Jan 2014

January 2014 x ` 100

The Chinese Dream

PEOPLE

FEATURE

FIRST PERSON

China’s NGO Sector: A Reality or an Illusion?

Dam issue: China’s Concern and India’s Fear

A Lion Dancer is not a Disney Character

www.icec-council.org

Vol 1, Issue 8, January 2014 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 Namrata Hasija Sreemoti Sengupta Vinny Sachdeva Garima Arora 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 Anne Print Solutions B-32, Okhla Industrial Area, Phase-I, New Delhi-110020 Tel. 011-40525878, 011-65690940 Email: info@anneprintsolutions.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 UHÁHFW WKH YLHZV RI WKH PDJD]LQH

WHOSE DREAM IS IT ANYWAY..?

This century has seen countries increasingly focusing on the projection of benign country images. Such images are critical not only for gaining access to new markets but also for building partnerships IRU DGGUHVVLQJ PXWXDO EHQH¿WV DQG FRQFHUQV Joseph Nye, an eminent International Relation Scholar, describes Soft Power as ‘the ability of a nation to structure a situation so WKDW RWKHU QDWLRQV GHYHORS SUHIHUHQFH RU GH¿QH WKHLU LQWHUHVW LQ ways consistent with one’s nation’. Soft Power is ultimately to be measured in terms of global public sentiments expressing attraction towards, and a desire to emulate, a state and its people. Thus, it is much more than just admiration for the pace of economic growth and modernization.

Hence, the craving of China to shift attention from economic high to utilizing Soft Power in emphasizing its growing position. Just like major Western countries, China is trying to garner positive popular sentiment through cultural diplomacy.

However, in the case of China, unlike other countries, the attempt of leaning on Soft Power is viewed as governmental Public Relations (PR). Despite dedicated efforts, China has had limited success in ameliorating its image as a dominating regional power which discourages freedom of expression and individual rights.

Its Confucius Institutes are often viewed as vehicles for achieving deeper strategic objectives in the garb of cultural diplomacy.

Beijing’s Soft Power instruments also include economic engagements. China wants its policies and actions to be viewed sympathetically. It also wants to conduct its affairs without foreign interference. It wants less of bad press and more respect on the international stage. It also wants to use public diplomacy for HFRQRPLF DQG FRPPHUFLDO EHQH¿WV IRU LWV EXVLQHVVHV However, questions are raised: In this attempt, whose Dream is &KLQD WU\LQJ WR IXO¿OO HOLWHV RU LQGLYLGXDOV" 'RHV WKH &KLQD 'UHDP have the character of inclusivity, of individual’s aspirations vis-a-vis DVSLUDWLRQV RI LWV HOLWH FODVV" ,W LV ZLGHO\ SHUFHLYHG WKDW LW LV XS WR the government to decide what China is and then market it abroad.

This marketing push is seen as necessary because of the lack of international Chinese brands and cultural exports.

The China Dream also envelopes the growth of hard power (a la Soft Power) to attain the major power status. This endeavour also raises eyebrows. How do China’s aspirations of achieving its Dream DIIHFW ,QGLD DQG UHVW RI WKH $VLD UHJLRQ" :LOO WKH &KLQHVH 'UHDP make its neighbours friendlier to the country or will it turn them DQWDJRQLVWLF" +DV WKH HFRQRPLF SURZHVV PDGH WKH &KLQHVH 'UHDP DQ\ HDVLHU" Our cover story dwells on these questions and much more.

Read on.

CONTENTS

COVER STORY

Interpreting the Great ‘Chinese Dream’ The new vocabulary in the international relations lexicon is the concept of ‘Chinese Dream’. It is an ideational concept with profound meanings that every country in the global sphere is trying to deconstruct and demystify. India’s concern lies in the current dynamics of ‘China’s rise’ in the global sphere. There are some questions, which necessitate immediate attention and deliberation. What does the ‘Chinese Dream’ mean for India? Whose Dream is it? What does it signify for the world? More importantly, in what ways does the ‘Chinese Dream’ hold relevance for India?

According to some experts the Dream is a road that marks the regaining of China’s lost glories; a quest to reclaim its erstwhile position of being the ‘Son of Heaven’.

22

|2| India-China Chronicle January 2014

4

Feedback

6

Brief News

RELIGION

9

Islamophobia in China China links the attacks of its ethnic group Uighurs to Islam and Muslims but the truth is that the Uighur populated Xinjiang region is rich in resources and is a strategically placed region that borders eight countries.

The anti-Muslim sentiment in addition to cultivated ‘Islamophobia’ is being politicized.

information. For the third time since 1949, China’s leadership has come up with bold reforms to prevent the country from going wayward.

PEOPLE

12

China’s NGO Sector: A Reality or an Illusion?

Post the reform era that began in 1978, the NGO sector in China has mushroomed greatly. According to the official statistics of the Ministry of Civil Society, the number of NGOs rose from the 6000 mark before 1978, to 186,000 in 2006.

16

ENERGY

40

STATE PROFILE

52

Dam issue: China’s concern and India’s fear China’s proposed plan to harness 40000 MW of electricity from the waters of Brahmaputra at the Great Bend region will surely help its arid northern region to deal with water crisis, but it will also adversely affect the water demands of millions of people in the lower riparian states of India and Bangladesh.

With the commissioning of Vishakhapatnam Strategic Petroleum Reserves (SPR) in January 2014, India will be starting its journey towards further strengthening of its energy security, when it will start stockpiling the crude, to deal with supply disruptions of various kinds.

FIRST PERSON

30

The Curious Case of India’s Strategic Petroleum Reserves

A Lion Dancer is not a Disney Character

Brisk in Business, High on Tradition: Gujarat Gujarat is ranked as one of the topmost states for foreign investment and boasts of its excellent pro-business infrastructure and governance. With 80 per cent literacy level and a per capita income higher than the national average, the State has performed spectacularly in trade and commerce.

DELEGATION

54

Checking the Pulse Qingdao medical delegation visits Delhi hospitals

BUSINESS

45

Taking forward the Relationship: Xiamen and India

Investing in India: An Introduction for Chinese Companies The fundamentals that make India attractive to investors are its high potential of the domestic market driven pool of talent of an emerging middle class. The country’s domestic demand-driven growth model is playing the catalyst in attracting foreign investments in the country.

MY VIEW

33

A Tangled Triangle: India, China and USA

DELEGATION

50

MISSING PIECE

38

Interpreting China’s 60-point Reforms China was behind India during the’ 40s. Today China is ahead of India in every aspect of business except perhaps areas like freedom of press &

51

Inviting SAIS International for Software Park and Education Roadshows in Gujarat on October-November 2013

EXHIBITION

55

Haat of India: The Exposition & Investment Summit in Bhopal, Madhya Pradesh

62

Exhibitions & Trade show In India & In China

January 2014 India-China Chronicle |3|

F E E D B A C K

x ` 100 November 2013

Global South S

culpting

G20

Order? to New World

EDUCATION MARITIME DIPLOMACY

China’s Reactor : A Sale to Pakistan Nuclear Mistake?

tal China’s Continen into Strategy Expands ain Maritime Dom

Cóng tóu dà o wěi

BRICS Should Take Charge

T

he article, ‘Global South Sculpting G20 to New World Order’ explains the inner intricacies of G20 in a very lucid manner. I thank the authors for breaking down this complex grouping into understandable sections. The JURZLQJ LQĂ€XHQFH RI %5,&6 WKRXJK a dampener to the US aspirations, is exactly what the 21st century demands. With the majority of world population living in this ‘global south’ it is pertinent for the countries OLNH RXUV ,QGLD &KLQD HWF WR WDNH charge of the situation and think for RXU EHQHÂżW DQG DVSLUDWLRQV ZKLOH decisions are being made at these high echelons.

Hema Nandi, Bangalore

India needs to Step up its Efforts

I

ndia’s constant effort to rise as a support center in Asia is being WKZDUWHG E\ &KLQD DW DOPRVW HYHU\ point. The recent sale of the nuclear reactor to Pakistan is probably the hardest blow to India. Despite being LQ WKH 81 6HFXULW\ &RXQFLO DQG EHLQJ fully aware of Pakistan’s vulnerable GHPRFUDF\ &KLQD ZHQW IRUZDUG ZLWK the deal! India too should step up its

efforts for its own security. It must work promptly to gain allies in the region so that its position remains secure. Any threat from Pakistan with LWV LQFUHDVHG FR]LQHVV IURP &KLQD RU vice versa should not be overlooked.

Pankaj Saini, Navi Mumbai

Moving with Legs Chained?

I

thoroughly enjoyed reading the article ‘Ascendancy of Social Media.’ I thank the magazine for providing a peek into the inner happenings of &KLQD 7KH RQH SDUW\ JRYHUQPHQW LV taking strides to make its mark on the global landscape. However, it has its pitfalls as growth is unhealthy without freedom. It is only a matter of time EHIRUH WKH &KLQHVH \RXWK JHWV H[SRVHG to the culture of expression. We do get to hear about the dissent that general public has on the prevention of expression. It is just a matter of few years, I think, after which these pent up feelings for expression will HUXSW %XW LQ WKH VDPH EUHDWK , DGPLUH WKH &KLQHVH LQJHQXLW\ DQG hard work in coming up with native social media sites. Its popularity is amazing. Such technological advances go on to prove that the West can’t dictate in every realm.

Deepshika Malhotra, Noida

Despite Harmony, no Peace

I

ndia has a moderate policy in international affairs. The philosophy of ‘neutrality’ and ‘peace’ as well as ‘dispute settlement through mutual understanding’ has, by and large, guided India in foreign policy PDWWHUV &KLQD WRR WRHV WKH OLQH RI ‘peace’ and ‘harmonious’ existence.

The two should then work closely IRU D SRVLWLYH LQĂ€XHQFH WKH UHJLRQ An offensive relationship is not the INFOCUS

NA|COVER STORY INFOCUS|INDIA-CHI

ullppting

G20

dder?

Ascendancy of

Social Media in Minxin Pei

T

&

hina’s move in arming Pakistan with nuclear reactors shows an ambiguity between the country’s call for ‘peaceful rise ’. As a leading nation of South Asia and as a member RI WKH 81 6HFXULW\ &RXQFLO &KLQD should recognize its responsibility in contributing to stability in its neighboring countries. With the NATO armies moving out of Afghanistan , this particular move of helping Pakistan’s nuclear program can not only lead to problems in our country but in South West Asia as ZHOO DQG LWV WLPH &KLQD UHDOL]HV WKDW Gautam Kapoor, Delhi

Mandarin is the New Toast

M

s. Usha Sahoo’s article on HSK tests was a delight to read. I am currently a beginner in Mandarin and to be able to comprehend the WLWOH RI WKH DUWLFOH $ WR = RI +6.

gave me great joy. It was nice to know the inputs and suggestions given by those who are at advanced levels and it gives me more inspiration WR OHDUQ DQG PDVWHU WKH &KLQHVH language. I thank you on behalf of my batch-mates as we now have a better understanding of our future prospects and what we could achieve via taking the HSK tests. Thanks again!

Somsukla Biswas, Kolkata

capitalist holding a US passport, was caught with a and then paraded, “prostitute� in on Central Chinese handcuffs, TV’s news program and madetoflagship confess his sins. Before he was the Chinese police, grabbed by critic of corruption, Xue, a sharp social injustice and government incompetence, had 12 million followers on the Chinese weibo. Almost at the same time, several other Big Vs, who had established their fame by exposing corruption and attempted cover-ups of scandals by local government officials, were arrested on charges of “rumor-mongering�, “fraud, k mail�. To underscore � and “blackthat such arrests were legal, the These arres Chinese Supreme Court and the supreme through C Chin office, both controlled prosecutor’s Almost in nstantl quickly issued a joint by the party, on the weeibo. B legal interpretation (an act that technically the Chineese so violates the Chinese constitution filled with h lively ) that criminalized rumor-mon Today, succh dis gering and defined the severity of such replaced byy ente acts. According to this document, if an health tips. that is deemed to be online news item To the Chine a 5,000 unique visitorsrumor is seen by outcome off the c 500 times, the person and retweeted highly satissfying. S the rumor is criminally responsible for crackdown, the C liable.

or Sale China’s React :A an st ki Pa to ke?

Nuclear Mista

the Middle Kingdo m

catchy phrase means is reasonable to assume unclear, it seems ciety under the tight that it includes, at least, some expression party state. Beginningcontrol of a onefreedom and liberties of personal Chinese authorities in late August, for ordinary Chinese people. planned, ferocious launched a welland However, even as crackdown on Chinesecomprehensive ganda machine goes the official propaTrumped-up criminal social media. into overdrive to drum up popular support filed against the most charges were for Xi’s new influential weivision for China, a bo (microblog ) commentat political nightmare ors, called is unfolding across Big Vs (which stands China’s social media, which had so with large numbers for individuals far vibrant and freest publicbeen the most followers). One of of verified weibo space in a soXue, a Chinese-Am them, Charles erican venture 2013

hose who have been the slightest attentionpaying even to China’s official press can “China Dream� media hardly miss the coined by the new blitz. Originally chief of the Communist Party of Xi Jinping, when he China (CPC), power in November formally assumed 2012, the term has since become Beijing’s favorite official slogan. Although what exactly this

|4| India-China Chronicle ƒ January 2014

A Mixed Message

INFORMATION TECHNOLOGY

Global South Sc

Or N w World O to Ne

answer to any dispute settlement.

Asia is large enough for two giants. %RWK VKRXOG ZRUN LQ KDUPRQ\ VR that regional security and prosperity is maintained. Trade and cultural UHODWLRQVKLS VKRXOG ÀRXULVK :KDW LV most important is that it shouldn’t give the West a chance to gain advantage in the region.

Ashish Sontake, Mumbai

|42| India-China Chronicle ƒ November

r policy stance on nuclea sly its aggressive seriou g ahead with ing to China, g stand of movin which accord setting China’s existin nuclear deal, ation thereby from Indo-US of non-prolifer about Indo-US clearly stems effectiveness ing its concerns integrity and ea damages the countries. Follow efforts to provid ence for other criticise the US to ued dangerous preced China contin and NSG. civil nuclear deal, for India at IAEA “clean waiver�

Chronicle |9| ƒ India-China November 2013

INFOCUS | INDIA-CHINA | NEWS

Technical Expertise to Climb the Corporate Ladder

G

OREDO ¿UP 'HYHORSPHQW 'LPHQVLRQV ,QWHUQDWLRQDO '', UHFHQWO\ FDPH XS ZLWK D VXUYH\ RQD KLJK SHUIRUPHU PRYLQJ XS WKH RUJDQL]DWLRQDO ODGGHU WR WUDQVLWLRQ WR IURQWOLQH OHDGHUV 7KH VWXG\ WLWOHG “Finding WKH ¿UVW UXQJ LQ ,QGLD DQG &KLQD´ WKUHZ XS VRPH LQWHUHVWLQJ UHVXOWV $FFRUGLQJ WR $PRJK 'HVKPXNK +HDG RI 6DOHV 0DUNHWLQJ DQG NH\ PHPEHU ,QGLD /HDGHUVKLS 7HDP '', ,QGLD ³:H IRXQG RXW WKDW LQ ,QGLD DQG &KLQD WHFKQLFDO H[SHUWLVH EHFRPHV D VLJQL¿FDQW FULWHULD WR JUDGXDWH WR WKH SRVLWLRQ RI D OHDGHU ´ 2QH LQ WZR OHDGHUV LQ &KLQD DQG RQH LQ IRXU OHDGHUV LQ ,QGLD VDLG WKDW WKH\ JRW SURPRWHG DV WKH\ ZHUH WHFKQLFDO H[SHUWV DV FRPSDUHG WR WKH 86 ZKHUH RQH LQ ¿YH OHDGHUV ZDV SURPRWHG IRU WKH VDPH 2QO\ SHU FHQW DQG SHU FHQW OHDGHUV LQ &KLQD DQG ,QGLD ZHUH KLUHG H[WHUQDOO\ DV Amogh Deshmukh, Head, DDI FRPSDUHG WR WKH 86 ZKHUH QHDUO\ SHU FHQW OHDGHUV ZHUH KLUHG IURP H[WHUQDO VRXUFHV µ&KLQHVH OHDGHUV ZHUH WKUHH WLPHV PRUH OLNHO\ WR EH JURRPHG WR OHDGHUVKLS SRVLWLRQV WKRXJK IRUPDO GHYHORSPHQW DV FRPSDUHG WR ,QGLD DQG 86 ¶ WKH UHVHDUFK UHYHDOHG :KDW GRHV LW WDNH WR EHFRPH D VXFFHVVIXO OHDGHU" '', FODVVL¿HG WKH UHTXLUHG FKDUDFWHULVWLFV QWR IRXU TXDGUDQWV 5HVXOWV GHPRQVWUDWHG WKDW WKH WZR TXDGUDQWV RQ WKH OHIW VLGH µ:KDW 3HRSOH .QRZ¶ DQG µ:KDW 3HRSOH +DYH 'RQH¶

DUH HDV\ WR LGHQWLI\ DQG DUH HDVLO\ WUDLQDEOH 0RVW OHDGHUV HVSHFLDOO\ EXVLQHVV OHDGHUV DQG HPSOR\HHV WKHPVHOYHV SXW H[FHVVLYH IRFXV RQ WHFKQLFDO WUDLQLQJ DORQH /HDGHUV WHQG WR IRFXV RQ WKHVH WZR IDFWRUV PRUH DV WKH\ DUH WDQJLEOH HDV\ WR GHPRQVWUDWH DQG HDV\ WR UHYLHZ E\ ZD\ RI PHWULFV EDODQFH VFRUHFDUGV DQG NH\ SHUIRUPDQFH DUHDV ³%XW LW LV UHDOO\ WKH WZR TXDGUDQWV RQ WKH ULJKW µ:KDW 3HRSOH &DQ 'R¶ DQG µ:KR 3HRSOH $UH¶ WKDW VHSDUDWH PHQ IURP WKH ER\V ´ VD\V $PRJK 7KHVH WZR DUHDV SRVH WKH PRVW GLI¿FXOW FKDOOHQJH 0RUH LPSRUWDQWO\ EHFDXVH RI LWV ÀXLG VWDWH WKHVH WZR DVSHFWV DUH OHIW RXW RI WKH UHYLHZV 2UJDQL]DWLRQV LQ ,QGLD DQG &KLQD KDYH VWDUWHG ZDUPLQJ XS WR DVVHVV OHDGHUV DURXQG WKHVH FKDUDFWHULVWLFV WKH UHVHDUFK VWXG\ VWDWHG

China to Punish Corrupt *RYHUQPHQW 2I¿FLDOV

3

UHVLGHQW ;L -LQJSLQJ¶V DGPLQLVWUDWLRQ KDV FRPH GRZQ KDUG RQ LWV FRUUXSW RI¿FLDOV 7KH &3& &HQWUDO &RPPLWWHH KDG LVVXHG D \HDU DQWL JUDIW SODQ WR LQWURGXFH D QHZ V\VWHP WR HQVXUH SXQLVKPHQW DQG SUHYHQWLRQ RI FRUUXSWLRQ DPRQJ RI¿FLDOV $V UHSRUWHG E\ &KLQD¶V 3HRSOH 'DLO\ WKH PXFK SXEOLFL]HG FDPSDLJQ KDV DOUHDG\ SXQLVKHG D WRWDO RI RI¿FLDOV IRU ³GLVFLSOLQDU\ YLRODWLRQV´ UHODWHG WR FRUUXSWLRQ ZDVWH DQG H[WUDYDJDQFH 7KH VXVSHFWHG YLRODWLRQV LQFOXGH DFFHSWLQJ DQG RU JLYLQJ JLIWV XVH RI SXEOLF IXQGV IRU H[SHQVLYH UHFUHDWLRQDO DFWLYLWLHV YLRODWLRQV RI ZRUNSODFH UXOHV DQG EHLQJ OD]\ RU VOXJJLVK DW ZRUN 7KH RI¿FLDOV UHFHLYHG SXQLVKPHQWV UDQJLQJ IURP FHQVXUHV VDFNLQJV DQG HYHQ MDLO WLPH $FFRUGLQJ WR WKH &3&¶V &HQWUDO &RPPLVVLRQ IRU 'LVFLSOLQH ,QVSHFWLRQ &&',

ZHEVLWH RI SXQLVKHG LQGLYLGXDOV DUH EHOLHYHG WR KDYH FRPH IURP ZLWKLQ WKH SDUW\ LWVHOI ± LQFOXGLQJ RQH DW WKH PLQLVWHULDO OHYHO DQG DW WKH SUHIHFWXUDO OHYHO 7KH 6WDWH &RXQFLO &KLQD¶V H[HFXWLYH FDELQHW DQG WKH &RPPXQLVW 3DUW\ KDYH FDOOHG RII WKH IXQGV VDQFWLRQHG IRU QHZ JOLW]\ JRYHUQPHQW EXLOGLQJV DQG IRU WKH QH[W \HDUV WKH VDPH IXQGV KDYH EHHQ DOORFDWHG WR GHYHORSLQJ WKH HFRQRP\ DQG LPSURYLQJ SXEOLF ZHOIDUH 2I¿FLDO H[WUDYDJDQFH DW GLQQHU EDQTXHWV DQG HYHQ DW IXQHUDOV KDV EHHQ VWULFWO\ FKHFNHG

China’s Economy in 2014

F

< ZLOO EH ³D \HDU RI KRSHV DQG FKDOOHQJHV´ IRU &KLQD DFFRUGLQJ WR D UHSRUW E\ D UHVHDUFK WHDP RI WKH %DQN RI $PHULFD 0HUULOO /\QFK OHG E\ WKH FKLHI &KLQD HFRQRPLVW /X 7LQJ ´,Q LQÀDWLRQ ZLOO EH VOLJKWO\ KLJKHU EXW ZLOO UHPDLQ WDPHG DW SHUFHQW DQG JURZWK FRXOG EHFRPH

|6| India-China Chronicle January 2014

China University Prohibits Western Xinjiang Students from Graduating

7

KH &RPPXQLVW 3DUW\ UHJLPH DW %HLMLQJ KDV \HW DJDLQ PDGH LWV µ]HUR WROHUDQFH¶ VWDQG WRZDUGV DQ\ VHSDUDWLVW PRYHPHQW LQ WKH WXUEXOHQW ZHVWHUQ ;LQMLDQJ SURYLQFH 7KH 8LJKXU HWKQLF 0XVOLPV KDYH EHHQ GHDOW ZLWK DQ LURQ KDQG HYHU VLQFH WKH UHJLRQ¶V ¿UVW DWWHPSW WR EUHDN DZD\ IURP &KLQD LQ ,PSRVLWLRQ RI UHJXODWLRQV LQ WKH SDVW VXFK DV GLVFRXUDJLQJ YHLOV DQG JURZLQJ ORQJ EHDUGV LQ D ELG WR ³GLOXWH UHOLJLRXV FRQVFLRXVQHVV´ KDYH FUHDWHG PXFK UHVHQWPHQW DPRQJ WKH 7XUNLF ODQJXDJH VSHDNLQJ QDWLYHV RI ;LQMLDQJ DQG WKH UHJLRQ LV ZLWQHVV WR VSRUDGLF FDVHV RI YLROHQW XQUHVW 7KH ODWHVW GLNWDW SURKLELWV VWXGHQWV LQ ZHVWHUQ ;LQMLDQJ UHJLRQ IURP JUDGXDWLQJ FROOHJH XQOHVV WKHLU SROLWLFDO YLHZV KDYH EHHQ DSSURYHG E\ WKH XQLYHUVLW\ DXWKRULWLHV 7KLV LV EHLQJ WHUPHG E\ WKH DGPLQLVWUDWRUV DV DQ µLGHRORJLFDO ZDU¶ DJDLQVW VHSDUDWLVP 6LQFH ORQJ +XPDQ 5LJKWV JURXSV KDYH EHHQ DFFXVLQJ &KLQD RI FRQGXFWLQJ D FDPSDLJQ RI UHSUHVVLRQ DJDLQVW LWV 0XVOLP PLQRULW\ GHVSLWH WKH &RQVWLWXWLRQDO SURPLVH RI JXDUDQWHHG UHOLJLRXV IUHHGRP 6KDULQJ RI ERUGHUV ZLWK HLJKW GLIIHUHQW QDWLRQV SUHVHQFH RI IRUHLJQ ¿JKWHUV LQFOXGLQJ 7DOLEDQ PHPEHUV DQG &KLQD¶V UHFHQW IRFXV RQ ¿JKWLQJ WHUURULVP ZLWKLQ LWV RZQ ERUGHUV DUH IDFWRUV WKDW KDYH IXUWKHU FRPSOLFDWHG WKH VLWXDWLRQ LQ WKLV UHPRWH FRUQHU RI WKH 'UDJRQ ODQG

