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

ramana · Post by **ramana** » 08 Mar 2015 03:47

What China has done is create relational capitalism a variant of crony capitalism without the stigma of the latter. All this was done without the legal reforms needed to usher in capitalism. So its a 800 # gorilla let loose without controls by the West into the trading pacts. In turn it buys US treasuries.

SSridhar · Post by **SSridhar** » 08 Mar 2015 06:51

A_Gupta wrote:From Suhasini Haider, so...
http://www.thehindu.com/news/national/i ... 969962.ece

"It[China] has insecure unresolved maritime borders with all its neighbours on one side, and so a secure land border is very important.”

What is this 'insecurity' he is talking about? It was pure greed even beyond avariciousness that made China claim 90% of SCS. Where does insecurity come into play here? Kevin Rudd is clearly a China admirer.

SSridhar · Post by **SSridhar** » 08 Mar 2015 07:09

Full transcript of Kevin Rudd's interview (partly posted by A_Gupta above)

SSridhar · Post by **SSridhar** » 08 Mar 2015 07:26

India can operate in South China Sea, says U.S. Admiral - Dinakar Peri, The Hindu

Reiterating that India-U.S. partnership is a “key component” of America’s “rebalance” to the Indo-Asia-Pacific, a top U.S. Admiral last week expressed concern over China’s increased “assertiveness” in enforcing its claims in the South China Sea and supported India’s increased role in the region under the principles of open sea lanes and freedom of navigation.

During the visit of U.S. President Barack Obama to India in January, both sides signed a strategic vision document, “U.S.-India Joint Strategic Vision for the Asia-Pacific and Indian Ocean Region,” which specifically referred to safeguarding maritime security in the South China Sea. It had not gone down well with Beijing.

“The South China seas are international waters and India should be able to operate freely wherever India wants to operate. If that means the South China Sea, then get in there and do that,” Admiral Harris said.

At the same time, the Admiral described China’s naval presence in the Indian Ocean as “positive” as it was involved in anti-piracy operations in the Gulf of Aden.

The U.S. sees India as the key to its rebalance to Asia. The Admiral acknowledged that India’s was one of the most capable navies in the U.S. exercises. He expressed intent to expand the scope of the exercises and go multilateral, probably involving ASEAN nations as well at some point {So, it is going to go beyond just Japan and Australia and possibly South Korea. I expect Singapore & Philippines to be the first ASEAN Naval units to join Ex. Malabar. Vietnam should not be long in coming too.} .

Admiral Harris said: “I was involved with Malabar 1995 and now you look at Malabar 2014, and it is leaps and bounds beyond what it was. I would like to have an increase with India in special operations exercises.”

Under the rebalance to Asia, the U.S. plans to shift 60 per cent of its Navy to the Pacific fleet by 2020. “It is not about China,” Admiral Harris was quick to point out. “It is really about us. It is about recognising that our economic future lies in the Pacific and the Indian Ocean.”

ramana · Post by **ramana** » 08 Mar 2015 08:41

SS
The Aussie expert Sandy Gordon wrote India already patrols SCS with TU-142s from early 1990s.

SSridhar · Post by **SSridhar** » 08 Mar 2015 15:47

Border dispute with India contained: China - PTI, Economic Times

China today said the border dispute with India has been "contained" and the Indian elephant and Chinese dragon should "do more" to strengthen the bilateral cooperation to facilitate its settlement.

Addressing his annual press conference on the sidelines of the National People's Congress (NPC), China's legislature, Foreign Minister Wang Yi said a warm welcome awaited Prime Minister Narendra Modi when he makes his first visit to China later this year.

"Last September, President Xi Jinping made an historic visit to India. Picture of the two leaders working at a spinning wheel in Gujarat, the home state of Prime Minister, has spread far and wide in China," Wang said in response to a question from PTI about the India-China relations at a nationally-televised crowded press conference.

"Chinese people believe in reciprocating the courtesy of others. I am sure when Prime Minister Modi visits China later this year, he will be warmly welcomed by the Chinese government and people," he said.

Terming the "China-India boundary question, a legacy of history", Wang said: "We have worked on it for many years and made some progress in the boundary negotiations.

"The dispute has been contained. At the moment, the boundary negotiations is in the process of building up small positive developments. It is like climbing a mountain and the going is tough because we are on the way up."

"This is all the more reason that we do more to strengthen China-India cooperation so that we can enable and facilitate the settlement of the boundary question," he said.

Invoking one of China's erstwhile top leaders, Deng Xiaoping who said that unless India and China are developed, there will be no Asian century, Wang said: "China is prepared to work with India to implement important agreements reached by our leaders."

"Chinese dragon and Indian elephant should join in a duet to work for the early revitalisation of two ancient civilisations, common prosperity of the two emerging markets and amicable co-existence of two large neighbours," he said.

Modi is expected to visit China before May 6, around the time when his government completes one year in office.

In a reciprocal gesture of a warm welcome accorded by Modi to him during his India visit last year, Xi expected to take the Indian premier to his home Shaanxi and its provincial capital Xian to showcase its development.

Officials say efforts are on to hold the 18th round of boundary talks between India and China later this month to resolve the dispute.

The talks will be held between Special Representatives, National Security Advisor Ajit Doval and his Chinese counterpart Yang Jiechi.

SSridhar · Post by **SSridhar** » 08 Mar 2015 16:35

India discusses project - Meera Srinivasan, The Hindu

During her visit to Sri Lanka, Indian Minister for External Affairs Sushma Swaraj, The Hindu has reliably learnt, also discussed the apparently growing Chinese influence in the island, a subject New Delhi has periodically raised serious concerns about. The Sri Lankan government’s seemingly inconsistent position on the Chinese port city project coming in Colombo — where a Chinese submarine docked last year sparking concern in New Delhi — was also raised, sources said.

SSridhar · Post by **SSridhar** » 08 Mar 2015 16:42

India, China plan disaster management agenda - Pradeep Thakur, Economic Times

India is working closely with China and other countries of the Asia-Pacific region in setting the agenda for the post-2015 framework for disaster risk reduction (DRR) that will replace the Hyogo Framework for Action (HFA) at the UN's conference on DRR starting next week in Sendai, Japan.

New Delhi is taking a lead role in the region with home minister Rajnath Singh co-chairing the Asian ministerial conference ahead of signing of the new UN framework. The Asian meet will be co-chaired by UN head of DRR, Margareta Wahlstrom, and will have ministers from China, Malaysia, Korea, Indonesia and Thailand as other members.

The UN framework will set ambitious targets for member countries to make a paradigm shift towards a new development model that prevents and reduces disaster risk and strengthens resilience.

Wahlstrom said the post-2015 UN framework will set "action-oriented guidance to governments, private sector and civil society in general on how best to tackle the underlying drivers of risk such as poverty, climate change, poorly planned urban growth, land use and the decline of protective eco-systems." The Sendai declaration will act as a policy framework to be adopted by signatory countries and commitments from governments towards DRR initiatives.

It is important for New Delhi to have the framework agreement modelled to its needs as it could impact infrastructure projects worth $1 trillion targeted to be built in the next five years.

India has already shifted its focus towards DRR initiatives by making a provision of over Rs 55,000 crore (about $9 billion) towards disaster management fund for states as part of the 14th finance commission grants. In the new devolution plan, states will be free to spend on building resilience based on local needs.

