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

SSridhar · Post by **SSridhar** » 16 Mar 2015 08:04

Indian Ocean conference will discuss strategic challenges - Suvojit Bagchi, The Hindu

Top Ministers, bureaucrats and more than a dozen Ambassadors in the Indian Ocean Rim Association (IORA) are meeting for the first time in Odisha to discuss strategic challenges in the region.

The participants include External Affairs Minister Sushma Swaraj, Information and Technology Minister Ravishankar Prasad, Defence Minister Manohar Parikkar and Commerce Minister Nirmala Sitharaman; National Security Adviser (NSA) Ajit Dobhal Doval and the Odisha Chief Minister Naveen Patnaik, besides security and strategic affairs experts. The IORA is a regional forum consisting of coastal States bordering the Indian Ocean.

The conference — India and the Indian Ocean: International Conference on Renewing the Maritime Trade and Civilisational Linkages — will witness participation of many countries in Bhubaneswar, between March 20 and 22. One of the hosts told The Hindu that the NSA will preside over a close-door session of “at least a dozen Ambassadors.”

The objective of the conference is to draw a resolution outlining India’s role, including trade ties and strategic challenges, in the Indian Ocean region. Beijing’s announcement to have a ‘Maritime Silk Road’ in 2013 has “kind of pushed” the organisers to host a conference involving multiple stake-holders.

“Since China announced a $20 Billion dollar so-called ‘silk route’ project of connecting East Africa, Gulf countries and South East Asia, our concerns have increased,” said Arindam Mukherjee, secretary of Kolkata-based Institute of Social and Cultural Studies (ISCS), one of the hosts of the event.

“India has thousands of years of cultural and trade linkages with the IORA countries. Moreover, China is now proposing that the name of Indian Ocean be changed {I haven't heard of this before} , and holding multiple conventions in various provinces to promote the Maritime Silk Road,” said Mr. Mukherjee.

Tuvaluan · Post by **Tuvaluan** » 16 Mar 2015 08:09

Renaming the Indian Ocean

India should do whatever is necessary to destroy this chinese "maritime silk road" from ever coming into being. The IORA is a good avenue to achieve that.

SSridhar · Post by **SSridhar** » 16 Mar 2015 09:25

Chinese economy faces big downward pressures: Premier Li - PTI, Business Line

Admitting that China’s economy is facing considerable downward pressures due to the slowdown, Premier Li Keqiang today said the new GDP target of around 7 per cent set for this year is not easy to meet but the government has host of policy to halt the slide.

“This year we set the anticipated GDP target approximately 7 per cent. It is true that we have adjusted downward our GDP target but it will by no means easy for us to meet this target,” he said at his annual press conference at the end of the 10-day meeting of the legislature, the National People’s Congress (NPC).

China registered 7.4 per cent growth last year, slowest in 24 years. A recent IMF forecast said China’s growth rate would further decline to 6.8 this year and 6.3 next year.

Li said because China’s economic aggregate is expanding it size now is valued at about US$ 10 trillion which is equivalent to the total economy of a medium sized country.

“I recognise that there is considerable downward pressure on China’s economic growth and we still face multiple challenges. This requires that the government must strike a proper balance between maintaining steady growth and making structural adjustments,” he said.

Referring to the concerns and worries about slow growth in China, he said, “we must ensure Chinese economy operate within a proper range“.

“If our growth speed comes close to lower limit of the proper range of economic operation and affects the employment situation and people’s livelihood incomes, we are prepared to step up targeted macro-economic regulation to boost the current market confidence while at the same time maintain continuity about our microeconomic policies to anchor long term market expectation,” he said.

“The good news is that in the past couple of years we did not resort to massive stimulus measures for economic growth.

That has made it possible for us to have fairly ample room to pursue economic regulation and we still have host of policy instruments at our disposal,” he said.

SSridhar · Post by **SSridhar** » 16 Mar 2015 10:21

Japan, U.S. to update defense cooperation guidelines in April - Japan Times

Japan and the United States are expected to adopt updated bilateral defense cooperation guidelines in late April, when Prime Minister Shinzo Abe plans to visit the United States, Japanese government officials said Sunday.

The revised guidelines are expected to provide for greater support to U.S. forces by the Self-Defense Forces.

The two countries see adoption as feasible in April because the ruling coalition is expected to achieve a certain agreement on Abe’s new security legislation, including expanded roles for the SDF, informed sources said.

Japan and the United States are expected to hold a meeting of their foreign and defense ministers in Washington before Abe and U.S. President Barack Obama hold a summit to adopt the revised guidelines.

The countries first planned to revise the guidelines last year but rescheduled the timing to the first half of this year because Abe called a snap election last December and the U.S. had to change defense secretaries.

SSridhar · Post by **SSridhar** » 16 Mar 2015 10:23

Japan, Vietnam affirm their partnership on maritime security- Japan Times

Foreign Minister Fumio Kishida and Vietnamese Vice President Nguyen Thi Doan agreed Sunday to continue bilateral efforts to ensure maritime security, underlining the importance of respecting the rule of law, ministry officials said.

Meeting on the sidelines of the U.N. World Conference on Disaster Risk Reduction underway in Sendai, Kishida was quoted as saying Japan wants to increase cooperation with Vietnam over wide-ranging issues such as maritime security.

Kishida and Doan also discussed matters related to the South China Sea, the ministry said.

The sea is the focus of lingering tensions over territorial rows between China and Southeast Asian countries, notably Vietnam and the Philippines.

Similarly, Japan is stuck in a standoff with China over the sovereignty of the Japan-administered Senkaku Islands in the East China Sea, which it effectively nationalized in 2012.

Doan lauded Japan’s role in the international community and said Vietnam wants to continue working together with Japan to tackle maritime security and other issues, the ministry said.

Japan’s position is to respect the rule of law and free navigation. It sees close cooperation with Vietnam, with whom it has a strategic partnership, as vital to check China’s increasing assertiveness at sea.

Kishida and Doan also reaffirmed continued cooperation to increase the number of Vietnamese coming to Japan to work as nurses and caregivers, the ministry said.

SSridhar · Post by **SSridhar** » 16 Mar 2015 10:31

Japan offers $160 million in loans to Cambodia to expand major road - Japan Times

Prime Minister Shinzo Abe told Cambodian counterpart Hun Sen on Sunday that Japan will extend ¥19.2 billion, or about $160 million, in low-interest loans to the country to improve a major road.

Together with the opening in April of a Japan-funded bridge in Cambodia spanning the Mekong River, the improvement of National Road No. 5 between Phnom Penh and the Thai border is expected to boost regional connectivity and stimulate economic development by increasing transportation capacity and efficiency in the Mekong region.