PRUH VWDEOH RQ LPSURYHG PDFUR PDQDJHPHQW RI %HLMLQJ DOEHLW GRZQ VOLJKWO\ WR SHUFHQW ´ /X VDLG LQ WKH UHSRUW ´:H GRQ¶W H[SHFW D KDUG ODQGLQJ LQ JURZWK D V\VWHPDWLF ¿QDQFLDO FULVLV RU QDWLRQZLGH GHEW FULVLV ´ KH DGGHG )RU RSWLPLVWV RU ³EXOOV ´ ZKR SUHGLFW JURZWK RI DERYH SHU FHQW WKH\ EHOLHYH WKDW WKH UHFRYHULQJ 8 6 DQG (XURSHDQ HFRQRPLHV ZLOO JUHDWO\ LQFUHDVH &KLQD¶V H[SRUWV 0HDQZKLOH WKRVH ³EHDUV´ ZKR H[SHFW EHORZ SHU FHQW JURZWK EHOLHYH WKDW UHIRUPV VXFK DV UHGXFLQJ ORFDO JRYHUQPHQW GHEW FXWWLQJ RYHU FDSDFLWLHV DQG FXUELQJ VKDGRZ EDQNLQJ ZLOO VLJQL¿FDQWO\ VORZGRZQ JURZWK /X VDLG +H H[SODLQHG ³:H DUH QRW DV EXOOLVK RQ &KLQD¶V H[WHUQDO GHPDQG DV ZH H[SHFW D VWURQJ 5HQPLQEL DV ULVLQJ ODERU FRVWV DQG ZHDN HPHUJLQJ PDUNHWV ZLOO FRQWLQXH WR ZHLJK RQ &KLQD¶V H[SRUWV ´ :H DUH QRW DV EHDULVK EHFDXVH ZH EHOLHYH WKDW VKDGRZ EDQNLQJ LV QRW WKDW VFDU\ DQG WKH GHOHYHUDJLQJ RI ORFDO JRYHUQPHQWV ZLOO EH JHQWO\ EDODQFHG E\ OHYHUDJLQJ XS WKH FHQWUDO JRYHUQPHQW DQG UHVWDUWLQJ ,32V ´ 7KXV GHVSLWH SUREOHPV VXFK DV KRXVLQJ PDUNHW DW ULVN RI IRUPLQJ EXEEOHV KLJK ORFDO JRYHUQPHQW GHEW LQFUHDVLQJ SROOXWLRQ DQG RYHUFDSDFLW\ LQ PDQ\ LQGXVWULDO VHFWRUV &KLQD¶V HFRQRP\ HQWHUV ZLWK VROLG PRPHQWXP ORZ LQÀDWLRQ DQG ULVLQJ KRXVHKROG LQFRPHV

‘Tuhao’: Oxford Dictionary Considers Chinese Slang Edition

:

KHWKHU \RX FDOO LW WKH UHDVRQ µ(QJOLVK¶ LV FRQVLGHUHG WKH µPRVW DOLYH¶ ODQJXDJH LQ WKH ZRUOG RU VHH LW DV DQRWKHU PDQLIHVWDWLRQ RI &KLQD¶V JURZLQJ LQÀXHQFH DFURVV WKH JOREH WKH UHYHUHG 2[IRUG GLFWLRQDU\ LV RQ LWV ZD\ WR

DGG \HW DQRWKHU VHW RI &KLQHVH ZRUGV WR LWV H[LVWLQJ OLVW RI DURXQG &KLQHVH OLQNHG ZRUGV µ7XKDR¶ D VODQJ XVHG IRU WKH QRXYHDX ULFKH LQ &KLQD LV VLPLODU LQ XVDJH DV µEOLQJ¶ZKLFK UHIHUV WR H[SHQVLYH RVWHQWDWLRXV FORWKLQJ RU MHZHOU\ 7KH ZRUG JDLQHG FUHGHQFH LQ 6HSWHPEHU ZLWK WKH ODXQFK RI $SSOH¶V QHZ JROG FRORUHG L3KRQH DQ LWHP ORYHG E\ &KLQD¶V QHZO\ ULFK DQG SRZHUIXO 7KH FRORU EHFDPH NQRZQ DV ³7XKDR *ROG ´ $QRWKHU ZRUG µGDPD¶ PHDQLQJ µPLGGOH DJHG ZRPDQ¶ LV WR EH DGGHG DORQJ ZLWK µWXKDR¶ 7KH ZRUG ZDV ¿UVW XVHG E\ WKH :DOO 6WUHHW PHGLD ZKHQ &KLQHVH ZRPHQ SXUFKDVHG UHFRUG QXPEHU RI JROG LWHPV ZKHQ WKH SULFH RI WKH \HOORZ PHWDO VOXPSHG EHWZHHQ $SULO DQG -XQH µ7KHVH &KLQHVH EX]]ZRUGV UHÀHFW VRFLDO FKDQJHV EXW January 2014 India-China Chronicle |7|

INFOCUS | INDIA-CHINA | NEWS

it takes time to be accepted by the British people and become a part of the English glossaryâ&#x20AC;&#x2122;, said Julie Kleeman, project manager of bilingual dictionaries with the Oxford University Press. The Press says that a reason for including &KLQHVH KRW ZRUGV EHVLGHV WKH LQFUHDVLQJ LQĂ&#x20AC;XHQFH RI WKH Chinese language, is that these words are often puns or carry mockery and humor in a way that would be lost in translation.

Chinese Evince Interest in Kerala

A

six- member delegation from China, led by Feng Naiâ&#x20AC;&#x2122;en, Deputy Director of Palace Museum in Beijing, KHOG WDONV ZLWK RIÂżFLDOV RI .HUDOD &RXQFLO RI +LVWRULFDO 5HVHDUFK .&+5 WR H[SORUH WKH SRVVLELOLW\ RI DQ DFDGHPLF collaboration in the Pattanam archaeological research.

The delegation representing the Ceramic Institute (part RI WKH 3DODFH 0XVHXP &KLQD ZRXOG KHOS LQ WKH VWXG\LQJ of the 300-odd Chinese ceramic pieces unearthed at the excavation site and in establishing the historical links between China and India.

61 , 3 3 ( 7 6 CHINESE UNIVERSITY SHOWS INTEREST TO SIGN MoU WITH PUNJAB UNIVERSITY Chinese delegation led by the deputy director general, Foreign and Overseas Chinese Affairs, Office of Henan Provincial Peopleâ&#x20AC;&#x2122;s Government, Mr HaoLijun visited the Punjab University (PU). Mr. Lijun said that both the universities in his state (Zhengzhou University and Henan University) were open for collaboration for mutual exchange programs and he looked forward to signing a MoU with PU. In response to the query about language posing as a barrier in teaching, Hao Lijun said that they would provide translators. .......................................................................................................................

ABEâ&#x20AC;&#x2122;s VISIT TO YASUKUNI SHRINE STOKES TENSION AND MISTRUST IN CHINA eijing refused the Japanese Prime Minister Shinzo Abeâ&#x20AC;&#x2122;s request for an official meeting with his Chinese counterpart. Abe stoked tensions with his visit to the Yasukuni Shrine on December 26th, 2013. The shrine is widely viewed as a symbol of Japanâ&#x20AC;&#x2122;s past militarism, and the visit triggered strong protests from China and South Korea and the United States too expressed disappointment at the same. Chinaâ&#x20AC;&#x2122;s Foreign Minister Wang Yi spoke scathingly of Abeâ&#x20AC;&#x2122;s visit and warned, â&#x20AC;&#x153;What Abe has done is leading Japan in a very dangerous direction. Lessons from history must be learned.â&#x20AC;? ....................................................................................................................... â&#x20AC;&#x2DC;TRACK OF WINNERSâ&#x20AC;&#x2122; CHOSEN AS NANJING 2014 GAMES MEDAL he International Olympic Committee (IOC) announced the 23-year-old MatejÄ&#x152;iÄ?ka, sports enthusiast from Slovakia, as the winner of the Nanjing 2014 Youth Olympic Games Medal Design Competition for the 2014 Summer Youth Olympic Games. The Games will be held from August 16-28 in Nanjing, China. Like the bold, colorful and fun mascot Nanjinglele, the â&#x20AC;&#x2DC;Track of Winnersâ&#x20AC;&#x2122; concept for the Games medal was described by the jurors as â&#x20AC;&#x153;modern, fresh and dynamicâ&#x20AC;?. .......................................................................................................................

MAOâ&#x20AC;&#x2122;S 120TH BIRTHDAY CELEBRATION resident Xi Jinping called for austere celebrations to mark the birthday of the great helmsman, Mao Zedong on December 26. His call is consistent with his push against lavish ceremonies and wasteful public spending. The celebrations did not highlight Maoâ&#x20AC;&#x2122;s central role in Chinaâ&#x20AC;&#x2122;s worst post-war tragedies: the Great Leap Forward and Cultural Revolution, in which millions died. The President pointed in his speech that â&#x20AC;&#x153;revolutionary leaders are not gods, but human beings.â&#x20AC;? He praised Mao as â&#x20AC;&#x153;a great figure who changed the face of the nation and led the Chinese people to a new destinyâ&#x20AC;?.

A

B

T

7KH .&+5 H[SUHVVHG LWV ZLOOLQJQHVV WR H[WHQG D student exchange program for research work and accommodate students from China on internships. An 0R8 EHWZHHQ 3DODFH 0XVHXP RI &KLQD DQG WKH .&+5 will be signed shortly.

The small city of Pattanam, Kerala came under much limelight as both Indian and international archaeologistsstarted speculating that it may have served as the missing trade link, then known as â&#x20AC;&#x2DC;Muzirisâ&#x20AC;&#x2122;, between India and the Roman Empire between 1st Century BC and 1st Century AD. Evidences of Roman artefacts have EHHQ IRXQG LQ SOHQW\ 7KH %ULWLVK $FDGHP\ %$6$6 KDV accorded recognition for the formation of an international research group based on Pattanam.

With China too coming on board, the excavation exploration of Pattanam, the mystery that shrouds this little city on the Kerala coast line shall soon be solved. |8| India-China Chronicle Â&#x192; January 2014

P

(Compiled by Sreemoti Sengupta)

INFOCUS|CHINA|RELIGION

Islamophobia in China China links the attacks of its ethnic group Uighurs to Islam and Muslims but the truth is that the Uighur populated Xinjiang region is rich in resources and is a strategically placed region that borders eight countries. The anti-Muslim sentiment in addition to cultivated ‘Islamophobia’ is being politicized. For long, China was facing a series of separatist violence. Uighur separatists were known to exist way before the beginning of the ‘war on terror’. The extremism and terrorism in Asia is more of a supplementary concept to global political standoffs. On a positive note,China’s HQJDJHPHQW ZLWK ;LQMLDQJ SURYLQFH LV EHQH¿FLDO IRU LWV IXWXUH LQYROYHPHQW LQ &HQWUDO Asia rather than falling prey to the Western notion of ‘Islamophobia’.

Shandeepan Ganapathy

O

n 17th November, 2013, in the northwestern region of Xinjiang of China a police station was attacked leaving 11 dead which included two policemen.

Government of China held the Xinjiang

Uighurs-native Turkic Muslim ethnic group to be responsible for the assault.

In another attack in the Forbidden City on 28th Oct last year, Uighurs were suspected of unleashing the violence.

The Chinese authorities labeled these incidents as ‘terrorist attacks’ linking WKHP WR UDGLFDOV RYHUVHDV RXW¿WV But is blaming the occurrences to

,VODP OLQNHG WHUURULVP MXVWL¿HG" ;LQMLDQJ RU RI¿FLDOO\ ;LQMLDQJ 8\JKXU Autonomous region is a prominent region with abundant oil reserves and the largest natural gas production in China. Though the region has enormous economic potential and capabilities, it is negatively linked to terrorism and extremism, which in turn is nurturing the fear of Islam and Muslims (Islamophobia) in China.

A Cultivated Islamophobia The word “Islamophobia” meaning ‘irrational hatred and fear of Islam and Muslims’ was introduced by Runnymede Trust Report in 1991. Though the concept originated from the West, it soon spread across all the continents in the aftermath of 9/11. The negative interpretation of Muslims and Islam, worsened the ‘us’ vs the ‘other’ debate in Asia, especially in East Asia, where the states are dominated by large nonMuslim population. In South Asia, the spread of Islamophobia was comparatively sluggish. After 26/11, Islamophobia took momentum in India. One can debate that these threats are not January 2014 India-China Chronicle |9|

INFOCUS|CHINA|RELIGION

real and are just an over exaggerated impact of a phobia that has spilled over from global North. Islam is not a new religion to Asia. It has been in existence for centuries. There is a considerable Muslim population in Asia including India and in most of these regions Islam dates back to 14001500 years. With the long history of trade and co-existence, why is there a sudden shift of opinion and skeptiFLVP RYHU 0XVOLPV LQ WKH UHJLRQ" 7KH answer to the question isa mixture of both sub-regional politics and intricate cultural divergence.

Traditionally Xinjiang is described as a resource rich and strategically important region bordering eight countries. Xinjiang lies in the heart of the Silk Road, connecting China with the Central Asian countries. Currently six pipelines are planned to be constructed which would in turn connect the central Asian oil and natural gas reserves to the mainland markets and the other eastern countries, which would provide huge revenues in the form of transit to China. Control over the Central Asian hydrocarbon resources and China’s future involvement in Central Asia are inextricably associated with China’s engagement with the Xinjiang |10| India-China Chronicle January 2014

XINJIANG LIES IN THE HEART OF THE SILK ROAD, CONNECTING CHINA WITH THE CENTRAL ASIAN COUNTRIES. CURRENTLY SIX PIPELINES ARE PLANNED TO BE CONSTRUCTED WHICH WOULD CONNECT THE CENTRAL ASIAN OIL AND NATURAL GAS RESERVES TO THE MAINLAND MARKETS AND THE OTHER EASTERN COUNTRIES, WHICH WOULD PROVIDE HUGE REVENUES IN THE FORM OF TRANSIT TO CHINA. province. When it comes to India, it is completely a different complexity.

Muslims who constitute 14.4 per cent of the Indian population are spread a lot more diversely in all the states. Being a secular state and accommodating multi-culturalism in India, the Muslim population not only contributes to the Indian economy, but has a larger stake in national politics as well.

Media Propaganda in Maligning Islam Before analyzing the argument of Islamophobia being politicized, we need to consider that for long the Chinese were facing a series of separatist violence. Uighur separatists were known to exist way before the beginning of the ‘war on terror’. It is under 2VDPD %LQ /DGHQ¶V LQÀXHQFH WKDW WKH separatist wave unrevealed its presence to the world.

Between 1990 to 2001 Uighur separatists were reported to have unleashed over 200 attacks. Following the beginning of campaign against global terrorism, the Eastern Turkestan Islamic Movement (ETIM) was placed in the United States terrorist Exclusion List. China claimed that ETIM had obtained funds and training from Al-Qaeda. Similar is the case with the Chinese neighborhood, where Moro Islamic Liberation Front (MILF) and Moro National Liberation Front (MNLF) in south Philippine, the two prominent separatist groups were frequently alleged by the state to have links with Abu Sayyaf Group (ASG),the South East Asian arm of the Al-Qaida network. In Southern Thailand, ethnic Malay Muslims who contribute around

80 per cent of the total population in the southernmost provinces of Pattani, Narathiwat and Yalaare were involved in a series of violence against the Buddhist Thai state. Since 2004, the violence has resulted in the death of over 1900 people in all the three provinces.

Though a mass violence was reported only as late as 2004, there has been a long history of resistance since the time of Thai occupation in 1785. India carries an intricate animosity from the time of India-Pakistan partition. The populist notion perceives the communal divide to be associated with the India-Pakistan dispute over Kashmir.

Though there had been a number of communal riots and violence recorded inside the country, it had never turned into phobia. The present developing phobia is a combination of construction of ‘the other’ based on the global media propaganda, native prejudices and Indian diaspora’s encounters.

The major concern is the growLQJ VHFWDULDQ QDWXUH RI WKH FRQÀLFW LQ South and East Asia that had started attracting outside groups such as Al Qaeda and Jemaah Islamiyah (JI).

These external groups are usually networked for weapons and aids. There is also an high probability of spillover of the violence from Afghanistan and other parts of West Asia where the West is involved in the war on terror campaign. The terror groups have recently increased their involvement in these regions. Parallel to this debate, extremism and terrorism in Asia is more of a supplementary concept to the existing political standoff. Many scholars challenge the naming of ETIM as a terrorist organization.

Socio-economic Disparities and Political Grievances The cultural assimilation issue of Muslims to the majority class in the East Asia is another major huddle. The lack of freedom of religion in China complicates the integration process.

7KH RI¿FLDOO\ DWKHLVW VWDWH LV RIWHQ very repressive towards any religious practices and thus Muslim grief is taking a more political stand. Compared to the Indian experience, East Asia has

limited cultural exchange with their Muslim population, leaving them with lack of knowledge about Islam and a wrongly interpreted meaning of jihad.

This doesn’t mean that India does not have any misconception issues. The phobia against the Muslim minorities LV PRUH VLJQL¿FDQW DV D SROLWLFDO aspect than a cultural one and Indian political parties take great advantage of this. Indian media takes more of a nationalist stand, in a way siding with political parties in the case of 26/11 and other violence.

For a majority of the Uighurs, insurgency and politics have been overshadowed by more mundane concerns OLNH LQÀDWLRQ DQG XQHPSOR\PHQW 7KH roots of violence in all these countries are a complex mix of bloody history, ethnicity, and differences over religion, fueled by socio-economic disparities and political grievances. The states have to engage and resolve the grassroot level issues rather than falling prey to the Western notion of Islamophobia. On a political note, maintaining an amicable relation with the Chinese Muslim population will only deepen China’s relation with Arab countries on whom China is deeply dependent for its energy needs.

Asian economy is expanding with emergency BRICS economies and this

violence poses a direct threat to the expansion. The Muslim world and the West have reached a point where neither of them can back down. It’s a great opportunity for the two Asian giants to exploit this divide and expand their role. Being the largest consumers of energy, both have already become an intrinsic part of the energy market.

If China wants to retain its double digit growth rate which it has been recording for the last three decades, it VKRXOG QRW RQO\ ¿QG D VROXWLRQ IRU LWVHOI but also for its neighbors as regional stability holds the key to mutual economic growth. The states have already realized the same and China is working on a development plan for the Xinjiang Uygur autonomous region.

Though, there is a partial recognition of the need to engage, it still needs a much stronger political backing. As the region’s largest economy, India and China have a larger role to play in decimating phobia among their population.

The economic growth of Asia would thus be dependent on their amicable engagement rather than on alienating the Muslim population.

The writer is associated with O.P. Jindal Global University.

He holds Master’s degree in Diplomacy, Law and Business from Jindal School of International Affairs

January 2014 India-China Chronicle |11|

INFOCUS|CHINA|PEOPLE

China’s NGO Sector

A Reality or an Illusion?

Post the reform era that began in 1978, the NGO sector in China has mushroomed greatly. $FFRUGLQJ WR WKH RI¿FLDO VWDWLVWLFV of the Ministry of Civil Society, the number of NGOs rose from the 6000 mark before 1978, to 186,000 in 2006. Private NGOs that were absent in China prior to the reform era have now come into existence. But does the increase of private NGOs really imply the existence of a ‘free civil society’ in China? Does the law of the land stem the independent JURZWK RI QRQ RI¿FLDO 1*2V DQG PRQLWRU WKH RI¿FLDO 1*2V" :KDW exactly is the role and impact of NGOs within the Chinese society? |12| India-China Chronicle January 2014

Namrata Hasija

I

Q &KLQD 1*2V DUH RIÂżFLDOO\ FDOOHG â&#x20AC;&#x2DC;popular organisationsâ&#x20AC;&#x2122;. They are clubbed into two broad categories L H RIÂżFLDOO\ RUJDQLVHG she huituanti) DQG SRSXODU 1*2V min ban feiqiyedanwei 7KH ÂżUVW FDWHJRU\ LV initiated and operated by the Chinese government. The staff members are mostly on a government payroll. On the other hand, popular NGOs are initiated by private individuals and they receive no subsidies from the government.The post liberalisation phase has given an impetus to the nonRIÂżFLDO 1*2ÂśV WR PXVKURRP LQ &KLQD â&#x20AC;&#x201C; a possibility which did not exist at all before the reforms. Now, they are allowed to use non-state controlled resources and pursue independent interest and agendas. In 2006, there were around 159,000 private NGOs in the country. However, many factors have hindered the ability of the non-

RIÂżFLDO1*2ÂśV WR ZRUN VROHO\ IRU WKH EHQHÂżW RI WKH SXEOLF According to its internal policies, the Civil Affairs Department does not approve applications from any ÂľVSHFLÂżF VRFLDO JURXSÂś OLNH PLJUDQW workers, laid off workers, exservicemen, religious groups and so

A SURVEY DONE UNDER THE ASIAN BAROMETER PROJECT SHOWED THAT PUBLIC TRUST IN NGOs HAS DECLINED IN CHINA FROM 2002 TO 2008. IN 2002, 18.3 PER CENT PEOPLE DID NOT HAVE TRUST IN THE NGOs FOR CONTRIBUTING TOWARDS THE BETTERMENT OF THE SOCIETY WHEREAS IN 2008 THE MISTRUST LEVELROSE TO 45.7 PER CENT

on. This clause is in place in order to safeguard the Chinese government from the formation of any political, social or religious organisation in disguise of a NGO that could lead to any movement challenging the party or the state. There are many instances wherein associations formed by migrant labourers were â&#x20AC;&#x2DC;persuadedâ&#x20AC;&#x2122; to dismantle themselves after the members threatened further action if their demands for increase in salaries and decrease in working hours were not given attention.

Other than this the government does not want any NGO to grow in size and infrastructure so that it has networks all over the country. This would help in preventing a movement in one part of the country from having an impact on the rest of the region, or on the neighbouring regions. Thus there is a clause which restricts NGOs from opening regional branches i.e. national NGOs are restricted to Beijing, while provincial and county

January 2014 Â&#x192; India-China Chronicle |13|

INFOCUS|CHINA|PEOPLE

level ones remain within the provincial capital or county seat. This has curtailed their growth potential. The third controversial clause restricts new NGOs from opening if there is already a NGO doing similar work in the same administrative area. Thus, LI WKHUH LV DQ\ RIÂżFLDO 1*2 ZRUNLQJ for the welfare of disabled persons in a particular area, a popular NGO cannot work for the same cause in the same area.

Effect of the Clauses: These clauses not only restrict the growth of NGOs, but also limit their resources. Their existence implies that even popular NGOs have to look up to the government for support.

This in turn means collaborating with government agencies for projects and relying on their administrative networks to implement projects. This heavy dependency on the government hindersthe progress of work and also restricts the direction of NGO work.