At the inter-governmental meeting in Bangkok last year, India had agreed on the development of an Asia-Pacific regional implementation plan and committed specific actions to enhance resilience at local levels; improve public investments; and enhance private sector role and Public-Private Partnership to build an enabling environment and partnerships for resilient business and risk-sensitive investments.

SSridhar · Post by **SSridhar** » 08 Mar 2015 16:57

ramana wrote:SS
The Aussie expert Sandy Gordon wrote India already patrols SCS with TU-142s from early 1990s.

Ramana, thanks. Not surprising at all. The P8Is must be doing even better.

SSridhar · Post by **SSridhar** » 09 Mar 2015 09:34

No quick solution to border row: China - Atul Aneja, The Hindu

China on Sunday called for closer ties with India as a stepping stone to settle the boundary issue, unveiling Beijing’s perspective for resolving the frontier row as an incremental time-consuming exercise.

Addressing a press conference during the on-going annual session of the National People’s Congress (NPC), Chinese Foreign Minister Wang Yi said the two countries had so far managed to contain the dispute. “As for the India-China boundary question, it is the legacy of history. We have worked on it for many years and made some progress on the boundary negotiations. The dispute has been contained,” Mr. Wang said in response to a question.

However, the resolution of the boundary issue was an uphill task, requiring both sides to take measured, incremental steps. “At the moment the boundary negotiations are in the process of building up small, positive steps,” the Minister said. “It is like climbing a mountain. The going is tough, that is only because we are on the way up,” he added.

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.”

Diplomatic sources told The Hindu , that despite the urgency of the issue, the Indian side was not allowing differences to impede the growing economic partnership between New Delhi and Beijing.

Mr. Wang said that China-India partnership was a strategic necessity to unveil the “Asian century.” “Deng Xiaoping once said that unless China and India are developed, there would be no Asian century,” he said.

Mr. Wang stressed that a warm welcome awaits Prime Minister Narendra Modi from the Chinese government and people during his much-anticipated visit to Beijing later this year. He said the two countries needed to work together “for the revitalisation of two oriental civilisations and to bring prosperity to two emerging markets and enable co-existence of two large neighbours.”

China only talks nice words about the 'future'. It is always so. However, its activities in the 'present' are always either inimical or unfriendly.

SSridhar · Post by **SSridhar** » 09 Mar 2015 12:51

Silk Road: Russia to be core partner - Atul Aneja, The Hindu

China will set high priority to implement its Silk Road projects this year, with Russia as its core partner.

Addressing a press conference on the sidelines of the annual session of the National People’s Congress (NPC), Foreign Minister Wang Yi said that China’s diplomacy in 2015 will focus on making all around progress in the “Belt and Road” initiatives.

Silk Road projects

Mr. Wang was referring to the twin initiatives — the Silk Road Economic Belt and the 21st century Maritime Silk Road — which are the pillars for the integration of Eurasian economies, with China as its anchor.

Analysts say that Russia will be China’s key partner in the open-ended “Belt and Road” initiative, which aims to establish a transportation corridor, which starting from Xian in China, will terminate in Europe.

It would also be nourished by Indian Ocean ports, which would be linked to the Eurasian land route by designated economic corridors.

China-Russia strategic cooperation will focus on the development of Russia’s Far Eastern region, the Foreign Minister observed.

China and Russia will continue to intensify their cooperation in the financial, as well as nuclear power sectors as well.

Mr. Wang rejected comparisons between the “one belt one road” initiatives of the Marshall Plan, which was meant to resurrect war-ravaged Western economies in the throes of the Cold War. “They [one belt one road initiatives] are the product of inclusive cooperation, not a tool of geopolitics, and must not be viewed with the outdated cold war mentality,” observed Mr. Wang.

Both countries will hold a series of activities to commemorate the 70th anniversary of the victory in World War II with a view to reinforce the sentiment against war.

The tide has turned completely in 7 decades. The roles between Russia (FSU) and China have reversed.

SSridhar · Post by **SSridhar** » 09 Mar 2015 13:13

In a test of wills, Japanese fighter pilots confront Chinese - Martin Feckler, NYT

NAHA, Japan: Once a sleepy, sun-soaked backwater, this air base on the southern island of Okinawa has become the forefront of a dangerous test of wills between two of Asia's largest powers, Japan and China.

At least once every day, Japanese F-15 fighter jets roar down the runway, scrambling to intercept foreign aircraft, mostly from China. The Japanese pilots say they usually face lumbering reconnaissance planes that cruise along the edge of Japanese-claimed airspace before turning home. But sometimes - exactly how often is classified - they face nimbler Chinese fighter jets in knuckle-whitening tests of piloting skills, and self-control.

"Intercepting fighters is always more nerve-racking," said Lt. Col. Hiroyuki Uemura, squadron commander of the approximately 20 F-15 fighters stationed here at Naha Air Base. "We hold our ground, but we don't provoke."

The high-velocity encounters over the East China Sea have made the skies above these strategic waters some of the tensest in the region, unnerving Pentagon planners concerned that a slip-up could cause a war with the potential to drag in the United States. Japan's refusal to back down over months of consistent challenges also represents a rare display of military spine by this long-dovish nation, and one that underscores just how far the rise of China and its forceful campaign to control nearby seas has pushed Japan out of its pacifist shell.

Under its nationalistic prime minister, Shinzo Abe, Japan has embarked on the most sweeping overhaul of its defense posture in recent memory. Not only has Abe reversed a decade-long decline in military spending as part of what he calls "proactive pacifism," but his government is also rewriting laws to lift restrictions on Japan's armed forces, which are taking a more active role as far afield as the Gulf of Aden.

A pilot inspects a Japanese F-15 fighter jet before it takes off from the Naha Air Base in Naha, Okinawa.
It was, in fact, a speech by Abe that included tough statements on the Islamic State and an aid package to fight extremism that the militants cited as the reason they beheaded two Japanese hostages in January. Videos showing the men's bodies, posted online, gained Abe some traction for his notion that Japan must be more prepared to take on those who mean it harm.

At the heart of Abe's strategy is a drive to create a more public profile for Japan's military, the Self-Defense Forces, which have been strictly limited to defending the Japanese homeland since their creation in 1954, and which for decades afterward were barely acknowledged by a public leery of anything resembling Japan's World War II era militarism. Although Abe still does not have enough public support for his long-stated goal of constitutional changes to permit Japan a full-fledged military, he is pushing Japan's purely defensive armed forces into an unfamiliar role as the standard-bearer of a more assertive foreign policy, and a deterrent against a modernizing Chinese military.

"Japan is saying, 'Uh-oh, maybe with a rising China we have to start thinking differently,'" said Sheila A. Smith, senior fellow for Japan studies at the Council on Foreign Relations in Washington. "For the first time since World War II, Japan is finding itself on the front line. And for the first time, it has to ask itself, what does an independent defense plan look like?"

Rebuilt after Japan's defeat in 1945 at the encouragement of the United States, the country's technologically advanced military took a secondary role to US forces, helping patrol strategic sea lanes in the face of a Cold War-era Soviet threat. The Self-Defense Forces' role has expanded over the decades - Japan sent 1,000 noncombat support troops to Iraq in 2004, its biggest overseas deployment since World War II - even though the country still bars itself from possessing offensive weapons like cruise missiles considered necessary to launch full-blown attacks. With a quarter of a million uniformed personnel, Japan has slowly built up a military larger than that of other midlevel powers like France or Israel, though still far smaller than the 2.3 million-strong People's Liberation Army in China.

