXQWULHV SDUW RI 2%25 has China set out to reshape the international system?

How is India responding to Beijingâ&#x20AC;&#x2122;s Maritime project in Indian Ocean Region? Read on. |40| India-China Chronicle Â&#x192; May-June 2015

Arushi Gupta

I

n March 2015, Chinaâ&#x20AC;&#x2122;s National 'HYHORSPHQW DQG 5HIRUP &RPPLVsion (NDRC), released an expansive EOXHSULQW RI ZKDW LW FDOOV DV WKH 6LON Road Economic Belt and 21st century 0DULWLPH 6LON 5RDG RIWHQ DEEUHYLDWHG as â&#x20AC;&#x153;One Belt, One Roadâ&#x20AC;? (OBOR). The JRDO RI WKH 2%25 LV ÂłWR SURPRWH RUGHUO\ DQG IUHH Ă&#x20AC;RZ RI HFRQRPLF IDFWRUV KLJKO\ HIÂżFLHQW DOORFDWLRQ RI UHVRXUFHV

DQG GHHS LQWHJUDWLRQ RI PDUNHWV HQcouraging the countries along the Belt and Road to achieve economic policy coordination and carry out broader and more in-depth regional cooperaWLRQ RI KLJK VWDQGDUGV DQG MRLQWO\ FUHating an open, inclusive and balanced regional economic cooperation and DUFKLWHFWXUH WKDW EHQHÂżWV DOO ´ &KLQDÂśV policies have been growing at an impressive pace since the 1980s. On its 65th anniversary last year, Chinaâ&#x20AC;&#x2122;s President Xi Jinping stated that â&#x20AC;&#x2DC;China would continue to give priority to GHYHORSPHQW DGKHUH WR UHIRUP DQG LQnovation and remain committed to the SDWK RI SHDFHIXO GHYHORSPHQW Âś Chinaâ&#x20AC;&#x2122;s policies are drawing near WKH HQKDQFHPHQW RI FRRSHUDWLRQ ZLWK LWV &HQWUDO DQG 6RXWKHDVW $VLD QHLJKERXUV LQ ZKDW LV NQRZQ DV Âł1HZ 6LON 5RDG 'LSORPDF\´ 2Q 6HSWHPEHU 2013, President Xi Jinping visited Ka]DNKVWDQ DQG SURSRVHG LQ KLV VSHHFK D QHZ IRUHLJQ SROLF\ LQLWLDWLYH FDOOHG Âł6LON 5RDG (FRQRPLF %HOW´ 6(% 7KLV LQLWLDWLYH IRFXVVHG PRUH RQ HQKDQFLQJ WKH international cooperation, strengthening the economic collaboration by building road connectivity, promoting WUDGH DQG LQYHVWPHQW IDFLOLWDWLQJ FXUUHQF\ FRQYHUVLRQ DV ZHOO DV UHLQIRUFLQJ people-to-people exchanges. On October 3, 2013, the President spelt out a QHZ LQLWLDWLYH RI 0DULWLPH 6LON 5RXWH 065 LQ KLV VSHHFK DW WKH ,QGRQHVLDQ Parliament, during his state visit to the FRXQWU\ 7KLV LQLWLDWLYH IRFXVVHG PRUH on upholding the international conQHFWLYLW\ ÂżVKHU\ DFWLYLWLHV DQG VFLHQWLÂżF DQG HQYLURQPHQWDO UHVHDUFK ZLWK the aim to bolster Chinaâ&#x20AC;&#x2122;s economic WLHV ZLWK FRXQWULHV IURP $VLD DQG (XURSH WKHUHE\ IRFXVVLQJ RQ GHYHORSLQJ regions along with the ancient route which connects Western China with 6RXWK DQG &HQWUDO $VLD 7KH 065 FRQQHFWV WKH 3DFLÂżF WR WKH %DOWLF 6HD E\ EXLOGLQJ XS WKH LQIUDVWUXFWXUH XSJUDGLQJ SRUW IDFLOLWLHV DQG FUHDWLQJ economic compatibilities with countries along the maritime zone. ThereIRUH WKH RYHUDOO VWUDWHJ\ EHKLQG ERWK WKH LQLWLDWLYHV 6(% DQG 065 LV WR HQKDQFH WKH &KLQHVH LQĂ&#x20AC;XHQFH ERWK politically and economically, while

improving the connectivity with the 6RXWKHDVW $VLD 6RXWK $VLD :HVW $VLD 1RUWK DQG (DVW $VLD &HQWUDO $VLD (DVWHUQ (XURSH 6RXWKHUQ DQG :HVWHUQ (XURSH DQG HYHQ $IULFD )XQGV IRU WKHVH SURMHFWV DUH GUDZQ IURP $VLDQ ,QIUDVWUXFWXUH ,QYHVWPHQW %DQN ELOOLRQ 1HZ 6LON 5RDG )XQG ELOOLRQ DQG WKH 1HZ 'HYHORSPHQW %DQN LQLWLDWLYHV EHWZHHQ %5,&6 QDWLRQV $FFRUGLQJ WR WKH URXJK estimates, the program encompasses more than 65 countries wherein anQXDO WUDGH RI FRQWULEXWLQJ PHPEHU FRXOG WRXFK WULOOLRQ RYHU D GHFDGH

THE BELT AND ROAD PROJECT, IN A WAY HELPS CHINA IN EXPANDING ITS ECONOMY WHICH OTHERWISE WOULD NOT HAVE BEEN POSSIBLE GIVEN ITS RELATIONS WITH NEIGHBOURING COUNTRIES. THE PROJECT IS SEEN AS A STRATEGY THAT WOULD OPEN MULTIPLE ACCESS ROUTES FOR CHINA

OBOR strategy advances the bolsterLQJ RI WKH &KLQHVH HFRQRP\ DV ZHOO DV QXUWXULQJ WKH RYHUDOO JURZWK RI &KLQD China has border issues with many RI LWV QHLJKERXULQJ FRXQWULHV LQFOXGing India. OBOR project is seen as a strategy that would open multiple acFHVV URXWHV IRU &KLQD WKXV PDNLQJ LW HDV\ IRU &KLQD WR FDUU\ RXW LWV REMHFWLYHV 7KH V\VWHP RI SRUWV UDLOV DQG roads will enable China to have access to oil and gas and other essential comPRGLWLHV QHHGHG IRU &KLQHVH HFRQRP\ Thus OBOR in a way helps China in expanding its economy which was otherwise not possible given its relations with neighbouring countries. OBOR DOVR VHUYHV WKH IRUHLJQ SROLF\ JRDOV RI the country by deepening Chinaâ&#x20AC;&#x2122;s relationship with its neighbours. With so PDQ\ FRXQWULHV SDUW RI 2%25 LW KHOSV &KLQD WR EH DW WKH FHQWUH RI WKH ZRUOG power, reshape the international system as well as expand Beijingâ&#x20AC;&#x2122;s ties with other developing countries and having access to much needed extra IXQGV WR PDNH WKHVH SURMHFW D VXFFHVV 2%25 ZDV WKRXJKW RI WR FRXQWHU WKH :HVWHUQ LQĂ&#x20AC;XHQFH DQG WR VWUHQJWKHQ the bilateral ties along the dual trade routes to support China to build a netZRUN RI QRQ ZHVWHUQ LQWHUQDWLRQDO RUganisation in which China could play a PDMRU UROH LI QRW D GRPLQDQW RQH

No Halting of MSR

I

f one takes news reports seriously, then it is believed that MSR will begin in Quanzhou, moving towards Guangzhou, Beihai and Haikou before heading south to the Malacca strait. From Kuala Lampur, the MSR heads towards Kolkata, India from where it crosses the rest of Indian Ocean to reach Nairobi, Kenya. From Nairobi, MSR goes north around the Horn of Africa and move through the Red Sea in to the Mediterranean, with a stop at Athens before meeting the Silk Road in Venice. On the other hand, the â&#x20AC;&#x2DC;new Silk Roadâ&#x20AC;&#x2122; starts from Xiâ&#x20AC;&#x2122;an in Central China before extending to west Asia through Iraq, Syria and Turkey. From Istanbul, the Silk Road crosses the Bosporus Strait and heads northwest through Europe, including Romania, Czech Republic, Bulgaria and Germany. From Germany, it then moves towards north to Rotterdam in the Netherlands and then ends to south of Venice, Italy, where it meets the MSR project. Over the last six months further â&#x20AC;&#x2DC;new stopsâ&#x20AC;&#x2122; have been added including Moscow (Russia), Dushambe (Tajikistan), Jakarta ( Indonesia) and Sri Lanka. Afghanistan has also shown its willingness to be part of the project. Therefore, the passage projects Chinaâ&#x20AC;&#x2122;s intention to reclaim its place as the â&#x20AC;&#x153;Middle Kingdomâ&#x20AC;? linked to the world through trade and cultural exchanges.

May-June 2015 Â&#x192; India-China Chronicle |41|

INFOCUS|INDIA-CHINA|FOREIGN POLICY

The OBOR have been considered by many experts as â&#x20AC;&#x2DC;Chinaâ&#x20AC;&#x2122;s Marshall 3ODQÂś )RU &KLQD WKH 6(% DQG 065 is seen as an opportunity to expand LWV LQĂ&#x20AC;XHQFH HFRQRPLFDOO\ RYHU WKH ZRUOG WR VHFXUH IRUHLJQ SROLF\ JRDOV However, China rejects these claims, stating that OBOR is a grand strategy ZKLFK LQWHJUDWHV (XUDVLD IRU HFRQRPLF JURZWK UDWKHU WKDQ IRU JHRSROLWLFDO hegemony.