“By investing in such high-quality infrastructure, Japan would like to contribute to Cambodia’s efforts to significantly strengthen connectivity with neighboring countries and achieve sustainable growth,” Abe was quoted by the Foreign Ministry as saying at the meeting with Hun Sen in Sendai, where a U.N. disaster risk conference is underway.

The two leaders hailed the completion of the Tsubasa Bridge, a 2,200-meter suspension bridge in Neak Loeung that local residents say will remove a traffic bottleneck between the capital and Ho Chi Minh City in Vietnam.

“The Tsubasa Bridge is an important bridge that connects Mekong countries,” Hun Sen was quoted by the ministry as saying, adding that he “appreciates Japan’s assistance for National Road No. 5.”

The road and the bridge, the name of which means bird wings in Japanese, are part of the Southern Economic Corridor, a transportation route linking Ho Chi Minh City to Dawei in southeastern Myanmar via Bangkok. Governments and businesses expect it to serve as a major industrial artery in the Mekong region.{India is already engaged in a Mekong-India corridor with a road network from Guwahati through Mandalay to Thailand and upto Ho Chi Minh city. This will boost that project further.}

Japan has been promoting ties with Cambodia and other members of the Association of Southeast Asian Nations, where barriers to the flow of people, goods and money across the borders of its 10 member states will be lowered when a more integrated ASEAN Economic Community is launched at the end of this year.

A_Gupta · Post by **A_Gupta** » 16 Mar 2015 19:43

http://tuoitrenews.vn/international/267 ... rter-study

China has eased ahead of Germany and France to become the world's number three arms exporter after the United States and Russia, a Stockholm-based think-tank said Monday.

Three Asian countries accounted for more than two-thirds of Chinese exports, with Pakistan buying 41 percent of the total, followed by Bangladesh and Myanmar. Beijing also had 18 client nations in Africa during the period.

SSridhar · Post by **SSridhar** » 17 Mar 2015 08:57

Australia may seek membership of the China-led infrastructure Bank - Atul Aneja, The Hindu

After Britain, it may be Australia’s turn to seek membership of the Asian Infrastructure Investment Bank (AIIB) — a move, if it materialises, will signal a revolt by core members against the United States, which is discouraging the participation of its allies in the China-led initiative.

The Australian newspaper quoted Tony Abbot, Australia’s Prime Minister as saying: “I note that the U.K. has indicated an intention to sign up for the negotiations, the New Zealanders before Christmas signed up for the negotiations, the Singaporeans likewise, the Indians likewise.”

He added that Canberra was “looking very carefully at this and we’ll make a decision in the next week or so”.

On Monday, Australian Foreign Minister, Julie Bishop said negotiations with China were “very positive.” The Australians said Beijing had accepted many of its conditions for joining a new China-led lender.

Britain had set the precedent of breaking ranks from Washington on Thursday, when it declared it was entering negotiations for joining the $50 billion bank, before the March 31 deadline expired.

It was apparent that the British announcement had piqued the U.S., its chief ally in the Atlantic alliance. “We are wary about a trend toward constant accommodation of China, which is not the best way to engage a rising power,” {Very true in this case indeed. How come, then, a constant accommodation of a terrorist country for sixty years by the US is justified?} the unnamed official told the Financial Times .

In January, U.S. President Barak Obama signalled during his State of The Union address that China was seeking extension of its geopolitical influence based on its financial heft, when he said that “China wants to write the rules for the world’s fastest-growing region”.

Seoul ambivalent

China would also want South Korea, another economic heavyweight to sign up to the new institution, but so far, Seoul has been sending ambivalent signals. Financial Times quoted a South Korean Foreign Ministry official as saying that Seoul is engaged in talks with both China and the U.S. regarding its participation in the bank.

Japan, another key U.S. ally in the Asia-Pacific, appears unenthusiastic about participation in the AIIB, which could well be perceived as a rival to the Manila-based ADB, which Tokyo dominates.

“We are cautious about participating,” said Fumio Kishida, Foreign Minister, at a briefing last week.

SSridhar · Post by **SSridhar** » 17 Mar 2015 09:04

South Korea, Japan and China to meet on three-way cooperation - ET

The foreign ministers of South Korea, China and Japan will meet on Saturday in Seoul for the first time in nearly three years in a bid to restore cooperation between the three Asian economic powers, South Korea's foreign ministry said.

South Korea and China's ties with Japan have chilled over what they view as Japan's reluctance to properly atone for its wartime past. Both South Korea and China also have territorial disputes with Japan.

But ties between China and Japan have shown signs of warming over recent months and South Korea's foreign ministry said senior officials from the three countries had met recently and the foreign ministers aimed to put trilateral cooperation back on track.

"The meeting is the first in about three years since April 2012 and is expected to lay the foundation for restoring a mechanism for three-country cooperation," the ministry said in a statement on Tuesday.

Three-way summit meetings of the countries' leaders, which had been held annually from 2008, have also been on hold since May 2012.

The foreign ministers' meeting would signal progress in the push to restore three-way ties amid pressure from South Korea and China for Japanese leaders to take steps to show they fully recognise the country's past during World War Two.

South Korean President Park Geun-hye, who has yet to have a formal meeting with Japanese Prime Minister Shinzo Abe, said this month Japan was an important partner which shared the principle of free democracy and market economy.

"Now it's time for Japan to courageously and sincerely recognise historic reality and go hand in hand with South Korea as partners to write a new history for the next 50 years," Park said on March 1.

vijaykarthik · Post by **vijaykarthik** » 17 Mar 2015 10:11

What was a drop now looks like a gush. Looks like France, Germany and Italy are following GB to join the AIIB as founding members!

http://www.reuters.com/article/2015/03/ ... sinessNews

FTA: France, Germany and Italy have agreed to follow Britain's lead and join the Asian Infrastructure Investment Bank (AIIB), a major setback for Washington, the Financial Times reported.

WOW.

SSridhar · Post by **SSridhar** » 18 Mar 2015 09:55

China welcomes India's initiative to improve ties with Pakistan - Dipanjan Roy Choudhry, ET

China has welcomed India's fresh initiatives to break the ice with Pakistan and said it is nudging Pakistan to improve ties with India, raising hopes that it may prevail upon its ally to work toward easing tensions in the subcontinent.{Raising hope? }

"India and Pakistan have launched dialogue to ease tensions. We understand that it is not an easy task but we appreciate that DelPakistan for better ties with India," a senior Chinese official told ET ahead of PM Narendra Modi's visit to Beijing in mid-May. A senior Pakistani expert also indicated that China is in talks with Pakistan to find a way forward in improving ties between the South Asian neighbours.