Just how far the Self-Defense Forces have come is evident here in the islands of Okinawa, where Japan's armed forces have been assigned a more demanding - and publicly visible - mission.

The Naha base is just a 20-minute flight by fighter jet from disputed islands that Japan controls, but China claims as its own. The islands, known as the Senkaku in Japan and the Diaoyu in China, have provided the kindling for smoldering resentment between the countries.

As China has stepped up the pressure in recent years by sending more planes and ships to patrol the islands, Japan has scrambled jets to shadow potential intruders and deployed advanced E-2 radar planes with huge dishes mounted on top to keep tabs on the Chinese while it builds a radar station on nearby Yonaguni island, Japan's first new base in decades.

The tug-of-war over the islands is a proxy for a much larger battle over the shifting power balance in Asia, where China has begun to overturn the century-long supremacy of Japan, its ancient rival. Chinese military planners have called the Okinawan islands, including the disputed ones, part of China's "first island chain" of defense, meaning that they hope to eventually control the waters west of Japan where the United States and Japan have long held sway.

While low-growth Japan is aware that it cannot match China's rapidly expanding military spending, it is trying to position its Self-Defense Forces to thwart China from trying to snatch the disputed islands, as well as to deter any designs on other Japanese-held islands.

The legal changes Abe's government is working on would further free the military to come to the aid of an ally under attack, part of a broader strategy to turn Japan into a fuller military partner of the United States to try to ensure that Washington will come to Tokyo's aid if fighting breaks out over the islands.

Defense analysts and US commanders agree that Japan's strongest asset is its Maritime Self-Defense Force, or MSDF, widely regarded as the world's second-most capable navy after the US Navy. With a tradition dating back to Japan's formidable wartime fleet, and top hardware like the Aegis radar system, the Japanese have the only naval force, except perhaps Britain's, with the ability to work so fully and seamlessly with the US fleet, U.S. commanders say.

This was apparent during naval war games in November involving almost 30 Japanese and U.S. warships. As the huge US aircraft carrier George Washington launched F-18 jets, its closest escort was the Japanese guided-missile destroyer Kirishima. For the first time during such a complex exercise, a Japanese admiral was in charge of both navies' defense against simulated seaborne attacks.

"The MSDF is the most capable maritime ally that we have," said Vice Adm. Robert L. Thomas Jr., commander of the Japan-based 7th Fleet.

While China's navy added its first aircraft carrier in 2012, defense analysts say Japan still enjoys a decades-wide advantage not only in technology but also in experience operating large warships. Japan has more of these larger, blue-water vessels like destroyers, and some of the world's stealthiest submarines.

Last year, Japan launched its largest warship since World War II, the Izumo, a small aircraft carrier capable of carrying vertical-takeoff jets. The Izumo is part of a more mobile military that Japan is building to defend its far-flung islands to the south, including the contested ones - with or without the United States, if necessary.

Still, analysts say, time is on China's side, as its economic growth rates allow ever larger military budgets. While Japan's defense budget rose 2.8 percent to a record 4.98 trillion yen (or $42 billion) in 2015, China announced Thursday that its own military spending would jump 10.1 percent in the same year, to an estimated $145 billion.

"The more the US and Japan will do, the more China will do," Shen Dingli, associate dean of the Institute for International Studies at Fudan University in Shanghai, wrote in an email.

Here at the Naha Air Base, the Japanese pilots said they tried to keep their edge with constant training. On a recent morning, they sent up a pair of F-15s to respond to a simulated intrusion, played by three other F-15s.

A growing number of Chinese aircraft over the East China Sea is also keeping Naha busy, so much so that the base plans to add a second F-15 squadron this year. In a nine-month period that ended in December, its pilots scrambled 379 times to intercept foreign aircraft - a sixfold jump from those same months in 2010.

"Every year, China's operational capabilities seem to be rising," said the Naha base commander, Maj. Gen. Yasuhiko Suzuki. "Every year, our level of anxiety rises along with them."

vijaykarthik · Post by **vijaykarthik** » 09 Mar 2015 14:36

http://www.nytimes.com/2015/03/09/world ... c=rss&_r=1

Austin · Post by **Austin** » 09 Mar 2015 15:24

ramana wrote:What China has done is create relational capitalism a variant of crony capitalism without the stigma of the latter. All this was done without the legal reforms needed to usher in capitalism. So its a 800 # gorilla let loose without controls by the West into the trading pacts. In turn it buys US treasuries.

True , its a society of mutual admiration between the two you scratch my back and I will scratch yours

Austin · Post by **Austin** » 09 Mar 2015 20:15

China-Russia partnership mature & stable, not targeting ‘third parties’ – FM Wang Yi

SSridhar · Post by **SSridhar** » 10 Mar 2015 12:06

From NightWatch for the night of Mar 9, 2015

China-South China Sea Islands: The Chinese news agency, Xinhua, published a defense of China's land reclamation projects in the South China Sea. The commentator wrote, "China's construction on its own islands and reefs in the South China Sea is lawful and justified, as it is merely building facilities in its own yard."

"The islands and reefs which China has constructed are its inherent territory, over which China owns undisputable sovereignty. It is legitimate and justified to build major infrastructure projects on its own territory. Besides, China's construction activities currently underway on its own islands and reefs do not violate any international laws…."

"'We have every right to do things that are lawful and justified,' Chinese Foreign Minister Wang Yi said Sunday at a press conference on the sidelines of the annual session of the National People's Congress."

"In fact, China has always been a staunch supporter and ardent defender of regional peace and stability. It gives all-out support to any move that strengthens cooperation in the South China Sea. However, for the sake of safeguarding its sovereignty and territorial integrity, China does need self-defense."

:… Those facilities on the islands and reefs, even being of some military nature, are reasonable and justifiable for China to use them for defense purposes."

"…In this regard, China rejects any charge by any party on the legitimacy of the infrastructure on the islands and reefs in the South China Sea. China will continue to uphold the freedom of navigation in the South China Sea, continue to peacefully resolve disputes through direct dialog and consultation, and continue to play a constructive role in maintaining regional peace and stability."

"China's policy toward its neighbors is guided by the principles of amity, sincerity, mutual benefit and inclusiveness. It aims to bring harmony, stability and prosperity to the neighborhood. This policy has not changed, and will not in the future."

The map shows six of the islands and reefs where China has reclaimed land and built structures for soldiers. The largest star is Fiery Cross Reef on which China is building an airstrip.

Comment: Imagery analysts have confirmed Chinese reclamation and construction projects on seven of the hundreds of island, shoals, atolls and reefs that China claims. The commentator's defense of Chinese actions is consistent with well-established Chinese policy. It breaks no new ground.

The significance of the article is that it makes explicit that the construction projects improve China's ability to defend its claims. Chinese commentators seldom describe them as self-defense projects.

Several news services noted that China is not alone in improving its islands, atolls and reefs. Taiwan, the Philippines Vietnam, and Malaysia also have made improvements to their claims, which are often near Chinese claims.

No country wants to fight over its claims, especially China, whose economy requires stability for sustained growth. On the other hand, China is best able to defend its claims by force, if necessary. China will not compromise its claims of sovereignty, even if it causes instability.

Sri Lanka-China: Last week, the new Sri Lankan government suspended a $1.5 billion luxury waterfront development project in Colombo because the developers failed to perform necessary impact studies and failed to obtain required permits.