Indiaâ&#x20AC;&#x2122;s Approach 065 XQWLO QRZ ZDV VHHQ DV &KLQDÂśV SLWFK WR $6($1 FRXQWULHV WR SURPRWH trade and cooperation between the 3HRSOHÂśV 5HSXEOLF RI &KLQD 35& DQG YDULRXV 6RXWKHDVW FRXQWULHV /DVW \HDU President Xi Jinping extended his inYLWDWLRQ WR ,QGLD WR MRLQ 065 GXULQJ WKH WK URXQG RI ERUGHU WDONV KHOG between the special representatives RI WKHVH FRXQWULHV ,QFOXGLQJ ,QGLD LQ 065 SURMHFW VHHPV UHDVRQDEOH IRU China given its recent BangladeshChina-India- Myanmar (BCIM) economic corridor initiative. Bangladesh, China, India and Myanmar met at the HQG RI DQG FKDONHG RXW D SODQ to strengthen economic cooperation, SURPRWH LQYHVWPHQW DQG WUDGH IDFLOLties and people-to-people contact.

The Modi governmentâ&#x20AC;&#x2122;s agenda LV IRFXVHG PRUH RQ LPSURYLQJ economic and security ties with the neighbourhood countries. Unless border issues are resolved it will be very GLIÂżFXOW IRU WKH FRXQWU\ WR HVWDEOLVK trade relations with China. In order to UHVSRQG WR WKH JURZLQJ QDYDO SURÂżOH RI China, India is also strengthening its maritime cooperation with countries. ,QGLD LV WKH IRXQGLQJ PHPEHU RI &RQWDFW *URXS RI 3LUDF\ DQG DOVR RI WKH ,QGLDQ 2FHDQ 1DYDO 6\PSRVLXP ,216 D YROXQWDU\ LQLWLDWLYH WR increase the maritime cooperation DPRQJ WKH QDYLHV RI WKH OLWWRUDO VWDWHV RI WKH ,QGLDQ 2FHDQ 5HJLRQ ,25

2QH RI WKH NH\ LQLWLDWLYHV RI WKH SUHVHQW government to retain the Indian LQĂ&#x20AC;XHQFH RQ ,25 LV Âľ3URMHFW 0DXVDPÂś Project â&#x20AC;&#x2DC;Mausamâ&#x20AC;&#x2122; Initially, Modi government enunFLDWHG D QHZ IRUHLJQ SROLF\ LQLWLDWLYH named Project â&#x20AC;&#x2DC;Mausamâ&#x20AC;&#x2122; with an aim

THE BELT AND ROAD PROJECT RUNNING ACROSS SEVERAL COUNTRIES WILL LINK SYSTEM OF PORTS, RAILS AND ROADS THAT WILL ENABLE CHINA TO HAVE ACCESS TO OIL AND GAS AND OTHER ESSENTIAL COMMODITIES NEEDED FOR CHINESE ECONOMY to compete with Chinaâ&#x20AC;&#x2122;s 21st century 065 3URMHFW Âľ0DXVDPÂś LV D KLJKO\ PRWLYDWHG SURMHFW RI WKH ,QGLDQ JRYHUQment which endeavours to position itVHOI DW WZR OHYHOV $W WKH PDFUR OHYHO LW plans to re-connect with the countries RI WKH ,25 ZLWK WKH DLP RI HQKDQFLQJ DQG XQGHUVWDQGLQJ RI FXOWXUDO YDOXHV and concerns and at the micro-level, Delhi aims to understand the national cultures in the regional maritime milieu. Project â&#x20AC;&#x2DC;Mausamâ&#x20AC;&#x2122; would allow ,QGLD WR UHNLQGOH WUDGH SDUWQHUV DQG re-establish an â&#x20AC;&#x153;Indian Ocean Worldâ&#x20AC;?

DORQJ WKH OLWWRUDO RI WKH ,QGLDQ 2FHDQ 7KH SURMHFW ZRXOG H[WHQG IURP (DVW $IULFD WKH $UDELF 3HQLQVXOD WKH ,QGLDQ VXEFRQWLQHQW DQG 6UL /DQND WR WKH 6RXWKHDVW $VLD 3URMHFW 0DXVDP DFWV DV D JXDUGLDQ IRU WKH ,QGLDQ JRYernment to be able to expand Indiaâ&#x20AC;&#x2122;s

|42| India-China Chronicle Â&#x192; May-June 2015

maritime presence in the IOR. 6LPLODUO\ WKH Âľ6SLFH 5RXWHÂś LV DQ important Indian initiative to revive the 2000 year old ancient route to promote sustainable, internationally competitive and responsible tourism. Âľ6SLFH 5RXWHÂś UHIHUV WR WKH DQFLHQW QHWZRUN RI VHD URXWHV FRQQHFWLQJ $VLD )DU (DVW (XURSH DQG $IULFD 7KURXJK Âľ6SLFH 5RXWHÂś SURMHFW .HUDOD LV PDNLQJ DQ HIIRUW WR UHYLYH WKH WZR PLOOHQQLD ROG 6SLFH 5RXWH 7KH SURMHFW re-establishes Keralaâ&#x20AC;&#x2122;s maritime trade relations with 31 countries which were

DVVRFLDWHG ZLWK WKH DQFLHQW Âľ6SLFH Routeâ&#x20AC;&#x2122;. It is believed that through Âľ6SLFH 5RXWHÂś LQLWLDWLYH .HUDOD ZRXOG ZLWQHVV UHYLYDO RI FXOWXUH KLVWRU\ DQG archaeological exchanges. ,Q WKH SDVW IHZ PRQWKV 3ULPH 0LQLVWHU 0RGL YLVLWHG 6H\FKHOOHV 6UL /DQND DQG 0DXULWLXV 0RGLÂśV DFWLYH diplomacy demonstrates that India is trying to improve its relations with its oceanic neighbours. India is not RQO\ RIIHULQJ HFRQRPLF DVVLVWDQFH EXW is also trying to enhance economic FRRSHUDWLRQ DORQJ ZLWK GHIHQFH DQG

PROJECT â&#x20AC;&#x2DC;MAUSAMâ&#x20AC;&#x2122;, INDIAN INITIATIVE NEXT TO CHINAâ&#x20AC;&#x2122;S MARITIME SILK ROAD, WOULD ALLOW INDIA TO RE-KINDLE TRADE PARTNERS AND REESTABLISH AN â&#x20AC;&#x153;INDIAN OCEAN WORLDâ&#x20AC;? ALONG THE LITTORAL OF THE INDIAN OCEAN security cooperation. Both India and China have held two rounds RI PDULWLPH GLDORJXH VR IDU ,QGLD however, remains apprehensive LQ MRLQLQJ &KLQDÂśV 065 ,QGLDÂśV PDMRU FRQFHUQ HPDQDWHV IURP WKH DUFKLWHFWXUH RI 065 DQG ZKHWKHU WKH SURMHFW ZRXOG EHQHÂżW ,QGLD LQ DQ\ ZD\ or not. On Indiaâ&#x20AC;&#x2122;s west is the proposed &KLQD 3DNLVWDQ HFRQRPLF FRUULGRU WKDW ZRXOG OLQN ;LQMLDQJ SURYLQFH RI China with Chinese developed sea port DW *ZDGDU 7KH OLQN SDVVHV WKURXJK 3DNLVWDQ RFFXSLHG .DVKPLU 3R. D disputed Indian territory. Once the corridor is developed Gwadar will become an important commercial WUDGH KXE IRU ERWK &KLQD DQG 3DNLVWDQ 2Q WKH HDVW RI ,QGLD SDVVHV WKH %&,0 economic corridor (India had many apprehensions prior to joining BCIM as well) that connects India with Chinaâ&#x20AC;&#x2122;s Kunming province through