To add to this, there is constant monitoring and restriction on campaigning for certain causes â&#x20AC;&#x201C; the prevention of which is beyond their limits. For example, popular organisations working

for women issues can only touch on certain issues through their websites, and social media but cannot focus on gritty issues such as forced abortions, the One Child policy or any issue that ZLOO VKRZ WKH JRYHUQPHQW RIÂżFLDOV LQ D EDG OLJKW 7KLV DOVR UHĂ&#x20AC;HFWV WKH DWWLWXGH of the NGOs towards people who feel WKDW RIÂżFLDOV DQG JRYHUQPHQW SROLFLHV are more important than the citizens that they are actually working for.

2IÂżFLDO 1*2V DOVR IDFH D ORW RI problems. The Party wants government agencies to transfer some of their functions to NGOs but the agencies refuse to do so, as they fear a reduction in their power and resources.

Thus, NGOs do not have a huge impact on the region in which they are established, as no real power or resources are transferred to them by the local governments. These NGOs are usually staffed by retired or serving governPHQW RIÂżFLDOV ZKRVH LQFRPH VHFXULW\ LV not related to the NGOâ&#x20AC;&#x2122;s status. Thus, they hardly show any entrepreneurLDO Ă&#x20AC;DLU +RZHYHU WKH PRVW LPSRUWDQW Ă&#x20AC;LSVLGH RI WKHVH RIÂżFLDO 1*2V LV that they are created by government agencies, as fronts for agency slush funds, to which unaccounted income

â&#x20AC;&#x2DC;Interim Procedures on the registration of social organisationsâ&#x20AC;&#x2122; was the first legal document on NGOs that was passed in China. In 1989, a new regulation was passed to fit in with Chinaâ&#x20AC;&#x2122;s new development model called the â&#x20AC;&#x153;Regulations on the Registration and Administration of Social Organizationsâ&#x20AC;?. In 1998, it was revised and â&#x20AC;&#x153;Interim Procedures on the Registration and Administration of Private Non-enterprise Organizationsâ&#x20AC;? was promulgated. These two sets of regulations govern the establishment and management of Chinaâ&#x20AC;&#x2122;s NGOs.

|14| India-China Chronicle Â&#x192; January 2014

can be transferred.

These controversial clauses have also led to the growth of an overt mistrust of Chinese citizens in this sector.

The trust of citizens and their participation is vital not only for its growth but also attributes to its true survival.

The lapses in setting up a proper citizen friendly atmosphere even by popular NGOs due to all the controversial laws and the growth of internet as a source IRU ÂżJKWLQJ IRU D FDXVH LV D PDMRU UHDson why NGOs do not enjoy a good rapport with the Chinese citizens. Besides, there is also another side to this story as had been highlighted in a pubOLF VSHHFK E\ 0HQJ :HLQD D &KLQHVH NGO activist for more than 20 years.

She said that not only is the government responsible for the slow development of the NGO sector in China, but so are the citizens. She added that if she ever sharply criticises the government for its policies, the citizens and even members of her own NGO refuse to support her. This is out of fear of the backlash that they can suffer from the RIÂżFLDOV 7KHLU DWWLWXGH FDQ EH XQGHUstood in context of the fact that Chinaâ&#x20AC;&#x2122;s one-party system exerts a totalitarian control over all aspects of polity and society. Understandably, then, the societal culture in which the average Chinese citizen exists has left little space IRU 1*2V WR Ă&#x20AC;RXULVK Many surveys have been done which show that people come together for a cause but once their own problems are solved they do not take any interest in the organisation. For example, a group of parents came together to demand

special education for autistic children.

However once the problem was solved many including its founding members left the organisation. They did not ÂżJKW IRU QHZ SDUHQWV ZKR KDG MRLQHG the association and were still facing the same problem. There is, then, a collaborative and corresponding mix of government policy, the inability of citizens to carry movements forward to their natural fruition and a real social fear of government backlash that has restricted the growth of the NGO sector in China.However, despite WKHVH Ă&#x20AC;LS VLGHV WKHUH DUH FHUWDLQ DUHDV where they are making a mark.

Sectors Touched by NGOâ&#x20AC;&#x2122;s In recent years, Chinese NGOâ&#x20AC;&#x2122;s have impacted certain sectors like natural resource management, HIV/ AIDS, protection of environmental rights, public advocacy and education, etc. Moreover, since 2007, they have endeavoured to make an impact in a more challenging and promising areaâ&#x20AC;&#x201D;Chinaâ&#x20AC;&#x2122;s clean energy policy. The workings of these NGOâ&#x20AC;&#x2122;s are closely entwined with the government and thus, the major works of these NGOs have been on â&#x20AC;&#x2DC;softer issuesâ&#x20AC;&#x2122; related to environment. For example, Friends of Nature works with environmental education, mainly in elementary schools. In addition, the NGO sponsors wildlife conservation campaigns, with a special focus on the Tibetan antelope.

The group is creating awareness among children on how and why to save the environment so that at least the coming generation understands

CERTAIN NGOâ&#x20AC;&#x2122;S HAVE TAKEN UP WOMEN ISSUES. ALTHOUGH THEY CANNOT TOUCH ON ISSUES LIKE FORCED ABORTIONS, OR ONE CHILD POLICY, THEY ARE EDUCATING WOMEN ON DOMESTIC VIOLENCE, HIV/AIDS AND COUNSELLING RURAL WOMEN TO CONTROL THE GROWING SUICIDES AMONG THEM. the ill effects of a degrading environment on society.

Pesticide Eco-Alternative Centre 3($& SURYLGHV WUDLQLQJ DQG LQIRUmation on pesticide issues and ecological alternatives to pesticides, consumer advocacy, gender equity, and indigenous pest reduction practices.

NGOâ&#x20AC;&#x2122;s like this educate farmers who in their haste of producing more do not pay heed to the ill effects of pesticides. :LWK WKHLU HGXFDWLRQ WKLV 1*2 KDV provided an alternative to the government in Kunming by reducing chemical farming and engaging the farmers in organic farming.

In 2013, the Chinese government declared that by the end of the year it will introduce revised administrative regulations for NGOâ&#x20AC;&#x2122;s. Administrative regulations are the biggest obstacle for the launch of an NGO. The new law would allow four categories i.e.

industrial association, charities, community services and organisations associated with promotion of science and technology a direct registration with the Civil Affairs without the lengthy procedure of pre-examination and approval by other regulators.

However, even if the new law comes into force by the end of this year, following the party line will hamper the growth of popular NGOs in China.

Though the new law might help in setting up more NGOs yet the problem lies in the restrictions that they face in their functioning due to political and institutional structures in the country.

Although NGOs in China are heavily dependent on Party funds and have to toe the Party line they have still impacted many sectors of Chinese society to a great extent under this control.

Nevertheless, despite the good work being done within the limits of their functions, talking about a free civil society is not correct at this point in China. Civil society does exist in China but, unfortunately, a â&#x20AC;&#x2DC;freeâ&#x20AC;&#x2122; civil society is non- existential. Â&#x2030;

Namrata Hasija is Research Associate at Center for China Analysis and Strategy, New Delhi. She has recently published a book titled â&#x20AC;&#x2DC;Medieval Chinese Perception of India: Two Medieval Chinese Accounts of Foreign People and Places, and their Representation of Indiaâ&#x20AC;&#x2122;. She can be contacted at: hasija.namrata@gmail.com

January 2014 Â&#x192; India-China Chronicle |15|

INFOCUS|INDIA-CHINA|FEATURE

DAM ISSUE

China’s Concern and India’s Fear China’s proposed plan to harness 40000 MW of electricity from the waters of Brahmaputra at the Great Bend region will surely help its arid northern region to deal with water crisis, but it will also adversely affect the water demands of millions of people in the lower riparian states of India and Bangladesh. The biodiversity in the region is at stake too. Though China has begun to treat water as a strategic commodity and is building huge infrastructure, but in India, the current debate over water security isn’t as politically nuanced as it ought to be. |16| India-China Chronicle January 2014

Brahmaputra River

Neeraj Kapoor

W

ater, a fundamental human need, is a critical national asset too. It is a key to socio-economic development and better quality of life for a countryâ&#x20AC;&#x2122;s citizens. Water is becoming a key security issue and a reason for discord in the north-eastern region at IndiaChina border on Brahmaputra River.

The three riparian or downstream states sharing the Brahmaputra River, namely China, India, and Bangladesh DUH WKH ZRUOGÂśV ÂżUVW VHFRQG DQG seventh most populous countries.

China is an upper riparian country, (where the river is known as YarlungTsangpo) while India and Bangladesh are the lower ones. The river is called Brahmaputra in India and Jamuna in

Bangladesh. There is a basic threat to survival if there is water diversion from the great bend of Brahmaputra to northern China. It can also have a large scale deleterious impact upon the biodiversity of Brahmaputra valley. Both India and Bangladesh are vulnerable to hydrological Ă&#x20AC;XFWXDWLRQV ZDWHU VWRUDJH DQG ZDWHU diversion activities on the upper reaches of the river. Bangladesh, being situated at the tail end, is the most vulnerable in the lean season.

India has already expressed concern, fearing similar effects in the states of Assam and Arunachal in the northeastern region.

A proposed reservoir at the great bend in the deep canyon will put more than 60 per cent of the biological resources in danger. In terms of population, it will affect indigenous

people who will be forced to leave their ancestral land. For the Tibetans, it would mean the loss of the last sacred place and the home of their Protecting Deity. Furthermore, Tibetans will not EHQHÂżW LQ DQ\ ZD\ IURP WKH SRZHU produced by the hydroelectric plant, as it will either be sold to Chinaâ&#x20AC;&#x2122;s southern neighbors or be used to send the water upstream to North-Western China. The possible use of nuclear devices to create tunnels to divert the water raises further serious concerns about the environmental impact of such a project for the region and those living downstream.

Chinaâ&#x20AC;&#x2122;s Political Economy of Dam Construction Chinaâ&#x20AC;&#x2122;s hunger for construction of grand projects is age old and emerges from the Emperorâ&#x20AC;&#x2122;s dream to bring

January 2014 Â&#x192; India-China Chronicle |17|

INFOCUS|INDIA-CHINA|FEATURE

heaven’s vision on earth like Grand Canal or Great Wall. This legacy has always been carried forward by successive emperors and leaders.

China’s present environmental and water crisis had its origin in the policies that had been initiated by Chairman Mao when he had insisted, “Men must conquer nature”. The ‘Great Leap Forward’ was a peep into that and its repercussions in China were for all to see. The Great South-to-North Water Diversion Project was also visualized

by Mao in 1952. “The South has a lot of water, the North little; It is okay to lend a little water,” he had said. Maoinitiated programs to develop massive hydro-engineering projects have resulted in China completing between 22000 and 24000 large dams (A ZLGHO\ DFFHSWHG GH¿QLWLRQ RI D ODUJH dam, as drafted by the International Commission on Large Dams, is a structure with “a height of 15 meters from the foundation or, if the height is between 5 to 15 meters, it should have a reservoir capacity of more than 3 million cubic meter.”)

China, the world’s most ‘dammed’ country today, and by far one leading producer of hydroelectricity of the world has hydropower capacity reportedly to the tune of 213,000 MW, by a 2010 estimate. China plans to increase the proportion of non-fossil fuel use in the country’s energy sector to 15 percent by 2020; and half of that

The National Strategy of Dam

T

he Yarlung Tsangpo or Brahmaputra as it is known in India has an immense bearing on the life of hundreds of millions in the sub-continent. It is the largest river on the Tibetan plateau and is also considered to be the highest river on earth with an average altitude of 4,000 meters. One of its interesting characteristics is the sharp U- turn that it takes at the proximity of Mt. Namcha Barwa (7,782 meters) near the Indian border. At this bend China is building a dam and wants to divert water to its drier northern region. China being the upper riparian state is at an advantageous position and can thus threaten the lower riparian states of India and Bangladesh.

Its ‘Tsangpo’ project is perhaps the most mind-blowing part of the national strategy of China to divert water from rivers in the South and West to its drought-stricken northern areas.

is expected to come from hydropower.

This means that China aims to have 430,000 MW of hydropower which is double of its existing capacity.

China’s Water Crisis China has to meet set targets to overcome severe water shortages in North China. Northern China, home to nearly half of the population, has OHVV WKDQ RQH ¿IWK RI QDWLRQDO WKH ZDWHU resources and is thus facing a severe water crisis. Under the North China Plain- a region that stretches from North of Shanghai to North of Beijing producing 40 per cent of China’s grain- the water table is dropping by an average of 1.5 meters per year.

The concern of water crisis can be well understood from former Premier Wen Jiabao who comments that the ‘survival of the Chinese nation’ is

under threat from water crisis.

This scenario has led the Chinese experts to hunt for water outside China and they shot the arrow at Tibet which is considered as the most incredible water tank of the world.

The Tibetan plateau is the ‘Principal Asian watershed’. Tibet water travels to eleven countries and is said to bring fresh water to over 85 per cent of the Asian population. Four of the World’s ten rivers, namely, the Brahmaputra, Indus, and the Yangtze, including Mekong have their head water in the Tibetan plateau.

China’s Tsangpo Project or Brahamaputra project has two components: one is the construction of the world’s largest hydroelectric plant to generate twice the electricity produced by Three Gorges Dam (18200 MW) and the other is the diversion of the waters of the Tsangpo. The diverted water is intended to be pumped northward across hundreds of kilometers of mountainous regions to China’s northwestern provinces of Xinjiang and Gansu. (In 2011, China has denied any diversion of Brahmaputra water).

Fears of Tibet, India and Bangladesh due to Diversion of Water India and Bangladesh would be at the mercy of China for adequate release of water during the dry season, DQG IRU SURWHFWLRQ IURP ÀRRGV GXULQJ the rainy season. Precipitation in North India (particularly Assam) and Bangladesh is very high (80%) during the four monsoon months

|18| India-China Chronicle January 2014

(between June to September), and low (20%) during the remaining eight months. To serve her own interests, China could withhold water for power generation and irrigation during the dry season and release water during WKH Ă&#x20AC;RRG VHDVRQ ZLWK WKH FDWDVWURSKLF consequences for eastern South Asia.

More than anything else, the diversion project along the Brahmaputra River is likely to lead to a reduction in the nutrient-rich sediments in the basin. ([SHUWV EHOLHYH WKDW WKH Ă&#x20AC;RRGLQJ LQ the basin could become worse due to relentless silting. Both India and Bangladesh are likely to be seriously affected by the diversion project as their agriculture and inland water transportation are heavily dependent on the Brahmaputra River.

The construction activities as part of the Brahmaputra water diversion project will also pollute the water and thereby lead to many environmental, social and geological risks in the Tibet Autonomous Region of China, India and Bangladesh. This would threaten livelihoods, deplete marine species and destroy farmlands, and is thus likely to lead to natural disasters which will further degrade the fragile ecology of the region. All this might DOVR FDXVH FRQĂ&#x20AC;LFW LQ WKH UHJLRQ Âą EH LW high, medium or low intensity.

Chinaâ&#x20AC;&#x2122;s Response to Neutralize the Fear of Downstream States China has given assurances that it ZRXOG GR QRWKLQJ WR DIIHFW WKH Ă&#x20AC;RZ RI the water from the rivers in Tibet to South Asia. There was a plan during the Cultural Revolution to divert

Western Diversion is proposed at the U-bend of Brahmaputra River

the Brahmaputra water towards the North. But later China gave up this plan following the disasters at the Three Gorges dam on the Yangzi River. In fact, the Three Georges dam has created severe geological, human and ecological problems. The growing siltation problem in the reservoir basin of the dam badly exposed the weaknesses of the Chinese system of damming the river.

Jiao Yong, Vice Minister at Chinaâ&#x20AC;&#x2122;s Ministry of Water Resources, said that although there is a demand among Chinese to make greater use of the Yarlung Tsangpo, â&#x20AC;&#x153;considering the WHFKQLFDO GLIÂżFXOWLHV WKH DFWXDO QHHG

of diversion and the possible impact on the environment and state-to-state relations, the Chinese government has QR SODQ WR FRQGXFW DQ\ GLYHUVLÂżFDWLRQ project in this riverâ&#x20AC;?. Wang Shucheng, Chinaâ&#x20AC;&#x2122;s Minister for Water Resources stated that, â&#x20AC;&#x153;the proposal to divert the Brahmaputra waters is unnecessary, XQIHDVLEOH DQG XQVFLHQWLÂżF ´$QRWKHU VLJQLÂżFDQW IDFWRU LV WKDW WKH FRVW involved in diverting Brahmaputraâ&#x20AC;&#x2122;s water would be higher than the alternative of desalination of seawater.

As such, many people believe that China would not commit another blunder by diverting the Brahmaputra water since it is now guided by

January 2014 Â&#x192; India-China Chronicle |19|

INFOCUS|INDIA-CHINA|FEATURE

Yarlung Tsangpo river in China

considerations like rationality and cost-effectiveness rather than ideology.

However, Chinaâ&#x20AC;&#x2122;s plan to build hydroelectric power projects that could generate 40,000 MW of power will still be a cause of concern for India.

The Great Bend is at a geologically fragile knick-zone with very rapid bedrock exhumation rates. In case of an earthquake, there could be ominous consequences for millions living in the downstream areas. On February 3, 2013, an NGO in Guwahati alleged that China is building 26 run-of-theULYHU K\GURÂąSRZHU GDP SURMHFWV (which will not store water) on the upper reaches of the Brahmaputra in Tibet. They further said that once China completes these projects, India will receive 64 per cent less water during the monsoon and 85 per cent OHVV LQ WKH QRQÂąPRQVRRQ VHDVRQ ,I these claims turn out to be true, it could seriously harm Indiaâ&#x20AC;&#x2122;s interests. |20| India-China Chronicle Â&#x192; January 2014

Currently, China is believed to be EXLOGLQJ VL[ GDPV Âą /HQJGD =KRQJGD /DQJ]KHQ -LH[X -LDFKD DQG =DQJmu. In November 2010, China began ZRUN RQ LWV ÂżUVW PDMRU K\GURSRZHU project on the river, a 510-MW proMHFW DW =DQJPX ZKLFK ZLOO FRPH LQWR RSHUDWLRQ LQ 0U =KDQJ VDLG WKH =DQJPX SURMHFW ZDV DQ H[FHSWLRQ DQG China had not yet approved a comprehensive plan to take the other projects forward. However, the satellite pictures show that China is merely building dams and not attempting to divert the waters. Of course, both damming and diversion have a bearing on the Ă&#x20AC;RZ RI ULYHU ZDWHUV DOWKRXJK GLYHUsion is more serious in nature than damming. Damming only reduces the Ă&#x20AC;RZ RI WKH ULYHU ZDWHU ZKHUHDV GLYHUsion would mean altering the normal Ă&#x20AC;RZ RI WKH ULYHU LQ DQRWKHU GLUHFWLRQ The latter course adversely affects the environment and the lifeline of the recipient country/countries which is the

main concern of lower riparian states.

Further confusion regarding the diversion of water gets cleared when we look at the data available about the Ă&#x20AC;RZ RI WKH WULEXWDULHV RI %UDKPDSXWUD in the riparian states, according to which, â&#x20AC;&#x153;China contributes only 7 per FHQW WR WKH Ă&#x20AC;RZ RI WKUHH WULEXWDULHV RI Brahmaputraâ&#x20AC;&#x201D;Subansiri, Siang and Lohitâ&#x20AC;&#x201D;which originate from China.

What can the Chinese do or how much can they divert?â&#x20AC;?

Indiaâ&#x20AC;&#x2122;s Fear Actually Indiaâ&#x20AC;&#x2122;s fear is not concerned with the diversion of water but, the slow pace of work on Brahmaputra because any delay in executing hydropower projects in the region, particularly on rivers originating in China, will affect Indiaâ&#x20AC;&#x2122;s strategy of establishing prior-use claim.

Under international law, a countryâ&#x20AC;&#x2122;s right over natural resources it shares with other nations becomes stronger

if it is already putting them to use.

Further to avoid any confusion, during KLV UHFHQW RIÂżFLDO YLVLW WR &KLQD IURP October 22 - 24 2013, Indian Prime Minister Dr. Manmohan Singh signed a Memorandum of Understanding (MoU) on transboundary rivers.

According to the new MoU, Beijing has agreed to provide New Delhi with richer hydrological data on river %UDKPDSXWUD GXULQJ WKH Ă&#x20AC;RRG VHDVRQ (May 15 to October 15). As part of the MoU, India can also ask for data relating to dams being built by China on river Brahmaputra. While the data PD\ EH KHOSIXO IRU EHWWHU Ă&#x20AC;RRG DOHUWV LQ Assam, it does not address Indiaâ&#x20AC;&#x2122;s core concern about possible Chinese plans to divert the Brahmaputraâ&#x20AC;&#x2122;s waters WR LWV DULG 1RUWKÂąZHVWHUQ SURYLQFHV a matter that has concerned India in recent years.

Chinaâ&#x20AC;&#x2122;s Dam Diplomacy Perhaps China well understands what the author of the book â&#x20AC;&#x2DC;Communist China and Tibetâ&#x20AC;&#x2122;, George Ginsburg wrote, â&#x20AC;&#x153;it could dominate the Himalayan piedmont by virtue of holding Tibet, and by doing so, it could even threaten the Indian subcontinent, and thereby further threaten the entire South-east Asia and so to say all of Asiaâ&#x20AC;?. This is one of the reasons why China has not signed any bilateral treaty in regard to the utilization of water resources with any of its neighbors, and has not signed the 1997 UN Convention on the Law of the Non-Navigational Uses of International Waterways.

Former diplomat and senior fellow at the Institute of Defense Studies and Analyses states that the original idea of shuo-tian UHYHUVH Ă&#x20AC;RZ DQG xibu da kaifa (great Western extraction), supported by 118 PLA generals, was aimed at building a dam to generate 40,000 MW of hydro power and to divert 200 BCM water annually to the north. In one of the write-ups, published in the Indian Express, he articulates that â&#x20AC;&#x153;The diversion project was part of Chinaâ&#x20AC;&#x2122;s $60-billion South-North Water Transfer Project (SNWTP), aimed at sending 40 BCM of water annually

5HĂ HFWLQJ RQ WKH 3RVLWLYHV

A

fter running across 1790 Km the Brahmaputra River leaves the Tibetan plateau near Namcha Barwa, and tumbles down into the plains of India forming a massive U bend in Arunachal Pradesh, known as Dihang. The massive U bend of the river Brahmaputra is very crucial in the sense that it is here, that the river picks up huge amounts of water and momentum. This is where the three dams are being constructed just 550 kilometers away from the Indian border near the U bend area.

In constructing dams, the Chinese follow the principle of â&#x20AC;&#x153;Prior Appropriationâ&#x20AC;?. It means that when a nation has the source of the river within its territory, it has the absolute right to access the water resources for its domestic use without any external interference. The River Brahmaputra sets the perfect example for China. China is HQWLWOHG WR WDNH XS GDP SURMHFWV VR ORQJ DV WKH H[LVWLQJ Ă RZ RI ELOOLRQ FXELF meters (BCM) of water into India remains unimpeded. Most of the Brahmaputraâ&#x20AC;&#x2122;s catchment area, providing over 600 BCM average runoff, falls within Arunachal Pradesh. The volume increases by ten times during the monsoon. Allowing China WR GLYHUW D FRQVWDQW YROXPH RI ZDWHU GXULQJ WKDW SHULRG FRXOG KHOS PLWLJDWH Ă RRGV in India and Bangladesh. Non-consumptive exploitation of water by China for power JHQHUDWLRQ PD\ DOVR EH EHQHĂ&#x20AC;FLDO IRU ,QGLD DV WKH Ă RZ LV H[SHFWHG WR LQFUHDVH E\ 10-20 per cent during the dry season. China selling surplus electricity to India may not be a bad idea. Therefore, if a dam is constructed well in advance in order to safeguard the interest of countryâ&#x20AC;&#x2122;s economy, it will not only prove to be a useful PHFKDQLVP LQ FRQWUROOLQJ Ă RRGV DQG GURXJKW EXW ZLOO DOVR VHUYH WKH QDYLJDWLRQDO purposes of the country.