The new finance minister, Ravi Karunanayake, reassured Chinese investors that the new leadership is not targeting China and wants its help to fight corrupt deals arranged by the last government. He said the Rajapaksa government gave Chinese firms "carte blanche" in Sri Lanka.

"Sri Lanka is trying to do what Chinese President Xi Jinping is doing: rooting out corruption. We are not against China, but against the Chinese companies manipulated by the Mahinda Rajapaksa regime into corrupt deals that are bleeding the taxpayer. The Chinese government might have been unaware of the activities of Chinese companies here," the Finance Minister said.

"Our relationship with China goes back to the 1950s, when we defied the West to forge the rice-rubber pact with China. But Chinese investment is as good as any other investment; we cannot give it preferential treatment."

Karunanayake is scheduled to travel to Beijing soon as part of team that will try to renegotiate the contracts the Rajapaksa government signed with Chinese companies and financing bodies.

China urged Sri Lanka to respect bilateral agreements and business contracts and to protect the interests of its investors, following the suspension of the Colombo port project.

Comment: The language of confrontation is polite, but firm. Opposition to the Colombo port project was a key issue in Prime Minister Sirisena's election campaign, as an example of cronyism and corruption in the former government.

The Rajapaksa government made Sri Lanka an economic and political ally of China. Last September, Chinese President Xi Jinping inaugurated the port project, which is now suspended. The suspension of the project reflects the new government's suspicions about China's long term intentions.

Cultivation of Sri Lanka is part of China's "string of pearls" strategy in which the Chinese coast would be linked to the Middle East and east Africa by a string of friendly ports. The updated term is to call it the "maritime Silk Road." The new Sri Lankan government is reconsidering its participation in the Chinese scheme. This is a strategic setback for China..

India has long opposed Chinese inroads in the Indian Ocean region. During a trip through the region this month, Indian Prime Minister Modi intends to push his Indian Ocean Region security plan as the Indian alternative to Chinese dominance in the Indian Ocean. Sri Lanka will not be a client of India, any more than it will be a client of China.

SSridhar · Post by **SSridhar** » 10 Mar 2015 16:15

Tibetan National Uprising Day: Tibetans protest outside Chinese embassy in Delhi - ToI

To mark the "Tibetan National Uprising Day", several student protestors carried out demonstrations in front of the Chinese embassy in New Delhi on Tuesday.

Police personnel have rushed to the spot and several protestors were lathicharged.

A scuffle broke out between the protestors and police, compelling the Delhi Police officials to use force.

Police used mild force to disperse the crowd and detained several Tibetan students trying to reach the main gate of the embassy.

According to reports, the area has been cordoned off and barricades have been placed in the area.

The protestors have come out in huge numbers demanding a free Tibet. Those detained will be shortly released after their antecedents are recorded, police said. They have been taken to Chanakyapuri police station.

There is heavy police presence in the area and jams have been reported from New Delhi in the wake of protests and deployment.

The police brass has alerted all districts and asked the north Delhi police in particular to keep a watch on the Tibetan groups so that law and order is in place.

Story Developing . . .

arshyam · Post by **arshyam** » 11 Mar 2015 10:36

^^Why lathicharge? We should allow them to protest for as long as they want, of course, ensuring complete safety of the embassy and it's staff. Tibet is a leverage we are not using enough; going forward, if China says anything about AP, we should respond by using Tibet's Sanskrit name, and refer to the border as the Tibetan border. We should subtly delegitimise China's claim over Tibet.

SSridhar · Post by **SSridhar** » 11 Mar 2015 10:52

Overturning decades of mistrust: India and China may roll out visa on arrival

Indians could soon join the same queue as passport holders from Singapore, Brunei and Japan when they land in Beijing or Shanghai. Citizens of these countries are currently eligible for visas on arrival in China. India may become the next, overturning decades of mistrust between the two that's been punctuated by a war and regular skirmishes.

Given the nature of a relationship that tends to veer from economic bonhomie to diplomatic distrust, such moves by the two most populous countries in the world would be seen as a great leap of sorts ahead of Narendra Modi's visit to Beijing in May. But various obstacles need to be overcome for this to become possible, including who makes the first move and how such an initiative would sit with the security agencies and the defence establishment.

The Indian embassy in Beijing has pitched for visa on arrival (VoA) facilities for Chinese tourists and sought a relaxation of security restrictions to ensure greater investment from that country to strengthen ties marked by an unresolved boundary and both sides competing for resources and influence across the world. India is widening the number of countries on the VoA list to 150 from 43 in phases, Finance Minister Arun Jaitley announced in his February 28 Budget speech. Diplomatic sources are hopeful that if China is included in the first phase of this move in the next two months, a reciprocal gesture from the neighbouring nation could follow suit in time for Modi's trip.

The above plan relates to tourists on short-term visits. With economic prosperity and rising levels of income, Chinese tourists are big spenders, but India has seen relatively few of them. China got around 6.8 lakh tourists from India in 2013, while 1.75 lakh made the reverse journey. Incidentally, China is currently celebrating a 'Visit India Year 2015'. India will have a 'Visit China Year' in 2016 to boost tourism and peopleto-people contact.

The Chinese embassy in Delhi did not respond to a query by ET on the matter. But Chinese government sources recalled that a memorandum of understanding (MoU) on visa liberalisation that was on the cards during President Xi Jinping's trip last September had been deferred and they are waiting to see if this can be finalised during Modi's visit.

The pact was to have been concluded during Premier Li Keqiang's visit to India in May 2013 and later during then Prime Minister Manmohan Singh's trip to Beijing in October that year but an accord remained elusive.

Industry and officials said India needs to relax the visa regime to get more investment and tourists from China, something the Indian ambassador to China, Ashok Kantha, is also understood to have suggested. Apart from covering tourists, he's said to have mooted an easier visa regime for conferences and business trips. Key government ministries and security agencies have held internal meetings in the past two months on granting VoA facilities for Chinese tourists, officials said.

Security agencies not too Keen

India's security establishment, however, is not too enthusiastic about a liberal visa regime for Chinese nationals with some agencies raising concerns about espionage.

Apart from wanting the Chinese to reciprocate on VoA, India will also be looking for a scrapping of stapled visas for residents of Arunachal Pradesh, sources said. Such stapled visas won't be allowed under the VoA facility.{India should not proceed with VoA based on assumptions. The stapled visa, issued not only for those in AP but also from J&K, must be scrapped totally by China before VoA is operationalized, if at all. I am not so keen on VoA for the Chinese in any case. It will bring us only miseries, not benefits.}

Claims over Arunachal Pradesh or at least Tawang tract are at the core of the Sino-Indian boundary dispute and the Chinese foreign ministry reacted sharply to a recent visit by Modi to Arunachal Pradesh.

SSridhar · Post by **SSridhar** » 11 Mar 2015 19:31

Xi Jinping beefs up personal security amid massive anti-graft campaign

Chinese President Xi Jinping has reshuffled his personal security team as he tightened the noose around the corrupt within the ruling Communist Party and the powerful military whose 30 Generals are facing probe.

Maj Gen Wang Shaojun, the executive deputy commander of the Central Security Bureau which is in-charge of Xi's safety, has been promoted to lead the Bureau and also the Central Guard Regiment, the South China Morning Post reported today.

The bureau's incumbent commander, Lt Gen Cao Qing, is being transferred to the Beijing Military Area Command as its deputy commander, the report said.

The powerful Central Security Bureau is responsible for the safety of top leaders and the Zhongnanhai compound in central Beijing, where many Communist Party leaders are based.