URDG DQG UDLO ,I WKH FRUULGRU Ă&#x20AC;RXULVKHV it will not only enhance trade and connectivity but also will enable &KLQD WR XSJUDGH LQIUDVWUXFWXUH LQ Bangladesh and Myanmar through port IDFLOLWLHV HYHQWXDOO\ OHDGLQJ WR important trade hubs. )XUWKHUPRUH WKH LQIUDVWUXFWXUDO GHYHORSPHQW XQGHUWDNHQ E\ &KLQD LQ and around Bangladesh, Myanmar, 3DNLVWDQ DQG 6UL /DQND LV PRUH DV FRPSDUHG WR ,QGLD %DFNHG E\ JRRG IRUHLJQ UHVHUYHV &KLQD KDV RIIHUHG PLOOLRQ LQ VRIW ORDQV IRU WKH LQIUDVWUXFWXUH DQG KRXVLQJ SURMHFWV LQ 0DOGLYHV ZKLOH PLOOLRQ KDV been invested by China in Mauritius IRU H[SDQVLRQ RI LWV DLUSRUWV DQG 6SHFLDO (FRQRPLF =RQHV /LQNV ZLWK $IULFDQ FRXQWULHV LV DOVR EHLQJ VRXJKW )RU LQVWDQFH LQ 6XGDQ DQG 7DQ]DQLD &KLQD KDV LQYHVWHG ELOOLRQ HDFK IRU EXLOGLQJ LQIUDVWUXFWXUDO SURMHFWV In contrast to this, India is struggling WR JHW ÂżQDQFLQJ IRU FRQVWUXFWLRQ RI Chabahar port (Iran) and has only RIIHUHG PLOOLRQ WR 0DOGLYHV IRU LWV LQIUDVWUXFWXUH SURMHFWV :KLOH ,QGLD LV trying to be the â&#x20AC;&#x153;net security providerâ&#x20AC;? in the IOR by encouraging regional stability, capacity building, maritime diplomacy and military assistance, its HIIRUWV DUH RYHUVKDGRZHG E\ &KLQD ODUJHO\ GXH WR WKH VL]H RI LWV HFRQRP\ DQG WKH TXDQWXP RI IRUHLJQ UHVHUYHV LW KDV FRPSDUHG WR ,QGLD 7KHUHIRUH ,QGLD FDQQRW SRVVLEO\ LJQRUH &KLQDÂśV 065 6R LI ,QGLD MRLQV 065 WKHQ LW ZLOO KHOS the country to establish its trade routes with other countries that pass through 065 1RW MRLQLQJ 065 ZLOO RQO\ EULQJ LVRODWLRQ IRU WKH FRXQWU\ OLPLWLQJ LWV economic objectives including trade and resources enhancements across WKH UHJLRQ 2%25 LV WKHUHIRUH VHHQ DV DQ RSSRUWXQLW\ IRU ,QGLD (YHQ LI ,QGLD LV DEOH WR H[WUDFW D OLWWOH IURP WKH 2%25 SURMHFW LW ZLOO EHQHÂżW WKH FRXQWU\ ,Q addition, India would be able to reFRQQHFW DQG UHYLYH LWV ROG 6LON 5RDG URXWHV WKURXJK LWV WZLQ SURMHFWV RI Âľ0DXVDPÂś DQG Âľ6SLFH 5RXWHÂś Â&#x2030;

Arushi Gupta is Researcher at Observer India Foundation, New Delhi

May-June 2015 Â&#x192; India-China Chronicle |43|

INFOCUS|INDIA-CHINA|INTERNAL AFFAIRS

State Response to Separatist Movement: Xinjiang and Kashmir The internal and international aspects of the Kashmir and Xinjiang FRQÀLFWV PXVW EH DQDO\]HG DQG DGGUHVVHG QRW LQ LVRODWHG WHUPV EXW LQ FULWLFDO GLDORJXH ZLWK VKLIWV LQ WKH JOREDO RUGHU RI WKLQJV Shagun Sharma

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W KDV RIWHQ EHHQ VDLG WKDW WKH st FHQWXU\ EHORQJV WR $VLD WKHUHIRUH WKH ULVH RI WZR $VLDQ SRZHUV &KLQD DQG ,QGLD DUH RIWHQ RQ WKH UDGDUV +RZHYHU ERWK WKH SRZHUV KDYH EHHQ FORVHO\ GHDOLQJ ZLWK YDULRXV FKDOOHQJHV DQG LVVXHV VXFK DV HWKQLF FRQÀLFWV DQG VHSDUDWLVP 7KH PRVW FULWLFDO FKDOOHQJH WR WKHLU VWDELOLW\ LV WKH HWKQLF WHQVLRQ DQG FRQÀLFW LQ ;LQMLDQJ DQG .DVKPLU 7KH JHRSROLWLFDO SRVLWLRQ RI ;LQMLDQJ DQG .DVKPLU PDNH LW TXLWH FUXFLDO WR WKHLU QDWLRQDO LQWHUHVWV ,W FDQ EH DUJXHG WKDW WKH &KLQHVH VWDWH SROLF\ WRZDUGV LWV PLQRULWLHV LV RQH RI WKH GRPLQDQW IDFWRUV ZKLFK KDV led to the formation and assertion of HWKQLF LGHQWLW\ DPRQJ WKH 8\JKXUV in Xinjiang and the larger sections of .DVKPLULV DUH PRUH FRQFHUQHG DERXW REWDLQLQJ DQG SUDFWLFLQJ DXWRQRP\ WKDQ DFKLHYLQJ DQ LQGHSHQGHQW VWDWH

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The Convergence and the Disconnect: Xinjiang and Kashmir 7KH ;LQMLDQJ DQG .DVKPLU FRQÀLFWV KDYH ORQJ EHHQ WUHDWHG DV VHSDUDWH DQG LQFRPPHQVXUDWH VWUXJJOHV :KLOH WKH\ DUH FHUWDLQO\ QRW HTXLYDOHQW LQ PDQ\ LPSRUWDQW UHVSHFWV WKHUH DUH DOVR FRQYHUJHQFHV EHWZHHQ WKHP 7KXV ZKLOH WKH KLVWRULHV RI WKH FRQÀLFW DQG WKH FKDUDFWHU RI WKH PLOLWDU\ |44| India-China Chronicle March-April 2015

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BOTH CHINA AND INDIA HAVE HAD TO DEAL WITH REGIONALIST AND SECESSIONIST MOVEMENTS THAT HAVE CHALLENGED THE AUTHORITY OF THE STATE. BOTH MOVEMENTS HAVE ALSO BEEN INTERNALLY DIVIDED AND CHARACTERIZED

BY GROUPS IN FAVOUR OF SECESSIONISM AS OPPOSED TO NATIONALIST ONES IN FAVOUR OF A BETTER REPRESENTATION WITHIN THE EXISTING POLITY

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March-April 2015 India-China Chronicle |45|

INFOCUS|INDIA-CHINA|INTERNAL AFFAIRS

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|46| India-China Chronicle March-April 2015

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V DQG DV D UHVXOW WKH LQWHUHVWV RI WKH SHRSOH RI WKHVH UHJLRQV KDYH EHHQ GLVHQIUDQFKLVHG YLV j YLV WKH UHVSHFWLYH SRZHU DQG FORXW RI ,QGLD DQG &KLQD 6HFRQG WKH LQWHUQDO DQG LQWHUnational aspects of the Kashmir and ;LQMLDQJ FRQÀLFWV PXVW EH DQDO\]HG DQG DGGUHVVHG QRW LQ LVRODWHG WHUPV EXW LQ FULWLFDO GLDORJXH ZLWK VKLIWV LQ WKH JOREDO RUGHU RI WKLQJV 7KLUG WKH SHRSOH RI .DVKPLU DQG ;LQMLDQJ PXVW EH UHFRJQL]HG DV NH\ SDUWLHV WR WKH SHDFHIXO VHWWOHPHQW RI WKHVH FRQÀLFWV VXFK WKDW WKHLU ULJKWV DUH QRW WUXPSHG E\ WKH FODLPV RI VWDWH VRYHUHLJQW\ 7KHUHIRUH LW FDQ EH FRQFOXGHG WKDW LQFUHDVHG DXWRQRP\ LV WKH PRVW UHDOLVWLF JRDO IRU .DVKPLU DQG ;LQMLDQJ Shagun Sharma is doctoral candidate at Center for East Asian Studies, Jawaharlal Nehru University, Delhi

March-April 2015 India-China Chronicle |47|

INFOCUS|INDIA-CHINA|INFRASTRUCTURE

Nepal’s Engagements with China 1HSDO UHTXLUHV LQYHVWPHQWV DQG LQ DOO OLNHOLKRRG LV JHWWLQJ WKH EHQH¿WV RI &KLQHVH LQYHVWPHQWV %XW ZKDW LV WKH QDWXUH RI &KLQD¶V YHQWXUH LQ 1HSDO DQG WKH JHRSROLWLFDO LPSOLFDWLRQV WKHUHRI" :KDW DUH ,QGLD¶V FRQFHUQV RQ &KLQD¶V HQJDJHPHQW ZLWK 1HSDO" Dr. Praveen Kumar

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CHINA’S SUPPORT FOR INFRASTRUCTURE PROJECTS IN NEPAL SHOWS LARGER CONVERGENCE OF INTERESTS BETWEEN THE TWO COUNTRIES. NEPAL ALSO INTENDS TO ENHANCE TRADE RELATIONS THROUGH BETTER ROAD AND RAIL NETWORKS LQ QXPEHU LQ 1HSDO DQG WKH VHFRQG LV UHODWHG WR LQWHQWLRQ LQ JDLQLQJ ODUJHU VWUDWHJLF OHYHUDJH YLV j YLV ,QGLD &KLQD¶V ODUJHU REMHFWLYH LQ 1HSDO PD\ KDYH EHHQ JXLGHG E\ LWV 7LEHW FRQFHUQ 1HSDO¶V ODUJHU IRUHLJQ SROLF\ FKRLFHV KRZHYHU DUH DOVR UHTXLUHG WR IDFWRU LQ ,QGLD¶V VHFXULW\ FRQFHUQV ZKLFK DUH JXLGHG E\ WKH )ULHQGVKLS 7UHDW\ &RQVLGHULQJ WKLV WKH SROLWLFDO OHDGHUVKLS LQ 1HSDO HDUOLHU XQGHU WKH 0RQDUFK\ DQG ODWHU GXULQJ