AS PART OF THE MoU WITH CHINA, INDIA CAN ALSO ASK FOR DATA RELATING TO DAMS BEING BUILT BY CHINA ON RIVER BRAHMAPUTRA. WHILE THE DATA MIGHT BE HELPFUL FOR BETTER FLOOD ALERTS IN ASSAM, IT WILL NOT ADDRESS INDIAâ&#x20AC;&#x2122;S CORE CONCERN OF POSSIBLE CHINESE PLANS TO DIVERT THE BRAHMAPUTRAâ&#x20AC;&#x2122;S WATERS TO ITS ARID NORTHâ&#x20AC;&#x201C; WESTERN PROVINCES. from the Yangtze and the Yellow River WR WKH DULG QRUWK ´ 7KH ÂżUVW SKDVH RI the SNWTP was completed in March 2013. The second phase aimed at feeding water to the North by 2014 and the third stage involves the Tsangpoâ&#x20AC;&#x2122;s diversion. â&#x20AC;&#x153;For China, the stakes are huge. It could turn millions of arid hectares into arable land,â&#x20AC;? he says.

Chinaâ&#x20AC;&#x2122;s unilateralism is wellknown. It has never consulted riparian states before building any dam. Until ,QGLD ZDV XQDZDUH RI WKH =DGD dam on the Sutlej basin and even appeared clueless when the Chinese announced that they were building dams at Dagu, Jiacha, and Jiexu. Now, with this attitude, if the diversion at the Great Bend becomes a reality, the fear is that China will inevitably leverage Tibetan water as a tool for coercive diplomacy and may even link the water issue to a border settlement. Given the rising demand for food security and clean drinking water both China and India will be water stressed.

In an era of global diplomatic pressures, China is behaving differently. +DYLQJ OHDUQW IURP WKH GLIÂżFXOWLHV faced by its attitude in South China Sea and the hurdles that it had faced during the construction of Three Gorges Dam, it can be hoped that Chinaâ&#x20AC;&#x2122;s behavior will be that of a responsible power. Only time has the answer. Â&#x2030; Neeraj Kapoor is an independent research scholar.

His area of interest includes Strategic Affairs and Development Issues.

January 2014 Â&#x192; India-China Chronicle |21|

INFOCUS|CHINA|COVER STORY

Interpreting the Great

‘Chinese Dream’ The new vocabulary in the international relations lexicon is the concept of ‘Chinese Dream’. It is an ideational concept with profound meanings that every country in the global sphere is trying to deconstruct and demystify. India’s concern lies in the current dynamics of ‘China’s rise’ in the global sphere.

There are some questions, which necessitate immediate attention and deliberation. What does the ‘Chinese Dream’ mean for India?

Whose Dream is it? What does it signify for the world? More importantly, in what ways does the ‘Chinese Dream’ hold relevance for India? According to some experts the Dream is a road that marks the regaining of China’s lost glories; a quest to reclaim its erstwhile position of being the ‘Son of Heaven’.

|22| India-China Chronicle January 2014

Amrita Jash Am

T

he idea of â&#x20AC;&#x2DC;Chinese Dreamâ&#x20AC;&#x2122; was ÂżUVW SXW IRUZDUG E\ &KLQDÂśV ÂżIWK JHQHUDWLRQ OHDGHUVKLS following the 18th CPC National fol Congress. It was the new leadership Co un under the command of Xi Jinping that put forward the strategic vision th of the Chinese Dream, whereby the consciousness of the past seems to co sh shape the future. Expounding the notion of the â&#x20AC;&#x2DC;Chinese Dreamâ&#x20AC;&#x2122;, Xi no sta stated that â&#x20AC;&#x153;We must make persistent

efforts, press ahead with indomitable will, continue to push forward the great cause of socialism with Chinese characteristics, and strive to achieve the Chinese dream of great rejuvenation of the Chinese nationâ&#x20AC;?.

On 29 November 2012, while speaking at the National Museum â&#x20AC;&#x153;Road to Revivalâ&#x20AC;? exhibition at Beijing, Xi pronounced his grand vision for the achievement of the â&#x20AC;&#x153;great renewal or rejuvenation of the Chinese nationâ&#x20AC;? which would aim at the â&#x20AC;&#x153;national aspiration for a â&#x20AC;&#x2DC;Chinese Dreamâ&#x20AC;&#x2122; about making the country stronger

through development.â&#x20AC;? From these very words one can sense the nostalgia that underpins the Dream, where there exists a conscious endeavour to recall Chinaâ&#x20AC;&#x2122;s past humiliations and sufferings as a mirror to look forward to the future of great revival of the Chinese nation. Hence, the Dream is a quest to reclaim Chinaâ&#x20AC;&#x2122;s erstwhile position of being the â&#x20AC;&#x2DC;Son of Heavenâ&#x20AC;&#x2122; who in the vestiges of its humiliation,lost its glory and became the â&#x20AC;&#x2DC;Sick Man of Asiaâ&#x20AC;&#x2122;. For China, the Chinese Dream paves the way for the â&#x20AC;&#x2DC;road that stretches aheadâ&#x20AC;&#x2122; that is going January 2014 Â&#x192; India-China Chronicle |23|

INFOCUS|CHINA|COVER STORY

to be one of a â&#x20AC;&#x2DC;strong and prosperous state, a revived nation and a well-off society of the Chinese peopleâ&#x20AC;&#x2122;.

Whose Dream Is It? In this context, the question that lies central to the understanding of the Chinese Dream is: â&#x20AC;&#x2DC;whose dream LV LW"Âś )URP ;LÂśV ZRUGV LW LV UHĂ&#x20AC;HFWLYH that it is the â&#x20AC;&#x2DC;Chinese peopleâ&#x20AC;&#x2122; who are at the centre of gravity of this Dream.

The objective would be met when the Party at the apex in cohesion with the hundreds of millions of people will work to foster the national rejuvenation. In resonance to the Chinese public, Xi reminded â&#x20AC;&#x153;we must be clear that 128 million Chinese people still live in poverty, China has a lower ranking per capita GDP, the gap remains between us and the developed countries in terms of science and technology, thus the urban and rural gaps as well as social injustice are yet to be solvedâ&#x20AC;?.

He further elaborated, â&#x20AC;&#x153;As the reform LV QRW \HW ÂżQLVKHG ZH VKRXOG IXUWKHU carry forward the spirit when we stand at a new starting point. Be it breaking the mental shackles, shattering interest groups, removing obstacles to de|24| India-China Chronicle Â&#x192; January 2014

IT IS NOT AN INDIVIDUAL DREAM BUT RATHER A NATIONAL DREAM. THE CHINESE DREAM IS A NATIONAL CONCEPT THAT PIVOTS ON CHINESE NATIONALISM OVER CHINESE INDIVIDUALISM. THIS IS BECAUSE THOUGH IT IS PEOPLE CENTRIC AND HAS A CHARACTER OF INCLUSIVITY YET IT EVIDENTLY IGNORES THE CHINESE PEOPLEâ&#x20AC;&#x2122;S INDIVIDUAL ASPIRATIONS AND AMBITIONS. velopment, or releasing the bonus of reform and development, only when we carry forward the spirit can we have a brighter prospectâ&#x20AC;?. He further stated â&#x20AC;&#x153;to realize the Chinese dream we must pool the strength of the whole country, that is, the strength of all ethnic groups across the country and the concerted efforts of the 1.3 billion

Chinese peopleâ&#x20AC;?. The statements of Xi Jinping clearly outline the image of the Chinese Dream. Here the dream of the people is not their own dream to actualize their interests. Rather it is the collective dream of the people to rejuvenate the Chinese nation as a whole.

In this way, Xi has rendered a sense of unanimity and inclusivity in the grand Chinese vision where one hand, the Chinese people join hands with the Communist Party to make the dream come true, while on the other it unites the divided people of varied ethnic groups under the same Chinese umbrella. It is not just the dream of the Han Chinese but also of the multi-ethnic groups in China, that taken together make up the Chinese Dream of all the Chinese People. Apart from this, the most distinct feature of the dream is its commitment to socialism.

It can be seen as the Dream that leads to the â&#x20AC;&#x2DC;road of socialism with Chinese characteristicsâ&#x20AC;&#x2122;, which walks the path of socialism which is distinctive to China and not universal in approach.

Xiâ&#x20AC;&#x2122;s visionary outlook holds to be a pragmatic road to Chinaâ&#x20AC;&#x2122;s modernisation. It is strategic in its approach and

philosophical in its beliefs. It is the Beijing spirit that seems to join in matrimony with China’s internal instability to its external relations. It is the Dream that is constructive and waits to come true with the actualisation of peace and development.

How Does the Chinese Dream Translate for India?

The Chinese Dream can be seen as a window of opportunity for India.

The Dream is chased at the right time where India can have optimal gains. In the current global dynamics, there is a power shift that is exhibited in the

AS THE 21ST CENTURY CLEARLY MARKS THE SURGING WAVE OF SELF-DETERMINATION OF PEOPLE AND NATIONS IN ALL PARTS OF THE WORLD AGAINST ALL FORMS OF HEGEMONY, IT IS THIS PHENOMENON THAT CAN BE SAID TO ACT AS A KEY DRIVER FOR THE CHINESE DREAM, MAKING IT MORE REAL AND FEASIBLE IN APPROACH.

turn of the compass rotating from the West to the East, where both India and China are the key actors, both rapidly growing and emerging. This is making for a paradigm shift in international politics with the dawn of the Asian Century. It can be anticipated that there is much that India can gain by engaging with this vision rather than by remaining in isolation. With both the Asian giants coming together, the dream can therefore, become that of an ‘Asian Dream’.

January 2014 India-China Chronicle |25|

INFOCUS|CHINA|COVER STORY

There is a commonality of objectives for both India and China as they strive for peace and stability with sustainable economic growth. Since India and China have two of the biggest human capital with the largest populations in the world, they face the same risks in terms of driving economic development, improving the livelihood of the people and deepening of reforms.

This makes the political objective same for both as that of ‘well-being, prosperity and development’ for the people. Hence, when the objective is same, both countries can cooperate in pooling their means to meet the ends.

This therefore, calls for more engagement between India and China both economically, politically and socially. The existing differences can be resolved only when there are some common grounds for co-existence with active economic cooperation by increasing trade, and more peopleto- people exchanges rather than just keeping the relationship to the leadership level as that can lead to the |26| India-China Chronicle January 2014

THE COMMONALITIES OF CHINA AND INDIA CAN BE TAPPED TOGETHER FOR GREATER BENEFITS FOR THE GREATEST NUMBER, THUS, MAKING THE DREAM MORE UTILITARIAN. CHINA AND INDIA CAN COOPERATE IN THE FIELDS OF TRADE, FINANCE, ENERGY AND INTERCONNECTION. Dream being actualised sooner. China with India can share the burden of bringing prosperity to the people of the nation and the world with their peaceful emergence.

In this environment of bonhomie, ZKDW UHPDLQV VLJQL¿FDQW IRU ,QGLD DQG China is the ‘boundary question’. With the hopes held high with the Chinese Dream which calls for China to be more responsive and egalitarian, it can

be anticipated that the much awaited territorial tension can be resolved at the best interest of each nation. The phenomenon of ‘hot economics and cold politics’ can be transformed into a ‘win-win cooperation’, making the politics and economics go hand in hand with each other. Apart from these, the two nations can act in collaboration in security issues as those of both traditional and non-traditional concerns.

There can be more engagements in maritime sectors, energy issues, climate concerns and others.

What opens the window of RSSRUWXQLWLHV IRU ,QGLD LV LWV VLJQL¿FDQW characteristics vis-à-vis China as the largest neighbour, emerging power, biggest trading partner, huge human resource, traditional and civilizational links and the similar socio-economic conditionality. China and India can together become the factory and service centre to the world and thereby, largely drive much of the world economy of this century and also in the future. This way the Chinese

'UHDP ZRXOG EULQJ MRLQW EHQHÂżWV WR both the countries, ensuring greater livelihood to its people to enjoy the UHDO EHQHÂżWV RI FRPPRQ GHYHORSPHQW The Chinese Dream can thus act as the axis to uphold the â&#x20AC;&#x2DC;Panchsheelâ&#x20AC;&#x2122; in the current times, making it more real in existence.

Hence, India can actively engage with a more responsible and KDUPRQLRXV &KLQD LQ IXOÂżOOLQJ WKH objectives of prosperity and peace for the human race. In this way, both the Asian powers will become an epitome of â&#x20AC;&#x2DC;friendship and peaceâ&#x20AC;&#x2122; and build a road that looks forward to development. It would bring fortune to Asia and the world as a whole both literally and ÂżJXUDWLYHO\ 7KH GDZQ RI WKH $VLDQ Century awaits the cooperation of India-China in actualising the Dream.

This makes the Dream look more real and concrete. China and India, making up nearly a third of mankind, can chase the Dream cooperatively, and thus become a game-changer for the holistic good of the people of the

THE CHINESE DREAM IS NOT JUST A STRATEGIC BLUEPRINT THAT IS LIMITED ONLY TO FURTHERING CHINAâ&#x20AC;&#x2122;S OWN FUTURE DEVELOPMENT, BUT IT ALSO REFLECTS A NEW ERA IN CHINAâ&#x20AC;&#x2122;S FOREIGN POLICY WHICH HAS SIGNIFICANT AND WIDE SPREAD IMPLICATIONS FOR THE WORLD AT LARGE. whole world. This Dream of shared YLVLRQ VKRXOG QRW EH VDFULÂżFHG LQ WKH name of great power ambitions and competitions. A lot can be gained through cooperationand by making Asia an anchor for world peace.

Chinese Dream and the World In its broader understanding, the Dream is a ray of hope not just for the people of China but the people around

the globe as well. It acts as a linkage to connect China to its own people as well as to the larger international public.

It is exhibited in the commitment of unison to create a harmonious world and peaceful development, rested on mutual respect and win-win cooperation. This gives the realization of the Chinese Dream profound meanings for the world at large.

There is a focus on global peace and development that goes beyond Chinaâ&#x20AC;&#x2122;s borders and reaches worldwide. It is equally extrinsic as it is intrinsic in approach. The international sphere is more saprophytic than parasitic in character. So, if China dreams of prosperity and well-being, it can only be achieved with the help of the others.

This pool of strength to actualise the dream would thus bring fortune to the world at large.

In analysing the connection of the Chinese Dream to the world, one can draw a link in terms of Xiâ&#x20AC;&#x2122;s aspiration to make China a more responsible acWRU LQ WKH JOREDO VWDJH WKHUHE\ IXOÂżOO-

January 2014 Â&#x192; India-China Chronicle |27|

INFOCUS|CHINA|COVER STORY

ing the objective of ascending China’s image in the global sphere. This can be viewed in the scenario of the ‘China rise’ factor that has impeded this core desire of the Chinese leadership in the recent past. It has led to negative apprehensions and speculations resulting in ‘China threat theory’ that questions China’s ability to play a responsive actor in the international domain thereby, making China seem to be more of a foe than a friend in the circle of nations.

In its connect to the world, Xi’s Chinese Dream also acts like magic wand that can dispel the erroneous myths and speculations that have often been attached to China’s rise. $V WKH RI¿FLDO VWDWHPHQW RI &KLQD posits that “the Chinese Dream is

THE CONSTRUCTION OF THE CHINESE DREAM IS BEING ACCESSED IN PARALLEL WITH THE AMERICAN DREAM, WHICH IS ATTRIBUTED TO CHINA’S GREAT POWER AMBITIONS. not the Chinese people’s dreaming of remaining behind closed doors, but a dream of opening up; a dream that China can collaborate with the world and achieve a win-win situation. The &KLQHVH GUHDP ZLOO EHQH¿W &KLQD DQG the world. It will remove doubts and misunderstandings in the world about China’s rapid development.”

China is now ready to become more visible in the international realm. The time is seen to be ripe for China to JLYH DZD\ LWV ORZ SUR¿OH DQG HQJDJH LQ a more proactive diplomacy in order to become a more responsible major power in global politics. The aim is therefore, to make China more open to new issues, ideas, engagements, and developments in the multi-polar world. The slogan of “Peace, Development and Win-Win Cooperation” adYRFDWHG E\ &KLQD LV DQ DI¿UPDWLRQ RI D positive role that China aspires to play on the international stage. It exhibits China’s benign intentions towards the |28| India-China Chronicle January 2014

international community. This very composition of the Chinese Dream makes it a World Dream, as there is a commonality of aspirations, as the people of the whole world strive for the ultimate goal to accomplish peace, prosperity and happiness.

In this light, Chinaâ&#x20AC;&#x2122;s efforts at â&#x20AC;&#x153;national rejuvenation, improvement of peopleâ&#x20AC;&#x2122;s livelihoods, prosperity, construction of a better society and military strengtheningâ&#x20AC;?- can all add to the economic well-being of the world.

The military strengthening comes as a natural trait,which coupled with its defensive posture, can contribute to increased international security.

With this China can become an equal stakeholder in the international arena vis-Ă -vis the U.S., and stands tall as a responsible global actor.

But to make it a World Dream, China has to accommodate the interests of other countries. How China will do it is the question that remains unanswered. At this stage, Chinese Dream can either be one that conforms to the colonial great powers with hegemonic

outlook, or one that can change the entire paradigm of global order which is hegemonic, ethnocentric, unequal, and exclusive and to replace it with a democratic, equitable, inclusive and consensus-driven world. China is at the centre of high politics as a permanent member of UN Security Council, a member of G-20 and BRICS, in fulÂżOOLQJ LWV GUHDP DQG FDQ WKXV XVH LWV privilege either to pursue the big power road or the egalitarian road. Thereby, it would be in the best interest of China to have excellent external relations as that can fetch China its goal of reforms, development and stability.

Chinese Dream: No Zero-Sum Game The Chinese Dream is at its nascent VWDJH EXW LW FDUULHV VLJQLÂżFDQW LPSOLcations for the future. To gain for the whole, one need to assess this dream with a leap of faith than with preconceived notions. It opens a window of opportunities both for the world at large making it a â&#x20AC;&#x2DC;World Dreamâ&#x20AC;&#x2122; and ,QGLD LQ VSHFLÂżF E\ PDNLQJ LW DQ Âľ$VLDQ

Dreamâ&#x20AC;&#x2122;. With apprehensions of it being translated into the agenda of becoming a dominant world power, the â&#x20AC;&#x153;peaceful rise of Chinaâ&#x20AC;? can also be a civilizational catalyst for transforming the unequal world. The Dream can VXFFHVVIXOO\ FRQWULEXWH WR WKH IXOÂżOOing of the objective of making China a self-reliant global power which is responsive and egalitarian and not hegemonic in approach. The Chinese Dream is therefore, the gateway to Chinaâ&#x20AC;&#x2122;s â&#x20AC;&#x2DC;Peaceful Rise and Developmentâ&#x20AC;&#x2122;. There is no zero-sum game in this dream as it is more absolute in nature, holistic, inclusive and pragmatic in approach. The realization of this dream wonâ&#x20AC;&#x2122;t be at the cost of shattered dreams of others but it would help in realizing the dreams of all other nations. Therefore, it can be rightly called a â&#x20AC;&#x2DC;World Dream with Chinese Characteristicsâ&#x20AC;&#x2122; based on peace and prosperity for the humankind. Â&#x2030; The writer is Ph. D Research Scholar at the Centre for East Asian Studies, Chinese Division, School of International Studies at Jawaharlal Nehru University, New Delhi)

January 2014 Â&#x192; India-China Chronicle |29|

INFOCUS|INDIA-CHINA|FIRST NDIA-CHINA|FIRST PERSON

A Lion Dancer is not a Disney Character James Liao

I

was born and brought up in Kolkata, India. Lion Dance and Chinese Martial Arts are my hobbies. I started performing Lion Dance when I was eight- years old.

In those days- late ‘70s-, Lion Dance used to be performed only once a year. We used to practice a few weeks before the Chinese New Year and perform only for a day or two in a year. It is a Chinese tradition that every New Year when the Lion Dance troupe would visit every household, it would dance on bursting crackers and wish them good luck and prosperity for the New Year. Some dancers did this for fun, some for money and I did it out of passion. When I was a little kid, I was inspired by a Jackie Chan movie called “Young Master”. I loved the way he moved the lion’s head. His stance and footwork were awesome

|30| India-China -China Chronicle January 2014

James Liao in action

and the lion looked alive! In 2001, I formed a troupe calledâ&#x20AC;&#x153; Fitness Clubâ&#x20AC;?. This has given me the chance to choreograph the Dance the way I had always wanted.

Moral Sentiment behind the Dance The standard of the art of Lion Dance in India was very low. I started following The World Lion Dance competitions and found out that MalayVLDQ WHDP DOZD\V FDPH ÂżUVW 6R , UHsearched and found out that the Lion Dance troupe in Malaysia is one of the best in the world, and even beats China, from where the art had originated. I went to Malaysia to meet a well -known great grand master, (Master Siao) and I asked him the secret of his strong team. He explained that it was not only about how the training is done, the diet or the exercise but also the embodiment of the ethos behind the Dance form that makes them one of the best. He went on to explain to me the eight key elements which comprised the Dance. â&#x20AC;&#x153;They were Zhong (loyalty), Zhen (righteousness), Ee (endurance), Yung (bravery), Zhi (wisdom), Chen (sincerity), Her (harmony) and Li (mannerism),â&#x20AC;? I remember his words clearly. All these are required in addition to building up SK\VLFDO DQG PHQWDO ÂżWQHVV LQ WKH GLVcipline of Lion Dance.

I am articulating the eight important values that characterize the Lion Dance.

Loyalty- Nurturing the young generation to be loyal to oneâ&#x20AC;&#x2122;s country, loyal to the organization, loyal to the work of culture and art.

Righteousness- We must never sway but must always follow the middle path and believe in right thinking.

Endurance- Without this, no one can ever be successful. Bear the hard work, work conscientiously without being tired, for it is only then that we can achieve success.

Bravery- Todayâ&#x20AC;&#x2122;s Lion Dances need the spirit to dare and be brave.

In order to climb the tall â&#x20AC;&#x2DC;greenâ&#x20AC;&#x2122;, pole, tower or chung to perform one KDV WR IDFH KLJK GHJUHH RI GLIÂżFXOWLHV

and thus must have a lot of courage.

7KH PHQWDO UHDGLQHVV ÂżJKWLQJ VSLULW DQG WKH ZLOOLQJQHVV WR VDFULÂżFH IRU the sake of the performance are very important. With a routine consistency and continuous training, one gains FRQÂżGHQFH $ FRXUDJHRXV DQG VNLOOIXO lion dancer has no fear. He is always responsible and commits himself

whole- heartedly to his art.

Wisdom- Plucking the green in Lion Dance is the spontaneous experience.

Sincerity- We must be sincere in learning Lion Dance. The head, the tail, drum, gong and cymbals incorporate, coordinate and complement each other so as to give a lasting as well as the best of performances. It gives the message of being together, for everything needs to be in harmony.

Mannerism- The holy man once said â&#x20AC;&#x153;Do not say, see, listen or do anything if you do not have mannersâ&#x20AC;?.

If everybody is humble and possesses manners, then there will be world peace.

The Lion Dance is the tradition and culture of the Chinese. The above eight values inherit the beauty of the way of life. I am glad to be able to learn the art of the Dance, perform well and achieve glory to make the Dance successful as well as popular. It has taught me to assimilate all the good values of the Dance and pass it on to our younger generation and teach them loyalty to oneâ&#x20AC;&#x2122;s country without fear or favor. In Lion Dance and martial art, the stress is

Liao with his master Shifu January 2014 Â&#x192; India-China Chronicle |31|

INFOCUS|INDIA-CHINA|FIRST PERSON

on ethical values, code of conduct and self-enrichment. This Dance imbibes qualities of wisdom and intelligence, as well as trustworthiness and good mannerisms.