The bureau directly reports to the general office of Central Committee of the Communist Party headed by 61-year-old Xi. The security bureau wields considerable power and in the past has moved to stop possible coup attempts.

The bureau and Marshal Ye Jianying played a central role in the arrest of the 'Gang of Four' in 1976.

The Cultural Revolution leaders were accused of plotting to seize power after Mao Zedong's death.

Xi's safety has been beefed up as he initiated unprecedented campaign against corruption within the party, military and the administration to restore the credibility of the one-party rule.

In all nearly 30 top military officials including the former Vice Chairmen of the Central Military Commission, Gen Xu Caihou and Gen Guo Boxiong, the officers with the highest rank who led the military under former President Hu Jintao.

Besides the military officials, Xi also ordered anti- graft investigations against the former national security chief, Zhou Yongkang, and his vast network.

Zhou is the highest ranking CPC official in recent history to face such a probe.

Another report in the Post said Xi grew determined to shake up the army after he saw first-hand how his predecessor Hu was treated as a mere figurehead by the military officials.

Xi, who became the Central Military Commission's third vice-chairman in 2010, witnessed how his fellow vice-chairmen Xu and Guo took over the army's staff affairs right under Hu's nose, the Post quoted a military official as saying.

SSridhar · Post by **SSridhar** » 11 Mar 2015 19:35

India's concerns over 'China threat' in Indian Ocean should be addressed: Chinese think tank

As Prime Minister Narendra Modi began his tour of three Indian Ocean nations, an influential Chinese state-run think tank today said that Beijing should address New Delhi's concerns about the "China threat" in its neighbourhood and called for further strategic dialogue between India and China to enhance "mutual trust".

"As the two biggest powers around the Indian Ocean, China and India should act in a positive way and conduct related regional cooperation. It will benefit this region and the rest of Asia as well," an article by Liu Siwe, an assistant research fellow at the Institute of South Asian Studies, Sichuan University said.

"If possible, China and India should conduct more strategic dialogues concerning regional security and economic development and ensure mutual trust," the article published today in the state-run Global Times, which is part of the ruling Communist Party of China's (CPC) group of papers said.

"Modi should be prudent to avoid raising issues which could result in an 'India or China' dilemma. Similarly, China should address doubts about the motivations of China's foreign policy in the region, and particularly India's worries about the 'China threat'," it said.

The article refers to Modi's visit to Seychelles followed by trips to Mauritius and Sri Lanka where China has built up significant strategic influence in India's backyard in recent years.

"Evidently, the Indian leader wants to confirm that Delhi is putting greater emphasis on the Indian Ocean. Predictably, Modi will boost cooperation with India's maritime neighbours. Apart from offering economic assistance and enhancing economic cooperation, he will probably place great importance on defence and security cooperation," it said outlining the significance of the prime minister's visit.

Referring to media reports, it said India is pushing a "Mausam" project to compete with China's "21st century Maritime Silk Road (MSR).

"The 'Mausam' project is trying to allow India to reestablish its ties with its ancient trade partners and reestablish an Indian Ocean 'world' along the littoral of the Indian Ocean," it said.

"The 'Mausam' project is trying to allow India to reestablish its ties with its ancient trade partners and reestablish an Indian Ocean 'world' along the littoral of the Indian Ocean," it said.

"It is true that the 'China factor' cannot be neglected when people clarify the intentions of India's diplomatic actions, but it is not reasonable to overemphasise it. Sino-Indian relations are not engaged in a zero-sum game, even though the two sides' interests in the region are not asymmetric," the article said calling for talks between the two countries on strategic issues.

The article also comes as China is grappling to retain some of its controversial projects, especially the Colombo Port City project in Sri Lanka after the new government temporarily suspended it to probe allegations of corruption and license issues by the previous pro-China regime.

Prem · Post by **Prem** » 11 Mar 2015 23:15

http://www.hindustantimes.com/analysis/ ... 25317.aspx
India needs to build sufficient naval prowess in Indian Ocean

Prime Minister Narendra Modi’s three-nation Indian Ocean tour attests to this region’s critical importance for Indian security, including preventing India’s encirclement by hostile powers. If China were to gain the upper hand in the Indian Ocean region, it will mark the end of India’s great-power ambitions. India thereafter will be seen as merely a sub-regional power whose clout does not extend across South Asia, with Pakistan challenging it in the west and China in the north and south.India’s tactical and strategic disadvantages along its land frontiers are more than compensated by its immense geographic advantage in the Indian Ocean. Such is peninsular India’s vantage location in the Indian Ocean — the world’s premier energy and trade seaway — that the country is positioned dominantly astride vital sea lanes of communication (SLOCs), including China’s emergent Maritime Silk Road.Despite India’s inherent maritime leverage, its land-frontier compulsions have instilled a landlocked mindset. With its attention fixated on the disputed land borders, India — far from exploiting its advantage on the maritime front — often has difficulty facing up to the fact that it is a major maritime country. Worse still, India diplomatically neglected the Indian Ocean region in the 25-year period from 1989 when it was governed by coalitions. Tellingly, Modi is the first prime minister to visit Seychelles in 34 years and Sri Lanka in 28 years.India’s long neglect has become China’s strategic gain. China’s quiet manoeuvring in the Indian Ocean, where it is chipping away at India’s natural geographic advantage through multibillion-dollar projects along the great trade arteries, draws strength from its more assertive push for dominance in the South and East China Seas.The Indian Ocean promises to shape the wider geopolitics and balance of power in Asia and beyond. India, however, finds itself on the back foot in its own strategic backyard. According to Jawaharlal Nehru, “History has shown that whatever power controls the Indian Ocean has, in the first instance, India’s sea-borne trade at her mercy and, in the second, India’s very independence itself.” The irony is that this is the only ocean in the world named after a single country.
Stripped of its rhetoric, the Silk Road — just like the “string of pearls” — is designed to redraw Asia’s geopolitical map by making China the preeminent power.The Silk Road indeed exemplifies China’s use of aid, investment and other leverage to pull littoral states closer to its orbit, including through the construction of seaports, railroads and highways. Such construction may provide a counterpoint to China’s military assertiveness. Yet it is integral to a strategy that fuses soft and hard tactics to bind countries to China’s economy and security and to convince them that it is in their interest to accept China as Asia’s alpha power.How China blends its economic and military interests was illustrated last autumn by the separate docking of two Chinese submarines at the newly opened, Chinese-majority-owned container terminal at Colombo harbour. China’s desire for permanent military presence in the Indian Ocean, where it has carried out three deployments, is being whetted by its control of Pakistan’s Gwadar port, located strategically at the mouth of the Strait of Hormuz. China has operationally taken over the port it built at Gwadar to develop not its commercial value (which remains unpromising) but its potential as a key naval outpost.
Given the emerging challenge to India in its maritime backyard, Modi must develop a credible strategy to counter it. His charm-offensive tour of regional states with offers of new economic and defence tie-ups marks just a beginning. Modi did well to drop the Maldives from his itinerary, given the political mess there. But he could have delayed his Sri Lanka trip until after the forthcoming parliamentary elections there, especially given the fact that his visit comes barely a month after President Maithripala Sirisena’s India tour.In keeping with his highly personalised imprint on diplomacy, Modi thus far has relied on bilateral summits to open new avenues for cooperation and collaboration. Diplomacy alone will not suffice. Sirisena, for example, makes his first official visits to Beijing and Islamabad soon after hosting Modi.To prevent Chinese military encirclement, India needs to significantly accelerate naval modernisation. It must build sufficient naval prowess to potentially interdict Chinese SLOCs in the Indian Ocean and hold the Chinese economy hostage if a Himalayan war were thrust upon it again. A major holdback of tanker traffic in wartime would be a crippling jolt to the Chinese economy, though it might not alter the war’s outcome.Even as the Chinese military keeps Indian ground forces busy in peacetime by staging Himalayan border incursions and other flare-ups, the oil and liquefied gas flowing from the Gulf and Africa to China pass through the Indian Ocean unmolested and unimpeded. Over 80% of China’s oil imports pass through the Malacca Strait chokepoint. Boosting SLOC interdiction capability would allow the Indian Navy to dominate key maritime routes and help improve the Chinese military’s behaviour along the Himalayas.The contest for major influence in the Indian Ocean is pivotal to the success of China’s strategy to fashion a China-centric Asia. This is a contest India cannot afford to lose.