|48| India-China Chronicle May-June 2015

WKH WXPXOWXRXV SHULRGV RI GHPRFUDF\ DSSHDU WR KDYH GRQH D ¿QH EDODQFLQJ DFW EHWZHHQ ,QGLD DQG &KLQD ,QGLD¶V DSSURDFK WRZDUGV &KLQD LQ WKH HDUO\ V FRXOG KDYH EHHQ RQH RI WKH LQÀXHQFLQJ IDFWRUV IRU WKH WKHQ Nepalese leadership WR VKDSH LWV SROLFLHV WRZDUGV &KLQD ,Q WKH LQFLSLHQW SKDVH RI UHODWLRQVKLS &KLQD DQG 1HSDO DSSHDU WR KDYH GH¿QHG WKH WHUPV RI UHODWLRQV ZLWK UHVSHFW WR WKH ¿YH SULQFLSOHV panchsheel) that LQFOXGHV QRQ DJJUHVVLRQ PXWXDO UHVSHFW IRU WHUULWRULDO LQWHJULW\ DQG VRYHUHLJQW\ QRQ LQWHUIHUHQFH LQ LQWHUQDO PDWWHUV HTXDOLW\ DQG PXWXDO EHQH¿W DQG SHDFHIXO FR H[LVWHQFH ,QGLD DQG &KLQD KDG VLJQHG WKH µpanchsheel’ DJUHHPHQW LQ Nepal’s relations with China 1HSDO¶V UHODWLRQ ZLWK &KLQD KDV IROORZHG LWV WUDMHFWRU\ VLQFH WKH HVWDEOLVKPHQW RI GLSORPDWLF UHODWLRQV 7KH UHODWLRQVKLS KDV ODUJHO\ EHHQ XQGHUVWRRG LQ WHUPV RI DV\PPHWU\ WKDW RI EHWZHHQ WKH SRZHUIXO DQG WKH ZHDN WKH GRQRU FRXQWU\ DQG WKH UHFLSLHQW FRXQWU\ DQG WKDW RI EHWZHHQ DQ HPHUJLQJ JOREDO SOD\HU DQG D VPDOO QDWLRQ WKDW LV HQGHDYRXULQJ WR DFKLHYH SROLWLFDO DQG LQVWLWXWLRQDO VWDELOLW\ IROORZLQJ D ORQJ DUPHG LQWUD VWDWH FRQÀLFW WKDW ZDV ZDJHG E\ WKH 0DRLVWV UHEHOV DJDLQVW WKH VWDWH RI 1HSDO 7KH ODUJHU GLUHFWLRQV RI WKH FRQWHPSRUDU\ HQJDJHPHQWV EHWZHHQ 1HSDO DQG &KLQD FDQ EH XQGHUVWRRG E\ ORRN-

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Controversy on China’s Projects in Nepal +\GURSRZHU DORQJ ZLWK WRXULVP SRWHQWLDOO\ FDQ KHOS 1HSDO VWUHQJWKHQ LWV HFRQRP\ ,W FDQ DOVR KHOS EULGJH LWV WUDGH GH¿FLW ZLWK &KLQD +RZHYHU reports have also suggested that DPLGVW WKULYLQJ HFRQRPLF WLHV EHWZHHQ 1HSDO DQG &KLQD VRPH RI WKH &KLQHVH EDFNHG LQIUDVWUXFWXUH SURMHFWV KDYH UXQ RYHU VFKHGXOH DQG EHHQ DFFXVHG RI FRUUXSWLRQ 1HSDO JRYHUQPHQW UHSRUWHGO\ WHUPLQDWHG D FRQWUDFW WR FRQVWUXFW D WXQQHO IRU WKH 0HODPFKL :DWHU 6XSSO\ 3URMHFW ZLWK &KLQD 5DLOZD\ %XUHDX *URXS

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May-June 2015 India-China Chronicle |49|

INFOCUS|INDIA-CHINA|INFRASTRUCTURE

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Jawaharlal Nehru had noted that NeSDO KDG IDLOHG WR FRQVXOW ZLWK ,QGLD RQ WKH LVVXH DQG LW ZDV LQ YLRODWLRQ RI WKH ,QGLD 1HSDO IULHQGVKLS WUHDW\ 1HSDOÂśV GHYHORSPHQW UHTXLUHPHQWV DQG ,QGLDÂśV VHFXULW\ DQG VWUDWHJLF UHTXLUHPHQWV ERWK QHHG WR EH ÂżQH EDODQFHG +RZHYHU WKHUH DUH VRPH DUHDV WR ZKLFK ,QGLDQ VHQVLWLYLWLHV DUH DWWDFKHG ZKHQ LW FRPHV WR D WKLUG FRXQWU\ÂśV UHODWLRQVKLS HVSHFLDOO\ &KLQD ZLWK 1HSDO 1HSDO &KLQD FRRSHUDWLRQ LQ WKH GHIHQFH VHFWRU KRZVRHYHU EHQLJQ LW PD\ EH LV RQH VXFK DVSHFW WKDW ,QGLD ZRXOG DOZD\V EH FULWLFDO RI 5HSRUWV LQ WKH SDVW LQGLFDWHG WKDW &KLQD PD\ KDYH DWWHPSWHG WR UHSODFH ,QGLD DV WKH SULPDU\ DUPV VXSSOLHU 5HSRUWV VXJJHVW WKDW &KLQD VXSSOLHG DUPV

SOME OF THE CHINESEBACKED INFRASTRUCTURE PROJECTS OVERSHOT THE SCHEDULE PERIOD. FINANCIAL IRREGULARITIES AND LOCAL RESISTANCE LED NEPAL GOVERNMENT TO REPORTEDLY TERMINATE A TUNNEL CONTRACT FOR THE MELAMCHI WATER SUPPLY PROJECT IN SEPTEMBER 2012 WUXFNORDGV ZRUWK PLOOLRQ WR 1HSDO GXULQJ -XQH WKURXJK WKH /KDVD .DWKPDQGX KLJKZD\ ([DFW UHDVRQV EHKLQG &KLQDÂśV DUPV VXSSO\ WR 1HSDO still remain open to various interpretaWLRQV 7KH VKLSPHQW LQFOXGHG DPRQJ other things, light arms and ammuniWLRQ XQLIRUPV DQG ERRWV DQG DQWLDLUFUDIW JXQV 5HSRUWV DOVR VXJJHVWHG WKDW VXUIDFH WR DLU PLVVLOHV DQG PHGLXP UDQJH VXUIDFH WR VXUIDFH PLVVLOHV ZHUH DOVR LQFOXGHG LQ WKH VKLSPHQW 7KH QDWXUH RI &KLQDÂśV LQYHVWPHQW LQ 1HSDO DQG WKH SULRULW\ DUHDV DQG WKH JHRSROLWLFDO LPSOLFDWLRQV RI WKH HQJDJHPHQWV FRXOG EH D PDWWHU RI GHEDWH DQG GLVFXVVLRQV 7KH IDFW UHPDLQV WKDW Nepal requires the investments and in DOO OLNHOLKRRG LV JHWWLQJ WKH EHQHÂżWV RI

|50| India-China Chronicle Â&#x192; May-June 2015

these investments. Nepal is a smaller FRXQWU\ DQG OHVV SRZHUIXO LQ UHODWLYH WHUPV EXW WKH FRPSDUDWLYH EHQHÂżW WKDW PD\ DFFUXH WR 1HSDO LQ WKH SURFHVV PD\ HYHQWXDOO\ EH JUHDWHU WKDQ ZKDW LW ZRXOG EH IRU &KLQD DW OHDVW LQ the short term. +RZHYHU LI ZH ORRN DW D FDVH WKDW LQYROYHV 1HSDOÂśV HQJDJHPHQWV ZLWK &KLQD ZKLFK LV FRQVLGHUHG WR EH D QHZ FHQWUH RI SRZHU LQ WKH LQWHUQDWLRQDO V\VWHP WKH GHEDWH QHHGV WR IDFWRU LQ WKH G\QDPLF QDWXUH RI WKH LQWHUQDWLRQDO V\VWHP LWVHOI 7KH VDOLHQFH WKDW 1HSDO KDV LQ WKH UHJLRQ PD\ QRW EH EHFDXVH RI EXW GHVSLWH WKH FRPSHWLQJ SRZHU G\QDPLFV EHWZHHQ WKH WZR UHJLRQDO SRZHUV ,QGLD DQG &KLQD ,QGLD &KLQD UHODWLRQV KRZHYHU QHHG QRW EH LQ FRQIURQWDWLRQ ZLWK HDFK RWKHU DQG DLPHG DW WKH H[SDQVLRQ RI RU QHJDWLQJ RWKHUÂśV LQĂ&#x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ÂśV RYHUDOO HQGHDYRXUV WR FUHDWH EHWWHU LQIUDVWUXFWXUH LQ WKH UHVW RI WKH FRXQWU\ Â&#x2030;

Dr. Praveen Kumar is Associate Professor at Department of Geopolitics and International Relations, Manipal University, Karnataka. Views expressed in the article are personal.

Shows

Exhibitions&Trade In India x In China

INDIA EXHIBITION

DATE

Heimtextil India

25- 27th June Pragati Maidan, New Delhi

Acknowledged as a renowned business platform world over, Heimtextil India 2015 offers unparalleled opportunities to sector players of home furnishing and textiles to discover international trends, generate quality leads and grow their businesses. Its aim to create an equally unmatched platform for the Indian market.A sourcing platform for buyers in India and across the globe, here is where you will meet influential trade visitors, decision makers and your potential buyers. Coupled with Messe Frankfurt's strong media tie-ups and focused marketing activities, you can establish your brand as a key player in the domestic market.

