Neutering & Defanging Chinese Threat (09-08-2014)

SSridhar · Post by **SSridhar** » 25 Jul 2015 05:56

India's Act East Policy balancing China in the region: Expert - PTI

India's Act East Policy and the policies of countries like Japan and Australia are balancing the increasing influence of China in the Southeast Asian region, US lawmakers have been informed by a thinktank expert.

"As China continues to invest in its military and lay down new hulls at breakneck speed, claimants have sought assistance from other partners in the region. In 2014-2015, they have begun to find it in Japan, Australia, and India," said Mira Rapp-Hooper Director, Asia Maritime Transparency Initiative Centre for Strategic and International Studies (CSIS).

During a Congressional hearing yesterday, Rapp-Hooper said India has begun to implement the 'Act East Policy' to bolster its ties with the region.

At the 2014 India-ASEAN and East Asia summits, Indian officials emphasised freedom of navigation, peaceful resolution of disputes, and importance of international law, she said.

In September 2014, India and Vietnam issued a joint communique opposing threats to freedom of navigation and use of coercion in the South China Sea.

In the same month and again in January 2015, Prime Minister Narendra Modi and US President Barack Obama jointly affirmed common interests in the disputed South China Sea.

"In June 2015, India and the US signed a defence framework that includes a pledge to increase each other's capability to secure...freedom of navigation across sea lanes of communication.

"In June 2015, India also sent a four-ship naval flotilla to Malaysia, Singapore, Indonesia, and Australia, as part of a visit to the South China Sea," Rapp-Hooper said.

She noted that countries in the region have also reacted to China's assertiveness through multilateral mechanisms.

"Reportedly, Vietnam, India, and Japan have privately agreed to work in a trilateral format to coordinate security policies," she said.

Rapp-Hooper recommended that the US establish a mechanism to coordinate partner capacity building efforts in Southeast Asia with Australia, Japan, and India, so that training and equipment support is mutually reinforcing.

Pulikeshi · Post by **Pulikeshi** » 25 Jul 2015 07:24

For those arguing that India's game is transparent and it is a 'swing' state, etc. - better to hear from ashwa's mukha

My key take away is that India is marginally moving from internal transformation to internal as well as external transformation

That the engagement with China and the US is going to be positive... New board of directors so new thinking....
Ironically, all the experts in the question and answers session are still flummoxed by India's approach...
Cracked up on the "Rise of China has happened..." a lot more interesting what was not said, then said...
Right angle versus Acute angle triangle @30mins approx

Pulikeshi · Post by **Pulikeshi** » 25 Jul 2015 07:44

SSridhar wrote: Fair enough but we know how the Islamist parties will go about it when it comes to India.

I know you do not mean this, but by this argument the Islamist parties will go against the US as well...
However, the reality is time and again, them Islamists have worked with US, China, UK, France, etc...
India has a bigger challenge as she has weaker carrot and stick mechanisms to deploy,
but the conclusion cannot be foregone...

In the case of Maldives - there is more than India and China involved as IOR powers

SSridhar · Post by **SSridhar** » 26 Jul 2015 08:31

Chinese investments, with strings attached - Clifford Krauss, NYT

Where the Andean foothills dip into the Amazon jungle, nearly 1,000 Chinese engineers and workers have been pouring concrete for a dam and a 15-mile underground tunnel. The $2.2 billion project will feed river water to eight giant Chinese turbines designed to produce enough electricity to light more than a third of Ecuador.

Near the port of Manta on the Pacific Ocean, Chinese banks are in talks to lend $7 billion for the construction of an oil refinery, which could make Ecuador a global player in gasoline, diesel and other petroleum products.

Construction work

Across the country in villages and towns, Chinese money is going to build roads, highways, bridges, hospitals, even a network of surveillance cameras stretching to the Galápagos Islands. State-owned Chinese banks have already put nearly $11 billion into the country, and the Ecuadorean government is asking for more.

Ecuador, with just 16 million people, has little presence on the global stage. But China’s rapidly expanding footprint here speaks volumes about the changing world order, as Beijing surges forward and Washington gradually loses ground.

While China has been important to the world economy for decades, the country is now wielding its financial heft with the confidence and purpose of a global superpower.

China’s currency, the renminbi, is expected to be anointed soon as a global reserve currency, putting it in an elite category with the dollar, the euro, the pound and the yen. China’s state-owned development bank has surpassed the World Bank in international lending. And its effort to create an internationally funded institution to finance transportation and other infrastructure has drawn the support of 57 countries.

China represents “a civilisation and history that awakens admiration to those who know it,” President Rafael Correa of Ecuador proclaimed on Twitter, as his jet landed in Beijing for a meeting with officials in January.

However, with its elevated status, China is forcing countries to play by its financial rules, which can be onerous. Many developing countries, in exchange for loans, pay steep interest rates and give up the rights to their natural resources for years. China has a lock on close to 90 per cent of Ecuador’s oil exports, which mostly goes to paying off its loans. The Chinese money also comes with its own conditions. Along with steep interest payments, Ecuador is largely required to use Chinese companies and technologies on the projects.

International rules limit how the United States and other industrialised countries can tie their loans to such agreements. But China, which is still considered a developing country despite being the world’s largest manufacturer, doesn’t have to follow those standards.

Ecuador joins the list of Sri Lanka, Maldives, Seychelles, Djibouti et al.

SSridhar · Post by **SSridhar** » 26 Jul 2015 09:01

Taiwan protests Chinese troop drill on presidential building replica - Saibal Dasgupta, ToI

Taiwan has lodged a formal protest with China about reports that the Chinese military is exercising with a model building to storm the Taiwanese presidential palace.

Chinese state channel CCTV broadcast a video clip earlier this month showing fully armed soldiers of the People's Liberation Army running towards a red building with a silhouette similar to that of Taiwan's Presidential Office. The footage has sparked a backlash from the island's media and politicians because of the similarities to the building in the heart of the capital Taipei.

The military exercise was aired by the official China Central Television on July 5. It went mostly unnoticed until a Shanghai-based web daily published the event saying China "would use force to solve the Taiwan issue".

"Through the contact mechanism, we've lodged a solemn protest," Wu Mei-hung, spokeswoman for Taiwan's mainland affairs council, said on Friday.

Chinese military created a look-alike structure of the Taiwanese presidential palace, and practiced storming it with air fire and armoured cars, according to Taiwanese sources. Taipei suspects China was preparing its forces for a future attack on its most important political structure.

Reacting to the event, a spokesman for Taiwan's ministry of national defence said that the implied was "unacceptable for the Taiwanese public and the international community". "The Chinese Communist Party hasn't given up on armed assault on Taiwan, and their military preparations are still geared toward the use of force against Taiwan," the spokesman major general David Lo told local media.

The Chinese government denied that Taiwan was the object of the drill and described it as a "routine military exercise".

This comes in the midst of presidential election scenario in Taiwan where the opposition Democratic Party is expected to win the mandate next January. The party has been campaigning for total independence from mainland China. President Ma Ying-jeou's engagement policies with China have proved divisive, compounding the declining public support his ruling Nationalist Party is experiencing over economic and social issues.

China regards Taiwan, which declared independence in 1949, as part of its territory. Chinese leaders regularly talk about reclaiming Taiwan one day. Taipei receives military hardware from the US despite severe protests from Beijing. Chinese authorities are seriously disturbed at rising anti-China sentiment in the pre-poll atmosphere, sources said.

Sources said that what is even more embarrassing for Beijing is that a dissident Chinese leader, who led the youth during the 1989 crackdown at the Tiananmen Square in Beijing, has entered the fray.

The rebel, Wu'er Kaixi announced his candidacy on Friday for a seat in Taiwan's parliament.

SSridhar · Post by **SSridhar** » 28 Jul 2015 13:23

China says not planning military bases in the Maldives - Reuters

China's Foreign Ministry, in a statement sent to Reuters, said the vote was an internal matter for the Maldives, but that China wanted good relations with the country, best known for its luxury diving resorts.

China "has always respected and supported the Maldives' efforts to maintain its sovereignty, independence and territorial integrity", the ministry said.