Lesson behind the Music The artistic skill of the performing dancers is accompanied by drum and music. Drumming plays an important part in the Dance and the music LQÀXHQFHV DQG PRWLYDWHV WKH OLIH DQG movements of the dancers. Without the drum play and its support, the aggressive and powerful Lion Dance has no mood or enthusiasm. There is a saying, “drum play is the soul of the Lion Dance.” A drummer is just like a General who gives instructions to the combination as gong and cymbals play their parts. A drummer gives commands and the cymbals support and build up the atmosphere whereas the gong decides the rhythm and position. Music for the Dance, Dance with the Music, heart-to heart and soulto-soul connection allows coordination and cooperation work wonderfully.

The team work is very important to

|32| India-China Chronicle January 2014

heighten the spirit of cooperation and only then comes the climax in the performance.

The lion is the king of all animals; it daring and brave. However, it is not DV ¿HUFH DV ZH WKLQN LW WR EH 7KRXJK it looks strong and powerful, it’s benevolent and tame. Its heroic outlook puts other animals in fear. Thousands of years ago, the Chinese respected and became impressed by the qualities and characters of the lion. They looked upon the lion as an animal of God. Historical records state that the Lion dance was started during the Han Dynasty. His Majesty Han Wu Ti made commercial ties with the West through the Silk Road to China. Cultural interaction, by way of organizing functions, was meant to welcome guests from the West. During the song and dance performances, dancers wore animal masks to entertain the guests.

The guests noticed that there were no lion masks and were told that there were no lions in China. Later, the traders from the West who used the Silk Road brought along lions as gifts to China. They also brought along lion trainers. The Lion Dance started to take place in China. Initially lions came to China from India as Buddhism spread and contacts with India increased. The place of the

lion in Buddhism was like the holy God of the religion. Lion Dance is now performed during important occasions and festivals. It is also used in chasing away bad omens and spirits; to bring prosperity and good fortune. We have been performing all over India. The Indian audience enjoys our shows, especially children.

However, they lack the understanding of the sentiments behind the Dance.

They don’t understand the why, when what, where and how of it. To them, it is just another Disney character. They just love the external part of it.

Time has changed with the progress of culture. The standard and skills of Lion Dance too have gone through progressive upgradation. As the skills are being improvised on, the Dance is becoming more and more popular in India. It now involves acrobats and stunts. Lots of Indians learn the Lion Dance. Some of them have already mastered the art. We are planning to UHSUHVHQW ,QGLD IRU WKH ¿UVW WLPH LQ the“World Lion Dance competition in 2016”. Our troupe is going to Malaysia twice a year for advanced training.

I have selected my three top students already for the competition and all of them are Indians!

(James Liao, 42, has been performing since 1978. He lives in Kolkata)

INFOCUS|INDIA-CHINA|MY VIEW

A Tangled Triangle: India, China and USA P.S. Deodhar

R

elations among countries in Asia have undergone a dramatic change over after the demise of USSR. During the Cold War, Indo-US relations were rather estranged. The US did not approve of India’s non-aligned policy, close relations with the erstwhile Soviet Union and its tensions with Pakistan. On the other hand, the US had a strong alliance with Pakistan. It is only during the last twenty years that this situation has progressively changed due to some corresponding strategic, economic and political interests of India and the US. The US-India relationship is now as happily ‘engaged’ nations than ‘estranged’ mutually suspicious nations. This of course, has a lot to do with the changed US strategy and policy towards India as well as the other nations in South Asia and the $VLD 3DFL¿F During this period remarkable changes have taken place in the Asian

region. China has emerged as a new, strong economic and military power that can challenge the US hegemony, thus leaving India far behind. However, India too in a limited way has emerged as a regional power of conVLGHUDEOH LQÀXHQFH ZLWK LPSUHVVLYH economic growth in terms of GDP. The growing strengths of China as well as India are evinced by their impressive economic growth, the development of nuclear arsenals, and their expressed DPELWLRQV VHHNLQJ WR LQÀXHQFH WKH

SINCE 2010, INDIA IS INDEED LEANING MORE TOWARDS THE US. TO SOME EXTENT, CHINA HAS ONLY ITSELF TO BLAME, FOR PUSHING INDIA AWAY BY SEVERAL OF ITS PROVOCATIVE POSTURES AND UTTERANCES WHICH DO NOT BEFIT ITS FRIENDLY OVERTURES.

world affairs. While China’s role as an economic and geo strategic player is more widely recognized, India is trying to establish itself as a regional competitor.

China-USA Tensions For several decades now, the U.S. has had an unprecedented military presence in South Asia and the Asia 3DFL¿F UHJLRQ &KLQD KDV QHYHU EHHQ comfortable with this US supremacy in its waters. Americans would never ZDQW HURVLRQ RI WKHLU LQÀXHQFH LQ WKH region. But the speedy economic decline of the US since a decade and its deep trade engagement with China, have created big problems for the US. Since 2003, it has fought wars that have distracted it from its economic problems, and wasted trillions of desSHUDWHO\ QHHGHG GROODUV LQ ¿JKWLQJ wars that did little else but spoil its image in the world community. These days American system appears to be in deep trouble. However, even today, strategically and militarily, the US indeed remains a super power that

January 2014 India-China Chronicle |33|

INFOCUS|INDIA-CHINA|MY VIEW

cannot be challenged even by China.

Since the last 18 months, military tensions between the U.S. and China have begun to rise in the western PaFL¿F &KLQD LV XVLQJ PXOWL ELOOLRQ GROODUV RI LWV FRPPHUFLDO SUR¿WV IURP LWV export trade to US, Europe and other nations to fund its war machine. This obviously is to face the US military challenge arising out of American domination over the Asian and the PaFL¿F VHD URXWHV DV ZHOO DV WR SUHYDLO RYHU other Asian economic giant, Japan. It is no secret that Beijing has a plan to establish its maritime predominance from Korea to Indonesia. The US is mindful of Chinese ‘assertiveness’ in South China Sea. A US report says that ‘the Chinese military modernisation is an attempt to deny the US an access to Asia, by acquiring ballistic missile capability to hit giant aircraft carriers of the US stationed in the region’. Relatively their mutual concerns about North Korea and Taiwan are on a back burner.

If the Republicans were in power in the US, engaging in a war with China would have been more probable. After all, it did go for a war with Iraq due to the alleged ‘Weapons of Mass Destruction’ and was till recently, planning to start another one with Iran. In addition, the weak US economy needs the US to revive its ‘military industrial complex’.

|34| India-China Chronicle January 2014

Chinese have their own Asian way and traditionally they plan long term. It is establishing its own network of 35 satellites for global positioning, communications, and reconnaissance capabilities by 2020. All this certainly rattles the current super power, and hence, it may not keep quiet. The US

CHINA BELIEVES THAT IT HAS THE RIGHT TO ITS OWN SPHERE OF INFLUENCE IN THE ASIA-PACIFIC REGION. IT SAYS THAT EAST ASIA HAS BEEN SINO-CENTRIC FOR SEVERAL THOUSAND YEARS. THIS, SOME BELIEVE, MAY POSSIBLY LEAD TO A WAR-LIKE CONFRONTATION [BETWEEN CHINA AND THE US]. FOR THE PRESENT, IT IS LIMITED TO AN ARMS RACE BETWEEN THE TWO. CHINA’S ENORMOUS MILITARY BUILD UP HOWEVER MAY, SOMEDAY, PROVOKE THE US FOR A SHOWDOWN.

has its own plans. By 2020, the Pentagon will launch a three-tiered shield of space drones — reaching from the stratosphere to the exosphere, armed with agile missiles, linked by a resilient modular satellite system, and operated through total telescopic surveillance. These instances well SRLQW RXW WKDW VRPH NLQG RI FRQÀLFW between the U.S. and China may happen sooner than anticipated. &KLQD 86 &RQÀLFW 3XVKHV %RWK WR Seek India’s Friendship 7KLV FRQÀLFW LV DQ LPSRUWDQW UHDson for remarkable changes that have taken place in the US-India security relations in recent years. China already has a complex security situation in South Asia, and therefore the current leadership of China recognises the importance of its friendship with India. In spite of some hiccups, China is careful in maintaining friendly relations with India by having close diplomatic ties. Besides this, its rapidly growing bilateral trade too demands that the relations between the two remain friendly. China fears that the US will push the situation and try to pull India away from China. India, therefore, has to be careful and keep its US tilt under control.

History tells us that US never makes friends without a motive and turns its back with equal ruthlessness.

The nuclear deal that India and the US signed in 2007 has to be understood in this context. The US always has a selfish and hidden motive in its strategic policies. Some experts are of the opinion that for the US, the nuclear deal is not really about allowing India to use it for generating power, but for allowing India to arm itself with nuclear weapons as a counter measure to China’s nuclear arsenal. After all India has done nothing about nuclear energy for power after six long years except talking and procrastinating. So much for the urgency that Dr. Manmohan Singh had harped on while rushing to sign the deal. The real motive is not the enHUJ\ VKRUWDJH 7KLV JHWV FRQ¿UPHG E\ the fact the deal allows India to undertake developmental work in this area,

without being questioned by the global nuclear powers. The intention indeed is not to help India, but to ensure that India is on its side if as and when the US engages in a war with China. This would ensure that such a war will then QRW EH IRXJKW LQ WKH 3DFLÂżF UHJLRQ EXW on Indian soil. After all, the US has fought all its wars on foreign territory.

India therefore, would be a good battle ÂżHOG IRU WKH SRVVLEOH &KLQD 86 ZDU LI or when it happens. &KLQDÂśV 6WUDWHJLF 0RYHV Chinese leadership is also convinced that some form of confrontation with the U.S. could come earlier WKDQ H[SHFWHG ,W KDV EHHQ ÂżQH WXQLQJ its domestic and security policies to counter the perceived threat from what it calls the U.S. imperialism. China has always been conscious about disasters and downturns and thinks about dangers in the midst of current peace. It is building up strategic oil reserves along with that of industrial raw materials. Interestingly, all roads and other infrastructures in China have been planned keeping in mind the requirements of the defence forces. That a foresight indeed.

The presence of the US, as if it is

an â&#x20AC;&#x2DC;Asianâ&#x20AC;&#x2122; power, disturbs China like nothing else. China desires friendship with India for many valid reasons.

However, its diplomatic effort to come closer to India is a strategic move to keep the US from getting India on its side. Unfortunately China certainly is not doing it right. If the Chinese do not recognise this soon, it is certain that India will gravitate more towards the US as a hedge against China. Perceived threat of China in India therefore, decides the extent of its tilt towards the US. China must see and feel concerned about this and speed up its friendly engagement with India to prevent this from happening.

The Chinese know very well that India has stood by China till the 1962 crisis. Chinese aggression was a shock that many feel is one important reason for Nehruâ&#x20AC;&#x2122;s early death. How can China forget that from recognizing the new Communist-led government of China in December 1949, and accepting Taiwan being a part of China, to voting in its favour by opposing the US resolution in UN Assembly in 1951, which labelled China as an aggressorIndia has always been by Chinaâ&#x20AC;&#x2122;s side?

Then, like a bolt from the blue, came WKH ERUGHU FRQĂ&#x20AC;LFW /XFNLO\ 0DRÂśV

China that crossed the border and its political thinking as well as its national ambitions have undergone sea changes since 1980. Presently China is a completely different country than what it used to be. Many of us expected WKLV WR UHĂ&#x20AC;HFW LQ LWV ,QGLD SROLF\ &KLnese leadership must realise that most of the Indians still mistrust China. It friendship with India has not gone much beyond its diplomatic overtures.

Today Chinaâ&#x20AC;&#x2122;s diplomatic moves are seen by many as very opportunistic. )ULHQGVKLS 1HHGV D &RRO 0LQG After 26 years of diplomatic isolation, it was Rajiv Gandhi who went to Beijing in 1988 to start afresh Indiaâ&#x20AC;&#x2122;s engagement with China, in spite of local resistance. Then Vajpayee, heading the non-Congress NDA government, upgraded it in 1993 by raising the border talks to a higher level with the National Security Adviser heading the Indian team and recognizing Tibet as a part of China with even stronger resistance in India. Dr. Manmohan Singh set in motion bilateral trade and over the years it resulted in China becoming Indiaâ&#x20AC;&#x2122;s largest trading partner, with a trade volume of over US$70 billion in 2012; raising it from a mere US$1

January 2014 Â&#x192; India-China Chronicle |35|

INFOCUS|INDIA-CHINA|MY VIEW

billion in 2001. So far China has greatO\ EHQHÂżWWHG IURP ,QGLD WKURXJK RXU bilateral relations. China should carefully assess what it has done in return in order to win over the Indian people.

If China indeed wants to develop friendship with India, it needs to change the opinion of Indians about it through sincere overtures and not merely through diplomatic cordiality.

China must understand that unlike in their country, in India people are supreme and not its weak government.

One quick way to win over Indian people is by resolving the border issue in Indiaâ&#x20AC;&#x2122;s favour or at least a quick FRPSURPLVH WKDW LV EHQHÂżFLDO ,QGLD I am sure that this single action will change the anti-China feeling amongst Indian people.

Chinese often complain that Indian PHGLD NHHSV WKH FRQĂ&#x20AC;LFW DOLYH China should know that press today is so powerful that all the governments in the free world fear them. After all, the Indian press is not like the state controlled media in China. The freedom of press is Indiaâ&#x20AC;&#x2122;s strength. One wonders why China creates such rather unwise irritants if it actually does not want to push India away from it.

All Indians know that press is a weapon in India. Therefore, if China desires to build good will amongst Indians, it should avoid such provocations. Maintaining mere cordial and diplomatic ties are too bureaucratic, and certainly not enough. China must understand that India is a democracy and that its people are far more important than its handful of diplomats and politicians.

Such misjudgements by China make for good opportunity for the shrewd Americans to relish it and exploit it. After all, the Yankees are experts in exploiting the media machine to their advantage. The American PHGLD DOVR DGGV IXHO WR WKH ÂżUH WR add to the Indian doubts regarding China. Its press added to these fears with an observation that China is encircling India by constructing ports in the Indian Ocean that could potentially have military use later.

This has proved to be a great fodder for further enhancing the India-China |36| India-China Chronicle Â&#x192; January 2014

friction. China unfortunately does not UHFRJQLVH WKDW LWV VLOHQFH FRQÂżUPV WKH validity of the theory. One also wonders why China made such an issue out of the meeting of the Indian PM with 'DODL /DPD RU WKH YLVLW RI LWV GHIHQFH minister to Arunachal Pradesh. Till the border issue is under negotiation, such provocation is certainly uncalled for. &KLQHVH ,QDFWLRQ :LOO +DYH 8QGHVLUDEOH &RQVHTXHQFHV Some of us fear that if China does not revisit its India policy, India would one day get sucked into the global rivalry between the US hegemony and China. So far, India has been careful in maintaining cordial relations with both China and the US, without reference to the proximity or otherwise with either power. For example, India not only exercised its military regularly with the US, but also has had two rounds of exercises with China.

If India seems to be getting closer to the US during the last three to four years, a part of the reason for this development is Pakistan. China has not behaved in a way that would make the average Indian feel friendly towards it.

I wonder why the Chinese ever created minor irritants like stapled visas to Indians from Jammu & Kashmir. The

HISTORY TELLS US THAT US NEVER MAKES FRIENDS WITHOUT A MOTIVE AND TURNS ITS BACK WITH EQUAL RUTHLESSNESS. CHINA IS THE MAIN REASON FOR THIS NEW LOVE THAT THE US HAS DEVELOPED FOR INDIA OTHER THAN THEIR DISILLUSION WITH PAKISTAN. THESE CHANGING RELATIONS ARE INDEED MAKING A GREAT IMPACT ON CHINAâ&#x20AC;&#x2122;S SECURITY ENVIRONMENT.

India media made it a â&#x20AC;&#x2DC;Breaking Newsâ&#x20AC;&#x2122; whereas China accomplished nothing. May be, China believes that by indirectly warning India through such actions, it would prevent India from turning for close support from the US. China should realise that this policy does not work within a friendship. /DUJH 6FDOH &LYLO 6RFLHW\ ,QWHUDFWLRQV 9LWDO IRU 'HYHORSLQJ 7UXVW As neighbouring countries wanting to groom friendly ties, China and India must realise the importance of developing people-to-people contact rather than merely relying on diplomacy. In this respect the US is miles ahead of China. Close to half a percent of all Indians today either live in the US or work for it, on-line, IURP ,QGLD /DQJXDJH LV DQRWKHU good cementing material for social connectivity. India therefore, has many Westernised Indians who believe that India needs to get closer to the US since it needs technology, both civilian and military, as well as capital. The US, on its part, is shrewd enough to oblige since it needs India as a counterweight to China. The US, however, has a poor UHFRUG RI ÂżGHOLW\ LQ LWV UHODWLRQVKLSV It is known to interfere with local domestic matters and it does so quite trickily. Many Americans themselves have proved it conclusively.

Traditionally, war has not been the methodology for resolving problems in India as well as in China, except in the event of war for liberation. Even the short border invasion was a conĂ&#x20AC;LFW RQ DFFRXQW RI HUURUV RQ ERWK WKH sides and not a full-scale war. Both countries would rightfully want to be militarily strong nations, but the people in both countries certainly want peace, development and reduction in poverty. Both countries want to march towards inclusive development and prosperity. This is very unlike the people in the West and the middle-east, who love wars to settle disputes. One must remember that Hinduism and Buddhism are religions that spread through love and human search for peace and salvation. Thatâ&#x20AC;&#x2122;s exactly how Buddhism enveloped China;

improve Indiaâ&#x20AC;&#x2122;s relations with China.

So far India has always attached the highest value to maintaining independence in making its foreign policy and sovereignty, and avoided becoming the part of a US or Western agenda towards China. The United States is also unlikely to be willing to underwrite the costs of guaranteeing Indian security and it would be foolish for India to entrust her security to a superpower. Its people are able enough if it focuses on self-reliance on modern armaments. If a little state like Israel can do it, why not India?

We have great talents waiting to be gainfully utilised.

through love and not war. That cannot be said of Christian, Muslim or Jewish religions that were born in the desert.

The spread of these faiths was primarily through wars and it involved imposition on others rather than conviction. Thus neither India nor China has attacked any country to rule over it or have shown imperialistic ambitions. I donâ&#x20AC;&#x2122;t see any war between the two in the near future. In any case, both nations actually have enough challenges in ruling over their own countries. &DQ ,QGLD 5HPDLQ 1RQ $OLJQHG" Some Indians have their reservations on whether India can remain non-aligned. The best option for India is to stay friendly with both, the US and China. India needs to engage them in regular dialogue. India should be seen as non-aligned and equidistant. This would give it time to speed up its economic growth by having the best of both in this endeavour.

China would then gradually develop FRQÂżGHQFH WKDW LW GRHV QRW QHHG Pakistanâ&#x20AC;&#x2122;s support anymore. Beijing needs to do a lot more than India since

it is not still an â&#x20AC;&#x2DC;openâ&#x20AC;&#x2122; country. It has to soften its generally abrasive talks about the border dispute and help the Delhi diplomats to convince people of the merits of its friendly diplomatic ties. Diplomacy is required in speedily concluding the border talks. China, in a sense, is a far larger power than India. China loses little by conceding to Indiaâ&#x20AC;&#x2122;s border claims. Indian people must also understand the basic truth.

Before the British, there was nothing OLNH ,QGLD ZLWK GHÂżQHG ERUGHUV ,QGLD got its borders drawn by the British arbitrarily. â&#x20AC;&#x2DC;Aasetu Himachalaâ&#x20AC;&#x2122; is an idea that indeed was never fully realised. Peace with neighbours is vital for India since it has many internal problems including poor and weak governance, and this strategy would give it time to set its house in order. ,Q PDQ\ ZD\V ,QGLD FDQ EHQHÂżW D ORW more from China in creating good infrastructure that is necessary for its economic and social development.

The US has little to offer other than technology and, of course, weapons of mass destruction. A visible nonaligned foreign policy would certainly

7KH )XQGDPHQWDO 5HDOLW\ The fundamental reality at a social and economic level is that both China and India need Americaâ&#x20AC;&#x2122;s cooperation and support for their economic development whereas the US needs the huge markets of 2.5 billion Indians and Chinese. The US, therefore will do well by encouraging Sino-Indian relationship for the regional stability in South Asia and help both China and India in their economic modernization. /HW ÂľWHFKQRORJ\ IRU SHDFHIXO KXPDQ raceâ&#x20AC;&#x2122; be the new principle of the globalised world. Knowledge needs to be freed by mobilising it for the good of human race so that it does not become â&#x20AC;&#x2DC;a propertyâ&#x20AC;&#x2122; that gives unreasonable returns to businesses. China too needs to revisit its India policy and realise its importance in geo-politics as well as in its role in regional affairs. There is a reason to believe that China desires that the nature of their relationship with India should be like that between good neighbours and good friends in economic cooperation and good partners in international affairs. Â&#x2030;

Mr. P.S. Deodhar is author of â&#x20AC;&#x2DC;Cinasthana Todayâ&#x20AC;&#x2122;, published by McGraw Hill in 2012.