Ambiente India

25 - 27 June

Pragati Maidan, New Delhi

The growing demand for high quality, upscale and valuedadded home fashion products is driving Indian retailers, project planners and designers to constantly stock their shelves with new and stylish products to suit the different tastes of Indian consumers. Targeting this segment of influential buyers and decision makers. It will provide a market place for manufacturers and suppliers of interior decor and home accessories to showcase their premium products and design innovations

Bakers Technology Fair

26 - 28 June

Codissia Trade Fair Complex, Coimbatore

The bakery and confectionery industry is one of the fastest growing industries in India. Bread and pastries are major bakery products and about the most in demand products all over the world. The emergence of a significant middle-class, urbanization and the expansion of modern habits by busy, health-conscious and well-informed consumers are equally raising the consumption of bakery products in India

Global Refining & 1-3 July Petrochemicals Congress

India Expo Centre & Mart, Greater Noida, Delhi (NCR)

This show focus is to facilitate the exchange of ideas and discussions on pertinent energy-related issues, while simultaneously meeting the strategic objectives of India's commitment to becoming a global refining and petrochemicals hub. At the same time, opportunities are set up for networking and deal-making among companies converging at the event, as well as to provide a platform to showcase innovative products and solutions in the energy marketplace.

Automotive Engineering show

7 - 9 July

Chennai Trade Centre, Chennai, India

the 9th edition of the Automotive Engineering show 2015 is destination for technologies and products that set new benchmarks for manufacturing in the automotive industry

Dairy Show Hyderabad

24-25 July

HITEX, Hyderabad

Dairy Show is a premier annual event on animal husbandry and dairy farming. The event a combination of tradeshow , conference and live animal display. Objective of the event is to provide knowledge to farmers and dairy entrepreneurs on best practices in animal rearing and dairy processing. The event will also expose them to technologies, government / institutional assistance, various schemes and international tie-ups.

Print-Packaging.com Pvt. Ltd

30th July to 2nd August

Pragati Maidan, New Delhi

The purpose is to add more to the technology, efficiency and profits that can be achieved by the highly optimistic logistics, warehousing and distribution segment of the supply chain industry.

Media Expo - Delhi

24-26 July

Pragati Maidan, New Delhi

premier trade show which will shows the best indoor & outdoor signage, advertising and point of purchase solutions. This show will provide the best networking opportunity to the buyers and sellers come from all over Asia & world. This show will be a place where service provider, manufa

Ms. Prachi Gupta (09810301644)

Bombay Exhibition Center (BEC), Mumbai

HGH India 2015 is one of the best events of its kind which will have more than 500 exhibitors from the sectors of gift items, home decors and housewares.

Mr. Amit Mishra (08087089486)

HGH India ( Home Decor, 14-16 July Gifts & Houseware)

VENUE

EVENT PROFILE

CONTACT PERSON

Mr. PSL NARASIMHA Rao (09866611134) Fax : 91-40-23302404

Mayâ&#x20AC;&#x201C;June 2015 Â&#x192; India-China Chronicle |51|

CHINA EXHIBITION

DATE

VENUE

EVENT PROFILE

CONTACT PERSON

China Imported Wood (Shanghai) Exhibition, Shanghai

June 30 to July 2, 2015

 Shanghai New International Expo Centre (SNIEC), China

Wood (Shanghai) Exhibition (Woodexpo Shanghai 2015) will cover the exhibition area of 120,000 m2, Woodexpo Shanghai 2015 will be the best choice for manufacturer of furniture, wooden floor, cupboard, wooden door & stairs and wooden products, decoration company, construction material & wood marketing, domestic distributor/agent, international sourcing groups to display and communicate with each other.

Mr. Zhang E-Mail: woodexpo@ shjzexpo.com.cn Tel: +86-137-6110 5737; +86-21-5169 8082, Fax: +86-21-5121 8416

The 10th Shanghai International Flameretarding Material Technology Fair

June 30 to July 2, 2015

Shanghai New International Expo Centre (SNIEC),2345 Long Yang Road, Pudong Area, Shanghai, 201204, China

Woodexpo Shanghai 2015 will be the best choice for manufacturer of furniture, wooden floor, cupboard, wooden door & stairs and wooden products, decoration company, construction material & wood marketing, domestic distributor/agent, international sourcing groups to display and communicate with each other.

Mr. Zhang E-Mail: woodexpo@ shjzexpo.com.cn Tel: +86-137-6110 5737; +86-21-5169 8082 Fax: +86-21-5121 8416

China International Fenestration Exhibition 2015

June 30 to July 2, 2015

Shanghai New International Expo Centre (SNIEC)

Within the exhibition area of 20,000 square meters, 2014 China Shanghai 389705956@qq.com.

International Fenestration Exhibition (CIFE 2014)Â attracted 300Â exhibitors Tel:+86-21-3107 and the total visitors of 32,855 to the fair.

5788/5707, Fax: +86-213107 5789

Shanghai International Windoors & Curtain Wall and Architectural Shading Exhibition 2015

June 30 to July 7, 2015

Shanghai New International Expo Centre (SNIEC)

is the largest, most complete products, highest professional standards, herbstone@126.com most extensive in social influence of windoors. and curtain wall Tel: +86-21-6328 8899 exhibition, which will be staged from June 30 to July 2, 2015 at Shanghai Fax: +86-21-6374 9188 New International Expo Centre (SNIEC), he total exhibition area of Shanghai International Windoors & Curtain Wall and Architectural Shading Exhibition 2015 will reach 150,000m2. The exhibition will reputate â&#x20AC;&#x153;the first exhibition of Chinese building energy-saving in windoorsâ&#x20AC;?, revolve the theme about â&#x20AC;&#x153;energy-saving windoors, sunshine lifeâ&#x20AC;?, fully demonstrate the high quality of building energy-saving windoors and curtain wall system solutions.

Shanghai International Building Water Expo

June 30 to July 7, 2015

Shanghai Modern International Exhibition Co.,Ltd (SMIE)

Shanghai International Building Water Expo (IBW) focuses on building water supply, drainage, building water, building water saving equipment and the most advanced products and technology, providing an excellent platform of display for the well-known enterprises in the building water industry, high-quality buyers, real estate developers, construction design institute, building developers, architects and other high-end customers.

Emily Gao E-Mail: marketing@ lvboexpo.com Tel: +86-139-1872 9898; +86-21-6052 2696

The 11th Shanghai International Interior Wall External Wall Decoration Materials Expo

June 30 to July 2, 2015

Shanghai Modern International Exhibition Co.,Ltd (SMIE)

The 11th Shanghai International Interior Wall External Wall Decoration Materials Expo (IEDM 2015) will cover the total exhibition area of 150,000 square meters with 12 pavilions, gathering the best and the most influential domestic and foreign companies in building materials industry.

E-Mail: 18917191768@189.cn, Tel: +86-21-5161 9878; +86-21-6492 5766

Shanghai World Jul. Expo Exhibition & 2-5, 2015 Convention Center (SWEECC, Formerly Shanghai World Expo Theme Pavilion)

No.1099 Guozhan road, Pudong District, Shanghai, China

The 28th China Wedding Expo 2015 provides an international platform to showcase photo frames, photo albums, wedding gowns & garments, photographic equipment & accessories, childrenâ&#x20AC;&#x2122;s photography, imaging software and related service, wedding goods, etc.

chinawedding@siecccpit.com Tel: +86-21-6297 2828; +86-21-6247 2387 Fax: +86-21-6386 6972

China (Wuhan) International Game and Amusement Fair 2015

July 4-6

Wuhan International Expo Center (WIEC)

Within the exhibition area of 12,000 sqm, GAF 2014 - China (Wuhan) International Game and Amusement Fair 2014 attracted nearly 50,000 visitors, including 1,000 overseas visitors from over 20 countries and regions, such as Canada, Poland, Australia, Southeast Asia, Middle East, and so on.Â

Tel: +86-27-8461 1828 /29 Fax: +86-27-8461 1829

ChinaJoy World Mobile Game Conference 2015

July 30 to August 1

Shanghai New International Expo Centre (SNIEC)

Within the exhibition area of 12,000 sqm, GAF 2014 - China (Wuhan) International Game and Amusement Fair 2014 attracted nearly 50,000 visitors, including 1,000 overseas visitors from over 20 countries and regions, such as Canada, Poland, Australia, Southeast Asia, Middle East, and so on.Â

Contact: Hannah Li E-Mail: hannah_li@ howellexpo.com Tel: +86-10-5165 9355 ext. 16

China Drug Store Show / 2015 Lifecare

July 30 to August 1

E: Century City New International Convention & Exhibition Center (CCNICEC)

n order to provide information and services for the end-user market of healthcare products with touchpoints spanning various sectors, China Drug Store Show (DS Show) is the best place for the retail pharmacy business by brings together top players and customers in pharmacy retailing business. Such as health product manufacturers, hospital and clinic practitioners, health services procurement officers, community health agencies, medical and pharmaceutical agents and industry experts who are constantly seeking for the latest updates and innovations in the retail pharmacy business.