"What the relevant people said about China building bases in the Maldives is totally baseless," it added.

SSridhar · Post by **SSridhar** » 29 Jul 2015 05:51

China conducts live ammunition drill in South China Sea - Reuters

China said it conducted air and sea drills in the South China Sea on Tuesday as it stakes an increasingly assertive claim to virtually the whole sea despite rival claims by neighbors.

The live-ammunition drills involved more than 100 ships, dozens of aircraft, information warfare units as well as the nuclear force, the state-backed China Military Online said in a report posted on the defense ministry's website.

It did not specify where exactly the exercises took place.

The latest exercises focused on integrating information warfare systems with air and naval forces, as well as testing the combat effectiveness of new weapons and equipment, China Military Online said.

The military achieved "new breakthroughs" in several areas including engaging high-speed low-altitude targets, anti-submarine warfare and intercepting supersonic anti-ship missiles with surface warships, it added.

The drills used "all sorts of information technology tactics" to create simulated reconnaissance, surveillance, and early warning systems to detect air and sea targets in real time, it said.

The exercises were conducted in "a complex electromagnetic environment" involving many types of missiles, torpedoes, shells and bombs, it said.

China's navy on Saturday played down its recent exercises in the South China Sea and criticized other countries for "illegally" occupying islands and reefs.

vijaykarthik · Post by **vijaykarthik** » 31 Jul 2015 06:36

Stunning infographic. See how the Chinese invest good money on highly debatable govts and places.

http://www.nytimes.com/interactive/2015 ... .html?_r=0

SSridhar · Post by **SSridhar** » 31 Jul 2015 15:22

Beijing slams U.S. for militarising South China Sea - Atul Aneja, The Hindu

China has slammed the U.S. for militarising the South China Sea and escalating tensions that have been fuelled by maritime disputes in these waters, which are vital for the conduct of international trade.

China’s Defence Ministry on Thursday accused Washington of staging patrols and joint military exercises. At the heart of the sharpening rhetoric is the territorial dispute in South China Sea which has pitted China with Vietnam, the Philippines, Malaysia, Taiwan and Brunei.

Obama’s ‘Asia Pivot’

Military activity in the Pacific has been accelerating following President Barack Obama’s “Asia Pivot” or “Rebalance” doctrine, which has led Washington to position 60 per cent of its forces in the Pacific. In Beijing, the “Asia Pivot” doctrine is seen as a China-containment policy.

The Chinese have been especially piqued by last Monday’s surveillance mission undertaken by U.S. Pacific Fleet commander, Admiral Scott Swift, who, for seven hours, flew on a reconnaissance mission aboard a P-8A plane in the South China Sea. {That's phenomenal}

Last week, Admiral Jonathan Greenert, the chief of U.S. naval operations, disclosed in a five-page “navigation plan” that Washington would beef up the aerial component of the U.S. Pacific Command.

On Thursday, Chinese Defence Ministry spokesman Yang Yujun said at a news briefing that the U.S. was fuelling the “China threat” in a bid to drive differences between China and other claimant countries in the South China Sea.

For a long time, the U.S. had carried out frequent, widespread, close-in surveillance of China, by sending ships and aircraft to the region, he added.

“Recently they have further increased military alliances and their military presence, frequently holding joint drills.”

SSridhar · Post by **SSridhar** » 31 Jul 2015 15:27

vijaykarthik wrote:Stunning infographic. See how the Chinese invest good money on highly debatable govts and places.

http://www.nytimes.com/interactive/2015 ... .html?_r=0

Truly stunning. The Pakistan information must change considerably soon. China has picked up all failing states to invest massively.

SSridhar · Post by **SSridhar** » 31 Jul 2015 17:58

Government starts proposal for building 4 rail lines along China border - PTI

Government today said it has initiated the proposal for construction of 1,352 km long four strategic railway lines along the China border.

The Defence Ministry has identified four strategic lines along India-China border -- Missamari-Tenga-Tawang (378 km), Bilaspur-Manali-Leh (498 km), Pasighat-Tezu-Rupai (227 km) and North Lakhimpur-Bame-Silapathar (249 km), Minister of State for Railways Manoj Sinha said in a written reply in the Rajya Sabha.

The Railway Ministry has requested the Defence Ministry to convey approval to carry out final location survey at an estimated cost of Rs 345 crore and provide the necessary funds.

Sinha, however, said none of these projects has been sanctioned.

"The time of completion and cost cannot be ascertained till completion of the final location survey and detailed geo-technical studies, as all these projects pass through very difficult terrains of young Himalayas," he said

SSridhar · Post by **SSridhar** » 01 Aug 2015 16:55

China emerges as principal opposition to UNSC reforms - Indrani Bagchi, ToI

India may be pushing hard to get into the UN Security Council, but it hasn't stopped New Delhi from seeing this global high table as a high-value talk-shop, which is consistently failing to provide global solutions.

In a statement remarkable for its candour, India's top UN diplomat told the body that "democratic, inclusive and transparent" approaches are best found outside the Council. Speaking at a Council debate on peace and security challenges of small island developing states (SIDS), Permanent Representative Asoke Mukerji said in dealing with their problems, "it is clear that effective international cooperation on the concerns has been most viable outside the UN Security Council where a democratic, inclusive and transparent approach" can be taken.

Nevertheless, India has stepped up its efforts to move on the reform process. But it's facing significant challenges to its over-a-decade bid to reform the UNSC. The G-4 (India, Germany, Brazil and Japan) are trying to get a text-based negotiation going in the UN General Assembly, but with limited success. The new facilitator of the inter-governmental negotiations (IGN), Courtenay Rattray of Jamaica, has promised a working text which would be the basis for international negotiations on how to reform the UNSC.

Rattray's efforts have been challenged by strong headwinds from China. In March, Rattray shared a framework document in the General Assembly which is supposed to segue into a negotiating text.

China's ambassador, Liu Jieyi, opposed the text. Since then, China has mounted a strong diplomatic offensive against text-based negotiations in various capitals of the world, either through demarches or by visiting various capitals in the world - according to sources they have been very active in African capitals and among the Pacific islands -- to "sensitize" them about the Chinese position. Diplomats from different countries said China wants most countries to go slow on these processes. China is using IOUs and other means to stall this process. While India might play a better game, it doesn't have deep pockets China can command. Neither the US nor Russia have helped the process along.

Second, the top contenders themselves are in a different position today. Germany, for instance, has manoeuvred for itself an interesting space - as the third country from Europe aspiring for the UNSC, its chances are slim. But, as was demonstrated with the Iran n-deal, Germany doesn't actually have to be in the UNSC because its already part of the high table. Brazil is locked up in a number of its own problems, which leaves Japan and India together fighting the reform battle.

China sees no reason to support either Japan or India in the UNSC. China has Pakistan and Italy, members of the 13-nation UfC group on its side. India believes that in a fair contest, it has the numbers. So what is happening now is a kind of shadow boxing between the two. For instance, on Thursday, Mukerji praised the UN Convention on Law of the Seas (UNCLOS) as an effective mechanism - significant when you consider China's blatant disregard for UNCLOS in its territorial disputes in the South China Sea. India will be playing host to the Pacific Island states in a unique summit here next month. In October, India plans to hold the biggest India-Africa summit, both of which promise to add to the reform momentum. PM Modi has also written a letter to all 193 UN member nations, hoping to recreate the magic of the International Yoga Day.

SSridhar · Post by **SSridhar** » 03 Aug 2015 18:56

China's military wants more teeth to counter India, US, Japan - PTI

Bracketing India along with the US, Japan, Taiwan and Vietnam as "threats" to China'a airspace, the PLA in a study has sought the broadening of its air surveillance and attack capabilities with high-speed cruise missiles and a new generation of bombers.

China's Air Force Command Academy in its report last year identified the United States, Japan, Taiwan, India and Vietnam as "threats" to its military airspace until the year 2030, Japanese news agency Kyodo reported.

While the massive expansion of Chinese navy with a second aircraft carrier and a new bomber to operate from its decks attracted worldwide attention, the new study showed that the airforce has started developing a similar expansion strategy, the report said.