This is the first such statement from China, which, India believes, has been arming and abetting Pakistan as part of its strategy to contain India and thereby maintain a dominant presence in South Asia. Experts say China has been worried about the growing spectre of terrorism not only in Pakistan but also within its territory in Xinjiang region.{The mistake that is always committed is to link terrorism against India by the Pakistani Establishment with Islamist terror that
is not state supported but by the ummaah terrorists alone as in the case of China}

The Chinese official also suggested that while his country was trying to influence Pakistan, India should also take initiatives simultaneously to improve relations with its western neighbour. These remarks also bear significance as they come ahead of the first Sino-Indian Special Representative (SR) dialogue under the Modi government at Delhi on March 23, when the regional situation as well as the boundary dispute will be discussed.

The official refrained from preempting the outcome of the next SRlevel dialogue, though, saying the "matter is sensitive" and the two leaders (Modi and Xi) will decide on the next course of action on the issue when they meet in China in May. "A warm reception awaits PM Modi in China similar to the one Xi received in Ahmedabad last September," he said.

India has time and again expressed its reservations about China's role in propping up Pakistan. The official, however, said his country's goal is to improve economic conditions of Pakistanis through its programme.

Sharing his views on the expanding India-US ties in the backdrop of India's growing interests in the Asia-Pacific region and Indo-US vision statement on Asia-Pacific and Indian Ocean Region, the official noted that India as a leader of Non-Aligned Movement pursues an independent foreign policy and it is in India's interests to pursue such an approach to emerge as a big power. {The reference to NAM is to subtly claim that India is no longer non-aligned}

Amid efforts on part of India and China to expand economic partnership including increasing Chinese investments in South Asia's biggest country despite the lingering border dispute, the Chinese government feels that India needs to do more to ease red tape and provide incentives to overseas investors including those from China to attract FDI.

SSridhar · Post by **SSridhar** » 18 Mar 2015 12:57

China’s Councilor to visit India on March 23 for boundary talks - Atul Aneja, The Hindu

China’s State Councilor Yang Jiechi arrives in India on March 23 on a two-day visit for boundary talks with his Indian counterpart Ajit Doval and to prepare for Prime Minister Narendra Modi’s upcoming visit to Beijing in May.

Mr. Yang’s visit to India was confirmed by The Hindu last month, though both sides were earlier looking at the possibility of holding talks towards the end of February. The dialogue between the two Special Representatives is expected to take place early next week.

Highly placed sources said that though it was Mr. Doval’s turn to arrive in Beijing for talks on the boundary issue, the Chinese side was inclined to send Mr. Yang to New Delhi. The Chinese wanted to reciprocate New Delhi’s special gesture conveyed through Mr. Doval’s arrival in Beijing ahead of President Xi Jinping’s visit to India last September, the sources said.

The Chinese perception of a two-speed relationship, where rapid development of the economic relationship would co-exist with incremental progress on the boundary issue, was evident during Foreign Minister Wang Yi’s recent media conference. Speaking on the sidelines of the annual meeting of the National People’s Congress, Mr. Wang said, “At the moment the boundary negotiations are in the process of building up small, positive steps.”

He added: “It is like climbing a mountain. The going is tough, that is only because we are on the way up.” With an early breakthrough not in sight, Mr. Wang advocated overall development of the China-India ties, as this would impart a positive momentum to the resolution of the border row. “This is one more reason why we should do more to strengthen China-India cooperation so that we can enable and facilitate the settlement of the diplomatic question.”

Regarding talks, both sides are in the middle of a three-stage process of defining a framework for resolving their differences in the western, middle and eastern sectors. Armed with an agreement in 2005 on the guiding principles, it is envisaged that the talks will culminate in the delineation of the border on the ground and maps. While preparations for Mr. Modi’s visit have begun, both sides are trying to focus on a few areas rather than have a thin spread of too many items on the agenda.

A_Gupta · Post by **A_Gupta** » 18 Mar 2015 14:59

Since this would change the strategic equation w.r.t. China, I put this in the China rather than the ASEAN thread.
http://www.mizzima.com/business/dawei/i ... ei-project

China is showing interest in reviving long-standing proposals for a deep-water canal through the narrowest part of Thailand’s long peninsula to link the Indian Ocean with the South China Sea.

It’s a move that, if implemented, could pose a threat to the viability of ambitious plans for a special economic zone at Dawei on Myanmar’s Andaman Sea coast. It also puts a question mark over the recently opened 800-kilometre pipeline that delivers crude oil from a terminal at Kyaukphyu in Rakhine State to China’s Yunnan Province.

The Isthmus of Kra narrows to about 27 miles (44 kilometres) wide south of the Thai coastal city of Chumphon, opposite the southernmost tip of Myanmar. A canal across the isthmus has been talked about for hundreds of years and has more recently been the subject of several feasibility studies. It has never gone beyond the drawing board, mainly because of cost and lack of international backers.

However, a Thai government-linked group, the National Committee for the Kra Canal Project, has dusted off the idea and together with a Thai-Chinese business association has been working on a feasibility study with researchers at the University of International Business and Economics in Beijing.

At present about 60 percent of China’s crude imports have to pass through the narrow Strait of Malacca. Beijing has long had strategic concerns about having to rely on energy supplies shipped through the Strait, which is one of the main reasons why it built parallel crude oil and gas pipelines across Myanmar to Yunnan Province.

China’s concerns are underlined in a new study by the Maritime Institute of Malaysia that predicts the Strait will become heavily congested in the next ten years, with annual shipping traffic of up to 1400,000 vessels. That’s 18,000 vessels more than its capacity, said the institute, and would lead to costly shipping delays.

A pre-feasibility study by Thailand’s National Committee for the Kra Canal Project has estimated that it would cost about US$20 billion to build a canal. It would stimulate regional trade by reducing shipping times between the South China Sea and the Indian Ocean by at least two days, the deputy director of the economic section at Thai-Chinese Cultural and Economic Association, Pakdee Tanapura, told Bangkok newspapers.

There are several possible locations for a canal across Thailand, but it would have to be deep and wide enough to take the monster oil tankers known as very large crude carriers (VLCCs).

The pipeline across Myanmar has eased China’s energy security concerns but it still needs to rely heavily on crude shipped via the Malacca Strait.

SSridhar · Post by **SSridhar** » 18 Mar 2015 18:43

Chinese Deep-sea Sub Discovers Big Mineral Deposits in Ocean -PTI, New Indian Express

China's 'Jiaolong' deep-sea manned submersible returned from its maiden 118-day exploratory voyage to the Indian Ocean where it is reported to have discovered large deposits of precious metals like gold and silver.