Contact: Ms. Susu Chen E-Mail: susu.chen@ reedsinopharm.com Tel: +86-10-8455 6570 Fax: +86-10-8202 3887

The 8th China Game Developers Conference 2015

July 31 to August 2,

No.1388 Hua Mu Road Pudong, Shanghai 201204, China

The 8th China Game Developers Conference 2015 (ChinaJoy CGDC 2015), organized by Howell International Trade Fair Limited, will take place at Kerry hotel -Pudong, Shanghai

Contact: Nic Xie E-Mail: nic_xie@ howellexpo.com Tel: +86-10-5165 9355-32 Fax: +86-10-8773 2633

|52| India-China Chronicle Â&#x192; Mayâ&#x20AC;&#x201C;June 2015

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May-June 2015 Â&#x192; India-China Chronicle |53|

INFOCUS|INDIA-CHINA|CULTURE

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|54| India-China Chronicle May-June 2015

THE TWO COUNTRIES AGREED TO WORK TOGETHER TO COMMEMORATE THE INTERNATIONAL YOGA DAY IN JUNE THIS YEAR. THIS DEVELOPMENT WILL ADD WEIGHT TO INDIA’S SOFT POWER IN CHINA. YOGA IN CHINA HAS GAINED SIGNIFICANT POPULARITY

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May-June 2015 India-China Chronicle |55|

INFOCUS|INDIA-CHINA|CINEMA

My Favourite Movie and Chinaâ&#x20AC;&#x2122;s

$QWL WUDIĂ&#x20AC;FNLQJ (IIRUWV â&#x20AC;&#x2DC;Dearestâ&#x20AC;&#x2122; is my favourite movie, not because of its stars or awards, but because of its nearaccurate portrayal of tensions in the current &KLQHVH DQWL WUDIÂżFNLQJ movement. As an advocate dealing with childrenâ&#x20AC;&#x2122;s issues in &KLQD IRU PDQ\ \HDUV , am impressed with the HIÂżFLHQF\ ZLWK ZKLFK the movie brings out the challenges related to antiWUDIÂżFNLQJ PRYHPHQW Wenjuan Zhang

T

he Chinese-language movie â&#x20AC;&#x153;Dearestâ&#x20AC;? opened in September 2014 starring Zhao Wei, Huang Bo, Tong Dawei, Hao Lei,among RWKHUV $FFRUGLQJ WR ÂżOP PDJD]LQH â&#x20AC;&#x2122;Screen Dailyâ&#x20AC;&#x2122;, the movie, directed by Peter Chan â&#x20AC;&#x153;topped the China box RIÂżFH IRU WKH ZHHN 6HSWHPEHU JURVVLQJ P RYHU LWV ÂżUVW four days.â&#x20AC;? From the title, you might WKLQN LW LV D URPDQWLF ORYH VWRU\ 1R ,W LV QRW ,W LV EDVHG RQ D UHDO FDVH RI FKLOG NLGQDSSLQJ $PRQJ WKH ODVW \HDUÂśV QHZ movies, this is my most favourite; not because of its cast, or because of the many awards it has won. As a child DGYRFDWH LQ &KLQD IRU PDQ\ \HDUV , DP PRUH LPSUHVVHG ZLWK LWV SURÂżFLHQF\ WR clearly and almost accurately draw the general picture of challenges |56| India-China Chronicle Â&#x192; May-June 2015

and tensions in the current Chinese DQWL WUDIÂżFNLQJ PRYHPHQW ,WV SXEOLF education efforts are very effective, combining compelling story-telling and demonstrating the critical issues LQ DQWL WUDIÂżFNLQJ HIIRUWV The Movie: Dearest %HIRUH , EHJLQ ZLWK P\ DQDO\VLV about the challenges and tensions of DQWL WUDIÂżFNLQJ PRYHPHQW LQ &KLQD , ZLOO VWDUW ZLWK WKH VWRU\ ÂżUVW $ ER\ QDPHG 7LDQ 3HQJ JHWV NLGQDSSHG His parents Tian Wenjun (Huang Bo) and Lu Xiaojuan (Hao Lei) migrate to 6KHQ]KHQ WKH ODQGPDUN FLW\ RI &KLQDÂśV open and reform policy, to pursue their dreams. For some reason, this couple gets divorced. The Court ruled WKDW WKH IDWKHU ZLOO WDNH FXVWRG\ RI the boy. His father runs an electronic accessories store. One day, at the age RI WKUHH WKH ER\ JHWV NLGQDSSHG ZKLOH he was alone on the streets. After the failure of business and marriage, Tian Peng is the only hope of his father Tian. The disappearance of Tian Peng nearly drives him mad. He starts a long winding journey in search of his son. This process is tortuous, but very typical among parents whose FKLOGUHQ DUH NLGQDSSHG RU WUDIÂżFNHG He starts by putting his sonâ&#x20AC;&#x2122;s photo on Ă&#x20AC;\HUV EHJV PHGLD RXWOHWV WR SXEOLFL]H WKH VHDUFK QRWLFH DQG PRELOL]HV KLV friends and relatives to search streetby-street. He gets some information from different sources and travels to various cities to verify them. Among those who gave him information, some even aimed to cheat him for money.

After some time, there was no news anymore. What he could do further is to leave his job and search for his son full-time. Meanwhile, his ex-wifeâ&#x20AC;&#x2122;s life has also changed and she was having a hard time with her current KXVEDQG 6KH DOVR IRFXVHV RQ ORRNLQJ for Tian Peng.

As the media commented, no nightmare is more chilling than having oneâ&#x20AC;&#x2122;s child stolen. For these parents, their distress is not just monetary and physical but also psychological. They DUH OLNH D VPDOO OHDI DGULIW RQ WKH YDVW sea, aimlessly and hopelessly search-

IN CHINA, MOST INFANTS, TODDLERS AND YOUNG CHILDREN ARE BOUGHT AND SOLD FOR ILLEGAL ADOPTION

BY FAMILIES AND NOT FOR COMMERCIAL EXPLOITATION LQJ IRU WKHLU VRQ 7LDQ :HQMXQ VDLG Âł, even miss the days of being cheated because the cheating information at least provided me some hope.â&#x20AC;? He said, hope was as important as meals for him. He needed it for searching KLV VRQ 1R VLQJOH SDUHQW FDQ VXVWDLQ such a nightmare of a searching process. Fortunately, Tian found a group called Missing Child Support Group, composed of parents who share the same experience. He joins them and has a community to share sufferings and new information as well as to exchange encouragements and support in moments of desperation. This helps Tian sustain his efforts to hunt for his son. The Missing Child Support Group WULHV WR FOLQJ RQ WR DQ\ FKDQFH RI ÂżQGing their son. For example, when they heard that the police department had DUUHVWHG QHZ WUDIÂżFNHU VXVSHFWV WKH\

went there so that they could get some information about the missing child from the suspects. Meaningful information, however, was hard to come by.

Sometimes the information was found negative. For example, a suspect said WKDW D ER\ WUDIÂżFNHG GXULQJ WKH WLPH RI Tian Pengâ&#x20AC;&#x2122;s disappearance was smothered to death as he was crying loudly on the train. Hearing this, the mood of Tian and Lu became as cold as ice.

Compared to many parents who are VHDUFKLQJ WKHLU NLGQDSSHG RU WUDIÂżFNHG FKLOGUHQ 7LDQ DQG /X DUH OXFN\ because they are among the only few ZKR ÂżQDOO\ JHW WKHLU FKLOG EDFN $IWHU three years of self-blaming, searching and relentless efforts, they got another piece of information about their son.

Tian and Lu travel to a small village in Anhui province, far away from 6KHQ]KHQ 7KH\ ZHUH FRQÂżGHQW WKDW WKH ER\ ZDV WKHLU VRQ DIWHU UHFRJQL]LQJ WKH PDUN RQ KLV IRUHKHDG HYHQ WKRXJK Tian Pengâ&#x20AC;&#x2122;s name had been changed to Yang Jigang and was being raised by a woman called Li Hongqin (Zhao Wei).

Before the arrival of police Tian and Lu FRXOGQÂśW ZDLW WR WDNH 7LDQ 3HQJ RXW RI WKH YLOODJH $ ÂżJKW HQVXHV EHWZHHQ WKH villagers on behalf of Li Hongqin and Tian Pengâ&#x20AC;&#x2122;s biological parents that was stopped till the police arrived. Li was

May-June 2015 Â&#x192; India-China Chronicle |57|

INFOCUS|INDIA-CHINA|CINEMA

WKHQ WDNHQ WR WKH SROLFH GHSDUWPHQW for investigation. The surveillance camera shows that Liâ&#x20AC;&#x2122;s husband Yang ZDV VXVSHFWHG RI NLGQDSSLQJ 7LDQ 3HQJ LQ 6KHQ]KHQ DQG WDNLQJ KLP WR his village. Yang was already dead due to cancer. Liâ&#x20AC;&#x2122;s â&#x20AC;&#x153;adoptionâ&#x20AC;? proved to EH LOOHJDO 0HDQZKLOH '1$ PDWFKLQJ test proved that Tian and Lu are Yang Jigangâ&#x20AC;&#x2122;s biological parents. Yang Jigang alias Tian Peng was handed EDFN WR KLV WUXH SDUHQWV 7KH PRYLH GRHVQÂśW VWRS KHUH ,W then moves to another tension or challenge faced by Tian and Lu after the return of Tian Peng. The three years of separation has changed the relationship between the parents and son. Tian Peng has little memory of KLV ELRORJLFDO SDUHQWV ,QVWHDG KH KDV established close relationship with Li and his sister Jifang. At the police GHSDUWPHQW KH HYHQ DVNV WKH SROLFH

to punish his biological parents for ³NLGQDSSLQJ´ KLP DZD\ IURP /L :KLOH living with his biological parents, Tian Peng was unhappy. Tian and Lu face a real challenge for integrating Tian 3HQJ EDFN WR WKHLU OLIH For Li, her situation is even more terrible. She and her husband Yang were infertile. When Tian Peng was KDQGHG EDFN WR KLV SDUHQWV WKH JLUO -LIDQJ ZDV DOVR WDNHQ IURP /L DQG ZDV placed at the State-run Child Welfare ,QVWLWXWH 6KH ORVW ERWK WKH FKLOGUHQ whom she had treated as her own FKLOGUHQ ,W LV REYLRXV WKDW VKH FRXOGQœW JHW -LJDQJ 7LDQ 3HQJ EDFN EHFDXVH the police had found his parents. Her only hope was with the girl Jifang.