The study called for nine types of strategic equipment to counter the threats, which included high-speed air-launched cruise missiles, large transport planes, an airship that moves in the upper atmosphere, a next-generation fighter, unmanned attack aircraft, air-force satellites and precision-guided bombs.

It said the 2.3 million-strong People's Liberation Army (PLA), the world's largest, needs to broaden its air surveillance and attack capabilities to the western Pacific, including the areas near Japan to ensure its command.

The PLA operates with an annual budget of about USD 145 billion, over three times India's USD 40-billion budget.

The Beijing-based academy, a thinktank of an air force leadership training organisation, prepared the report in November last year.

Studies by the academy have previously served as policy guidelines, the report said.

The academy report proposes broadening the scope of surveillance from a "first island chain" linking Okinawa, Taiwan and the Philippines and one of China's defence lines in the open ocean to a "second island chain" linking the Izu Island chain, Guam and New Guinea

The study affords a glimpse into the Chinese military's confidence in thwarting the US military, which is critical of China's controversial land-reclamation in the South China Sea.

It mentions enhancing the ability to attack US bases on Chinese side of the second archipelago line with strategic bombers and "deter US military intervention" in the event of a defence operation involving Chinese islands.

The academy report proposed cooperation between airforce and navy to enhance air-defence capability in the Air Defence Identification Zone China established over the East China Sea two years ago, and stresses the need to boost joint training.

The report also places emphasis on the developments of space and missile programmes.

It said the airforce would be put in charge of a space unit to be established in the future and that careful examination was needed regarding the form it would take.

SSridhar · Post by **SSridhar** » 03 Aug 2015 19:07

India to host meeting of 14 Pacific island nations - Smriti Kak Ramachandran, The Hindu

After trying to keep pace with China in relations with Africa and Central Asia, India is now trying to match it neighbour’s growing footprint in the South Pacific.

On August 21, India will host the heads of 14 island nations at the Forum for India-Pacific Islands Cooperation (FIPIC), in what is seen as a first step towards greater engagement with the region, which is important from an economic and geostrategic standpoint.

The upcoming summit in Jaipur is expected to pave the way for agreements in agriculture, food processing, fisheries, solar energy, e-networks for coordination in telemedicine and tele-education, space cooperation and climate change, all of which were mentioned as areas of potential cooperation by Prime Minister Narendra Modi during his visit to Fiji in 2014.

Mr. Modi had then proposed that FIPIC summits be held regularly. He had set the ball rolling for reinforcing ties with the island nations by announcing visa on arrival for their nationals, funds for small business, line of credit for a co-generation power plant for Fiji, and a special adaptation fund for technical assistance and capacity building for countering global warming.

China’s strong foothold

Even as New Delhi has begun charting out a plan for forging bilateral and regional ties with these island nations, China has significantly expanded its foothold in the region, from increasing business and trade ties to setting up diplomatic missions in each of these countries. {These countries like Sri Lanka, Maldives, Djibouti, Ecuador etc are easy picks for loans at high interest rates and once they struggle to repay demand concessions. This is geopolitical usury. In the FIPIC meeting, India should forewarn these nations of the Chinese practice discreetly.}

In its report “The geopolitics of Chinese aid: mapping Beijing’s funding in the Pacific”, the Lowy Institute of International Policy says China is now the largest bilateral donor in Fiji and the second largest in the Cook Islands, Papua New Guinea, Samoa, and Tonga. The report also says that between 2006 and 2013, China provided $333 million in bilateral aid to Fiji, even more than Australia ($252 million) and almost three times that of Japan ($117 million), while in Samoa and Tonga, the sum of Chinese aid is second only to Australia’s. China’s foray into the South Pacific, which began as a move to offset Taiwan’s interests in the region, is becoming a cause for concern for India, which now wants to have economic and strategic engagements with the 14 island nations.

T.P. Sreenivasan, a former diplomat who served as the head of Mission in Fiji and seven other South Pacific Island States between 1986 and 1989, told The Hindu that India’s strong relations with Fiji, which has considerable influence in the region, was a “strong point” which could help counter the growing Chinese influence {We cannot rest on that factor. We have similar strong, in fact much stronger, relation with Maldives and yet it has slipped away from our hands. Sri Lanka's case is even more solid example}. “Most of the economies in the region are based on agriculture, fisheries and small-scale industries and India’s capacity in these sectors is even better than Europe and China; it can cultivate relations with the island nations based on its technology. Even small investments will make a big impact in these regions; many of these countries send their nationals to India for education though programmes sponsored by the Indian Council of Cultural Relations; so India should make a beginning,” he said. He said relations with Fiji had improved in India’s favour in the past decade and not only those of Indian origin but also Fijians were friendly towards Indians, which worked to New Delhi’s “advantage”.

SSridhar · Post by **SSridhar** » 04 Aug 2015 13:45

Foreign Secretary S Jaishankar arrives in Maldives - Economic Times

Five months after he postponed his trip to Male owing to political unrest Indian Foreign Secretary S. Jaishankar arrived in the Maldivian capital on Monday in the backdrop of controversial constitutional amendment by the Yameen government that allowed foreign land holdings of one billion dollars raising fears of Chinese investments in the Indian Ocean Region.

India's external affairs ministry spokesperson Vikas Swarup tweeted: "Completing the SAARC Yatra for a safe, secure and prosperous South Asia. Jaishankar in Maldives today."

Jaishankar is scheduled to meet Vice President Ahmed Adeeb, Foreign Minister Dunya Maumoon and other leading members of several governmental institutions and political parties. He was greeted at the Male airport by his Maldivian counterpart Ali Naseer after which the two held talks.

The visit is significant to engage with the neighbouring country amid Beijing's efforts to expand influence in Maldives as part of Maritime Silk Road. The PM had also cancelled his trip to Maldives after former President Mohd. Nasheed was put behind bars on terror charges.

Modi, however, greeted the people of Maldives on July 26 on their 50th Independence Day, calling the country India's "valued partner". Union Health and Family Welfare Minister J P Nadda represented India on the occasion.

Maldives is a key partner for India in its periphery in the Indian Ocean Region and it is necessary for Delhi to maintain its influence in the area, experts said. Rise of extremist forces and Maldivian youth joining Islamic State is matter of concern for Delhi.

SSridhar · Post by **SSridhar** » 05 Aug 2015 10:48

S. China Sea tensions flare at ASEAN talks - The Hindu

Southeast Asian diplomats said on Tuesday that China’s controversial island-building drive is raising regional tensions, with the Philippines slamming its “unilateral and aggressive activities”.

The U.S. and some Southeast Asian states have watched with growing alarm as Beijing expands tiny reefs in the South China Sea, topping some with military posts to reinforce its disputed claims over the strategic waters and fanning fears of future conflict.

The flashpoint issue has taken centre-stage at the annual security forum hosted by the 10-member Association of Southeast Asian Nations (ASEAN) that began on Tuesday. But China has insisted it will not discuss the dispute during the meetings.

That prompted a sharp rebuke from the Philippines, which, along with Vietnam, has been involved in the most direct territorial confrontations with China.

Hitting out

Philippine Foreign Secretary Albert del Rosario told fellow ASEAN foreign ministers at an afternoon meeting that “massive reclamation activities” and construction by Beijing in the disputed sea had “undermined peace, security and stability”. Beijing claims control over nearly all of the sea, a key shipping route thought to hold rich oil and gas reserves. — AFP

SSridhar · Post by **SSridhar** » 06 Aug 2015 08:35

Indo-Japan defence ties 'dangerous' for Asia: Chinese expert - Economic Times

Taking umbrage over India's move to include Japan in Malabar exercises, an official Chinese analyst today warned that the Indo-Japan defence cooperation is "dangerous for Asia" and the two countries should be "careful about it".

"There has been a clear trajectory of Japan and India deepening their defence ties in recent years and the relations are bound to be promoted since India will include Japan in the Malabar naval exercises with the US in October. The two countries are also exploring the possibility of air exercises," an article in the web edition of the state-run Global Times said.