He shares his views in this piece

January 2014 Â&#x192; India-China Chronicle |37|

MISSING PIECES

Interpreting China’s 60-point Reforms &KLQD ZDV EHKLQG ,QGLD GXULQJ WKH¶ V 7RGD\ &KLQD LV DKHDG RI ,QGLD LQ HYHU\ DVSHFW RI EXVLQHVV H[FHSW SHUKDSV DUHDV OLNH IUHHGRP RI SUHVV LQIRUPDWLRQ )RU WKH WKLUG WLPH VLQFH &KLQD¶V OHDGHUVKLS KDV FRPH XS ZLWK EROG UHIRUPV WR SUHYHQW WKH FRXQWU\ IURP JRLQJ ZD\ZDUG 5HFHQWO\ WKH 7KLUG 3OHQXP DGRSWHG D SRLQW SODQ WR NHHS &KLQD RQ LWV JURZWK WUDFN DQG HQVXUH WKDW WKH &RPPXQLVW 3DUW\ UHWDLQV LWV JULS RQ SRZHU 7KH PHUH IDFW WKDW ZLGH UDQJLQJ UHIRUPV KDYH EHHQ DQQRXQFHG KDV LJQLWHG WKH JOREDO VWRFN PDUNHW WKRXJK LW PD\ WDNH \HDUV IRU WKHP WR EH LPSOHPHQWHG :KDWHYHU WKH RXWFRPH RI &KLQD¶V UHIRUP SODQV PLJKW EH WKHUH DUH OHVVRQV IRU ,QGLD JULSSHG LQ WKH DQ[LHWLHV RI D VWXPEOLQJ GHPRFUDF\

C

hina’s Communist Party has persistently reinvented LWVHOI ZKLOH PDLQWDLQLQJ D ¿UP JULS RQ WKH FRXQWU\ 7KH QRUPDOO\ VWURQJ 3DUW\ QRZ IHHOV FRQ¿GHQW HQRXJK WR DFNQRZOHGJH WKDW LWV KDQG ZDV IRUFHG E\ VRFLDO GHYHORSPHQWV &KLQD¶V SRLQW UHIRUP SODQV FRPH XQGHU EURDG FDWHJRULHV RI VLJQL¿FDQFH DQG SULQFLSOHV EDVLF HFRQRPLF V\VWHP PRGHUQ PDUNHW V\VWHP DQG *RYHUQPHQW UROH ,W DOVR LQFOXGHV ¿VFDO DQG WD[ V\VWHP XUEDQ UXUDO GHYHORSPHQW UXOH RI ODZ VXSHUYLVLRQ RI SRZHU FXOWXUDO V\VWHP VRFLDO JRYHUQDQFH DQG HFRORJLFDO FLYLOL]DWLRQ 7KH

|38| India-China Chronicle January 2014

UHIRUP SODQ FRPSULVHV RI GHIHQVH DQG DUP\ UHIRUPV DV ZHOO DV IXUWKHU RSHQLQJ XS RI WKH HFRQRP\ &KLQD¶V UHIRUPV SODQ FRXOG EHQH¿W VHFWRUV VXFK DV FRQVXPHU LQIUDVWUXFWXUH LQVXUDQFH DQG FOHDQ HQHUJ\ The reforms stem from the growing popular anger at the PRXQWLQJ LQFRPH JDSV LQ WKH FRXQWU\ ±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¶V WRXJK RQH FKLOG SROLF\ IRU XUEDQ FRXSOHV ZLWK D VLQJOH SDUHQW FDQ EH VHHQ DV DQ DGPLVVLRQ WKDW WKH 3DUW\ ZDV ZURQJ WR GLFWDWH SULYDWH GHFLVLRQV ,W GRHV DFNQRZOHGJH LWV QHJDWLYH HFRQRPLF FRQVHTXHQFHV (PSOR\LQJ VRPH KDOI D PLOOLRQ ZRUNHUV WR HQIRUFH WKH DERUWLRQV RI XQDXWKRUL]HG SUHJQDQFLHV PLOOLRQ VLQFH DQG LPSRVH ¿QHV KDV EURXJKW XQLQWHQGHG FRQVHTXHQFHV )RU WKH ¿UVW WLPH LQ \HDUV &KLQD¶V ZRUNLQJ DJH SRSXODWLRQ KDV VKUXQN LQ :LWK ELUWK UDWHV EHORZ UHSODFHPHQW OHYHOV &KLQD ZLOO JHW ROGHU EHIRUH LW JHWV ULFK

CHINA DQG LWV UDWLR RI UHWLUHHV WR ZRUNLQJ DJH SRSXODWLRQ ZLOO EHFRPH XQVXVWDLQDEOH $W WKH SUHVHQW UDWHV PRUH DQG PRUH ³VHFRQG JHQHUDWLRQ RQO\´ FKLOGUHQ DUH UHTXLUHG WR VXSSRUW WZR SDUHQWV DQG IRXU JUDQGSDUHQWV 7R WKH GLVPD\ RI WKRVH ZKR H[SHFWHG &KLQHVH OHDGHUVKLS WR GLVPDQWOH VWDWH RZQHG HQWHUSULVHV WKH UHIRUPV SURPLVH JUDGXDO WUDQVIRUPDWLRQ :KLOH WKH SDUW\ VDLG WKDW LW ZDV SODQQLQJ WR JLYH D PDUNHW D GHFLVLYH UDWKHU WKDQ D EDVLF UROH DV LQ WKH SDVW LW UHPDLQV XQFOHDU KRZ WKDW ZRXOG DIIHFW WKH SULFHV VHW E\ VWDWH FRUSRUDWLRQV HVSHFLDOO\ WKRVH ZKLFK DUH PRQRSROLHV 6WDWH FRUSRUDWLRQV ZLOO EH DVNHG WR KDQG RYHU RI WKHLU SUR¿WV WR WKH VWDWH DV FRPSDUHG WR DW SUHVHQW ±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¶V HFRQRPLF SURVSHFWV DQG ERXJKW WKH 3DUW\ D QHZ OHDVH

INDIA RI DXWKRULW\ /HDGHUV NQRZ WKDW FRQWLQXHG SURVSHULW\ DW KRPH DQG GLVSOD\V RI QDWLRQDO PLJKW DEURDG DUH WKH VXUHVW JXDUDQWHHV RI D VWURQJ JULS RQ SRZHU

Where is India’s Plan? &KLQD¶V JUDQG SODQ FRPHV LQ VKDUS FRQWUDVW WR WKH ZHDNQHVV RI ,QGLD¶V SROLWLFDO FODVV DQG LWV EURNHQ V\VWHP RI JRYHUQDQFH &RUUXSWLRQ DQG SDUWLVDQ JULGORFN FRQWLQXHV WR OLPLW ,QGLD¶V PXFK QHHGHG UHIRUPV &KLQD KDV D SODQ DQG LV DZDUH RI WKH SULFH RI IDLOXUH ,QGLD¶V SROLWLFDO HOLWH RQ WKH RWKHU KDQG LV XQDEOH WR PHUJH WKH GLIIHUHQFHV WR DJUHH RQ D QDWLRQDO SODQ WR HQG SRYHUW\ DQG WDNH WKH FRXQWU\ IRUZDUG ,QGLD LV VWXFN VLQFH ORQJ ZLWK UHIRUPV DZDLWHG LQ UHWDLO )', LQVXUDQFH )', ¶V DQG ODERU ODZV )XUWKHU UHIRUPV DUH DZDLWHG LQ WUDQVSRUW SHQVLRQ DJULFXOWXUH DV ZHOO DV LQ DVSHFWV UHODWHG WR ODZ /DQG $FW SULYDWL]DWLRQ RI 368¶V DQG PRUH 7KH ZRUVW RI DOO LV WKDW ,QGLD GRHVQ¶W VHHP WR IHDU WKH KLJK SULFH IRU IDLOXUH 0D\ EH WKH HPHUJHQFH RI D QHZ SROLWLFDO IRUFH LQ 'HOKL 7KH $DP $DGPL 3DUW\ FDQ XVKHU LQ WKH PXFK UHTXLUHG UHIRUP :KDW ,QGLD ,QF QHHGV LV D GLIIHUHQW WRQH DQG GLUHFWLRQ WR XS LWV HFRQRPLF VWDQG

JAGAT SHAH The writer is Chairman, India China Economic & Cultural Council (ICEC), Gujarat

January 2014 India-China Chronicle |39|

IN IINF INFOCUS|INDIA-CHINA|ENERGY NF N FOCU FO OCUS S|IN IN NDIA DIA-CHI INA|ENE ENERGY GY

The Curious Case of Indiaâ&#x20AC;&#x2122;s Strategic Petroleum Reserves With the likely commissioning of Vishakhapatnam Strategic Petroleum Reserves (SPR) in January 2014, India will be starting its journey towards further strengthening of its energy security, when it will start stockpiling the crude, to deal with supply disruptions of various kinds. This would be WKH ÂżUVW RI WKH WKUHH 635V ZKLFK ,QGLD KDV planned to complete in its Phase I. India, however, still lags far behind. Projections have put China miles ahead of Indiaâ&#x20AC;&#x2122;s strategic storage plans as China states SPRs to the tune of 500 million barrels by the end of its 3KDVH ,,, 7KRXJK WKLV ÂżJXUH IDOOV VKRUW RI the actual estimates i.e. 2,500 million barrels E\ ÂżYH WLPHV DQG PD\ EH LQDFFXUDWH WKHUH is still a word of caution for Indiaâ&#x20AC;&#x2122;s lethargic SPR plans. Keeping in mind the sustainability factor in terms of quality, quantum and safety of these reserves,India should not waste IXUWKHU WLPH LQ VWUXJJOLQJ WR ÂżQG VXLWDEOH PRGHOV DQG ÂżQDQFHUV IRUWKH 635 SURMHFWV |40| | 40 0| India-C India-China -Chin hina Chronicle Chro hr nic cle Â&#x192; January 2014 20

Manish Vaid

I

t has been about a decade since the decision to build the SPRs (Strategic Petroleum Reserves) was taken by the Union Cabinet in January 2004.

But it was in 1998 that the project was conceived followed by its formal announcement in 2003.

Indiaâ&#x20AC;&#x2122;s journey towards the creation RI WKH ÂżUVW 635 FDQ EH EURDGO\ FODVVLÂżHG in two periods. First, during the regime of National Democratic Alliance (NDA), as a reaction to US-Iraq war and second when United Progressive Alliance (UPA) government decided to revisit SPR plans of NDA government, immediately after it came to power in May 2004.

Indiaâ&#x20AC;&#x2122;s Evolving SPR Strategy Around the time of the US-Iraq war, India already had an operational storage capacity of 15-19-days crude reserves and 45 days stock of petroleum SURGXFWV ZLWK YDULRXV UHÂżQHULHV meant only for commercial purposes.

Hence, the need was felt to make a clear distinction between a strategic and a commercial storage. The UHÂżQHULHV ZHUH DGYLVHG WR IRUPXODWH suitable proposals for additional storage capacity for imported crude oil for 45 days cover, over and above the existing reserves. But they were not incentivised to build crude oil tankage and maintaining a stock beyond their minimum operational requirement owing to the cost.

Consequently, only 15 days of strategic reserve for crude oil was planned initially in Phase I in order to avoid the huge investments needed in putting up the 45 days reserve.

The proposed 15 days of strategic reserve necessitated putting up gross tankage of 5.00 million metric tonnes (mmt). As per this decision, while the Government, would own crude stocks in SPRs, its implementation would be done by Indian Strategic Petroleum Reserves Limited (ISPRL), a wholly owned subsidiary of Oil Industry Development Board.

On December 1998, the Petroleum

Ministry had set up a Committee for â&#x20AC;&#x2DC;Preparation of DFR for Strategic Storagesâ&#x20AC;&#x2122; to oversee its preparation.

Thereafter the same was prepared and approved by yet another Committee set up by the Ministry in 2001. This was followed by acquiring clearances from related Ministries, and promptingthe Cabinet of the Union Government of India to decide on building a strategic storage of 5 mmt of imported crude oil by January 7, 2004 (1.5mmt at 0DQJDORUH QHDU 053/ 5HÂżQHU\ 1.0 mmt at Vishakhapatnam near Dolphinâ&#x20AC;&#x2122;s nose and 2.5 mmt at Padur in Udipi District).

By this time the NDA government HVWLPDWHG WKH FRVW RI WKH ÂżUVW WZR SURjects at Mangalore and Vishakhapatnam to the tune of Rs. 700.08 crore and 658.75 crore respectively and thereby calculated at an exchange rate of US$ = Rs.45.41 (June 2004 rates),

AROUND US-IRAQ WAR, INDIA ALREADY HAD AN OPERATIONAL STORAGE CAPACITY OF 15-19 DAYS OF CRUDE RESERVES AND 45 DAYS STOCK OF PETROLEUM PRODUCTS WITH VARIOUS REFINERIES, MEANT ONLY FOR COMMERCIAL PURPOSES.

while the details for the Padur project was awaited as preparation of DFR was under process. )RU ÂżQDQFLQJ WKHVH SURMHFWV WKH government planned to enact a law to levy a surcharge on the domestic consumption of petroleum products after the same was approved for implementation. Funds so created, would have been used both for capital investment for putting up storage and allied facilities as well as for procuring crude oil for strategic cover. But soon after the UPA government came to power in May 2004, it scrapped some of the strategies of the petroleum sector of the previous NDA regime and sought the Planning Commission to review NDAâ&#x20AC;&#x2122;s plan of creating strategic oil storages.

Comparing Chinese Experience Both India and China being amongst the top three energy consuming countries in the world rely heavily on crude imports from the Middle East.

As for India, the Middle East accounted for approximately 64 per cent of its total crude import in 2012 while China imported around 60 per cent of its crude oil needs from the Middle East in 2011. Further, as India continues to struggle while commissioning its ÂżUVW HYHU 635V LQ -DQXDU\ DQG is still mulling different models for ÂżQDQFLQJ LWV 635 FDSDFLWLHV DQG ÂżOOLQJ RI FUXGH &KLQD KDV WDNHQ D giant leap in this regard. Both these

January 2014 Â&#x192; India-China Chronicle |41|

INFOCUS|INDIA-CHINA|ENERGY

countries are already competing with each other in securing hydrocarbon assets oversees, and China is miles ahead in its strategic crude reserve plans and implementation from India.

China took the decision of stock build-up only in its 10th Five Year Plan in 2001 and is already eyeing 500 million barrels of SPR in three phases where its Phase 1 has already covered 103 million barrels in 2009. According to analysts at China International Capital Corp. (CICC), China is likely to add 210 million barrels and 310 million barrels in its next two phases by 2020, thereby accounting for 623 million barrels, or equivalent of 90 days of China’s net imports.

Deciphering China’s SPR Model China, which imitates Japan’s stockpiling system, has dual oil reserve strategy, comprising both government and private strategic oil reserves.

Besides having government-managed

Background to the Reserve

T

he common argument given for creating SPR is the 1973 Arab oil embargo, where this was used as one of the measures to deal with supply disruption by the US Administration. This oil crisis which lasted for five months from October 1973 to March 1974 prompted the US to become the first country to build such reserves which soon created the world’s largest stockpile. According to the US Department of Energy, the capacity of such stockpile is of 727 million barrels or nearly 99 million tonnes and since then it has been the first line of defence for the US Government, should there be a disruption in commercial oil supplies threatening its economy.

International Energy Agency (IEA) too reacted to the oil embargo of 1973 and set up an emergency response mechanism under the 1974 agreement on International Energy Program(I.E.P. Agreement). Under this agreement, all member countries are required to hold oil stocks equivalent to at least 90 days of net oil imports and release stocks besides other means like restraining demand, fuel switchover, augmenting domestic production and sharing of available oil, if necessary. IEA’s response action is to offset an actual physical shortage, without reacting to the price movements.

IEA’s preparedness towards dealing with supply disruption got tested mostly during Iranian Revolution of 1979 and Gulf War during Iraq’s invasion of Kuwait in 1990-91. The gross peak supply loss during these two historical events was to the tune of 5.6 million barrels per day (mb/d) and 4.3 mb/d respectively. Since the creation of IEA, it came to action, thrice, in bringing additional oil to the market – first during 1991 Gulf War, second during 2005 Hurricanes Katrina and Rita and lastly in June 2011when oil supply to Europe got disrupted due to civil unrest in Libya. In the case of India, it will almost be a decade before its first SPR in Vishakhapatnam can be commissioned, in January 2014.

|42| India-China Chronicle January 2014

SPR, the government has urged large oil companies to build their own commercial oil reserves. But it is the QDVFHQW 6WDWH 2LO 635 RI¿FH DQG 6WDWH Oil Stockpiling Center, established by the National Development and Reform Commission (NDRC), which has taken the responsibility of managing SPRs instead of Chinese state-oil companies.

Though China’s Phase I SPR was state controlled, NDRC divided its Phase II SPR into three categories - namely, national SPR, commercial petroleum storage by state oil companies and commercial storage by local governments or companies.

China therefore goes much beyond its stated SPR plans of 623 million barrels if its commercial reserves are accounted for. China’s major oil companies; namely, Sinopec and CNPC have combined accounts for other 300 million barrels of these reserves, holding share of 50 per cent and 40 per cent respectively. This clearly shows China’s much robust strategy of stockpiling, which is primarily driven from its rising energy needs and an apprehension arising out of supply

The Dawn of Strategic Petroleum Reserves

S

trategic Petroleum Reserves was recognised as a policy tool in the aftermath of the first oil shock in 1973.Consequently, major industrialised nations integrated to form IEA, which was charged with the task of coordinating the purchase of oil during a future shock and drawdown of reserves during the crisis period. According to the IEA guidelines, the member nations are required to hold strategic stocks of about 90 days of net imports. Indiaâ&#x20AC;&#x2122;s Integrated Energy Policy of 2006 followed the same suit and recommended maintenance of a strategic reserve, equivalent to 90 days of oil imports for strategic-cum-buffer stock purposes. India regarded the oil reserves as one of the effective means to deal with supply risk, thereby ensuring energy security as it could help in minimising the economic cost of interrupted supplies and high oil prices.

In India, in 2011, it was decided that the authorisation for release or sale of strategic crude oil will rest on a competent authority which jointly comprises of Inter-Ministerial Empower Committee. The Committee, chaired by the Secretary, Ministry of Petroleum & Natural Gas will also include Secretary, Department of Expenditure, Ministry of Finance (MoF) as well as Secretaries of Home, Defence and Shipping ministry, along with secretaries of Planning Commission and National Security Council.

Existing State of Affairs and Future Course of Action

I

n order to deal with disruption of oil supplies during a war like situation, the Government of India has planned strategic oil reserves of 5.33 million metric tonnes (mmt) in three locations, viz., Vishakhapatnam in Andhra Pradesh and one each in Mangalore & Padur in Karnataka under Phase I, with the support of Engineers India Limited (EIL) (Table 1).

For Phase II, work relating to the preparation of DFR for creating SPR has again been handed over to ISPRL by OIDB in February 2011 in Padur (Karnataka), Bikaner (Rajasthan), Rajkot (Gujarat) and Chandikhol (Orissa). ISPRL has engaged EIL for conducting the DFR studies, and at present it is under progress (Table 2).

disruptions occurring from events like the Gulf War and Arab uprisings of recent times. Besides, China is also sensitive to global crude oil price rise and with the expectation of further price rise it will accelerate the pace RI WDQN ÂżOOLQJ DV VWDWHG E\ K.F. Yan, director at energy consultants CERA in Beijing. Interestingly, China has DOUHDG\ VWUDWHJLFDOO\ ÂżOOHG LWV 635V LQ Phase I when the crude prices were low and averaged at $58 per barrel.

Previously, the Integrated Energy Policy (IEP) had recommended the creation of a reserve equivalent to 90 days of imports latest by 2012-13, but it has already been delayed. According to the Approach Paper prepared by the Working Group constituted by MoPNG in December 2009, Indiaâ&#x20AC;&#x2122;s tappable storage capacity for holding commercial stocks as on September 1, 2009 was 22.20 mmt. It was further estimated that by 2014 an additional capacity of 8.62 mmt would be added to the capacity thereby making it 30.82 mmt, which is sufficient to provide a cover for 70 days. Therefore, to cover the remaining 20 days, the Phase II SPR projects have been approved.

Based on Brig. Mandip Singhâ&#x20AC;&#x2122;s analysis at Institute for Defence Study and Analyses (IDSA), and CICCâ&#x20AC;&#x2122;s estimates of Chinaâ&#x20AC;&#x2122;s SPR projection of 2020, China is expected to have 295 days of oil reserves by 2020.

Visible Challenges for India in the Future An inadequacy of existing revenues to meet the requirements of the oil industry remains the most obvious

challenge. The impact of this is also being felt on SPR projects. The same was highlighted by one of the RIÂżFLDOs stating that, â&#x20AC;&#x2DC;the Vishakhapatnam storage is to be commissioned in January 2014. But we donâ&#x20AC;&#x2122;t yet have an agency which will buy crude oil, store and operate the facilityâ&#x20AC;&#x2122;. Though, government has offered Hindustan Petroleum Corporation Limited (HPCL) the responsibility to manage Vishakhapatnam storage having 1.3 mmt capacity, it has January 2014 Â&#x192; India-China Chronicle |43|

INFOCUS|INDIA-CHINA|ENERGY

U

Misdirected Strategies

PA government soon found itself in a position where it was seemingly getting difficult for it to continue with the SPR plans of the previous government, as it thought that rising global crude oil prices coupled with increasing inflation could hamper the growth of the country. Therefore, despite getting close to implementation of the project, the government planned to forge different approaches in dealing with oil supply disruptions, which included buying future options, securing more equity oil overseas, augmenting domestic crude production and encouraging the use of alternative fuel sources.

All these confusion and ambiguity in policies resulted

only taken 0.3 mmt capacity on rent for storing crude oil that it imports for processing at the nearby Vizag UHÂżQHU\ $V IRU WKH UHVW PPW FDSDFity, it did not have money to buy crude for storing and instead sought the governmentâ&#x20AC;&#x2122;s support. $V WKH DSSUR[LPDWH FRVW RI ÂżOOLQJ XS the storage would be around Rs. 3,000 crore per annum for three years after the storage facilities get ready. Though earlier, the government has planned to fund this cost from the existing OIDB cess collection and in case the same is inadequate, then to consider an incremental cess of Rs. 1,000 crore |44| India-China Chronicle Â&#x192; January 2014

in both cost and time overrun of the projects and despite a Standing Committee recommending the Government to develop a perfect mechanism for creating SPR in the shortest possible time, it continued to show a casual approach inherited from the previous government. But amidst consistent push by the Standing Committee, the Congress led Government, finally came out with a proposal similar to that of the previous NDA regime, consequent to which India can witness its first SPR coming live in January 2014.

Thus, so far, misdirected strategy coupled with politics of ambiguity, has marred Indiaâ&#x20AC;&#x2122;s progress towards the SPR goal.

per tonne. Alternatively, 2 per cent increase in custom duty could have also generated the amount equivalent WR WKH FRVW RI ÂżOOLQJ XS WKH FUXGH assuming crude cost at $55 dollar a barrel. Therefore, given the increase of both currency exchange rates as well as global crude oil prices, it remains to be seen if this option is sustainable.

India, while learning from its own experience should explore other models practiced world-wide so as to seek some possibility of adaptability not only in terms of its geological conditions and but also considering the ÂżQDQFLDO FRQVWUDLQWV RI 2LO 0DUNHWLQJ

Companies. Though recently, India has increased its efforts in exploring the combination of strategic-cumcommercial model, it should now look for an optimum and sustainable solution for strategic storage plans in events of unforeseen circumstances causing disruption. Â&#x2030;

Manish Vaid is a Junior Fellow with Observer Research Foundation

INVESTING IN INDIA

An Introduction for Chinese Companies The fundamentals that make India attractive to investors are its high potential of the domestic market driven pool of talent of an emerging middle class. The country’s domestic demand-driven growth model is playing the catalyst in attracting foreign investments in the country. Although the on-going global uncertainty stemming from recessionary concerns and sovereign debt crisis has, to some extent, prompted some discomfort among global investors regarding long-term commitments, yet India’s inherent advantages and its proven resilience to counter macro-economic challenges far outweigh these concerns.

Most research reports see India among the world’s leading three destinations for manufacturing by 2020. In the given scenario, China has become India’s largest trading partner, with Sino-Indian trade touching the $75 billion mark.

Santosh Pai

I

ndia is transitioning into the next phase of the growth cycle.

Manufacturing is likely to play a leading role in this growth trajectory.

The new National Manufacturing Policy introduced by the Government

of India (GoI) is expected to further boost manufacturing activities in the country. Thus any foreign investor who wishes to undertake business in India ZLOO ¿QG WUHPHQGRXV RSSRUWXQLWLHV The Industrial Policy offers a great deal of freedom to business houses and entrepreneurs to make their own investment decisions. India has

gone through almost two decades of economic reforms. Continuity in the economic liberalization process and the political consensus that economic change necessitates has placed India on a growth path.

The country ranks higher than many countries in key parameters such as market size (3rd) and innovation

January 2014 India-China Chronicle |45|

INFOCUS|INDIA-CHINA|BUSINESS

(38th ,W DOVR KDV D VRXQG ¿QDQFLDO market, which is ranked 21st in the world. The Gross Domestic Product (GDP) in India was worth 1,841 billion US dollars in 2012 as against 1,684 billion US dollars in 2011. (See Table: India’s Growth Story) India: An Attractive Investment Destination India is poised to cash in on the demographic advantage. It is projected that by the year 2035, the population will reach 1.5 billion. A 65% working age population will make India, the world’s largest human resource base.

The young talent pool, with median age of 25 years, is expected to continue till 2025. The rural market is currently home to 790 million consumers. India KDV WKH WKLUG ODUJHVW SRRO RI VFLHQWL¿F and technical manpower in the world.

With over 380 universities (11,200 colleges), 1,500 research institutions and 9,000 PhDs, there is no dearth of talent. Every year, over 200,000 engineering graduates, 250,000 post graduates and 2,000,000 graduates pass out of these colleges and institutions. A large English-speaking workforce and democratic regime makes India an attractive destination for

|46| India-China Chronicle January 2014

manufacturers. The national manuIDFWXULQJ SROLF\ LV EHLQJ ¿QDOL]HG would focus on increasing the manufacturing sector’s share in GDP from 15% to 25% by 2022.