During the latest mission, the Jiaolong successfully carried out 13 dives to observe different hydrothermal areas,
the characteristics of hydrothermal fluids and deep-sea biodiversity, gathering a huge amount of data and more than 700 samples.

The sub discovered several new hydrothermal vents - deep-sea fissures which emit hot water. Its findings could help research into resources and environments of seafloor sulfide deposits that contain various metals.

Deep-sea "chimney vents", also known as hydrothermal sulfide, are a kind of seabed deposits containing copper, zinc, gold and silver.

Those metals formed sulfides after chemical reactions and came to rest in the seabed in the form of "chimney vents," state-run Xinhua news agency quoted scientists as saying.

Firming up its foothold in India's backyard, China has gained approval in 2012 to explore 10,000 sq kms of polymetallic sulphide ore deposit in an international seabed region of the southwest Indian Ocean.

The 15-year approval was secured by China from the International Seabed Authority (ISA).

China also has obtained exclusive rights to prospect in a 75,000 sq km polymetallic nodule ore deposit in the east Pacific Ocean in 2001.

Named after a mythical dragon, Jiaolong reached a maximum depth of 7,062 metres in the Pacific's Mariana Trench in June, 2012.

Following the mission, it was stationed at a new port belonging to the National Deep Sea Centre, which will be in charge of its future operations.

The centre began construction in 2013. It covers about 26 hectares of land and 67 hectares of sea in Jimo City, with an investment of 500 million yuan (USD 812,000) in the first phase.

Jiaolong will embark on a new expedition to the northwest Pacific between June and August.

China started the construction of its second manned sub which can reach a depth of 4,500 metres in 2013 for more deep sea research.

SanjayC · Post by **SanjayC** » 18 Mar 2015 18:47

Tuvaluan wrote:Renaming the Indian Ocean

This has been Pakistan's wet dream for long, and China is just articulating it to do its whore a favour.

Rethinking ‘Indian ocean’
http://nation.com.pk/lahore/12-Feb-2015 ... dian-ocean

A_Gupta · Post by **A_Gupta** » 19 Mar 2015 15:53

https://in.newshub.org/modi-leaves-xi-j ... 75455.html

Beijing, Mar 19: Prime Minister Narendra Modi has pipped Chinese President Xi Jinping to secure the top rank in handling domestic and international affairs in a global survey conducted by a Chinese firm.

In the 'China's National Image Global Survey 2014, conducted in nine countries -- the US, UK, Australia, Japan, South Africa, India, Russia, Brazil and China -- Modi's handling of domestic and international affairs has won him the top rank while Xi figured second.

The survey, based on 4,500 respondents from the nine countries, was conducted by the Centre for International Communication Studies of China Foreign Languages Publishing Administration, Millward Brown and Lightspeed GMI.

The survey, which did not include China's close ally Pakistan, found that Beijing's overall image has been increasingly recognised by the global community.

SSridhar · Post by **SSridhar** » 19 Mar 2015 18:22

Philippines uncovers new Chinese construction in Spratlys - Nikkei Asian Review

China is ramping up land reclamation and construction on the disputed Spratly Islands, aerial photographs by the Philippine military show, fueling concerns in Manila that the Asian giant soon may militarize in the South China Sea.

The photos from January show several large facilities, such as a six-story building, being constructed on the Johnson North and Johnson South reefs. China has reclaimed about 80,000 sq. meters on Johnson North Reef, where just a 1,000-sq.-meter building stood two years ago.

A massive 3km strip with a maximum width of 600 meters has emerged on Fiery Cross Reef, where the Philippine military thinks China is constructing an airstrip. Much of the reclaimed land and facilities are expected to be for military use, based on their shapes.

In addition to the five known projects in the area, the new photos revealed that China also is building up the Mischief and Subi reefs. A facility resembling a fish farm was discovered on Mischief Reef.

These activities "are fueling greater anxiety within the region about China's intentions amid concerns they may militarize outposts on disputed land features," U.S. State Department spokesperson Jen Psaki said Monday.

China's large-scale projects first came to light last year, also through photos by Philippine forces. Beijing has claimed most of the South China Sea as its territory and is tightening control over the area. It is reclaiming land on the Paracel Islands as well.

Other claimants of the disputed territory, such as the Philippines and Vietnam, have few or no options to curb Chinese expansionism. The Philippine government is challenging Beijing's claims under the United Nations Convention on the Law of the Sea, and a decision could come out as early as the end of this year.

A_Gupta · Post by **A_Gupta** » 20 Mar 2015 17:31

http://www.ndtv.com/india-news/pm-modis ... ank-748303

China feeling the heat.

Beijing: Terming Prime Minister Narendra Modi's visit to Tamil-dominated Jaffna as "interference" in Sri Lanka's affairs, an official Chinese think tank today said the recent "incidents" in Sino-Lankan ties are sufficient to "merit Beijing's attention."

"PM Modi's trip to Sri Lanka has courted attention from media outlets of many countries including China, with most of them believing New Delhi has gained the upper hand when Colombo halted the China-invested project," Liu Zongyi, assistant researcher of Shanghai Institute for International Studies, said in an article.

"PM Modi included in his Sri Lanka trip the city of Jaffna in the Tamil-majority Northern Province, which in fact shows India's interference in the country's internal affairs," the article published in state-run Global Times said.

In an apparent reference to the decision by Sri Lanka's new government to review $ 5-billion Chinese investments, including the controversial $ 1.5-billion Colombo Port City project, agreed during the previous Mahinda Rajapaksa regime, the article said "every small country yearns to strike a balance among different powers."

"Some of them even attempt to maximise their national interests by taking advantage of the competition among great powers."

The article added "regardless of the nationalist Prime Minister's objective, recent incidents are sufficient to merit Beijing's attention."

It, however, cautioned: "Historical disputes between India and Sri Lanka over Tamil people and fishery resources will make it difficult for the two sides to build a rapport any time soon."

"If the Sri Lankan government ignores China's goodwill in a bid to cater to certain powers, it will hardly gain respect from the international community," it said.

SSridhar · Post by **SSridhar** » 22 Mar 2015 07:49

China, Japan, S. Korea to set up leadership summit - AFP

The Foreign Ministers of South Korea, China and Japan pledged to set up a trilateral leadership summit at “the earliest” opportunity as they met in Seoul on Saturday [March 21, 2015] for the first time in nearly three years.

The talks were an effort to calm regional tensions stoked by territorial disputes and historical rows with roots in Japan’s colonisation of the Korean peninsula and occupation of parts of China before and during World War II.