Titled "Indo-Japanese military cooperation dangerous for Asia", the article written by Lu Yaodong, Director of the state-run Institute of Japanese Studies at the Chinese Academy of Social Sciences, said, "with eyes on a rising China, India and Japan have been getting closer faster."

In April, Defence Minister Manohar Parrikar chose Japan as the destination of his first overseas visit in a way to demonstrate the importance that New Delhi attaches to enhanced defence and security cooperation with Tokyo, the article said.

"Japan has attempted to follow the steps of its ally the US and meddle in the affairs of East and South Asia, and its expanded military cooperation with India is surely no good sign for the region," it said.

"If Tokyo continues on this path, it will certainly pose serious threats to the regional security and even dampen the common development of the region. Japan and India have to be careful about it," the article said.

"Japan joined the Malabar exercises, traditionally a bilateral drill by India and the US, at the invitation of India in July 2014. Before that, the last time it joined the exercises were in 2007 and 2009. This year's participation makes clear Japan's underlying intention to build a maritime cooperation alliance in the Asia-Pacific region," it said.

Pointing at India's plans to buy 12 ShinMaywa US-2 amphibious search-and-rescue aircraft from Japan, the article said New Delhi has its own maritime strategic perceptions that share some common interests with Tokyo.

"Military and security cooperation has gradually stood out in the bilateral relations between India and Japan. In the future, the joint exercises of Japan, India and the US, which share similar aims, will likely become a regular mechanism," it said.

"Moreover, after relaxing its self-imposed arms export embargo earlier this year, Japan, eager to open new markets for its defence companies, will have more cooperation in military equipment export with India that keenly seeks to improve its military capabilities," it added.

A_Gupta · Post by **A_Gupta** » 07 Aug 2015 02:05

http://www.livemint.com/Politics/jwkGhP ... China.html
"South China Sea: India backs Vietnam, others against China"

India on Thursday supported the stand taken by some South-East Asian nations that have called for freedom of navigation in the South China Sea, where China is locked in maritime disputes with many of its neighbours.

In his remarks at the fifth East Asia Summit foreign ministers’ meeting in Kuala Lumpur, junior foreign minister V.K. Singh warned that “in a world of inter-dependence and globalization, there is no option but to follow international laws and norms”.

India supported the “freedom of navigation in international waters, including the South China Sea, the right of passage and overflight, unimpeded commerce and access to resources in accordance with principles of international law, including the 1982 UN Convention on the Law of the Sea (UNCLOS).

“Territorial disputes must be settled through peaceful means, as was done by India and Bangladesh recently using the mechanisms provided under UNCLOS,” Singh said.

“India hopes that all parties to the disputes in the South China Sea will abide by the guidelines on the implementation of the Declaration on the Conduct of Parties in the South China Sea. We further support efforts for the early adoption of a Code of Conduct on the South China Sea on the basis of consensus,” he added.

SSridhar · Post by **SSridhar** » 07 Aug 2015 06:29

US will not accept restrictions in South China Sea: US Secretary of State John Kerry - Reuters

US Secretary of State John Kerry said on Thursday the United States would not accept restrictions on freedom of navigation and overflight in the South China Sea.

Speaking at a regional meeting in Malaysia also attended by Chinese Foreign Minister Wang Yi, Kerry said that despite assurances that these freedoms will be respected, warnings had been issued and restrictions attempted in recent months.

"Let me be clear: The United States will not accept restrictions on freedom of navigation and overflight, or other lawful uses of the sea," Kerry said.

"It doesn't matter whether a vessel is a large warship or a tiny fishing boat. The principle is clear: The rights of all nations must be respected."

SSridhar · Post by **SSridhar** » 07 Aug 2015 06:30

Though China comes under pressure on the South China Sea in every ASEAN meet, this edition of East Asia meet has probably seen the most concerted attack on it so far, IMHO.

ShauryaT · Post by **ShauryaT** » 07 Aug 2015 08:56

China And Iran Weigh $1 Billion Deal To Swap Chengdu J-10 Fighter Jets For Major Oil Field

China and Iran are mulling a $1 billion deal that would see China trade 24 Chengdu J-10 fourth-generation fighter jets in exchange for control of Iran’s biggest oil field for two decades, a report in the Taiwanese newspaper Want Daily said Thursday. The oil field in question is the 350 square-mile Azadegan field, which produces around 40,000 barrels of light and heavy crude per day. It’s currently operated by the National Iranian Oil Company and is thought to be the largest oil discovery in the country in 30 years.

The China National Petroleum Corporation had previously signed a $2.5 billion deal in 2009 to produce 75,000 barrels a day at the South Azadegan oil field over a 25-year period. However, work to develop the field for production was canceled in 2014 because strict sanctions imposed by the West against Iran were beginning to affect Chinese financiers of the deal. A similar $2 billion contract signed in 2009 for the North Azadegan field has continued throughout sanctions.

SSridhar · Post by **SSridhar** » 07 Aug 2015 15:37

China has been asked to cease activities in Pakistan-occupied Kashmir: Manohar Parrikar - PTI

India has asked China to cease its activities in Pakistan-occupied Kashmir, Defence Minister Manohar Parrikar said today.

In a written reply in Lok Sabha, he said that government has taken note of reports regarding presence of Chinese persons in Pakistan-occupied Kashmir (PoK), including in Gilgit-Baltistan region.

"Government has also conveyed its concerns to China about their activities in PoK and asked them to cease such activities," he said.

In another reply, he said the government has taken note of reports indicating increased Chinese ships and submarine forays into the Indian Ocean Region.

"China has also been deploying naval ships as part of their anti-piracy escort force in the Gulf of Aden since January 2009. It is understood that 20 such deployments have been undertaken till date," Parrikar said.

He added that a Chinese submarine, deployed in the Gulf of Aden since April this year, undertook replenishment at Karachi in May and July by transit through international waters.

SSridhar · Post by **SSridhar** » 08 Aug 2015 19:38

China Pushes India to the Wall on Brahmaputra - IANS

On July 30, the usually combative Uma Bharti, the union minister for water resources, exhibited a diffident demeanor in the Lok Sabha when she gave out that China may construct three more hydropower projects on the Brahmaputra in Tibet (called Yarlung Tsangpo there) under its recently announced 12th Five Year Plan.

The minister added two other important facts. First, she indicated that an earlier such power project at Zangmu, other than the proposed three, is a run-of-the-river type. Secondly their effects and significance cannot be judged at the moment due to non-availability of data.

The minister's statement, instead of clearing the air of confusion and apprehension, is however likely to cause more doubts. There is an existing agreement between India and China which covers exchange of hydrological data between the two countries on the Brahmaputra. Has this agreement fallen into disuse? Secondly, the said projects being run-of-the-river type does not hold out any assurance because even these types of projects entail creation of storage dams.

The aforementioned hydro power projects will be located at Dagu, Jiexu and Jiacha, all in the middle reaches of the Brahmaputra. Another one at a place called Zangmu, whose existence was long denied by China but ultimately conceded in 2010 after repeated Indian protestations, has already been partly commissioned. In spite of Uma Bharti's apparent calm and nonchalance in the Lok Sabha, doubt persists in New Delhi's corridors of power. During the time of the previous UPA government it was decided that the ministries of defence, external affairs and the department of space would take up the matter jointly with China. Was it really done? An answer is necessary.

Ominous warnings are close at hand. On March 1, 2012, the river Siang (the local name of the Brahmaputra in Arunachal Pradesh) had run completely dry at a place called Pasighat where it normally used to be very wide. Although the river picked up momentum later on, it has not yet attained its former virility.

Moreover, all the four hydro projects will be situated very close to each other and this complicates the matter further as large amounts of water will be stored within a narrow geographical expanse leading to the possibility of depriving northeastern India of not only water but also the much-needed silt which makes the Assam plains fertile. There may also be floods in the region if China decides to arbitrarily release water from these dams during the monsoon.

How many hydroelectric dams has China been constructing in Tibet? There is a great divergence of opinion on the matter. Some say the number adds up to more than 100. However Jana Jagriti, an Assam based NGO, thinks that 26 are coming up. According to its estimate, Assam will get 64 percent less water during the monsoon season and 85 percent less water during in the rest of the year due to China's dam building activities.