The story of India has attracted a lot of foreign companies to make long term investment commitments in the country. x Singapore Airlines’ decision to launch a full service carrier in India with the Tata’s as its majority partner, following UAE national

THERE IS A GROWING APPETITE FOR CHINESE PRODUCTS IN INDIA. HOWEVER, INDIAN MANUFACTURERS, WHO ARE WORRIED AT THE RISING SALES OF CHINESE COMPANIES, HAVE SUCCEEDED IN GETTING DUTIES IMPOSED ON IMPORTS OF CHINESE PRODUCTS. THIS CLUBBED WITH THE DEPRECIATING RUPEE, IS ADDING PRESSURE ON THE COST OF IMPORTS, AND MAKING THEM LESS ATTRACTIVE.

x

x

x

x

x

x

carrier Etihad Airways recent acquisition of 24% stake in Jet Airways, signals the willingness of foreign carriers to do business in India, especially with a long-term perspective.

Wal-Mart entered into a joint venture with India’s Bharti Enterprises to get a toe hold in the booming Indian retail market.

Diageo Plc. acquired a 53.4% stake in United Spirits for about USD 2 billion as it sought to improve its performance in India.

BP Plc. is making one of the biggest foreign direct investments in India, with a USD 7.2 billion tie-up with Reliance Industries to explore deepwater oil and gas resources.

Vodafone entered India in 2007, paying USD 11.1 billion to buy a 67% controlling stake in Hutchison Whampoa’s mobile business in India, in which India’s Essar Group is a partner. The deal is the largest inbound foreign direct investment to be completed.

Japanese drug maker Daiichi Sankyo paid up to USD 4.6 billion in 2008 for control over India’s Ranbaxy Laboratories NTT DoCoMo Inc. agreed to pay

India’s Growth Story Particulars

2012-13

2011-12

2010-11

GDP In USD billion Growth %

1,844 5.40%

1,841 6.50%

1,684 8.40%

Index of Industrial Production – Growth %

3.20%

3.40%

7.20%

Agricultural Sector – Growth %

0.50%

2.80%

7.00%

Service Sector – Growth %

7.50%

8.90%

9.30%

Exports In USD billion Growth %

291.2 -6.0%

309.80 23.62%

250.60 40.50%

Imports In USD billion Growth %

479.6 -4.0%

499.5 31.07%

381.1 28.20%

Balance of Payments (in USD billion)

1.7

-12.8

13.1

Foreign exchange reserves

292.0

294.4

304.8

Source: Ministry of Finance, Central Statistics Organization

Differentiators Between Greenfield and Acquisition in India Parameter

Greenfield Project

Acquisition

Permissions & Approvals

All the approvals for setting up new manufacturing facility may take between 3 to 6 months

No new approvals required as the existing set-up will have all the relevant approvals for manufacturing

Land acquisitions

Land acquisition for setting up new projects is a rigorous time consuming exercise

Ready availability of land along with related permissions

Environmental clearances

Challenging and time consuming

Ready availability of all clearances

Lead time for set up

Lead time for starting production in India will be 18 to 24 months

Significantly lower time than that required in case of Greenfield project

Market Competition

Faces competition before it is setup

Ready market share. Reduce competition by taking over rivals, and existing goodwill of the acquired business.

Corporate Culture

Relatively easy to build the Company’s corporate culture in the new entity

Relatively difficult to change the existing corporate culture of the acquired company to align the same with that of the parent company

Synergies

Possibility of realizing synergies is absent

Mergers and joint ventures differ from Greenfield investment, because they offer the participating firms the possibility to realize synergies

Marketing Network

The new entity will have to develop its own marketing & distribution network from ground level

Ready availability of existing company’s marketing & distribution network

USD 2.7 billion in 2008 for a 26% VWDNH LQ ,QGLDQ WHOHFRPV ¿UP 7DWD Teleservices, giving Japan’s top mobile operator a foothold in the world’s fastest-growing major mobile market.

An analysis of Indian manufacturing reveals that the sector will conWLQXH WR EHQH¿W IURP LWV GHPRJUDSKLF dividend and domestic consumption.

Open access to export markets and government procurement will help Indian manufacturers to achieve economies of scale and mitigate demand volatility to some extent. &KLQD ,QGLD 7UDGH *UHHQ¿HOG vs. Mergers & Acquisitions Over the years China has become India’s largest trading partner. SinoIndian trade is touching $75 billion.

China had a whopping $39 billion WUDGH VXUSOXV ZLWK ,QGLD LQ WKH ¿QDQcial year ending March 31 2013.

Taking a clue from other multinationals operating in India, Chinese companies are now opening up with the idea of putting their manufacturing set ups in India. Over the past decade many Chinese companies have entered India. However, many have failed to realize their potential. Over all most of the manufacturing companies which have opted to enter India WKURXJK WKH LQGHSHQGHQW µJUHHQ¿HOG¶ route have not had very encouraging experiences. The experience of a leading commercial vehicle manufacturing company is a glaring example: the company had acquired land over two years back. However, its project is yet WR WDNH VKDSH $ µJUHHQ¿HOG¶ EXVLQHVV is favourable in situations where businesses can gain government-related EHQH¿WV E\ VWDUWLQJ XS IURP VFUDWFK In India, the Governments at various levels provide subsidies, tax breaks or RWKHU EHQH¿WV LQ RUGHU WR SURPRWH WKH country as a good location for foreign direct investment (FDI).

If the company is seeking to enter a market where there are already wellestablished incumbent enterprises, and where global competitors are also interested in establishing a presence, January 2014 India-China Chronicle |47|

INFOCUS|INDIA-CHINA|BUSINESS

Reliance Industries and BP announced the incorporation of India Gas Solutions Pvt. Ltd., a 50:50 joint venture company which will focus on global sourcing and marketing of natural gas in India.

Indiaâ&#x20AC;&#x2122;s foreign investment panel approved plans by Singapore Airlines and the giant Tata Group to start a new airline.

it may be good for the company to enter via an acquisition. In such cirFXPVWDQFHV D ÂľJUHHQÂżHOGÂś LQYHVWPHQW may be too slow to establish a sizeable presence. While both methods usually accomplish the goal of extending a companyâ&#x20AC;&#x2122;s operations to a new foreign market, there are several reasons why a company might choose one over the other. Businesses may be more inclined to opt for acquiring an existing foreign business in situations where it LV GLIÂżFXOW WR HQWHU D IRUHLJQ PDUNHW %X\LQJ IRUHLJQ EXVLQHVVHV VLPSOLÂżHV a lot of potentially tedious details. For example, the purchased business will already have its own personnel (both labour and management), allowing the acquiring company to avoid having to hire and train new employees.

Further more, the purchased company may already have a good brand name and other intangible assets, ensuring that the company will start off with a good customer base. Purchasing a foreign company can also provide the parent company with easier access to ÂżQDQFLQJ EHFDXVH WKHUH PD\ EH OHVV red tape to navigate around. Finally, if a foreign market is at or near its saturation point, buying an existing company may be the only viable way to enter a foreign market. )UDXJKW ZLWK 3UREOHPV *UHHQÂżHOG 3URMHFWV LQ ,QGLD 7KH FKRLFH EHWZHHQ 0 $ DQG ÂľJUHHQÂżHOGÂś ,QYHVWPHQW LV QRW DQ HDV\ one to make. Both modes have their advantages and disadvantages. Here DUH D IHZ LVVXHV ZLWK ÂľJUHHQÂżHOGÂś projects.

Managing Director of India's Bharti Enterprises Rajan Bharti Mittal (L) shakes hands with President of US Wal-Mart's operations in India. |48| India-China Chronicle Â&#x192; January 2014

Land acquisition 7KH ÂżUVW KXUGOH WRZDUGV VHWWLQJ XS of a manufacturing set up in India is land acquisition. Most of the land in India is privately owned and as such acquiring the same is a tedious task.

The core issues that surround the acquisition of land in India are: x Litigations due to inheritance x Multiple sales which have not been properly recorded x Pledging of land to local money lenders

x Fragmented holdings x Requirement of cash while dealing with sellers x 'LIÂżFXOW\ LQ REWDLQLQJ FRQWLJXRXV land x Land ceiling laws x Tough resettlement and rehabilitation laws As things stand now, land acquisition in India is full of tough regulations and complexities.

(QYLURQPHQWDO FOHDUDQFH Securing environmental clearances for new projects have been a key roadblock for investors in the past due to long delays and social hurdles. The present clearance process with its sequential hurdles either forces a project proponent to give up the venture, as is reportedly the case with major road projects of late, or burdens the project with time and cost over-runs. Over time, the instrument of Public Interest Litigations (PIL) has spawned scores of green Non-Governmental Organizations (NGOs) and interest groups and generated much media attention. This has had an impact on those charged with the clearance process and made them overcautious.

0XOWL WLHU UHJXODWRU\ IUDPHZRUN DQG FRPSOH[ SURFHGXUHV Multi-tier regulatory frameworks and complex procedures, prevailing at the central, state and local jurisdictions, increase the burden on investors and deter them from venturing into capital intensive projects. For example, according to the World Bankâ&#x20AC;&#x2122;s â&#x20AC;&#x2DC;Doing Business 2012â&#x20AC;&#x2122; survey (on overall ease of doing business across the world) the procedures and costs for starting a manufacturing business in India are among the most cumbersome. /DERU UHODWHG LVVXHV A major concern for manufacturers is managing rigid and archaic labor laws. In India, there are 45 laws at the national level and close to four times that at the level of state governments that monitor the functioning of labor markets.

The VEICET (Vodafone Essar-IIT Centre of Excellence in Telecommunications) MOU made between the IIT Kharagpur, Vodafone-Essar Ltd, and Goverenment of India.

INDIA HAS A MULTI-TIER REGULATORY STRUCTURE FOR INVESTORS. A MANUFACTURER HAS TO COMPLY WITH ALMOST 70 REGULATIONS AND FILE 100 RETURNS A YEAR. RECENT ATTEMPTS TO STREAMLINE PROCEDURES FOR BRINGING DOWN COMPLIANCE REQUIREMENTS (VIZ. SINGLE WINDOW SYSTEMS) HAVE ONLY BEEN PARTIALLY SUCCESSFUL. $GYDQWDJHV RI 3DUWQHULQJ D /RFDO &RPSDQ\ LQ WKH ,QGLDQ 0DUNHW ,Q HQWHULQJ ,QGLD RQH RI WKH ÂżUVW considerations of a Chinese company LV KRZ WR HQVXUH ÂżQDQFLDO VXFFHVV LQ DQ unfamiliar market. Local partners are often sought to assist in this pursuit, and particularly for maneuvering around the inherent challenges in the Indian environment. A local partner brings along its working knowledge of the particular industryâ&#x20AC;&#x2122;s business practices, the governing statutes and regulations. It also brings in the knowledge related to obtaining permits. An idea of the companyâ&#x20AC;&#x2122;s standing within the local community surrounding the particular project in that country is another advantage.

Chinese companies willing to work in India gets to sense an â&#x20AC;&#x2DC;instant brandâ&#x20AC;&#x2122;

RI ,QGLD ZLWK PLQLPDO ÂżQDQFLDO exposure and risk. An Indian company that is strong in each of these areas can ensure the success of a project.

An alliance with an Indian company whether by way of a Joint Venture or an acquisition will offer the Chinese company: x an immediate 'in country' presence; x DQ HOHYDWHG WUDGLQJ SURÂżOH DQG IDVW track marketplace penetration; x utilization ofalready developed trade links and networks; x use of existing plants and / or machinery; x UHGXFWLRQ RIÂżQDQFLDO H[SRVXUH x circumnavigation ofsome of the inevitable â&#x20AC;&#x2DC;red tapeâ&#x20AC;&#x2122; that could otherwise be both prohibitive and time consuming India has an exponentially growing middle class that is reaping WKH ÂżQDQFLDO UHZDUGV RI KLJK JURZWK So the domestic market is almost straining with opportunities for ambitious Chinese companies. Â&#x2030;

Santosh Pai is a Partner at DH Law Associates, which is the only Indian law firm to have an active China practice since 2010. He is based in Beijing and can be reached at santosh@dhlawassociates.com

January 2014 Â&#x192; India-China Chronicle |49|

INFOCUS|INDIA-CHINA|DELEGATION

Inviting SAIS International for Software Park and Education

I

CEC Council hosted Chinese delegation from Jinshui (Henan) in November 2013. The visit was related to developing SIAS International Software park. SIAS ,QWHUQDWLRQDO 8QLYHUVLW\ D SULYDWH FROOHJH DIÂżOLDWHG to Zhengzhou University in Henan Province, is developing the Park in China, which will have three wings; one wing is for- the USA where investors from the Silicon Valley will be

invited. The other wing is for India. The third wing is for for other countries around the globe.

The delegates visited Ahmedabad, Gujarat to discuss opportunities in Jinshui, Henan, China. MoU were signed with Indus University, Gujarat Technological University (GTU), India-China Economic & Cultural Council - Gujarat, Radiant Media Solutions, Designmate & Global Gujarat.

Indus University signing MoU with Sias-Amidi International Software Park Nov 2013

GTU signing MoU with SIAS International University of China Nov 2013

ICEC -Gujarat signing MoU with Jinshui Government Nov 2013

Sias-Amidi International Software Park signing MoU with Radiant Media Solutions

|50| India-China Chronicle Â&#x192; January 2014

Roadshows in Gujarat on October-November 2013

I

CEC – Gujarat organized roadshows on “Latest business opportunities with China” in different parts of Gujarat.

Many companies participated to understand the different aspects of trade & investment like Chinese marketing techniques Chinese technology, How to source from China, How to export to China, Dispute redressal system in China and many more.

China Council for the Promotion of International Trade Sichuan Council (CCPIT) India China Economic & Cultural Council (ICEC) and China Council for the Promotion of International Trade (CCPIT) Sichuan Council signed a Memorandum of Understanding (MoU) in December 2013 to launch several

Ahmedabad - Oct 2013

initiatives. The Buddha relics may be displayed at Sichuan as part of a Buddhist tourism circuit between Sichuan and Gujarat.

Among other initiatives, an industrial park comprising 6LFKXDQ FRPSDQLHV PD\ EH VHW XS LQ *XMDUDW $ GLUHFW ÀLJKW between Ahmedabad and the Sichuan capital — Chengdu may also be launched and there are chances of opening an Indian SME innovation centre in Sichuan.

The two Councils have also planned a trade and investment summit in Chengdu in June 2014 and a 50-member delegation from Gujarat is expected to participate. Gujarat government's Vibrant Gujarat 2015 will also include a road show in Sichuan to promote the state in China.

With inputs from Jagat Shah

Rajkot - Oct 2013

Baroda - Nov 2013

January 2014 India-China Chronicle |51|

INFOCUS|INDIA|STATE PROFILE

Brisk in Business, High on Tradition: Gujarat Gujarat is ranked as one of the topmost states for foreign investment and boasts of its excellent pro-business infrastructure and governance. With 80 per cent literacy level and a per capita income higher than the national average, the State has performed spectacularly in trade and commerce. From the days of the Harappan dockyard in Lothal to the modern day busy Kandla port Gujarat has always been brisk in business. Besides, being culturally rich, state also beckons lovers of folk tradition, folk music and traditional cuisine.

Sreemoti Sengupta

An Investment Destination Gujarat, situated in the West coast of India, is a hot-spot destination for both investments and industries. Gujarat has established itself as a leader in various industrial sectors, including textiles, chemicals, petrochemicals, pharmaceuticals and auto. It is home to dairy products, gems and jewellery among others. Post-liberalization period has seen Gujaratâ&#x20AC;&#x2122;s State Domestic Product (GDP) rising at an average growth rate of 14 per cent per annum in real terms (from 1994â&#x20AC;&#x201C;2002).In 2009-10, the stateâ&#x20AC;&#x2122;s per capita income rose from INR 55,140, a year ago to INR. 63,961. â&#x20AC;&#x2DC;This was a rise of 16 per centâ&#x20AC;&#x2122;, as highlighted by the stateâ&#x20AC;&#x2122;s socio-economic review (2010-11) report.

|52| India-China Chronicle Â&#x192; January 2014

Gujarat is hailed as the hub of the pharmaceutical Industry, the most developed and cost competitive sector with over 3245 manufacturing licenses â&#x20AC;&#x2DC;with 42 per cent of Indiaâ&#x20AC;&#x2122;s pharmaceutical turnover and 22 per cent of Indiaâ&#x20AC;&#x2122;s exports,â&#x20AC;? as per a report. The state is also called Indiaâ&#x20AC;&#x2122;s â&#x20AC;&#x2DC;Petro Capitalâ&#x20AC;&#x2122; State with 30 per cent of Petrochemicals business. .

With a coastline that stretches, 992 miles (1,596 km) long, marine SURGXFWLRQ ÂżVKHULHV DQG SRUWV DUH WKH highlights of the state. Gujarat gives the country about 78% of its national requirement of salt. It produces about 98% of soda ash, a chemical compound frequently used in manufacturing, industry, and households. Its capital Gandhinagar is one of the wellknown cotton-textile centers in India.

Known as the Manchester of the East and the denim city, six percent of Gujaratâ&#x20AC;&#x2122;stotal industrial production comes from the textile industry. It is the largest producer (35 per cent) and exporter (60 per cent) of cotton and is the third largest denim producer in the world. It accounts for 12 per cent textile exportsof India. Jalalpur is a large town of Gujarat, where several small and large textile industrial units have been established Automobile, Diamonds and More *XMDUDW LV RQH RI WKH ÂżUVW IHZ states in India to have encouraged private-sector investment. In Vibrant Gujarat Global Investorsâ&#x20AC;&#x2122; Summit, year 2011, MoUs worth 21 trillion (US$ 463 billion) were signed.

The automobile cluster is growing.

Several units of low cost and high HIÂżFLHQF\ DXWR FDUV DQG FDU FRPSRQHQW units have set up base in Gujarat. For example, CEAT Tyres, General Motors, Tata Motors, Asia Motor Works The State also has the biggest industrial area for ceramic business in Morbi, Himatanagar, which produces around 80 per cent of the countryâ&#x20AC;&#x2122;s gross ceramic production. Gujarat has the distinction of being the second largest producer of gold jewellery and accounts for 85 per cent of the national jewellery production. Surat, a city by the Gulf of Khambhat, is a major hub of the global diamond trade. As per a 2003 study, 92 per cent of the worldâ&#x20AC;&#x2122;s diamonds were cut and polished in Surat. The town of Kalol, in Gandhinagar district, is an important industrial center. Plastic Giant manufacturer Sintex is as well as Bharat Vijay Mill, a huge cloth manufacturer have their bases in Kalol.

Khambhat, (formerly known as Cambay,) a city in the Anand district,is known for oil and natural gas production as is Dhuvaran, located near Khambhat in Anand District with oil and gas based power stations.

Oil and Natural Gas Corporation LimLWHG 21*& KDV DQ RIÂżFH LQ $QNOHshwar, a city located ten kilometers from Bharuch. The city has over 1000 chemical plants, producing products such as pesticides, pharmaceuticals, chemicals, and paints. On the Gulf of Khambhat, 50 kilometres southeast of Bhavnagar, is the Alang Ship Recycling Yard which is considered to be the worldâ&#x20AC;&#x2122;s largest.

Legatum Instituteâ&#x20AC;&#x2122;s Global Prosperity Index 2012 has also recognized Gujarat as the highest scoring amongst all the states of India in matters of social capital.

GUJARAT IS ONE OF THE FIRST FEW STATES IN INDIA TO HAVE ENCOURAGED PRIVATESECTOR INVESTMENT. IN THE VIBRANT GUJARAT GLOBAL INVESTORSâ&#x20AC;&#x2122; SUMMIT, YEAR 2011, MOUS WORTH 21 TRILLION (US$ 463 BILLION) WERE SIGNED. THE STATE IS HOME TO PHARMACEUTICAL BUSINESS, AUTOMAKERS, DIAMOND CUTTERS, TEXTILE MANUFACTURERS, CERAMIC BUSINESSMEN AND SEVERAL MORE Tourism and Culture: Within Gujarat there are a wide variety of historic forts, palaces, mosques, temples, and places of historical importance pertaining to Indiaâ&#x20AC;&#x2122;s struggle for independence. Many of these palaces and forts have been converted into heritage hotels to keep tourists close to the vibrant history of Gujarat. For example, Laxmi Vilas Palace, Vadodara is reputed to have been the largest private dwelling built at that time and it is four times the size of Buckingham Palace in London. World heritage sites like Lothal, Dholavira and Champaner are also located within Gujarat or nearby.

Somnath Temple is one

of the very ancient temples of India.

Located in Gujarat,it stands as a famous landmark in Indian history.

It is believed that Somraj, the moon god, built the Somnath Temple or the Somnath Pattan out of gold.

Gujarat has a long and beautiful coastline, as well as inviting beach resorts, shore temples and blue lagoons.. Beaches like Mandvi Beach (Kutch) Somnath Beach (Somnath) and many more give the sun-bathers the highest delight.No tourist visit is complete without a stopover at Sabarmati Ashram, which was built by Mahatma Gandhi in Ahmedabad.

Gujarat has a rich cultural heritage.

Gujarati folk music, known as Sugam Sangeet, is a hereditary profession of the Gadhvi and Charan communities.

The omnipresent instruments in Gujarati folk music include wind instruments, such as Turi, Bungal, and Pava, string instruments, such as, rktaro, and jantar and percussion instruments, such as the manjira and zanz pot drum.

Folk traditions of Gujarat include Bhavai and Rass-garba. Bhavai is a folk theatre which is partly entertainment and partly ritualistic, and is dedicated to Goddess Amba. The Rass-garba is a folk dance which is a part of a celebration of Navratri by the Gujaratis. The folk costume of this dance is Chaniya choli for women and Kedia for men.

Makar Sankranti is a festival where SHRSOH RI *XMDUDW Ă&#x20AC;\ NLWHV 1DYUDWUL Uttarayana, Diwali, Holi,and Tazia are also celebrated with much fervor.

So whether you are a business visitor or a causal tourist, be assured, either way, Gujarat will mesmerize you! Â&#x2030; January 2014 Â&#x192; India-China Chronicle |53|

INFOCUS|INDIA-CHINA|DELEGATION

Checking the pulse Qingdao medical delegation visits Delhi hospitals

I

QGLD &KLQD (FRQRPLF DQG &XOWXUDO &RXQFLO KRVWHG D ¿YH member delegation from Qingdao Municipal Health BuUHDX DW 1HZ 'HOKL LQ 'HFHPEHU 7KH REMHFWLYH RI WKH GHOHJDWLRQ¶V YLVLW ZDV WR XQGHUVWDQG KRZ ,QGLDQ FKDULWDEOH DQG SULYDWH KRVSLWDOV DUH DEOH WR GHOLYHU KLJK TXDOLW\ PHGLFDO VHUYLFH DW D UHDVRQDEOH FRVW 7KH GHOHJDWLRQ KHDGHG E\ 0U &DR <RQJ 'LUHFWRU *HQHUal, Qingdao Municipal Health Bureau and Qingdao Medical $VVRFLDWLRQ PHW WKH PHGLFDO KHDGV IURP *DQJDUDP &KDULWDEOH +RVSLWDO DQG HQTXLUHG RQ VHYHUDO DVSHFWV UHODWHG WR HFRQRPLFDO WUHDWPHQW 7KH PHPEHUV TXHULHG RQ *DQJDUDP +RVSLWDO¶V DQQXDO UHYHQXH DQG DOORFDWLRQ RI IXQGV WR YDULRXV GHSDUWPHQWV 7KH WHDP PHPEHUV RI *DQJDUDP¶ DSSUDLVHG

A

WKH GHOHJDWLRQ RI WKH SHUFHQWDJH RI HDUQLQJV VSHQW LQGLYLGXDOO\ RQ +XPDQ 5HVRXUFHV PHGLFLQHV DQG SXUFKDVH RI 1HZ (TXLSPHQW 7KH TXDOLW\ FRQVFLRXV YLVLWRUV ZHUH LQIRUPHG DERXW WKH QDWLRQDO TXDOLW\ FRQWURO DXWKRULWLHV OLNH 1$%+ 1$%/ DQG ,62 FHUWL¿FDWLRQV XQGHU ZKLFK WKH KRVSLWDO ZDV UHJXODUO\ DXGLWHG RQ TXDOLW\ FKHFNV 7KH µFURVV VXEVLG\¶ PRGHO *DQJDUDP GRFWRUV GRQDWLQJ SHU FHQW RI WKHLU VDODU\ LQ RUGHU WR KHOS WKH KRVSLWDO IDFLOLWDWH FKHDS PHGLFDO VHUYLFHV WR SRRU IDVFLQDWHG WKH JXHVWV 7KH RWKHU TXHULHV UDQJHG IURP WD[ EHQH¿WV UHFHLYHG WR VXFFHVVIXO UHWHQWLRQ RI PHGLFDO VWDII 3URI 1DQG\ SUDLVHG WKH &KLQHVH FRQWULEXWLRQ WR SXEOLVKLQJ medicalresearch papers.