Her husband had told her that Jifang was an abandoned baby. She thought if she was abandoned her parents ZRXOG QHYHU FRPH EDFN WR SLFN KHU XS ,Q RUGHU WR KDYH -LIDQJ EDFN VKH

|58| India-China Chronicle Â&#x192; May-June 2015

WULHG DOO KHU HIIRUWV WR ÂżJKW ZLWK SROLFH to collect evidence of Jifang being abandoned, to hire a lawyer to sue the 6WDWH RZQHG &KLOG :HOIDUH ,QVWLWXWH Unfortunately, all these efforts proved to be futile because her husband was VXVSHFWHG RI EHLQJ D FKLOG WUDIÂżFNHU Beyond the Movie: Child 7UDIÂżFNLQJ 1RZ OHWÂśV IRFXV RQ WKH RYHUDOO VLWXDWLRQ RI FKLOG NLGQDSSLQJ RU WUDIÂżFNLQJ LQ &KLQD DQG VRPH RI WKH DQWL WUDIÂżFNLQJ HIIRUWV WDNHQ E\ WKH JRYHUQPHQW DQG WKH FLYLO VRFLHW\ RUJDQL]DWLRQV $FFRUGLQJ WR WKH 81 3URWRFRO WR 3UHYHQW 6XSSUHVV DQG 3XQLVK 7UDIÂżFNing in Persons, especially Women and &KLOGUHQ FKLOG WUDIÂżFNLQJ LV GHÂżQHG DV WKH ÂłUHFUXLWPHQW WUDQVportation, transfer, harbouring, and/ or receiptâ&#x20AC;? of a child for the purpose of exploitation.

7KH FKLOG WUDIÂżFNLQJ VLWXDWLRQ LQ China is a little bit different from the rest of the world or more complicated. ,Q &KLQD PRVW LQIDQWV WRGGOHUV DQG young children are sold and bought for illegal adoption by families and is not IRU FRPPHUFLDO H[SORLWDWLRQ ,QIDQWV and toddlers are either abandoned or sold by their parents, or stolen or NLGQDSSHG E\ WUDIÂżFNHUV 7KLV VWUDQJH phenomenon might result from factors such as Chinese family-planning policy, the rise of infertile rate and preference for boys. But it creates paradox for child replacement after they are rescued by the police. More on that later. For older children, most of WKHP DUH WUDIÂżFNHG IRU WKH SXUSRVH RI prostitution, forced labour or for commercial exploitation. These children are usually cheated by online friends or by job intermediaries or they choose to run away due to abuse at home or ODFN RI IDPLO\ FDUH ,Q DGGLWLRQ EDVHG on the information released by police, most children begging on streets are HLWKHU UHQWHG IURP RU WDNHQ RXW E\ their own parents. Only some of them DUH WUDIÂżFNHG WR EHJ This movie touches on one type of WUDIÂżFNLQJ LQ &KLQD WKDW RI WRGGOHUV JHWWLQJ NLGQDSSHG IRU LOOHJDO DGRSWLRQ The story of Tian Peng and Jifang clearly demonstrates the paradox of UH SODFHPHQW 8VXDOO\ LW WDNHV VHYHUDO \HDUV IRU WKH WUDIÂżFNHG FKLOGUHQ WR EH IRXQG E\ WKHLU ELRORJLFDO SDUHQWV ,Q Tian Pengâ&#x20AC;&#x2122;s case, it is comparatively VKRUW WKUHH \HDUV ,W VKRZHG WKDW the reintegration into his biological parentsâ&#x20AC;&#x2122; family is very challenging.

7KHVH NLGV XVXDOO\ HVWDEOLVK FORVH connection with their illegal parents. But it is morally and legally XQDFFHSWDEOH WR JLYH WKHP EDFN WR WKH LOOHJDO IDPLOLHV ,Q -LIDQJÂśV FDVH WKHUH LV QR PDWFKLQJ '1$ LQIRUPDWLRQ RI SDUHQWV LQ WKH GDWD EDVH ,W LV QRW VXUH whether she was abandoned by her SDUHQWV RU KHU SDUHQWV GLGQÂśW NQRZ KRZ WR JR IRU '1$ VDPSOLQJ ZLWK WKH police department. According to the law, due to the indeterminate status of her guardianship, she can only be placed for foster care, not for adoption.

There are a large number of children

rescued by police who cannot get a long-term placement. Some of them have been placed in the State-run &KLOG :HOIDUH ,QVWLWXWH IRU IRVWHU FDUH RYHU ÂżYH \HDUV ZKLFK LV GHÂżQLWHO\ QRW good for their well-being.

You may also have a question about the role of police when you watch the movie. Why do these parents need to hunt for their children by themselves?

After Tian Peng disappeared for three hours his father turned to police for help. But the police said they couldnâ&#x20AC;&#x2122;t start the investigation until 72 hours later. Due to this delay, police missed out on the right time to ÂżQG WKH ER\ DW WKH UDLOZD\ VWDWLRQ 7KLV

THIS MOVIE TOUCHES ON ONE TYPE OF TRAFFICKING IN CHINA; THAT OF TODDLERS GETTING KIDNAPPED FOR ILLEGAL ADOPTION. THE STORY OF TIAN PENG AND JIFANG CAPTURES THE PARADOX OF GROWING UP IN AN ILLEGAL HOME was the police practice in dealing with FKLOG WUDIÂżFNLQJ UHSRUW EHIRUH On August 15th 2011, the General OfÂżFH RI WKH 6WDWH &RXQFLO LVVXHG D QHZ policy called Opinions on StrengthenLQJ DQG ,PSURYLQJ WKH 3URWHFWLRQ DQG Assistance to Street Children which requires the police departments to immediately conduct investigation once they get a report of suspected child WUDIÂżFNLQJ ,W DOVR UHTXLUHG SROLFH GHSDUWPHQWV WR WDNH DQG NHHS '1$ GDWD of these parents without any charge.

This is a great step for Chinese antiWUDIÂżFNLQJ RI FKLOGUHQ %HIRUH WKH LVsuance of this Opinion another meanLQJIXO VWHS WDNHQ E\ WKH JRYHUQPHQW ZDV WR HVWDEOLVK WKH $QWL WUDIÂżFNLQJ 2IÂżFH XQGHU WKH 0LQLVWU\ RI 3XEOLF Security in December 2007. Headed by 0U &KHQ 6KLTX WKH 2IÂżFH LV YHU\ committed to pushing and enabling the police across the country to be

PRUH UHVSRQVLYH WR WUDIÂżFNLQJ FDVHV WKURXJK GHYHORSLQJ 1DWLRQDO $QWL WUDIÂżFNLQJ 3ODQ EXLOGLQJ SDUWQHUVKLSV ZLWK WKH FLYLO VRFLHW\ RUJDQL]Dtions and media outlets, and opening social media platforms to get case UHSRUWV ,Q IDFW WKH HVWDEOLVKPHQW RI WKH $QWL WUDIÂżFNLQJ 2IÂżFH ZDV inspired by the civil-society-based DQWL WUDIÂżFNLQJ FDPSDLJQ 7KH LVsuance of the Opinion is the result RI MRLQW HIIRUWV RI WKH 2IÂżFH DQG FLYLO VRFLHW\ RUJDQL]DWLRQV &KLOG WUDIÂżFNLQJ LV RQH RI WKH top concerns in China. The efforts described above are far behind the expectation of the public. There are still many questions in need of systematic response. How to protect children being abused or neglected? +RZ WR HQDEOH WKH VRFLHW\ WR NQRZ that a family has bought a child, at the ÂżUVW LQVWDQFH" +RZ WR SUHYHQW SDUHQWV from abandoning and/or exploiting their children? These questions all point to the role of the state in ensuring the quality of child family care. On 'HFHPEHU WK WKH 6XSUHPH Peopleâ&#x20AC;&#x2122;s Court, the Supreme Peopleâ&#x20AC;&#x2122;s Procuratorate, the Ministry of Public Security and the Ministry of Civil Affairs issued the Opinion on Several ,VVXHV LQ +DQGOLQJ *XDUGLDQVÂś Violations of Minorsâ&#x20AC;&#x2122; Rights and ,QWHUHVWV LQ $FFRUGDQFH ZLWK /DZ ZKLFK DVNV 6WDWH LQWHUYHQWLRQ LQ VRPH serious cases of violation by family members and establishes mandatory report systems for minorsâ&#x20AC;&#x2122; rights violation. Meanwhile, the Regulation on Child Welfare is in the drafting process which is expected to specify the role of State in family care support.