But the real cause of concern for India is the widespread report that China would construct a giant hydro power project at a place called Medog which is very near the Great Bend, a great U turn which the mighty Brahmaputra takes before entering India after a 2,000-metre fall. It is slated to generate 38-49 gigawatts of electricity, which is more than India's installed hydro capacity of 33 gigawatts. If it materializes, the dam will be twice as big as the Three Gorges Dam on the Yangtze river. That China is serious about the Medog plant is borne out by the development and upgradation of the Bome-Medog highway, a kind of infrastructural development which generally precedes beginning of such projects. There are reports that China has constructed two huge water reservoirs at the Great Bend area with storage capacities of 42 million and 31 million cubic metres.

All these projects are situated in an earthquake-prone area and very close to the geological fault line where the Indian Plate collides with the Eurasian Plate. According to many experts, the massive earthquake in 2008 breaching parts of the Three Gorges Dam was caused by the stupendous weight of water of the nearby Zipingpu Dam which was just half-a-kilometre from the geological fault line. If such a catastrophe occurs again, vast areas of Assam and Arunachal Pradesh will go under water.

The crux of the problem is that there is no water sharing treaty between India and China covering trans-national rivers and using the international law that existing usage of water will determine respective shares of countries, Beijing has pushed New Delhi to the wall. India has only itself to blame. {But, even if there were a treaty agreement, China would violate it with nonchalance as it has done with grand-fathering Pakistan's nuclear plants, Pu reprocessing facility, denying submitting itself to the scrutiny of UNCLOS etc}

vasu raya · Post by **vasu raya** » 08 Aug 2015 20:34

This might be common knowledge, while what the Chinese plan to do are projections, we hold the cards on IWT at the moment, we can reciprocate Chinese actions on Brahmaputra including construction of new dams so TSP is at the receiving end. The master and poodle can then sort it out if the duo want to be part of a water sharing arrangement or not.

The river interlinking project may have to be amended

Bade · Post by **Bade** » 08 Aug 2015 23:58

China cares two hoots about its lap-dog. So it will not work on them. Why cannot India (now that it has a better nationalistic administration) de-recognize Tibet as part of China to begin with. If they are soft pedaling on Arunachal, POK, COK as well as Sikkim depending on the phase of the moon, why should not we reciprocate there.

ShauryaT · Post by **ShauryaT** » 09 Aug 2015 07:57

Bade wrote:China cares two hoots about its lap-dog. So it will not work on them. Why cannot India (now that it has a better nationalistic administration) de-recognize Tibet as part of China to begin with. If they are soft pedaling on Arunachal, POK, COK as well as Sikkim depending on the phase of the moon, why should not we reciprocate there.

That is a hard choice. It takes a leader to make such hard choices.

However, our current President, a few years back stated words to position the matter, with very carefully drafted words, which sent the message clearly.

What we can be thankful for with the current leadership is that it did NOT reiterate the Tibet is part of China message as ABV had done.

sanjaykumar · Post by **sanjaykumar** » 09 Aug 2015 09:03

Thank you for pointing out the dog that did not bark. Very perceptive, I had missed it.

vasu raya · Post by **vasu raya** » 09 Aug 2015 09:26

if IWT is questioned, the Chinese lapdog has few choices

1) go to international forums, if it did, only an arbitrator that can bring China in its ambit will be acceptable to us. The SCS dispute is only getting acrimonious with no arbitration at the moment
2) threaten nuclear escalation, this is a dead end for them. Chinese master provided n-weapons for suicide but not willing to budge on the water issue
3) deny port access to the Chinese, we can demand this even now but we punch below our weight, Doval's words. we can't contain the fountain of terrorism yet.

Maldives so far is probably the only nation that is kind of persuaded on the need for non-militarization of the Indian ocean

The dams already constructed by the Chinese we should keep track of the water levels, the release schedule to discern patterns. Lot of times news reports do backwards calculation of Chinese activity from floods. In this day of Sats, direct measurements should be done.

SSridhar · Post by **SSridhar** » 09 Aug 2015 17:14

India through the Chinese Lens - Saurabh Kumar, IDSA

Public opinion in India has, at present, no way of figuring out how the country is viewed by its important neighbour to the North, the People’s Republic of China (PRC). The coverage of India in the PRC media, which is overwhelmingly State-controlled – still, in spite of the sea change in the media scene over the three decades of reform and opening up, which has witnessed the emergence of a vibrant commercial press and digital media, largely outside the official circuit – could provide a reasonably reliable, even if rather rudimentary and rehearsed, picture of official China’s perceptions. The media is, after all, the channel through which the leadership of the Chinese Communist Party-state communicates with its citizenry. So the considerations and calculations underlying their projection of India to their people in their (official) media domestically (as indeed of any country or subject) cannot but come out in the process – these lie embedded in the mainstream (official) media projections, in fact, and have only to be discerned.

However, that ready (and openly available) source of insight into Chinese predilections and perceptions is not tapped at present. This is a very basic gap in the study of China in India. And, possibly, an important reason for the widespread lack of knowledge and understanding in the country about China. During his recent visit to China, Prime Minister Modi himself observed that “Indians and Chinese don’t know each other well, much less understand each other” (though the context in which he made these remarks might possibly have been a somewhat different one – of a “familiarity gap” between the two peoples on the civilizational and cultural affinities firmament).

An ambitious project recently launched at the National Institute of Advanced Studies (NIAS), Bengaluru, attempts to address that situation, by aiming to provide complete translations of news reports and commentaries on India (and other SAARC countries too eventually) in the Chinese media on an on-going basis in near real time.

The initial, trial, phase of the project concentrated on coverage of Modi’s visit by the official Chinese press. Translations of all items, reports and commentaries on India in the important official newspapers (People’s Daily, PLA Daily, Guangming Daily, and Liberation Daily), and their alter ego, the ‘semi-official’ Global Times (both Chinese and English versions), during the visit and a fortnight before and after in the month of May, were commissioned and collated. In addition to its main focus on the official press, the compilation also includes a sizeable sample of translations of comment in the non-official media. The translations are available here. The main features that emerged from this compilation are:

The coverage of the Modi visit was prolific, reflecting interest in the personality of the Indian Prime Minister as a strong and transformative leader and also a deliberated decision to signal (to India) that the Chinese side attached great importance to the visit.

A clear pattern of careful orchestration of official perceptions, both before and after the high level interaction, emerges from a perusal of the translations. This is unsurprising, of course, being an archetypical trait of Communist set-ups at both the State and sub-state levels. (This applies only to the political aspects of the India-China relationship though; not business and economic or cultural aspects, where the tone was more matter of fact and business-like.) Descriptions of the outcome of the visit, ex post-facto, were virtually the same as projected in early commentaries (of February 2015, for instance, written after the visit of External Affairs Minister Sushma Swaraj to China) – except for the prominence given to the Buddhist heritage factor and for the specifics of the economic deals, etc. signed. (Neither of the latter aspects could have been anticipated naturally, the way political aspects could have and were.)

This shows that, if a demonstration were indeed needed, the value of monitoring the Chinese media on an on-going basis – the tip-offs that can be mined in advance of such choreographed events from that open and freely accessible source.

Civilisational aspects of the relationship received considerable salience in the coverage. This is unlikely to have been planned, or a given Chinese preference. Rather it was something that, it could be surmised, was perhaps done in deference to the visiting leader’s wishes, reflecting the realism and dexterity of Chinese diplomacy. Considerable (intellectual) energy was clearly expended in evolving precise formulations on the specific content of commonalities and distinctiveness of the Chinese and Indian civilisations, Yoga and Taichi in particular. “Pursuit of harmony”, striving for “balance between the body, mind and spirit” and integration of “Heaven”, “human” and “heart” were identified as their common weal, along with the wish that they (Taichi and Yoga) “add radiance and beauty to each other” rather than “rise in solitary splendour respectively”.