In a joint statement, South Korean Foreign Minister Yoon Byung-Se and his Chinese and Japanese counterparts, Wang Yi and Fumio Kishida, said they had agreed to work towards a three-way summit of their respective leaders “at the earliest convenient time.”

They also declared their “firm opposition” to the development of nuclear weapons on the Korean peninsula — a clear reference to North Korea’s nuclear ambitions.

SSridhar · Post by **SSridhar** » 23 Mar 2015 08:40

To counter China's Silk Road, India is working on Cotton Route - Economic Times

India is trying to counter China's Silk Road Economic Belt strategy with the idea of Cotton Route, to improve diplomatic and economic relations with Indian Ocean Rim countries.

This was one of the key takeaways from a three-day international conference, India and Indian Ocean: Renewing the Maritime Trade and Civilisational Linkages, which ended here [Bhubaneshwar] on Friday.

Union ministers Sushma Swaraj, Manohar Parrikar, Dharmendra Pradhan and Mahesh Sharma attended the conference, and spoke about India's ideas for the region. The event followed Prime Minister Narendra Modi's visit to Sri Lanka, Seychelles and Mauritius, which highlighted New Delhi's eagerness to deepen ties with countries in the Indian Ocean region where Beijing is too trying to expand its influence. Through the Silk Road strategy, China is seeking to build an economic belt, covering countries along both the sea path and land path.

"Our strength lies in our belief in nonviolence, but it also has to be displayed by strength," Defence Minister Parrikar said. "In Sanskrit, there is a saying that it's only the goat that is sacrificed in a yagna, not the lion."

India will be hosting an international fleet review at Visakhapatnam in February 2016, the minister said. He wouldn't comment on whether China would be invited.

According to Parrikar, maritime threats were not always traditional. Somalian pirates were shifting towards India, he warned.

On Friday, Foreign Minister Swaraj stressed on improving maritime security in the region. "The Indian Ocean carries one half of world's container shipments, one-third of the bulk cargo traffic and two-thirds of the oil shipments, though three-fourths of this traffic goes to other regions of the world," she said, adding: "90% of our trade by volume and 90% of our oil imports take place through sea."

Prime Minister Modi has a clear focus on closer trade, economic and cultural ties with Indian Ocean countries, said Petroleum Minister Pradhan, who acted as the de-facto host at the conference.

SSridhar · Post by **SSridhar** » 23 Mar 2015 09:00

Pressure on Japan, U.S. to join Asian bank - Atul Aneja, The Hindu

Japan now appears divided, and the United States is being strongly advised to join the China-led Asian Infrastructure Investment Bank (AIIB), whose formation is beginning to be viewed as the dawning of a multi-polar world.

Opposed to participation so far, the Japanese were emitting mixed signals about prospects for joining the bank. Japanese Finance Minister Taro Aso said Tokyo could consider participation in AIIB, provided a credible mechanism for providing loans could be guaranteed.

However, Reuters quoted a senior official in the ruling coalition that Japan’s participation “is not going to happen under the [Shinzo] Abe administration”.

The Australians appear close to dropping their earlier opposition, and are likely to formally announce their decision to join the bank, following a Cabinet meeting slated for Monday [ today ].

Major European powers — Britain, Germany, France, Italy, Luxembourg and Switzerland — have already broken the shackles imposed by Washington against participation in the Beijing-led lender, which earlier had emerging countries like India, as well as Singapore, Kuwait and Qatar in the list of founding members.

“The story of the Asian Infrastructure Investment Bank is turning into a diplomatic debacle for the U.S. By setting up and then losing a power struggle with China, Washington has sent an unintended signal about the drift of power and influence in the 21st century,” wrote the Financial Times .

In an editorial, the Hong Kong based South China Morning Post (SCMP) opined that the acceptance, however reluctant, of a Beijing-led bank meant that the uni-polar world had entered its sunset years. With most allies already backing, or in the process of doing so, influential sections of the Western media are arguing that instead of choosing confrontation, Washington too should join the AIIB. Another article in the Financial Times slammed the U.S. for being obstructionist.

SSridhar · Post by **SSridhar** » 23 Mar 2015 11:36

from NightWatch for the night of Mar 22, 2015

China-India: Special Representatives of India and China are scheduled to hold talks on 23 March in New Delhi on disputed borders. This will be the 18th round of talks on the border disputes. The purpose of the latest meeting is to finalize the framework for resolving the disputes as well as to prepare for Prime Minister Narendra Modi's visit to China in May.

Chinese State Councilor Yang Jiechi and his Indian counterpart National Security Adviser Ajit Doval will meet Prime Minister Modi on Tuesday.

Comment: Indian press analysts noted that this will be the first time that the Modi government has engaged State Councilor Yang on the border issue since Mr. Doval was appointed Special Representative last November. "It will be an exercise in clarifying and understanding each other's positions," government sources said. The last talks in this series occurred a year ago.

The border between India and China is not defined in multiple locations. The Chinese claim large areas of India, including most of one state in eastern India. As with China's offshore claims, the Chinese have no intention or legal flexibility to compromise their claims.

Both sides have built up military bases and forces opposite the disputed border regions, but the Chinese are far ahead of the Indians in making military improvements. The talks keep lines of communication open during the military buildup. Neither side is yet ready for the inevitable military conflict over claims. The talks provide a mechanism to convey reassurance that the occasional border clashes will not escalate until both sides are ready.

vijaykarthik · Post by **vijaykarthik** » 23 Mar 2015 15:08

There is major expectation that Australia will join AIIB... and SK will follow suit.

A_Gupta · Post by **A_Gupta** » 23 Mar 2015 16:59

This could also be in the ASEAN thread:
http://www.reuters.com/article/2015/03/ ... KV20150323

(Reuters) - Indonesia will seek to host the Asian Infrastructure Investment Bank's headquarters, the finance minister of Southeast Asia's largest economy said on Monday, though the new multi-lateral lender is led by China and Beijing wants the role for itself.

chaanakya · Post by **chaanakya** » 23 Mar 2015 22:16

India tells China to open up more, may take steps

INDIA has raised the heat on trade talks with China, with New Delhi warning Beijing that “protectionist tendencies” in the Indian industry may force the government to take a “proactive view” on Chinese imports.

According to Indian officials, New Delhi is frustrated that administrative agencies in China have not responded to India’s demands in three key sectors — pharmaceuticals, agriculture, including bovine meat, and IT services — where the country has “demonstrated its strength”.

The timing of the official communication from the Department of Commerce is significant with Prime Minister Narendra Modi scheduled to visit China within the next two months. While a large part of Modi’s bilateral talks President Xi Jinping would focus on the crucial boundary question, the PM is also expected to raise issues relating to greater market access for Indian products and services, and Chinese investment in India. The dates of Modi’s visit will be finalised during talks between India’s NSA Ajit Doval and his counterpart Yang Jiechi that commenced Monday.