The next stop of the delegation was Apollo Hospital, -DVROD +HUH 'U 2EHURL DQG KLV WHDP DSSULVHG WKH 4LQJGDR team about Apollo’s growth from one single unit in Chennai WR D QDWLRQZLGH JLDQW LQ +HDOWKFDUH 6HUYLFHV DWWUDFWLQJ SDWLHQWV IURP RYHU FRXQWULHV ³$SDUW IURP 0LGGOH (DVW DQG $IULFD ZH KDYH SDWLHQWV IURP WKH 86 DOVR ZKR DUH QRW DEOH WR DIIRUG WKH KLJK FRVW RI PHGLFDO FDUH RYHU WKHUH ´ VDLG 'U 2EHURL )XUWKHU UHVSRQGLQJ WRTXHULHV 'U 2EHURL VDLG WKDW $SROOR KDV GLYHUVL¿HG LWV VHUYLFHV IURP KRVSLWDOV WR SKDUPDF\ DQG FROOHJH ³7KHVH ZHUH JUDGXDOO\ DGGHG DV DQG ZKHQ WKH QHHG ZDV IHOW ´ KH VDLG <DQJ -LQJ 'LUHFWRU 4LQJGDR 0XQLFLSDO +HDOWK %XUHDX 'HSW RI 6FLHQFH 7HFKQRORJ\ DQG )RUHLJQ $IIDLUV DV ZHOO as Xiaobo Xing, President, The Third People’s Hospital of Qingdao were part of the delegation.

Taking forward the relationship: Xiamen and India

IRXU PHPEHU GHOHJDWLRQ IURP ;LDPHQ EULHÀ\ YLVLWHG WKH )HGHUDWLRQ RI ,QGLDQ &KDPEHUV RI &RPPHUFH DQG ,QGXVWU\ ),&&, 1HZ 'HOKL 7KH GHOHJDWLRQ ZDV UHFHLYHG E\ 0U $WXO 6KXQJOX $VVLVWDQW 6HFUHWDU\ *HQeral and Head- East Asia. The delegates from Xiamen, a maMRU FLW\ LQ WKH 6RXWK (DVW &RDVW RI &KLQD DQG D VXE SURYLQFLDO FLW\ of the )XMLDQ SURYLQFH WRXFKHG XSRQ WKH SRVVLEOH FRPPHUFLDO FRRSHUDWLRQ EHWZHHQ WKH FLW\ DQG ,QGLD ,W ZDV LQ WKH \HDU WKDW IRU WKH ¿UVW WLPH ,QGLD SDUWLFLSDWHG LQ WKH WK &KLQD ,QWHUQDWLRQDO )DLU IRU ,QYHVWPHQW DQG 7UDGH &,),7 KHOG LQ ;LDPHQ &LW\ ZKHUH ),&&, ZDV RQH RI WKH SDUWLFLSDQW GHOHJDWHV 7KH UHODWLRQVKLS ZLWK WKH FLW\ KDV FRQWLQXHG VLQFH WKHQ $ UHSUHVHQWDWLYH DSSULVHG WKH PHPEHU WHDP RI ),&&, WKDW ;LDPHQ LV IRFXVLQJ RQ JURZWK RI VL[ LQGXVWULHV HOHFWURQLFV PDFKLQHU\ VRIWZDUH ¿QDQFLDO VHFWRU KL WHFK LQGXVWULHV DQG WRXULVP 7KH GHOHJDWLRQ HYLQFHG LQWHUHVW LQ IXWXUH FRRSHUDWLRQ LQ ,7 LQGXVWU\ DQG 0U 6KXQJOX |54| India-China Chronicle January 2014

UHFLSURFDWHG WKH VHQWLPHQW ³:H ORRN IRUZDUG WR GHHSHQLQJ RXU UHODWLRQVKLS ´ KH VDLG ³RQH RI WKH HLJKW FDSLWDOV ZKHUH ),&&,¶V RI¿FH LV ORFDWHG FDQ KHOS IDFLOLWDWH RQH FLW\ WR EH WKH VLVWHU FLW\ RI ;LDPHQ ´ KH IXUWKHU DGGHG $ &KLQHVH UHSUHVHQWDWLYH HQTXLUHG LI &,),7 LV PDQDJHG ZHOO DQG LI DQ\ LPSURYHPHQW LV IXUWKHU UHTXLUHG WR ZKLFK 0U 6KXQJOX UHVSRQGHG ³7KH H[KLELWLRQ LV ZHOO PDQDJHG DQG WKH ZRUOG KDV WR OHDUQ IURP \RX RQ WKDW IURQW ´

INFOCUS|INDIA|EXHIBITION

HAAT OF INDIA

The Exposition & Investment Summit 21-23 December 2013, Bhopal, Madhya Pradesh (India)

I

n order to realize the tremendous potential of its rural non-farm economy to contribute to growth and employment in the state, the government of Madhya Pradesh organized ‘Haat of India’ – the Exposition and Investment Summit – with China. The aim of the Summit was to explore and exchange meaningful collaborations towards large-scale investment in the manufacturing sector with China.

The three-day event, from December 21 to December 23, 2013 was held under the aegis of Madhya Pradesh Livelihood Forum with the cooperation of India-China Economic and Cultural (ICEC) Council. About

75 Chinese industrial establishments from various sectors set up their stalls in the Haat along with Indian participants.

The objective of the Summit was to bring Foreign Direct Investment (FDI) through a mass scale production model and to establish linkages with rural non-farm sector for ‘inclusive development.’

This interactive and creative platform with focus on eliminating rural poverty and employment for the youth in the state, witnessed the signing of 56 MoUs with the investor companies from China. The sectors included tourism development,

Chinese Special Economic Zone (SEZ), agro farm technology zone, textile and apparel park among others.

The occasion was graced by State Chief Minister Shri Shivraj Singh Chouhan, Chinese ambassador to India, H.E. Wei Wei and Chief Secretary of Madhya Pradesh, Shri Antony De Sa. Other dignitaries included Additional Chief Secretary, Panchayat and Rural Development, Ms. Aruna Sharma, Vice President of Huawei Telecommunications India Pvt. Ltd., Mr. Rajiv, ICEC Council President Mr. P.S. Deodhar, ICEC Council Secretary General Mr. Mohammad Saqib among others.

Lighting the lamp to mark the inauguration of the Haat Festival January 2014 India-China Chronicle |55|

INFOCUS|INDIA|EXHIBITION

His Excellency Wei Wei, Chinese Ambassador to India speaking at the inaugural ceremony

Dr. Aruna Sharma Additional Chief Secretary & Development Commissioner, Department of Panchayat and Rural Development addressing the audience at the inaugural ceremony

Mr. Antony DeSa, Chief Secretary, Government of Madhya Pradesh at the inaugural ceremony

Mr. Weimin Yao, Vice President, Huawei India addressing the audience

Mr. P S Deodhar, President, ICEC Council speaking to the participants

Dignitaries at the dais at the Inaugural Ceremony

Honâ&#x20AC;&#x2122;ble Chief Minister, Shri Shivraj Singh Chauhan being welcomed in the event

At the Valedictory Ceremony

|56| India-China Chronicle Â&#x192; January 2014

Hon’ble Chief Minister addressing audiences at the Valedictory Ceremony

Hon’ble Chief Minister interacting with Chinese exhibitors

Dr. Aruna Sharma visiting the Haat

Dr. Aruna Sharma interacting with Mr. Vivek Zhang, ICEC China RIÀFH

Mr. Wang Hejun, Economic and Commercial Counsellor, Chinese Embassy in India with Dr. Aruna Sharma

Hon’ble Chief Minister is welcomed by Mr.Lalit M Belwal, CEO, MP Rajya Ajeevika Forum

An audience posing a question for dignitaries

Chinese audiences listening with rapt attention January 2014 India-China Chronicle |57|

INFOCUS|INDIA|EXHIBITION

Mr. Mohd. Saqib, Secretary General, ICEC (6th from left) with Chinese exhibitors

‘Expression of Interest’ signing ceremony on December 22nd, 2013

Networking at the ‘EOI’ Signing Ceremony

Discussions are on with one of the groups in the signing ceremony

Mr. Chen Si, ICEC China representative presenting a Pan China picture

|58| India-China Chronicle January 2014

Some paint manufacturing companies also participated

Interacting with visitors

Chinese taking a look at Indian exhibits

Artists from Jhabua district performing Bhagoria Dance

Chinese participants of Haat joining the dance January 2014 Â&#x192; India-China Chronicle |59|

INFOCUS|INDIA|EXHIBITION

Chinese participants for photo ops

Some more fun and frolic

Visitors from India thronging the booths

Visitors at a Chinese booth

Interested audiences asking questions

Taking a stock of items

A Chinese cloth manufacturer answering queries |60| India-China Chronicle Â&#x192; January 2014

Chinese audiences taking deep interest in Indian bangles

More interest in being generated

Answering to a query from an interested visitors

Warming up to visitors early morning on December 22, 2013

A brief moment of pause before visitors throng

Taking a moment off

Re-setting the items

An Indian exhibitor displaying their wares

The demand for Indian wares was high January 2014 Â&#x192; India-China Chronicle |61|

Shows

Exhibitions&Trade In India x In China

INDIA EXHIBITION

DATE

VENUE

EVENT PROFILE

CONTACT PERSON

HOSTS

01 - 03 February 2014

Mumbai, India

This is India's first and largest hospitality trade show, HOSTS, since its inception in 1992. HOSTS 2014 promises a presence to provide sourcing solutions to over 100,000 hotel rooms that are supposed to be coming up in the country over the next few years.

Pallavi Kashyap Tel: +91-22-65169662

Times Franchise Expo-Pune

01 - 02 February 2014

Pune Sun N Sand Hotel, Pune, India

The Times Franchise Expo-Pune will provide a platform to India's Biggest B2B Marketplace. The exhibition will attract many visitors form different parts of world.

Mr. Vishwesh , 091 20 25668118

Pune Famdent Show

01 - 02 February 2014

Auto Cluster Exhibition Centre, Pune, India

Pune Famdent Show is a leading event that helps in the development of the dentistry industry. Leading ideas and new services associated with the sector will be showcased at the event to enhance the business opportunities and new developments that have been produced in the sector.

Famdent Events, (91)-(22)-65049697 / 26742425

India International Decorex Home Show

01 - 02 February 2014

Park Plaza Chandigarh, India

This event showcases furniture and fixtures, home furnishing, home decor, wall papers, textures, floorings, paintings and artifacts, garden furniture, swings, plants, lights, fountains etc..

Neha Singla Tel: +91-9041619666

Save Power

01 - 03 February 2014

CIAL Trade Fairs & Exhibition Centre, Cochin, India

This is the exhibition in Kerala showcasing more than 100 Renewable Energy companies in the fields of Solar, Wind and Bio Gas Energy from all over India under one roof. This is an excellent opportunity for the exhibiting companies to promote their latest products and innovative solutions in Kerala.

Mr. Raj Kapoor Singh, Tel: +91-8025201687/88/89

Rice Pro-Tech Expo

01 - 03 February 2014

Indian Institute of Sugarcane Research Lucknow, India

The show encourages the exchange of valuable information and knowledge about the industry and is a wonderful platform and leading destination that informs the professionals about the new technologies and equipments that have been developed in the sector.

Business Empire Exhibition , (91)-(175)2302254

Coir Kerala Fair

01 - 05 February 2014

EMS Stadium, Alappuzha, India

The main aim of this event is to explore and expand the international market for coir products from Kerala and to encourage the use of latest machinery and technology in the coir production sector.

Event Manager , Tel: 91471-2730162

Silk Mark Expo Jammu

01 - 09 February 2014

Jammu, India

The main aim of this event namely Silk Mark Expo Jammu is to provide a significant platform for the Authorised Users so that they can gather here to showcase and sell an array of intricate silk designs produced by the silk manufacturers or traders.

Silk Mark Organisation of India , 91-80-26282114

SATTE Mumbai West

03 - 04 February 2014

Nehru Centre Mumbai Mumbai, India

The event will help various renowned tour operators and travel agents to meet the suppliers of the products. The suppliers will be coming from all over Indian and across the world. SATTE Mumbai West 2012 will broadly inculcate 1000 visitors from the western region.

Cross Section Publications Pvt. Ltd. , 91-11-43784444

Air Cargo India

04 - 06 February 2014

Bombay Convention & Exhibition Centre (BCEC), Mumbai, India

This is the 5th edition of the Biennial International Air Cargo event consisting of Exhibition and Conference running concurrently. It attracts International Players from the Air Cargo industry to exhibit their products and services. The event has the distinction of being the only one to be featured in the India Report of the BBC World News.

Priyo Patra , 91-2227570550 / 27575055

Internet Retail Expo

05 - 07 February 2014

Epicentre, Gurgaon, India

It will showcase the latest Brands, Products, Retail Equipment, Display & Storage and Security technology and services for the retail industry, thereby bringing UK multichannel and online retailers the very latest technology, services & solutions to drive their digital business forward.

Mohit Taneja , 9990903000

IAAPI Amusement Expo

05 - 07 February 2014

Bombay Convention & Exhibition Centre (BCEC), Mumbai, India

This B2B event will attract industry stalwarts and key market players from the amusement industry to showcase their innovative products and services. Bowling alleys, computer systems and software, games and devices, playground equipments, toys and vending machines are some of the important products which will be at display in this show.

Aarti Chavale , 91-2265231643

Retail Leadership Summit

05 - 06 February 2014

Rennaissance Hotel and Convention Center, Mumbai, India

This will be the ideal platform for participants to increase their networking opportunities as this event will bring together CEOs, entrepreneurs and RAI members under one roof. Retail community from all around India will be participating in this event and will learn about the best practices and extensive possibilities associated with this sector.

Nilima Ghosh , 8879434268

Hpci Congress India

05 - 06 February 2014

Bombay Convention & Exhibition Centre (BCEC), Mumbai, India

The show will exhibit a lot of new products and services related with the ingredients required for home and personal care. All the professionals and other experts of the sector will be present at the show.

Indo-German Chamber of Commerce, 01147168822

|62| India-China Chronicle January 2014

CHINA EXHIBITION

DATE

VENUE

EVENT PROFILE

CONTACT PERSON

China Fish

10 - 12 February 2014

New China International Exhibition Center, Beijing, India

China International Fishing Tackle Trade Exhibition is a commercial fishing event dedicated to the needs of the commercial fishermen. It continues to attract visitors from around the world.

Li Jiang, 86-10-58203101

China International Automotive Aftermarket Industry and Tuning (Guangzhou) Trade Fair

17 - 19 February 2014

China Import & Export Fair Pazhou Complex, Guangzhou, China

Since the first debut in 2006, AAITF rapidly grew in the recent years to be the world's NO.1 exhibition of this industry. Compared with its first area of 3,000 square meters in 2006, AAITF 2011 has developed into 220,000 square meters, which has set a new record for the auto aftermarket trade show worldwide.

Rita Lee , 86-20-38219963

China (Shanghai) International Optics Fair

18 - 20 February 2014

Shanghai World Expo Exhibition And Convention Center, Shanghai, China

The fair is approved by the Ministry of Commerce and is sponsored by the China National Light Industry Council.

Organized at The World Expo Theme Pavilion, the title of show is enough to reflect the prominence and vitality which it enjoys among its visitors and exhibitors. With presence of more than 780 exhibitors,the leading players from USA, China, Japan etc, become part of this gala fair.

D.PES Digital Printers & Engravers Expo

18 - 21 February 2014

Poly World Trade Expo Center, Guangzhou, China

Approximately 600 printing & engraving enterprises will attend this expo, and the exhibition area will cover 4 halls , of about 55,000 square meters.The most exquisite engraving techniques and the most advanced equipment of printing industry globally will be displayed together at this exhibition. All the industry professionals are welcome to attend this show.

Lisa Gao , 0086-20-38023852 805

Personal Care & Homecare Ingredients

19 - 21 February 2014

Shanghai New International Expo Centre(SNIEC), Shanghai, China

PCHi is a global trade show for the personal care and home care community. It is held annually in China.

The innovation-led event attracts manufacturers and ingredient suppliers from all over the world, and provides a quality platform for sourcing new ingredients, gaining insight into global trends,and networking with world-class experts.

Lynn XU ,86-10-84556677

ISPO China

19 - 22 February 2014

China National Convention Center(CNCC), Beijing, India

Organizing by Messe Munchen GmbH, the ISPO China is an international show for the sports industry.The event will showcase various products/services of the related sector and will provide enormous opportunities to explore industrial place throughout the globe.

Liu Jing , 86-10-84600388

Alpitec China

19 - 22 February 2014

China National Convention Center(CNCC), Beijing, China

Alpitec China, International Tradeshow for Mountainand Winter Technologies, is an important meeting point for operators of ski resorts. Starting Feb 19 2014, ALPITEC will take place annually in China, where it will present itself together with the winter sport trade fair ISPO China to create a complete platform for the Chinese winter sports market.

Juju Zhu , 86-21-50580707

China International Auto Accessories Electronics, Tuning & Care Products Expo

20 - 23 February 2014

China International Exhibition Center, Beijing, China

China International Auto Accessories Electronics, Tuning and Care Products Expo is one of the most comprehensive automobile sector trade shows in China.

Held in Beijing for 4 days at the China International exhibition center, this show focuses mainly on China's auto aftermarket sector, and attracts more than 6000 professional exhibitors from various parts of the region.

Ruby Yang , 86-10-57970888

Guangzhou Vehicle Cooling System and Allied Equipment Exhibition

20 - 21 February 2014

China Import & Export Fair Pazhou Complex, Guangzhou, China

Guangzhou Vehicle Cooling System and Allied Equipment Exhibition will take place in Guangzhou, China for a period of two days. In this international trade show all kinds of products and services related to automotive industry and various kinds of vehicles will be given supreme importance. Technical persons and other professionals related to this field will attend this event and will get a scope to improve and enhance their knowledge.Â

Event Manager , 86-20-34095177

Sign China Expo

23 - 26 February 2014

China Import & Export Fair Pazhou Complex, Guangzhou, China

SIGN CHINA pioneered the combination of indoor and outdoor format printers, engravers, exhibition and display equipment, as well as LED displays, components and lighting into a single comprehensive sourcing platform for the sign industry. Nine years of global promotion and brand building has made it one of the most high-profile and influential sign events in the world.

Yan Zheng , 86-20-38106261

January 2014 Â&#x192; India-China Chronicle |63|

FOLLOW US

e

Subscrib Now!

MONTHS

ISSUES

PRICE

YOU PAY

6

3

300

250

12

6

600

550

24

12

1200

1150

I would like to subscribe for

6

12

24 months.

My name is Mr. / Ms.________________________________________________ . Please deliver India-China Chronicle issue at my ŽĸĐĞ ͬ ŚŽŵĞ address ______________________________________________________________________________________ PIN_____________________ CITY _________________________________ STATE _______________________________ INDIA.

PAYMENT DETAILS Cheque/DD No._______________________________________________ for INR _______________________________ Bank Name _________________________________________________________ Dated ________________________ in favor of INDIA CHINA ECONOMIC AND CULTURAL COUNCIL. / ŚĂǀĞ ƌĞĂĚ ƚŚĞ ƚĞƌŵƐ ĂŶĚ ĐŽŶĚŝƟŽŶƐ ĂŶĚ ǁŽƵůĚ ůŝŬĞ ƚŽ ĂǀĂŝů ƚŚŝƐ ŽīĞƌ͘ Subscriber’s Signature _______________________ dĞƌŵƐ ĂŶĚ ŽŶĚŝƟŽŶƐ /ŶĚŝĂͲ ŚŝŶĂ ŚƌŽŶŝĐůĞ ŝƐƐƵĞƐ ĂƌĞ ĂůƐŽ ĂǀĂŝůĂďůĞ ǁŝƚŚŽƵƚ ƚŚŝƐ ŽīĞƌ͘ WůĞĂƐĞ ƉƌŽǀŝĚĞ ĨƵůů ŶĂŵĞ ĂŶĚ ƐŝŐŶĂƚƵƌĞ ŽŶ ƚŚĞ ƌĞǀĞƌƐĞ ŽĨ ƚŚĞ ĐŚĞƋƵĞͬ ͘ WůĞĂƐĞ ĂůůŽǁ ĚĞůŝǀĞƌLJ ƟŵĞ ŽĨ ϭ ǁĞĞŬ ĂŌĞƌ ĞŶĐĂƐŚŵĞŶƚ ŽĨ ƌĞŵŝƩĂŶĐĞ͘ ^ƵďƐĐƌŝƉƟŽŶ ĐŽƉŝĞƐ ǁŝůů ďĞ ĚĞůŝǀĞƌĞĚ ďLJ ƉŽƐƚͬĐŽƵƌŝĞƌ ĂŌĞƌ ƚŚĞ ŝƐƐƵĞ ŝƐ ƌĞůĞĂƐĞĚ͘ /ŶĚŝĂ ŚŝŶĂ ĐŽŶŽŵŝĐ ĂŶĚ ƵůƚƵƌĂů ŽƵŶĐŝů ǁŝůů ŶŽƚ ďĞ ƌĞƐƉŽŶƐŝďůĞ ĨŽƌ ƉŽƐƚĂůͬĐŽƵƌŝĞƌ ĚĞůĂLJƐ͘ dŚŝƐ ŽīĞƌ ŝƐ ŶŽŶͲƌĞĨƵŶĚĂďůĞ ĂŶĚ ĐĂŶŶŽƚ ďĞ ĐŽŵďŝŶĞĚ ǁŝƚŚ ĂŶLJ ŽƚŚĞƌ ŽīĞƌ͘ dΘ ĂƌĞ ƐƵďũĞĐƚ ƚŽ ĐŚĂŶŐĞ ĨƌŽŵ ƟŵĞ ƚŽ ƟŵĞ͘ ŝƐƉƵƚĞƐ ŝĨ ĂŶLJ ǁŝůů ďĞ ƐƵďũĞĐƚ ƚŽ ƚŚĞ ũƵƌŝƐĚŝĐƟŽŶ ŽĨ ĐŽŵƉĞƚĞŶƚ ĐŽƵƌƚƐ ŝŶ ĞůŚŝ ŽŶůLJ͘ Ύ ŽŶĚŝƟŽŶƐ ƉƉůLJ͘

India-China Economic and Cultural Council B-59, South uth Extension-II, Extension II, New Delhi Delhi-110049.

110049. Email: inf info@icec-council.org. g Ph: 011-41017185

x ` 100 2013 June

ARD FORW O G TO USTCK M E W K BABri Jack Obackw dg ie LO in C rther f r o The fa rther fo f f s g bo han i he fa n Church e t th b to cre rd i s is can't e Win steep Th said. relaations en ers a Chin AG RI-B

No USI NES En odle taan les S gle d

INTE RV IE

ion Educat Higher g es omotiv

Loc ging Chug ck on Tra

Two

Breakinrrier the Ba

Sh a F angh W reee ai oping g Xia Tra wiilDen de lll sse Zo t up ne

ED

UCA

Ca TI Ch tchiin ON inna g on u p w ed iti h uca

Sep ept tem em be r 20 133 x

` 10 0

For futher details, Plz. contact us at B-59, South Extension - II, New Delhi - 110049 Email: info@icec-council.org

Web: www.icec-council.org