However, even in playing along with the guest’s predilection, that accommodation of the cultural affinity factor was sought to be set firmly within the confines of the overall Chinese political and strategic approach – of seeking to project the India-China relationship as a partnership with wider significance than only at the bilateral level, and one that was working for a more equitable and peaceful world order; rather than as something worth pursuing for its own sake as an end in itself, by the two countries themselves in relation to each other for promoting bonhomie and better understanding between their peoples (as was the thrust of Modi’s appeal).

A striking feature of the coverage, overall, is that it avoided painting India black (much less criticizing it directly) for its uninhibited shedding of defensiveness about seeking improved relations with the USA and China’s neighbours, Japan above all. (Or even touching upon Modi’s Mongolia visit, immediately after China, where India’s “comprehensive partnership” was upgraded to a “strategic” one in a spirit of “true friendship”.) Unsigned reports were totally silent on that aspect and the maximum extent to which even signed articles went was to bring the all too obvious geopolitical ‘power balancing’ aspect in within the ambit of their writings but taking care to attribute it to “Western” mischief. An unmistakable blunting of any possible public perception of an anti-Chinese edge in India’s dalliance with the USA, Japan etc., in other words, choosing to project those relations as ‘normal’ and unexceptionable and not directed against China. (The English language dailies were not as restrained; they cater to foreigners and audiences outside China, not Chinese citizens per se.)

This reserve was also evident in the coverage of Modi’s public remarks – a studied silence was maintained, most notably, on his mention, in the presence of Premier Li Keqiang at their Joint Press Statement, of the “need for China to reconsider its approach on some of the issues that hold us back from realizing the full potential of our partnership” (after describing it, a moment earlier, as “one of our most important partnerships”). So also on his observation at Tsinghua University that “if we have to realise the extraordinary potential of our partnership, we must also address the issues that lead to hesitation and doubts, even distrust, in our relationship. …. The solution we choose (to the boundary question) should do more than settle the boundary question. It should do so in a manner that transforms our relationship and not cause new disruptions.”

The blanking out of those pointed remarks in the official press, suggestive of a state of denial almost, is telling. It cannot be attributed to the taciturn Chinese diplomatic style alone. Indian diplomacy would seem to have its task cut out, by way of follow up action on the PM’s demarches.

The political dimension of the coverage was most revealing, paradoxically, of preferences and preconceptions, precisely because of the predictability and formulaic consistency of the (official) formulations. Chinese expectations from India (on the political side, in the future) were spelt out in as many words, virtually identical to pre-visit projections, time and again in several authoritative articles. An example:

“……….the two countries should seize this historic opportunity and carry out the important consensus reached between leaders to promote continuous development of China-India relations. Both sides should maintain a positive momentum of talks between leaders, expand bilateral communications, enhance cooperation on global platforms such as United Nations, the BRIC countries, the G-20 etc., and push the international order in a more fair and rational direction. Until the border problems can be resolved, both countries must properly control disputes and jointly ensure peace and stability along the border to create favourable conditions for border negotiations….” (Emphasis added).

Implicit in that formulation (repeated ad nauseam left, right and centre), it could safely be surmised, is what the Chinese side would not like to see India doing – anything that would go contrary to these injunctions. Hence the unceasing exhortations to it to go (or at least be seen to be going) strong on the rhetoric of India-China relations, so that the relationship is seen by others as being on an upward trajectory, and any possible perceptions of India joining, or lending a helping hand to, those powers who may wish to form an anti-China axis of any kind are pushed back and prevented from gaining ground.

It is a moot point, of course, whether that would be a serious expectation, or simply a smart bid to keep India on ‘good boy’ behaviour. The function of the propaganda media (in the Chinese set-up) is less to inform and more to serve as an instrument of the Party-state – a tool to buttress official designs. The former is only a constraint; it is the latter that is the objective. As such, a prime task for the media is (perceived, and taken, to be) to promote acceptability of official policies and create a psychological climate in which contravening them becomes difficult. That the Chinese media is doing quite well, it would appear – trying to make India fall in line with China’s scripted ‘line’, as much as it can.

There was, notably, no specific mention of anything on the boundary question/negotiations – need for early/pro-active resolution, etc. (not even the three stage process reconfirmed by both countries in the Joint Statement or the operationalization of new confidence building measures agreed upon during the visit) or on the Indian request for clarification of the LAC – beyond the general exhortation quoted above “to create favourable conditions for border negotiations” or even on the question of terrorism, on which the two sides agreed (for the first time) to “disrupt terror networks…….and stop cross-border movement of terrorists..…” Nor as much as a whiff of Modi’s gentle but pointed observation that “China’s support for India’s permanent membership of a reformed UN Security Council (and Nuclear Suppliers Group) will do more than just strengthen our international cooperation”. The topic might not have figured in the high level exchange at all, as far as the average Chinese reader’s information went (but for the terse reference to it in the Joint Statement for those who would have cared to read through the onerous document).

In general, the Chinese political approach cited above, and as elaborated in President Xi’s four point proposal, was featured in detail while the Indian side’s responses, as presented, came out as non-substantive, with no clear political thrust or objective of their own, and also as not being opposed to the Chinese point of view, including on the Indian side’s circumspection on China’s “One Belt, One Road” obsession.

Though tentative, these readings about official China’s mind and perceptions can be seen to contain useful pointers for follow-up diplomatic action. A more granular analysis might well indicate contrary nuances and possibly quite a different overall picture too. Regardless, the potential of such a media monitoring exercise for fine-tuning the overall assessment of the impact of the PM’s visit from other (official) channels (and, more generally, for spawning further research on different aspects of India-China relations and for putting China studies in the country on a firmer footing) should be evident.

So also the need for investment of commensurate resources at the national level accordingly. NIAS plans to expand the scope of the project to cover more journals of the semi-official and non-official variety in the next phase, subject to budgetary support, with the output shared with all Universities, think-tanks and research centres in the country, with a view to facilitating independent assessments and analysis severally. The initiative deserves all round support, as a long overdue step toward intensification of the Indian gaze at China.

Saurabh Kumar, IFS (Retd.) had served as Ambassador of India to the UN and other International Organisations in Vienna as well as Austria, Ireland and Vietnam. He is now Adjunct Faculty at the National Institute of Advanced Studies, Indian Institute of Science Campus, Bengaluru.

SSridhar · Post by **SSridhar** » 10 Aug 2015 10:16

China's territorial claim draws harsh criticism at East Asia-ASEAN meeting - Dipanjan Roy Chaudhury, Economic Times

Tensions came to the fore at last week's East Asia and ASEAN Foreign Ministers Meeting in Malaysia, with countries including USA, India, Japan and Australia expressing deep concern over China's territorial claim and creation of artificial islands in the South China Sea (SCS) region. This happened even as China asserted that it has halted its reclamation project in the region.

The harshest criticism came from US Secretary of State John Kerry, who accused China of restricting navigation and overflights in the SCS region, assurances from his Chinese counterpart Wang Yi notwithstanding. China's relentless claims have raised alarm bells in large parts of Southeast Asia and India too is worried as claims in SCS impacts Delhi's economic and strategic interests.

Freedom of navigation and overflight are among the essential pillars of international maritime law, Kerry told the East Asia Summit in Kuala Lumpur attended by several foreign ministers from across the globe. "Despite assurances that these freedoms would be respected, we have seen warnings issued and restrictions attempted in recent months. Let me be clear: The United States will not accept restrictions on freedom of navigation and overflight, or other lawful uses of the sea," he said.

India's minister of state for external affairs, VK Singh, who attended both the summits supported positions of Vietnam and Philippines and other countries on the matter. "We share the concerns expressed by our ASEAN colleagues about the evolving situation in the South China Sea. Freedom of navigation in international waters including in the South China Sea, the right of passage and overflight, unimpeded commerce and access to resources in accordance with the principles of international law, including the 1982 UN Convention on the Law of the Sea, are issues of concern to us all," he asserted.

The minister said India hopes that all parties to the disputes in the SCS region will abide by the 2002 Declaration on the Conduct of Parties in the South China Sea and work together to ensure peaceful resolution of disputes. "We remain supportive of efforts for the early conclusion of a Code of Conduct on the South China Sea, by a process of consensus," said Singh. This is the most comprehensive position by India so far in the context of rising tension in the SCS region.