According to senior officials in the Ministry of Commerce and Industry, China has been warned “in as many words” that New Delhi may introduce standards for a variety of products and subsequently restrict Chinese imports of “non-essential items where India had quality concerns”. The officials said Bejing’s first reaction when India expresses concern in a particular area is to sign a memorandum of understanding, with little follow-up action. “We have signed several MoUs with China. Two of them relate to export of buffalo meat and IT services. But in both these areas, where India has immense potential to export, Chinese agencies have been very bureaucratic,” a senior official told The Indian Express.

Bovine meat needs sanitary and phytosanitary clearance from the relevant Chinese agency. “It’s been more than two years, but they continue to delay finalisation of protocol on sanitary and phytosanitary measures and certification procedures,” the official said, adding that Indian buffalo meat finds its way to China through Vietnam.

Similarly, for IT services, tenders floated by Chinese state organisations have set a high bar of US$100mn for bidding. “This is an artificial barrier and many Indian companies are unable to participate despite their competence,” the official said. Trade in pharmaceuticals has, meanwhile, become a strategic issue, the officials said. India imports almost 70% of its API (active pharmaceutical ingredient) requirement from China. But non-trade barriers have held back Indian drug companies from exporting formulations to the Chinese market.

“There are regulations which require state-run hospitals to sell two branded versions of a medicine for every generic version they want to sell,” a commerce ministry official said, adding this was why Indian companies were unable to get a foothold in China despite their products being much cheaper.

Officials in the Department of Commerce also pointed out that the bilateral trade balance has consistently worsened over the years. In 2013-14, bilateral trade stood at US$65.78bn, with India suffering a deficit of US$36.21bn. During the first half this year (April-September 2014), bilateral trade was US$16.4bn, with a US$9bn deficit. A slowdown in China will likely derail the two countries’ plans to cross US$100bn in bilateral trade

panduranghari · Post by **panduranghari** » 24 Mar 2015 00:07

According to senior officials in the Ministry of Commerce and Industry, China has been warned “in as many words” that New Delhi may introduce standards for a variety of products and subsequently restrict Chinese imports of “non-essential items where India had quality concerns”.

This was a suggestion made by some poster in Chinese economy thread. Good the government is reading or at least trying to use ideas espoused here.

SSridhar · Post by **SSridhar** » 24 Mar 2015 04:04

^ The trouble with GoI is that actions are not swift. For example, the above report talks of India-China coming to a conclusion on meat export 2 years back, but Chinese bureaucrats not doing anything to allow that. We have been talking of IT & pharmaceuticals for almost a decade and yet nothing has happened even as the Chinese one-way trade has doubled. Even now, GoI is warning the Chinese of some action. I bet that the Chinese would ignore such a warning because they are used to indecision by Indian governments for 67 years. IMO, there should not have been a warning but an abrupt action that sent a message.

SSridhar · Post by **SSridhar** » 24 Mar 2015 08:46

India, China mull landmark agreement to promote bilateral trade & investments - Dipanjan Roy Chaudhry, Economic Times

India and China are likely to enter into a landmark agreement during Prime Minister Narendra Modi's visit to the neighbouring country to create a platform for cooperation between Indian states and Chinese provinces that will help promote bilateral trade and investments.

"The two countries hope to agree to create a platform that will enhance cooperation between chief ministers of India and governors of Chinese provinces. This could be concluded during PM Modi's visit to China in May," China's Ambassador to India Le Yucheng told ET.

The first such framework between the two countries will be inspired by similar platforms that China has with the US and Russia.

"States and provinces are engines of growth and this platform would increase bilateral trade and investments, and people-to-people contact," the envoy said, adding such platforms have helped forge better ties with the US and Russia.

India does not have such a platform with any country, but some prominent states in the country have partnerships with their counterparts across the globe. Several chief ministers have been visiting various countries in search of investments, technology and market.

A memorandum of understanding on increasing the number of cities in the list of sister-city cooperation between the two countries is also expected during Modi's maiden trip to China as PM, Le indicated.

During Chinese President Xi Jinping's visit to India in September, a pact was signed to make Shanghai and Mumbai sister cities. A pact was also signed in Gujarat during Xi's trip to make Ahmedabad a sister city of Guangzhou. In 2013, the Manmohan Singh government had signed a pact to establish sister city relations between Delhi & Beijing, Bengaluru & Chengdu and Kolkata & Kunming to foster closer ties.

A_Gupta · Post by **A_Gupta** » 24 Mar 2015 17:45

http://www.outlookindia.com/news/articl ... ade/887533

China today indicated that it has invited wartime enemy Japan to take part in the grand victory military parade it has planned later this year to mark the 70th anniversary of the end of World War II.

Chinese Foreign Ministry spokesperson Hua Chunying told a media briefing that China has sent invitation to the leaders of "all relevant countries and international organisations" to take part in the parade.

Asked whether Japanese Prime Minister Shinzo Abe has been invited, Hua shot back saying "as I said we have sent invitations to the leaders of all relevant countries and international organisations. Do you think Japan is relevant or not to this war?"

The parade to be held in September will take place as part of a memorial event marking the Chinese people's successful war of resistance against Japanese aggression and the victorious international anti-Fascist war.

Observers say that the parade has political significance as this will be the first time when China will hold a military parade in remembrance of the 'Chinese People's War of Resistance Against Japanese Aggression in the 1930s-40s'.

SSridhar · Post by **SSridhar** » 25 Mar 2015 06:23

India, China agree to maintain peace, tranquillity in border areas - Dinakar Peri, The Hindu

India and China held the 18th round of talks between the Special Representatives on the Boundary Question in which both sides agreed to take “necessary steps to maintain peace & tranquillity in border areas.”

In an effort towards demarcating the contentious boundary, both sides also reinforced their commitment to the “three-step process to seek a fair, reasonable and mutually acceptable resolution” within the agreed guiding principles.

At the meeting on Monday, India was represented by Ajit Doval, National Security Adviser, and the Chinese representative was Yang Jiechi, State Councillor. This is the first meeting of the special representatives after the Modi government assumed office.

“The Special Representatives continued the discussions to reach a mutually acceptable framework for resolution of the Boundary Question on the basis of the Agreement on the Political Parameters and Guiding Principles,” a statement from the Ministry of External Affairs said.

Absolutely useless meetings. They serve no purpose. Whenever the Chinese want to intrude and convey a message, they do so, notwithstanding the various agreements.