vijaykarthik · Post by **vijaykarthik** » 12 Mar 2015 04:16

http://world.einnews.com/article/254193 ... Dw2F7jBBor

FTA: "This is a serious deviation from the neutral position ASEAN and its secretary-general ought to have on the relevant issue, and damages the image of ASEAN as a regional international organisation," he added.

The secretary-general should ensure ASEAN stands by its promises of neutrality and not "use public office for private gain", Hong said.

--
I wonder what shit that "public office for pvt gain" is supposed to mean. The ASEAN president very logically said that the 9-dash line isn't an acceptable policy and has to be rejected. He didn't mention that he plans to put a wicket fence on it and present it to himself or his family / extended family. I think the Chinese idiot who spoke was doped to the gills on opium.

vijaykarthik · Post by **vijaykarthik** » 12 Mar 2015 04:23

Now, on more thinking, if there is one party that always uses the public office for pvt gain, its the Chinese. To claim a large part of the sea unjustly and perhaps also end up slicing it and making it their own personal family jewels and pass it along in the family.

Still cant imagine how buffoons like the above end up in the civil service and as spokespersons.

Idiots.

SSridhar · Post by **SSridhar** » 12 Mar 2015 06:28

vijaykarthik wrote:I think the Chinese idiot who spoke was doped to the gills on opium.

You mean to say that the British had permanently damaged the Chinese?

SSridhar · Post by **SSridhar** » 12 Mar 2015 07:01

India to develop two islands in Indian Ocean - Sachin Parashar, ToI

In a major boost for India in the Indian Ocean, the government has bagged ''infrastructure development rights'' for two islands in the region - Agalega from Mauritius and Assumption from Seychelles - during PM Narendra Modi's ocean outreach comprising visits to Mauritius, Seychelles and Sri Lanka.

New Delhi marked its Indian Ocean presence with Modi offering to set up joint working groups with the two blue economies in the region to harness potential for economic cooperation. The understanding to allow India to develop these islands is of huge strategic significance for India which is widely seen as having lost out to China in having a purposeful engagement with the littoral states despite its own central location.

The Modi government has sought to address the issue by acknowledging the primacy of Indian Ocean for India's security and for maintaining peace and stability in the region. Official sources said that the development rights for the two islands had been discussed for months before these were successfully concluded during Modi's visit in a sign that ''Indian Ocean was going to be India's Ocean''.

''Our agreement today on the development of infrastructure in the Assumption Island (Seychelles) gives a strong boost to this partnership,'' said Modi in a media statement, adding that the ocean economy was indispensable to meeting India's future challenges. Modi also launched a Coastal Surveillance Radar Project

India signed an MoU with Mauritius for setting up and upgrading infrastructure for improving sea and air connectivity at the outer island of Mauritius ''which will go a long way in ameliorating the condition of the inhabitants of this remote Island". Foreign ministry spokesperson Syed Akbaruddin said these facilities are also expected to enhance the capabilities of the Mauritian defence forces in safeguarding their interests in the island.

Until recently India seemed ill-equipped to meet the challenge from China which aggressively sought to expand its presence in the Indian Ocean by undertaking mega infrastructure projects in several littoral countries. Its maritime silk road proposal was embraced by many of these countries including Sri Lanka which Modi will be visiting on Friday. China's decision to send submarines in Indian Ocean right up to the Gulf of Aden in the recent past has added another dimension to the problem for India. While the new government in Sri Lanka is expected to address India's security concerns which it repeatedly and unsuccessfully raised with the previous government of Mahinda Rajapaksa, the situation in Maldives is still not to New Delhi's liking as pro India former President Mohamed Nasheed remains under detention.

India signed another MoU with Mauritius which will provide an extensive framework for cooperation in the field of ocean economy. It provides for mutually beneficial cooperation for exploration and capacity development in the field of marine resources, fisheries, green tourism, research and development of ocean technology, exchange of experts and other related activities.

China has made deep inroads into Seychelles. The Chinese President Hu Jintao visited Seychelles in c. 2005. China transferred two Y-2 turboprop aircraft for maritime patrolling and also received permission for PLAN to make frequent port calls. In Dec. 2011, the Seychelles also announced naval resupply facilities for PLAN. The Deputy Chief of the People’s Liberation Army, Gen Ma Xiaotian met with President of Seychelles James Michel in mid-July, 2012 and reaffirmed China’s commitment to deepen bilateral military cooperation.

DavidD · Post by **DavidD** » 12 Mar 2015 09:21

vijaykarthik wrote:http://world.einnews.com/article/254193 ... Dw2F7jBBor

FTA: "This is a serious deviation from the neutral position ASEAN and its secretary-general ought to have on the relevant issue, and damages the image of ASEAN as a regional international organisation," he added.

The secretary-general should ensure ASEAN stands by its promises of neutrality and not "use public office for private gain", Hong said.

--
I wonder what shit that "public office for pvt gain" is supposed to mean. The ASEAN president very logically said that the 9-dash line isn't an acceptable policy and has to be rejected. He didn't mention that he plans to put a wicket fence on it and present it to himself or his family / extended family. I think the Chinese idiot who spoke was doped to the gills on opium.

It's a metaphor. The public is ASEAN, the private is Vietnam.

vijaykarthik · Post by **vijaykarthik** » 12 Mar 2015 11:36

^ Assumption island? That's a queer name for an island, SS.

Is it that the island is tiny and hence the funny name? Would you have any idea about that?

SSridhar · Post by **SSridhar** » 12 Mar 2015 12:32

viyay, absolutely no idea.

SSridhar · Post by **SSridhar** » 12 Mar 2015 12:39

From NightWatch for the night of March 11, 2015

China: Since early February, Chinese officials at various levels have leaked information about China's construction of a second aircraft carrier, "vastly more sophisticated" than the Liaoning, which is a training ship.

Comment: The leaks and so-called misstatements have included information that construction began in 2014 in Dalian port, where the Liaoning was refurbished. They also included information that the new ship will have a modern catapult for launching aircraft and generally will be more advanced than the Liaoning. In addition, construction is scheduled to be completed in 2020. Readers should consider all of the leaks to be calculated and deliberate.

A retired Admiral and former political commissar for the Navy; an active duty naval commissar and a Communist Party official from Liaoning Province have been prominent in the steady stream of information about the new, modern Chinese aircraft carrier. Each has contributed bits of new information about the new carrier.