Land reclamation works in the South China Sea have "increased tensions" in the region, Southeast Asian foreign ministers also said on Thursday.

Southeast Asian countries, along with USA, India, Japan and Australia, are worried about China's large-scale reclamation and construction on islands, including some which appear to have military features. South China Sea is one of the world's busiest shipping lanes. China has been creating artificial islands in waters where Vietnam, Malaysia, Indonesia Taiwan and the Philippines have overlapping claims.

Official sources said China's historical evidence is baseless and its reclamaation activities in SCS is illegal and contradicts international laws and norms. Disputes must be resolved peacefully through diplomatic means and freedom of navigation and over flight in the SCS region must be assured and maintained, sources stressed.

Vietnam and Philippines are most threatened by the Chinese plans of reclamation in SCS. Under such circumstances Vietnam two fold strategy is to engage multilateral diplomacy and strengthen military capability is to protect its shelf, experts pointed out.

In Delhi, Justice Antonio T Carpio, senior associate justice, Supreme Court of the Philippines, on last Thursday gave a detailed presentation in the Indian Council of World Affairs on China's claims in SCS region. "No country in the world has made claim on one sea since 17th century as China is doing now. These claims have no historical basis. The objective of Beijing is to expand presence in the SCS region to lay claim over oil, natural gas and fisheries in the area besides projecting military power," he said. Experts point that there is no choice for Philippines but to go for Permanent Court of Arbitration.

Experts and analysts pointed out that in this backdrop closer cooperation between US-India-japan as well as US-Vietnam-Philippines are expected. And there is a drive towards military modernisation in Southeast Asia due to China's aggressive posture. India is strengthening Act East Policy amid these developments. Experts anticipate that ASEAN could acquire military dimension in future.

Speaking at seminar here last Friday Prof G V C Naidu of JNU said, "ASEAN needs to stop dithering and take firm stand and play a crucial role. SCS is at the heart of Southeast Asia and Southeast Asia is at the heart of East Asia. Any control over SCS would give China tremendous advantage...Given India's geo-economic needs it seeks peaceful resolution to the SCS dispute."

A_Gupta · Post by **A_Gupta** » 10 Aug 2015 16:38

http://www.financialexpress.com/article ... ia/116737/
"Xiaomi ties up with Foxconn for first India plant
An assembly line in Andhra Pradesh will begin rolling out Xiaomi's first locally made smartphone, the Redmi2 Prime, the company's global vice president Hugo Barra said."

A_Gupta · Post by **A_Gupta** » 10 Aug 2015 22:10

http://www.valuewalk.com/2015/08/china-threatens-india/
Basically telling India that if it values Chinese economic input, it had better steer clear of entangling alliances with Japan (and the US).

While India is not part of the South China Sea problem, its military romance with Japan is what has caused untold anger in Beijing.

IMO, if it does cause untold anger in Beijing, this is then a bargaining point - let them cut Munna loose and set them adrift, and then India can keep away from these "military romances".

Pulikeshi · Post by **Pulikeshi** » 11 Aug 2015 00:29

^^^ Why is India warned, but China requested?

India Warned on Japan exercises amid China tensions

vs.

India flags PoK projects to China ahead of PM Modi's visit

Not trying to be pedantic - how does a country 'warn' or 'request' a country?
Is there some universally acceptable language of the tone or is this just Media painting perception as usual?

SSridhar · Post by **SSridhar** » 11 Aug 2015 06:03

^ Of course, such titles are thrown by the newspapers. But, if one reads the two articles, one may get a clue. After all, these are diplomatic signalling.

In the first one, the "director of the Institute of Japanese Studies at the Chinese Academy of Social Sciences, an influential Beijing think-tank" says, "If Tokyo continues on this path, it will certainly pose serious threats to the regional security and even dampen the common development of the region. India have (sic) to be careful about it."

The two convey a sort of warning.

In the next one, the article claims that "New Delhi has expressed its concerns to Beijing over its infrastructure projects in Pakistan occupied Kashmir (PoK)." But, it must be admitted that the Indian Foreign Secretary himself only said, "The matter was raised with the Chinese Ambassador in New Delhi. It was also taken up by our Indian envoy in Beijing,". He did not say how the matter was raised. India has been known to be quite blunt with China many times. So, we don't know. The writer of the article simply says that 'concerns were raised'. We don't know whether she/he had access to exact information or not.

The difference is that while the former speaks of consequences, the latter is more subdued (going strictly by the report). Hence perhaps, the difference in titles too.

SSridhar · Post by **SSridhar** » 11 Aug 2015 15:37

China wants to build giant floating islands in South China Sea - ET

China's military wants the ability to create large modular artificial islands that can be repositioned around the world as necessary. And it's not as outlandish a goal as it might seem.

According to Navy Recognition, China's Jidong Development Group unveiled its first design for a Chinese-built Very Large Floating Structure (VLSFs) at its National Defense Science and Technology Achievement exhibition in Beijing at the end of July. The structures are comprised of numerous smaller floating modules that can be assembled together at sea in order to create a larger floating platform.

VLSFs have a number of uses. The artificial islands can be used as fake islands for touristic purposes, or can also be constructed to function as piers, military bases, or even floating airports, Navy Recognition notes.

But China's proposed VLSFs would have a purpose-built design that would allow the platforms to function as floating military bases. According to Popular Science, their modular Lego block-like design allows for the islands to be easily constructed far away from port. Additionally, the modular nature of the VLSFs ensure that the structures are highly compartmentalized. This ensures that the islands would be harder to sink as a large number of different modules would need to be damaged before a VLSF would become unseaworthy.

Popular Science also notes that a VLSF, if properly constructed, could hypothetically carry a significantly larger compliment of planes, aircraft, and supplies than a traditional aircraft carrier. A VSLF could also have a longer runway as well, meaning it could accommodate much larger aircraft, even if it would be far less mobile than a carrier.

So far, China has yet to start construction on any VLSFs. But Beijing's official unveiling of the idea reflects the country's ongoing interest in high-end defense concepts, especially ones that could help project Chinese hard power into disputed maritime areas. As China continues to try to expand its sphere of influence throughout Asia, particularly in the South China Sea, the idea of a moveable artificial island has obvious strategic appeal.

"[W]ith China showing a remarkable ability to rapidly convert coral reefs into military outposts, [VLSF'S] could be a particularly useful supplement to its anti-access, area-denial systems (A2/AD)," Jack Detsch writes for The Diplomat. "The battle stations could also do more to offset Washington's tremendous basing advantages in the Asia-Pacific theater."

China's construction of VLSFs would follow Beijing's other, more advanced island-building project. China is rapidly dredging and constructing artificial islands on top of coral shoals and reefs throughout the South China Sea. So far, China has constructed over 1.5 square miles of artificial islands. According to Reuters, Beijing has completed advanced stages of construction for six different island reefs throughout throughout the sea and has started work on a seventh island.

China's actions in the South China Sea risk escalating a series of territorial disputes. A number of neighboring countries claim the reefs, islands, and oil and gas deposits in the area:

Taiwan, Malaysia, Vietnam, and the Philippines also have military bases within the South China Sea on islands that those countries control.

SSridhar · Post by **SSridhar** » 11 Aug 2015 19:28

China devalues currency by 2% - Business Line
Excerpts

China’s surprise 2 per cent devaluation of the yuan on Tuesday pushed the dollar higher and raised the prospects of a new round of currency wars, just as Greece reached a new deal to contain its debt crisis.

Stocks fell in Asia and Europe as investors worried about the implications of the move to support China’s slowing economy and exports.

China’s move, which the central bank described as a “one-off depreciation’’ based on a new way of managing the exchange rate that better reflected market forces, pushed the yuan to its lowest against the dollar in almost three years.

“Devaluation of the yuan likely won’t end here. Currencies like the Singapore dollar, South Korean won and Taiwan dollar which stand to compete with China, are falling and today’s move could generate headlines heralding the start of a devaluation war,’’ said Masafumi Yamamoto, senior strategist at Monex in Tokyo.