SSridhar · Post by **SSridhar** » 25 Mar 2015 12:13

MHA frowns over 'visa on arrival' for Chinese tourists, brushes aside tourism ministry plan - Bharti Jain, ToI

The home ministry has expressed reservations over the tourism ministry's plan to extend tourist visa-on-arrival (TVoA) to China citing security concerns. Sources said the home ministry doesn't want the facility to be extended to China without "suitably addressing some key security concerns".

The worries were flagged when the tourism ministry wanted China along with UK to be among the first five countries for extension of TVoA proposal to 150 countries in line with the budget proposals.

At a meeting with home minister Rajnath Singh here on Tuesday, minister of state for tourism Mahesh Sharma requested that 'visa-on-arrival' scheme be immediately extended to China, UK, France, Spain and Italy. "The home minister indicated that an announcement in this regard shall be made soon, possibly in the next two to four days," Sharma told journalists after his discussions with Singh on the TVOA scheme.

However, sources said the home ministry is not in favour of any hasty decision on including China among the list of TVoA beneficiaries. "There are certain security concerns flagged by our intelligence agencies. We need to sort these out before taking a final call on extending the facility to Chinese tourists," said a senior home ministry official. Though the issue of stapled visas by China to residents of Arunachal Pradesh also remains a matter of concern to India, the fact that TVoA scheme does not seek reciprocity may not hold back approval of China as a beneficiary.

Prime Minister Narendra Modi is due to travel to China in May this year and easing of visa regime will be seen as a positive move ahead of the visit. However, it remains to be seen if PMO will overrule the intelligence agencies' reservations to include China in the TVoA list.

RajeshA · Post by **RajeshA** » 25 Mar 2015 13:40

SSridhar wrote:Absolutely useless meetings. They serve no purpose. Whenever the Chinese want to intrude and convey a message, they do so, notwithstanding the various agreements.

We're not quite there yet. We may need another 20-25 years, but the Chinese are going to curse their previous leaders for leaving the border issue unresolved. Over time, unresolved border plays in India's favor. In the mean time, Chinese can do their bit to awaken the sleeping Indian Arjuna.

A_Gupta · Post by **A_Gupta** » 25 Mar 2015 20:48

No reciprocity?
http://www.tribuneindia.com/news/world/ ... 58460.html

China welcomes India’s visa-on-arrival plan to its tourists

Beijing, March 25
China on Tuesday welcomed India’s plans to grant visa-on-arrival facility to Chinese tourists, but did not commit to a reciprocal gesture for Indians visiting the country in large numbers.

“We welcome this,” Chinese Foreign Ministry spokesperson Hua Chunying told reporters here.

Hua was responding to reports from India that an announcement in this regard will be made by Prime Minister Narendra Modi during his China visit in May.

Asked if China would reciprocate India's gesture to facilitate more people-to-people exchanges, Hua did not commit anything.

"We are willing to work with the Indian side to facilitate the personal exchanges between the two countries and promote mutual understanding and mutual trust between two people and lay solid foundation for the bilateral cooperation," she said.

arshyam · Post by **arshyam** » 25 Mar 2015 21:16

Good, there is an excuse for us to withdraw this policy. Also there is an article above stating that the MHA is not happy with this policy as applicable to China. I personally can see the benefit of getting more tourists, but am not convinced of how we do clearance for security, especially in light of many of these 'tourists' doing certain nefarious activities, even with the older system of applying in person. The new process speeds the visa process, wonder how we can effectively screen applicants and prevent misuse. Hope more details are released in the public domain.

A_Gupta · Post by **A_Gupta** » 26 Mar 2015 04:59

Per the Chinese: "Indian PM says ardently expecting to visit China"

http://news.xinhuanet.com/english/2015- ... 093253.htm

NEW DELHI, March 24 (Xinhua) -- Indian Prime Minister Narendra Modi Tuesday said he is ardently expecting to visit China soon to exchange views with Chinese leaders on furthering India-China relations.

During a meeting here with visiting Chinese State Councilor Yang Jiechi, Modi said Indian people have fresh memories of the successful visit to India by Chinese President Xi Jinping last year.

He also asked Yang to convey his sincere greetings to President Xi and Premier Li Keqiang.

He said he would like to have in-depth exchanges of views with Chinese leaders on the furthering of bilateral ties when he visits China.

This would also send a positive message to the international community on the efforts being made by the two countries in developing friendship cooperation, he said.

Modi said the bilateral relations are moving on a fast track and in the correct direction set by the leaders of the two countries.

This would not only benefit the two countries and their peoples, but also exert a positive influence on Asia and the whole world, he pointed out.

SSridhar · Post by **SSridhar** » 26 Mar 2015 16:48

With Oil And Gas Pipelines, China Takes A Shortcut Through Myanmar - Eric Meyer, Forbes

On the 29th of January, China opened, with little fanfare, a new oil link through Myanmar. Despite its low profile, this project has clearly been a huge undertaking, both technologically and politically. This 2,400km long pipeline runs through some of the most rugged areas on the planet, marked by jagged hills and ridges and dense jungle. On top of that, two stretches of the pipeline traverse two of Southeast Asia’s political hotspots, the Rakhine and Shan States, which retain semi-autonomous armies that have only just recently been nominally pacified.

The new route however, has one invaluable advantage in eyes of Chinese leaders: it bypasses the Malacca straits, whose infamous waters are infested with pirates. A 300,000 ton super tanker recently discharged its oil at the new deepwater port located on Maday Island—the first time this had happened—marking the start of new pipeline’s operation. That oil will now flow to Kunming, the capital of the southeast Chinese province of Yunnan, which borders Myanmar. The pipeline shortens the distance the oil will have to travel by sea to reach China by 700 miles. It also cuts by 30% the time this liquid black gold will take to get to the Middle Kingdom.

Avoiding the Malacca detour had the other, even more invaluable advantage in the eyes of the Chinese leadership. With 80% of all imported hydrocarbons to China going through the Malacca sea-route, China is vulnerable to having its overseas energy supplies blockaded by the American 6th Fleet during a Sino-U.S. geopolitical crisis. The Burmese pipeline diminishes that risk, as the oil and natural gas will no long have to pass through the Malacca Straits chokepoint.

Parallel to the oil pipeline of Maday, another link has been functioning since October last, from the sea port of Kyaukpyu, which is dedicated to methane. This pipeline has already transported to China four billion cubic meters of methane from both Burmese and Middle Eastern (Qatari) sources.