The cover story of excited, but inadvertent leaks is part of a propaganda strategy that aims to keep regional neighbors informed, but not alarmed. The fact is that China can build and is building a US-style aircraft carrier and sea control ship. Some sources reported the goal is to build six,

General Comment: The People's Liberation Army Navy has held no press conferences about the new aircraft carrier. China watchers consider this a deliberate act of deception to avoid antagonizing regional states. The Chinese leadership has chosen to use staggered and partial leaks of information about the new carrier to accustom the leaders of regional powers to the prospect of another Chinese aircraft carrier, enforcing China's claims to sovereignty and asserting regional hegemony.

US naval experts say they are encouraged by China's determination to spend the time and resources to develop a naval air force. A former commander of the US Pacific Command observed it took the US Navy 70 years to develop competent carrier air wings. An eminent US Naval strategist suggested Chinese aircraft carriers are big targets, like US aircraft carriers.

China is following the only successful model of a great power: the United States. Great powers have great navies. The Chinese are modifying the US model, however, to suit China's needs, which mostly are regional, rather than global.

The Chinese reportedly intend to build and operate up to six aircraft carrier task groups. In northeast Asia, they will be challenged. Japan has three aircraft-carrying destroyers and plans to build more. South Korea also wants and plans to build at least two light aircraft carriers.

On the other hand in Southeast Asia, Chinese aircraft carriers could be intimidating to Southeast Asian countries, unless US or other friendly naval forces are nearby. The Indians and the Japanese are acutely aware of this challenge and have engaged in naval cooperation for at least a decade.

China-Xinjiang: Chinese authorities recently arrested members of the Islamic State of Iraq and the Levant (ISIL). The ISIL fighters were arrested after returning to Xinjiang, according to Zhang Chunxian, a member of China's Politburo and Xinjiang's Communist Party chief. Zhang reportedly declined to specify the number or nature of the arrests, or to identify the suspects.

Comment: Today's report is the first to relate that ISIL is trying to develop a presence among the Muslims of western China. Chinese officials said in December 2014 that about 300 Chinese nationals were fighting with ISIL. The arrests are the first indication that any of them returned to Xinjiang {Or, it could be a mere hogwash and China is planning to execute a number of Uyghurs under the guise of them being members of ISIS.Both parties, China and the jihadists, are capable of anything}.

The descriptions of the arrests indicate that the detainees probably are ethnic Uighurs. In the past, Uighur militants have traveled to Pakistan and Afghanistan for training. ISIL presents a third, even more extreme alternative.

An ISIL presence in western China that is comparable to Boko Haram, for example, would pose a significant threat to the stability that Chinese authorities judge to be essential for economic growth.

vijaykarthik · Post by **vijaykarthik** » 12 Mar 2015 14:12

Strange are the ways of the Chinese world.

One cant defy the state while alive. One doesn't dare defy in the nether world too. [No wonder they were planning to have a terrorism law which even outlawed terrorist 'thoughts'. They took off that word when someone perhaps realized and pointed out that they don't have that capability yet]

http://www.nytimes.com/2015/03/12/world ... c=rss&_r=0

Bade · Post by **Bade** » 12 Mar 2015 15:13

vijaykarthik wrote:^ Assumption island? That's a queer name for an island, SS.

Is it that the island is tiny and hence the funny name? Would you have any idea about that?

Google map throws it as the most south-westerly of the Seychelles chain and it is indeed small at less than 10km in size...shaped more like an inverted comma, perfect for a base and close to African shores a southern outpost in the Indian Ocean.

There is a college or convent school by that name in Kerala, so not so strange in itself.

Bade · Post by **Bade** » 12 Mar 2015 15:25

According to a report by Reuters, Tokyo will be involved in joint training exercises with Vietnam and the naval military of the Philippines. The two countries have been China’s biggest challengers when it comes to vocalizing their own sovereignty claims in the region. Tokyo has reportedly offered 10 coast guard boats in the area ahead of what will be the first joint naval exercises between the Philippines and Japan in upcoming months. The two countries forged a security pact in Tokyo in January that also confirmed regular meetings between vice ministers regarding defense. Additionally, Tokyo military medical professionals have offered help in advising Vietnamese submariners on avoiding decompression sickness.

http://www.ibtimes.com/japan-gets-invol ... rt-1844102

vishvak · Post by **vishvak** » 12 Mar 2015 20:05

Hopefully, the islands will help a LOT in fighting piracy. On the other hand, if there are enough air travelers, then better facilities will be needed too as few bigger airlines go to remote airports in Africa.

ramana · Post by **ramana** » 12 Mar 2015 23:40

vijaykarthik wrote:^ Assumption island? That's a queer name for an island, SS.

Is it that the island is tiny and hence the funny name? Would you have any idea about that?

http://en.wikipedia.org/wiki/Assumption_Island

During the age of exploration many remote islands were given Christian names. Assumption Island is Christian name. Mostly catholic schools have it.

Assumption means going to heaven

Short for Assumption of Mary etc....

So the explorers aka pirates thought it was Paradise/heaven and named!

DavidD · Post by **DavidD** » 13 Mar 2015 02:19

Huge news coming out of London, let's see if it truly happens. If the UK does indeed announce their participation in defiance of American pressure, South Korea and Australia may soon follow suit.

http://www.ft.com/cms/s/0/31c4880a-c8d2 ... ab7de.html

US rounds on UK over China deal
Geoff Dyer in Washington and George Parker in LondonAuthor alerts