US reaction will be crucial. Washington has for years pressed Beijing to free up the exchange rate to allow the yuan to strengthen, reflecting growth in the world’s second-largest economy.

Today, China’s economy is slowing and the new exchange rate mechanism gives markets greater ability to push the yuan lower, just as the United States prepares to raise interest rates — a step that should add to dollar strength.

“The Chinese devaluation was taken as ‘things are not going that well in China’ and this is a risk-off move,’’ said Martin van Vliet, senior rate strategist at ING, adding that “with the Greek deal secured and the ECB continuously buying bonds, peripheral spreads would have been much tighter otherwise’’

SSridhar · Post by **SSridhar** » 12 Aug 2015 10:45

China tries to calm currency war fears as yuan slips further - Reuters, Business Line

China's yuan hit a four-year low on Wednesday, falling for a second day after authorities devalued it in a move that sparked fears of a global currency war and accusations that Beijing was giving an unfair advantage to its struggling exporters.

Spot yuan fell to 6.43 per dollar, its weakest since August 2011, after the central bank set its daily midpoint reference at 6.3306, even weaker than Tuesday's devaluation. The currency fared worse in offshore trade, touching 6.57.

The central bank, which had described the devaluation as a one-off step to make the yuan more responsive to market forces, sought to reassure financial markets on Wednesday that it was not embarking on a steady depreciation.

"Looking at the international and domestic economic situation, currently there is no basis for a sustained depreciation trend for the yuan," the People's Bank of China said in a statement.

Nevertheless, a senior trader at a European bank in Shanghai said the unexpected devaluation had caused "some panic" in the markets. "Although the central bank made explanations again today, stressing the yuan would not show sustained depreciation, the market is very jittery," he said.

The yuan has now lost 3.5 per cent in China in the last two days, and around 4.8 per cent in global markets.

Other Asian currencies were also lower on Wednesday in response, with Indonesia's rupiah and Malaysia's ringgit hitting 17-year lows, and the Australian and New Zealand dollars at six-year lows.

Indonesia's central bank pinned the rupiah's fall directly on the yuan devaluation and said it would step into the foreign exchange and bond markets to guard against volatility.

A trader at a Chinese commercial bank said he expected the yuan devaluation would be over once it nears the official midpoint. "Judging from past two days ... the one-time devaluation engineered by the central bank could be between 4-5 percent before the currency returns to fresh stability," he said.

Poor economic data

Tuesday's devaluation followed a run of poor economic data and raised market suspicions that China was embarking on a longer-term slide in the exchange rate. It was the biggest one-day fall in the yuan since a massive devaluation in 1994.

A cheaper yuan will help Chinese exports by making them less expensive on overseas markets. Last weekend, data showed an 8.3 percent drop in exports in July and that producer prices were well into their fourth year of deflation.

China's Ministry of Commerce acknowledged on Wednesday that the depreciation would have a stimulative effect on exports.

More indicators due on Wednesday for factory output, retail sales and fixed-asset investment are expected to underline sluggish growth in the world's second-largest economy.

Data from the Finance Ministry showed a jump in fiscal expenditure of 24.1 per cent in July, which reflects Beijing's efforts to stimulate economic activity.

The International Monetary Fund said China's move to make the yuan more responsive to market forces appeared to be a welcome step and that Beijing should aim to achieve an effectively floating exchange rate within two to three years.

Beijing has been lobbying the IMF to include the yuan in its basket of reserve currencies known as Special Drawing Rights, which it uses to lend to sovereign borrowers. This would mark a major step in terms of international use of the yuan. "Greater exchange rate flexibility is important for China as it strives to give market forces a decisive role in the economy and is rapidly integrating into global financial markets," an IMF spokesperson said in an emailed statement.

The devaluation was condemned by U.S. lawmakers from both parties on Tuesday as a grab for an unfair export advantage and could set the stage for testy talks when Chinese President Xi Jinping visits Washington next month given acrimony over issues ranging from cybersecurity to Beijing's territorial ambitions.

Not all countries consider the devaluation a threat, however. Korea's Finance Minister Choi Kyung-hwan said the impact would be positive for Korean exports to China, much of which were intermediate items and not in direct competition with Chinese products.

While a weaker yuan will not cure all the ills of China's exporters, which suffer from rising labour costs, it will help relieve deflationary pressure, a far bigger concern in the view of some economists.

Falling commodity prices have been blamed for producer price deflation, putting China at risk of repeating the deflationary cycle that blighted Japan for decades.

Growth in China, the world's second-largest economy, has slowed markedly this year and is set to hit a 25-year low even if it meets its official 7 per cent target.

SSridhar · Post by **SSridhar** » 12 Aug 2015 10:52

India stretches suspense over attending [Chinese] WW-II parade - Dinakar Peri, The Hindu

India continues to stretch the suspense over its participation in China’s big military parade to mark 70 years of victory in World War-II. China has invited several countries for the celebrations on September 3 at Tiananmen Square. While India is committed to honouring its own WW-II efforts, recent tensions with China and the anti-Japan theme of the celebrations mean it could downscale its presence or boycott it completely as compared to the presence of President Pranab Mukherjee at the Russian parade in May this year.

General V.K. Singh, Minister of State for External Affairs, informed Parliament last week that India has not yet confirmed its presence for the military parade. This is reflective of the dilemma in New Delhi on balancing its traditional ties with China and the emerging strategic partnership with Japan. Official sources said that a low level delegation might be sent while one official said India might not attend at all though an official decision was still awaited.

The role of imperialist Japanese forces in China during WW-II is a touchy issue in both countries to this day. The atrocities by Japanese forces will be the highlight of the celebrations. An indication to this is the official name of the celebrations — “The 70th anniversary of Chinese People’s Anti-Japanese War and the World Anti-Fascist War Victory Commemoration Day.”

While India under the British fought for the allied forces, however, the Indian National Army led by Netaji Subhas Chandra Bose was allied with Japanese in its fight for Independence.

In recent times, China’s increasing assertiveness in the South China Sea and Indian Ocean brought India and Japan closer. Prime Minister Narendra Modi has embarked on a major drive to deepen strategic partnership with Japan as well as the Indian Ocean littorals.

SSridhar · Post by **SSridhar** » 13 Aug 2015 06:04

India steels itself to face impact of [another 1%] yuan devaluation - Pooja Mehra, The Hindu

With China’s central bank following up on Tuesday’s devaluation of its tightly controlled currency, yuan, by 1.9 per cent with another 1 per cent cut on Wednesday, India increased the import duty on certain steel products by 2.5 per cent.

The steel industry is facing profit pressure as prices of imported steel are up to 20 per cent lower than those of domestic products.

As China’s move sparked fears of a currency war, the rupee weakened to 64.66 to the dollar, soon after trading opened on Wednesday.

India will have to ruthlessly apply anti-dumping measures in order to save our own industries.

SSridhar · Post by **SSridhar** » 13 Aug 2015 14:16

China weakens yuan for third day [1.11%], reassures markets

China weakened its currency for the third consecutive day Thursday, but financial markets that had been shaken by the surprise devaluation took heart as authorities pledged not to let the yuan plummet.

The central bank trimmed the reference rate for the yuan -- also known as the renminbi (RMB) -- by 1.11 percent to 6.4010 yuan for $1, the China Foreign Exchange Trade System said, from the previous day's 6.3306.

The cut was less than previous two days and came after reports the People's Bank of China (PBoC) intervened Wednesday to stem the yuan's fall.

China adopted a more market-oriented method of calculating the currency rate this week in a move widely seen as a devaluation, raising fresh questions about the health of the world's second-largest economy.

"Currently, there is no basis for the renminbi exchange rate to continue to depreciate," assistant governor Zhang Xiaohui told a briefing, according to a transcript.

"The central bank has the ability to keep the renminbi basically stable at a reasonable and balanced level," she said.

Analysts viewed the move as a way for China to both boost exports by making its goods cheaper abroad and push economic reforms as it seeks to become one of the reserve currencies in the International Monetary Fund's SDR (special drawing rights) group.