Hopefully, with such comprehensive HIIRUWV FKLOG WUDIÂżFNLQJ ZLOO EH substantially reduced in China in the near future. Â&#x2030;

Wenjuan Zhang is associate professor at Jindal Global Law School and is Executive Director for the â&#x20AC;&#x2DC; Center for India-China Studiesâ&#x20AC;&#x2122; at the Jindal Global University, Delhi-NCR

May-June 2015 Â&#x192; India-China Chronicle |59|

INFOCUS|INDIA-CHINA|FIRST PERSON

Meeting Modi in China:

A Unique Experience The Chinese leadership reciprocated Mr. Narendra Modi’s ‘hometown diplomacy’ YHU\ ZHOO 0U 0RGL EHFDPH WKH ¿UVW HYHU IRUHLJQ OHDGHU WR EH UHFHLYHG RXWVLGH %HLMLQJ LQ 3UHVLGHQW ;L -LQSLQJ¶V ELUWKSODFH ;LDQ 0U 0RGL¶V VHO¿HV ZLWK 3UHPLHU /L .HTLDQJ UHFHLYHG PLOOLRQV RI KLWV RQ &KLQHVH VRFLDO PHGLD ,QGLD QRZ PHDQV D ORW LQ WHUPV RI WRXULVP HGXFDWLRQ DQG EXVLQHVV IRU WKH &KLQHVH

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HVWLPDWHG ,QGLDQV UHVLGLQJ LQ &KLQD FRXOGQ¶W PDNH LW WR WKH YHQXH 0RGL¶V YLVLW JHQHUDWHG D JUHDW GHDO RI LQWHUHVW DPRQJ HYHU\ ,QGLDQ OLYLQJ LQ &KLQD 7KH JHVWXUH RI D OHDGHU PHHWLQJ his people was appreciated by many &KLQHVH DQG RWKHU IRUHLJQHUV WRR Modi’s visit for Indians in China $FFRUGLQJ WR WKH 0LQLVWU\ RI ([WHUQDO $IIDLUV ,QGLD DQ HVWLPDWHG ,QGLDQV OLYH LQ &KLQD , KDYH EHHQ VWD\LQJ LQ +DQJ]KRX IRU WKH ODVW QLQH PRQWKV DQG , WRR KDYH ZRQGHUHG ZKHUH DOO WKRVH ,QGLDQV DUH 7KDQNV WR Modi’s visit we now have a somewhat active WeChat JURXS E\ WKH QDPH ³,QGLDQ 6WXGHQWV LQ +DQJ]KRX ´ 6XFK VPDOO QHWZRUNLQJ JURXS RI ,QGLDQV KDYH EHHQ IRUPHG QRZ D ZHOFRPH FKDQJH IURP OLYLQJ VHSDUDWHO\ ZLWKLQ Chinese cities.

|60| India-China Chronicle May-June 2015

7KH DGGUHVV KHOG LQ 6KDQJKDL ,&%6 ([SR &HQWUH EURXJKW DOLYH D PLQL ,QGLD 6HYHUDO EXVHV IHUULHG ,QGLDQV RI DOO VKDGHV DQG SURIHVVLRQV VSHDNLQJ LQ YDULRXV ODQJXDJHV ZHDULQJ GLIIHUHQW RXW¿WV 7KLV ZDV WKH ODUJHVW HYHU JDWKHULQJ RI ,QGLDQV LQ &KLQD )RU PH WKH PRVW LQWHUHVWLQJ VLJKW ZDV WKDW RI &KLQHVH ZLYHV RI ,QGLDQ PHQ ZKR KDUGO\ XQGHUVWRRG +LQGL EXW VWLOO SDUWLFLSDWHG HQWKXVLDVWLFDOO\ 0DQ\ ,QGLDQV ZKR DUULYHG WR KHDU 0RGL LQ 6KDQJKDL KDYH PDGH &KLQD WKHLU GH IDFWR KRPH VRPH KDYH EHHQ VWD\LQJ KHUH IRU PRUH WKDQ D GHFDGH 0RVW RI WKH ,QGLDQ UHVLGHQWV UHPDLQ GH IDFWR UHVLGHQWV VLQFH ,QGLDQV IDFH UHODWLYHO\ IDU PRUH GLI¿FXOW\ LQ JHWWLQJ WKH &KLQHVH *UHHQ &DUG D 86 *UHHQ &DUG OLNH V\VWHP WKDW SURYLGHV D ZLGH UDQJH RI QRQ SROLWLFDO ULJKWV DW SDU ZLWK &KLQHVH QDWLRQDOV 1RQHWKHOHVV WKH\

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IT WAS ONE OF THE LARGEST GATHERINGS OF INDIANS IN CHINA. FOR ME, THE MOST INTERESTING SIGHT WAS THAT OF CHINESE WIVES OF INDIAN MEN, WHO HARDLY UNDERSTOOD HINDI, BUT STILL PARTICIPATED ENTHUSIASTICALLY

no match to the Japanese or AmeriFDQ EXVLQHVVHV DQG WHFKQRORJLHV 7KH NH\ DJUHHPHQWV VLJQHG GXULQJ WKH visit have been analaysed threadbare E\ SROLWLFDO DQDO\VWV 6R KDYH EHHQ WKH FRQFHUQV DERXW ERUGHU GLVSXWH WUDGH DQG FOLPDWH LVVXHV DQG 0RGL¶V IUDQN DSSUDLVDO RI &KLQHVH UHOXFWDQFH WR DGGUHVV ,QGLDQ FRQFHUQV LQ 3DNLVWDQ 7KRXJK 0RGL¶V 6KDQJKDL VSHHFK ZDV VKRUW RQ FRQFUHWH GHOLYHUDEOHV²IRU instance. he didn’t comment on the ,QGLDQ JRYHUQPHQW¶V KLJKO\ LUUHJXODU VSRQVRUVKLS RI ,QGLDQ VWXGHQWV LQ &KLQD ZKLFK DW WLPHV VWUHWFKHV XS WR D JDS RI VL[ PRQWKV²LW LV KRSHG WKDW WKH YLVLW ZDV VXFFHVVIXO LQ OD\LQJ VROLG JURXQGZRUN IRU GHYHORSPHQW RI PXWXDO IDLWK DQG DFWXDO RSSRUWXQLWLHV IRU SHRSOH

Modi’s visit for Chinese and other foreigners in China 0RGL¶V VSHHFK JDUQHUHG D FURZG RI ,QGLDQV $ JDWKHULQJ RI LV KDUGO\ D QXPEHU IRU XV ,QGLDQV 3ROLWLFDO UDOOLHV LQ D PHWUR FLW\ RI ,QGLD DUH FRQVLGHUHG D ÀRS LI WKH QXPEHU RI DWWHQGHHV LV OHVV WKDQ D SHRSOH RU VR 0RUHRYHU WKH 6KDQJKDL QXPEHU ZDV SDOWU\ LQ FRPSDULVRQ WR SOXV ,QGLDQ $PHULFDQV ZKRP 0RGL DGGUHVVHG DW 0DGLVRQ 6TXDUH *DUGHQ LQ WKH 86 ODVW \HDU +RZHYHU D FURZG RI GRHV PDWWHU LQ D FRXQWU\ ZKHUH WKH VPDOOHVW JDWKHULQJ RI SHRSOH QHHGV SULRU DSSURYDO E\ WKH DXWKRULWLHV ZKHUH SHUPLVVLRQ VWDQGV D KLJK FKDQFH RI FDQFHOODWLRQ HVSHFLDOO\ ZKHQ PDWWHU LQYROYHG LV SROLWLFDO LQ QDWXUH 7KH

$PHULFDQ VW\OH %HVLGHV WKH FUD]H IRU FDUV L SKRQH 86 HGXFDWLRQ HWF SRLQW to Chinese obsession with America. A -DSDQHVH OHDGHU JHWV DWWHQWLRQ DOEHLW QHJDWLYH RZLQJ WR KLVWRULFDO ULYDOU\ EHWZHHQ WKH WZR FRXQWULHV %XW 0RGL¶V ZHOFRPH E\ &KLQHVH OHDGHUV DQG SXEOLF KDV EHHQ JUHDW 7KH XVXDO QHJDWLYLW\

Tilak Jha is a keen China watcher currently studying at Zhejiang University, Hangzhou, China

May-June 2015 India-China Chronicle |61|

INFOCUS|INDIA-CHINA|EVENTS

ICEC Council Booth Receives ‘Outstanding Exhibitor’ Award at Shenzhen Fair

I

ndia-China Economic and Cultural (ICEC) Council participated in the 11th International Cultural Industries Fair held at Shenzhen, China from May 14-18, 2015. The ICEC-India booth at Silk Maritime Pavilion attracted maximum visitors and was felicitated with ‘Outstanding Exhibitor’ award. The booth displayed an interactive art of bangle-making using natural resin (popularly known as Laakh).

The exhibits at the stall comprised a wide array of Indian handicraft items such as

|62| India-China Chronicle May-June 2015

brass metal works, essential oils, sandalwood soaps, incense, in addition to herbal tea among others. Indian silk and other regional fabrics like bandhani, cotton and khadi too were showcased. Display of various printing techniques such as block printing, ajrakh, dabu printing etc kept the visitors captivated. Alumni of National Institute of Fashion Technology (NIFT), Delhi led by Chairperson Dr. Sudha Dhingra too showcased their designs.

May-June 2015 India-China Chronicle |63|

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info@icec-council.org Mr. Irfan Alam (9811059646) |64| India-China Chronicle May-June 2015

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