U.S. President Barack Obama, right, looks on as David Cameron, U.K. prime minister, center, and Tony Abbott, Australia's prime minister, left, listen during a plenary session at the Group of 20 (G-20) summit in Brisbane, Australia, on Saturday, Nov. 15, 2014. Leaders of the world's 20 largest economies including U.S. President Barack Obama and Chinese President Xi Jinping gather in Brisbane this weekend to focus on economic issues. Photographer: Rob Griffith/Pool via Bloomberg *** Local Caption *** Barack Obama; David Cameron; Tony Abbott
The White House accused the UK on Thursday of a “constant accommodation” of China after the British government decided to join a new China-led financial institution that could become a rival to the World Bank.
The rare rebuke of one of the US’s closest allies comes as Britain prepares to announce it will become a founding member of the $50bn Asian Infrastructure Investment Bank, making it the first G7 country to join an institution launched by China last October.
More
ON THIS TOPIC
Q&A the Asia Infrastructure Investment Bank
Yoichi Funabash A boycott of China’s bank is futile
Concerns remain over ADB’s Chinese rival
Big nations snub Beijing bank launch
IN GLOBAL ECONOMY
Erdogan backs off in central bank battle
Asian central banks in rate cut rush
Depreciation is no longer a magic bullet
Fears of damaging deflation subside
The reprimand is a rare breach in the “special relationship” that has been a backbone of western policy for decades. It also underlines US concerns over China’s efforts to establish a new generation of international development banks that could challenge Washington-based global institutions. The US has been lobbying other allies not to join the AIIB.
Relations between Washington and David Cameron’s government have been strained over recent weeks, with senior US officials criticising Britain over falling defence spending, which could soon fall below the Nato target of 2 per cent of gross domestic product.
A senior administration official told the Financial Times that the British decision was taken after “virtually no consultation with the US” and at a time when the G7 had been discussing how to approach the new bank.
“We are wary about a trend toward constant accommodation of China, which is not the best way to engage a rising power,” the US official said.
We are wary about a trend toward constant accommodation of China, which is not the best way to engage a rising power
- Senior US official
British officials were publicly restrained in criticising China over its handling of Hong Kong’s pro-democracy protests while Mr Cameron has made it clear he has no further plans to meet the Dalai Lama, Tibet’s spiritual leader — following a 2012 meeting that prompted a furious response from Beijing.
While Beijing has long been suspicious about US influence over the World Bank and IMF, China also believes that the US and Japan have too much control over the Manila-based Asian Development Bank. In addition to the AIIB, China is the driving force behind the creation last year of the Brics development bank and is promoting a $40bn Silk Road Fund to finance economic integration with Central Asia.
The Obama administration has said it is not opposed to the AIIB, but US officials fear it could become an instrument of Chinese foreign policy if Beijing ends up having veto power over the bank’s decisions.
The UK Treasury said George Osborne, chancellor of the exchequer, had discussed his intention to become a founding member of the new bank with Jack Lew, his US counterpart. Mr Osborne was aware his decision would not be popular with Washington.
Mr Osborne was unrepentant, arguing that Britain should be in at the start of the new bank, ensuring that it operates in a transparent way. He believes it fills an important gap in providing finance for infrastructure for Asia.
“Joining the AIIB at the founding stage will create an unrivalled opportunity for the UK and Asia to invest and grow together,” Mr Osborne said. He expects other western countries, which have been making positive noises privately about the new bank, to become involved.
Joining the AIIB at the founding stage will create an unrivalled opportunity for the UK and Asia to invest and grow together
- George Osborne
Beijing launched the AIIB in October with the backing of 20 other countries, but Japan, South Korea and Australia — America’s main allies in the region — did not become founding members. There has been a strong debate with the Australian cabinet about whether to join, after US pressure to stay on the sidelines.
A decision by the major economies to join now would give up leverage they might have over the AIIB as it was being set up, the US official said: “Large economies can have more influence by staying on the outside and trying to shape the standards it adopts than by getting on the inside at a time when they can have no confidence that China will not retain veto powers.”
Mr Osborne’s decision reflects London’s desire to pursue commercial relations with China aggressively, even at the expense of antagonising Washington.
When Mr Osborne visited Beijing in 2013 he said he wanted to “change Britain’s attitude to China”; last October the chancellor hailed the British government’s sovereign renminbi bond issue, the first by a western government. It has been keen to establish the City of London as a platform for overseas business in the Chinese currency as it starts to play a bigger role in the global economy.
Last week, the House of Commons foreign affairs committee said the British government should press China harder to introduce political reforms in Hong Kong. The committee also said it was “profoundly disappointed” at the “mild” response of the government when its members were prevented from visiting Hong Kong in November during the protests.
Q&A: The Asia Infrastructure Investment Bank
The AIIB — what is it?
The Asia Infrastructure Investment Bank is one of four institutions created or proposed by Beijing in what some see as an attempt to create a Sino-centric financial system to rival western dominated institutions set up after the second world war. The other institutions are the New Development Bank (better known as the Brics bank) and a contingent reserve arrangement, seen as alternatives to the World Bank and the International Monetary Fund; and a proposed Development Bank of the Shanghai Co-operation Organisation, a six-country Eurasian political, economic and military grouping dominated by China and Russia.
What is it for?
The AIIB offers an alternative to the Asean Development Bank, which focuses on poverty relief and lacks the firepower to undertake the large-scale infrastructure projects that are the remit of the AIIB.
What’s wrong with that?
In principle, nothing. But the ADB and the AIIB are seen as rival rather than complementary organisations. The ADB was established in 1966 and now has 67 members including 48 from Asia and the Pacific. But it is seen by many in the region as overly dominated by Japan and the US, which are by far its biggest shareholders with 15.7 per cent and 15.6 per cent respectively (compared with China’s 5.5 per cent). The AIIB was founded last year with 21 members. Notably absent were the US, Japan, Australia and South Korea. The US, it is said, lobbied countries not to join, while China worked hard to get them in.
Does that matter?
Both sides clearly think it does. Proponents of the AIIB criticise the ADB for being overly bureaucratic. The AIIB’s critics say the new lender will play fast and loose with conditionality and other restrictions on the behaviour of borrowers, allowing corruption to flourish. More significant, however, are strategic considerations. The US and China are increasingly engaged in a struggle for regional influence, played out through institutions such as these.

A_Gupta · Post by **A_Gupta** » 13 Mar 2015 16:22

Analysis of the Silk Road Project:
http://www.atimes.com/atimes/China/CHIN-02-130315.html

.....Therefore, it is clear that the Chinese government and its state-owned and private enterprises must see the benefits of including India as part of any long-term and sustainable Silk Roads strategy.

arun · Post by **arun** » 15 Mar 2015 10:14

arun wrote:The People’s Republic of China bullying Myanmar.

The Kokang ethnic group that resides in Myanmar is a Han Chinese Mandarin speaking ethnic group and Myanmar has accused P.R.China of supporting the Kokang splittists.

India should provide help to Myanmar to mitigate bullying by the People's Republic of China:

Myanmar-China Border Conflict: Officials Call On Beijing To Stop Facilitating Rebel Groups

Looks like the Burman people of Myanmar have got fed up with the inaction of the People’s Republic of China regards their Han ethnic cousins, the Kokang, who are creating trouble in Myanmar.

India must give full diplomatic and moral support to Myanmar to withstand P.R.Chinese bullying, demand restraint from P.R.China and a reduction in bellicose rhetoric while pushing for talks between the two countries:

Chinese General Warns Myanmar Over Bombing ……………………..

“The top echelons in the Myanmar military must strictly control and restrain their forces, and there can be absolutely no repeat of such incidents,” General Fan told the commander in chief of Myanmar’s military, Senior Gen. Min Aung Hlaing, in a telephone call, Xinhua said. “Otherwise, the Chinese military will take resolute and decisive measures to protect Chinese people’s lives and property.”

New York Times

SSridhar · Post by **SSridhar** » 15 Mar 2015 16:43

arun wrote:
Chinese General Warns Myanmar Over Bombing ……………………..
“The top echelons in the Myanmar military must strictly control and restrain their forces, and there can be absolutely no repeat of such incidents,”
New York Times

OK, the Myanmarese army's Generals must control their soldiers. But, what has Xi Jinping been telling the PLA, PLAN & PLAAF? Isn't it the same thing?

A_Gupta · Post by **A_Gupta** » 15 Mar 2015 18:22

Learning from China:
http://thediplomat.com/2015/03/what-ind ... rom-china/

Modi would do well to study the resettlement policies of China. According to a document prepared for the World Commission on Dams report, there is much to be learned from the Xiaolangdi project. The document states that the approach to resettlement and rehabilitation for this project was different. The World Bank supported efforts to provide “sufficient financial and human resources to facilitate resettlement.” China’s developmental resettlement policy integrates resettlement plans with regional socioeconomic development. Consequently, skills, low-interest bank loans, training in cash-crop cultivation and other assistance are provided so that resettled people can participate in the local economy even as industrial jobs are provided. A key aspect of this policy is that fund disbursement is sanctioned according to plans for resettlement in such a way that enhances economic conditions. Though the success of the resettlement is debatable, the process at least acknowledges the need to assimilate displaced persons in the local economy.

China also has a very large resettlement bureaucracy that extends down to the village level. Thus there is a decentralization of authority. This can ensure that the lessons and skills acquired from projects are shared within the bureaucracy.