The $2.5 billion invested into the pipeline have been entirely covered by the giant state-owned oil company, China National Petroleum Company (CNPC), which owns this key infrastructure. But the project has not gained acceptance from all of the concerned parties. The Burmese locals have resented what they see as inadequate compensation for the expropriation of farmers affected by the building of the pipeline. They also resent the fact that almost all of these riches associated with the project are heading to China through their territory, depriving Myanmar of any gains from this potentially valuable development tool. Others lament the limited effort to protect the environment during the pipeline’s construction. But all of these hard feelings disappeared once China promised to hand over a total of 53 billion dollars in royalties in 30 years to the government of Myanmar. And the local Myanmar armed factions were pacified by $25 million in schooling and other social development projects. Some 10% of the gas is supposed to stay in Burma, but none of the oil, as the refining facility will be built in Kunming, at the end of the line, with a capacity of 10 million of tons of crude oil.

The project is concluded, but this does not mean that the local Burmese opinion is happy about such Chinese infrastructure building or about Myanmar’s collaboration on such undertakings with its giant neighbour? Accusations of resource plundering are still rife. In 2011, another giant Chinese project was temporarily put on ice for now by massive social protests. That project was the huge Myitsone dam, whose power output (100 billion of KW/h per year) was to go entirely Yunnan. Its fate is not yet entirely decided, but in a hint of things to come, up to 45.000 villagers have been relocated.

Another even bigger behemoth project is now in the works, a railway line is being discussed, which will follow the route taken by the pipelines. This project has a price tag of $20 billion dollars and would allow China to more easily import Burma’s precious wood and all sorts of other commodities, while also facilitating the flow of Chinese workers to the coast. As of now, no decision has been taken, but given Beijing’s leverage, the construction of the new railroad seems to be foregone conclusion.

SSridhar · Post by **SSridhar** » 26 Mar 2015 17:27

China wants to control South China Sea: Philippines - AFP, Economic Times

The Philippines accused China today of seeking to take control of nearly the entire South China Sea with an expansionist agenda dominated by "massive reclamation" works.

Foreign Affairs Secretary Albert del Rosario said China's efforts were aimed at undermining a United Nations tribunal that is due to rule early next year on a Philippine challenge to its claims to the disputed waters

"China is accelerating its expansionist agenda and changing the status quo to actualise its nine-dash line claim and to control nearly the entire South China Sea before... the handing down of a decision of the arbitral tribunal on the Philippine submission," del Rosario told reporters.

Tensions have escalated sharply in recent years as China has moved to increase its presence and assert its authority in the waters.

Del Rosario said those activities were continuing to pick up pace, pointing to what he described as Chinese ships ramming Filipino fishing boats at a shoal close to the Philippine coast in January.

"China also made and continues to make incursions in the West Philippine Sea and undertake massive reclamation activities in the disputed areas," he said, referring to the Philippine-claimed waters by its local name.

Del Rosario said the reclamation works were taking place on all seven reefs that China occupies in the Spratly Islands, one of the biggest archipelagos in the sea between the Philippines, southern Vietnam and Malaysia.

"The alterations of these features are plainly intended to change the character, status and maritime entitlements of the said features, which prejudice the arbitration and undermine the work of the arbitral tribunal to hear and objectively decide the case," he said in a speech to the foreign journalists' association in Manila.

SSridhar · Post by **SSridhar** » 26 Mar 2015 17:46

News is emerging that Xi has met Sirisena in Beijing today and the two have decided to deepen defence cooperation.

A_Gupta · Post by **A_Gupta** » 27 Mar 2015 03:44

http://www.indiatvnews.com/news/world/x ... 23619.html

What does this mean?

The Chinese and Sri Lankan presidents today discussed prospects of trilateral cooperation with India to address New Delhi's security concerns in the Indian Ocean besides ways to boost defence cooperation including personnel training and providing military hardware to Colombo.

Making his first visit to China to re-balance pro-Beijing policies pursued by the previous Mahinda Rajapaksa regime, new Sri Lankan President Maithripala Sirisena held talks for over an hour with his Chinese counterpart Xi Jinping here today.

Xi and Sirisena discussed trilateral cooperation between India, China and Sri Lanka mooted by Beijing recently in an apparent bid to address New Delhi's reservations over MSR and its implications for India's security, especially after two Chinese submarines docked in Colombo harbour last year.

"The two leaders also agreed to strengthen trilateral cooperation between China, Sri Lanka and India," Chinese Assistant Foreign Minister Liu Jianchao told the media after the talks.

SSridhar · Post by **SSridhar** » 27 Mar 2015 04:27

PM Modi to take call on inviting Japan for India-US Malabar naval exercise - Rajat Pandit, ToI

Prime Minister Narendra Modi will take the final call on whether to invite Japan for the top-notch Malabar exercise between India and the US to be held in the Bay of Bengal later this year, which is likely to witness the participation of American nuclear-powered aircraft carrier USS Carl Vinson.

Even as defence minister Manohar Parrikar heads for Tokyo with a top-level military delegation over the weekend, sources on Thursday said Japan as of now did not figure in the initial groundwork for the 19th edition of Malabar to be held in September-October.

"The PMO will decide on Japan's participation before the planning conference between India and the US is conducted for the exercise. Given that the PM and US President Barack Obama in their summits in September and January have committed to upgrading the level of Malabar, Modi is likely to pitch for Japan's participation," said a source.

If it happens, it will be interesting because China had strongly protested against the 2007 edition of Malabar in the Bay of Bengal since it was expanded to include the Australian, Japanese and Singaporean navies as well. Beijing had viewed the multilateral naval exercise as part of a grand security axis in the Asia-Pacific region to "contain'' it.

The previous UPA regime had then restricted Japan's participation in the Malabar to just the 2009 and 2014 editions since they were held in north-western Pacific. In the backdrop of Modi's personal chemistry with his Japanese counterpart Shinzo Abe and their intent to build stronger bilateral strategic ties, Japan may well be invited to take part in the exercise in India's eastern seaboard as well.

But no such decision is expected during the visit of Parrikar, who will be accompanied by the defence secretary as well as the deputy chiefs of the three Services, to Japan from March 28 to April 1.

Similarly, while India is very keen to acquire at least a dozen of the massive ShinMaywa US-2i amphibious aircraft from Japan for around $1.3 billion, no decision is likely in the near future. "The modalities are still to be worked out despite the bilateral joint working group discussing technology transfer and licenced production of US-2i since 2013," said a source.

In keeping with the Modi government's thrust on 'Make in India', it will be economically and technically unviable to produce just 17 aircraft - 12 for Navy and five for Coast Guard as of now - domestically. "Each of this plane will cost around Rs 700-800 crore. Who else will buy it in India? Should then it be a direct purchase from Japan? All these matters have to be sorted out," he said.