Road to Pragmatism

An India-China Economic and Cultural Council publication May–June 2015 x ` 100

Modi’s China Visit: Road to Pragmatism

BI-LATERAL INTERVIEW: DR J SULLIVAN FIRST PERSON Border: “Asia for Asians reflects Meeting Modi in An Elusive Chinese Resentment of China: A Unique Settlement? the US’s Influence” Experience www.icec-council.org Mr. Modi’s Visit to China: Style or Substance? The three-day (May 14-16) visit of Prime Minister Narendra Modi to China ended - Vol 5, Issue 3, May-June 2015 RQ D µZDUP¶ QRWH µVHO¿HV¶ ZHUH WDNHQ DQG DJUHHPHQWV ZHUH IRUJHG 7KHUH ZDV FRPPLWPHQWWRLPSURYHELODWHUDOPLOLWDU\WLHVLQWHUJRYHUQPHQWDODJUHHPHQWV EDITOR-IN-CHIEF DQG EXVLQHVV DJUHHPHQWV ZRUWK ELOOLRQ ZHUH VLJQHG 0U 0RGL PHW Mohammed Saqib &(2V IURP DFURVV &KLQD¶V OHDGLQJ FRPSDQLHV WR SURPRWH ,QGLD ,QF&XOWXUDO EXECUTIVE EDITOR DQGHGXFDWLRQDOH[FKDQJHVZHUHDQQRXQFHG+HDGGUHVVHGVWXGHQWVDW7VLQJKXD Urmila Rao 8QLYHUVLW\ LQ %HLMLQJ DQG LQ WKH ¿QDO OHJ RI KLV YLVLW PHW ,QGLDQ FRPPXQLW\ DW 6KDQJKDLWKDWVDZDQLPSUHVVLYHFURZGRI,QGLDQVDSROLWLFDOIHDWLQ&KLQD EDITORIAL BOARD Mani Shankar Aiyar 7KHYLVLWUDLVHGRSWLPLVPRQVWUHQJWKHQLQJRIUHODWLRQVKLS7RHQKDQFHERUGHU P.S. Deodhar FRRSHUDWLRQLWZDVGHFLGHGWKDWWKHWZRVLGHVZLOOFDUU\RXWDQQXDOYLVLWV$KRWOLQH Dilip Cherian EHWZHHQ WKH WZR PLOLWDU\ KHDGTXDUWHUV LV OLNHO\ WR EH RSHUDWLRQDOLVHG 7KLV LV D Amir Ullah Khan ZHOFRPHVWHSDQGPXVWJREH\RQGPHUHV\PEROLVPWR\LHOGVWDELOLW\DQGHQVXUH Chen Si (China) SHDFH LQ FRQWHQWLRXV UHJLRQV ,QFUHDVHG FRRSHUDWLRQ RQ WKH SURYLVLRQ RI ÀRRG EDITORIAL TEAM VHDVRQ K\GURORJLFDO GDWD DQG HPHUJHQF\ PDQDJHPHQW LV D VWHS IRUZDUG 7KH Irfan Alam 6WUDWHJLF(FRQRPLF'LDORJXHWREHKHOGLQ,QGLDGXULQJWKHVHFRQGKDOIRI Shawahiq Siddiqui Manish Vaid EHWZHHQ1,7,$D\RJDQG1DWLRQDO'HYHORSPHQWDQG5HIRUP&RPPLVVLRQ&KLQD Monish Tourangbam ZLOOEHKHOSIXOLQH[SORULQJQHZDUHDVRIHFRQRPLFFRRSHUDWLRQ Amrita Jash 7KH HVWDEOLVKPHQW RI µ,QGLD&KLQD 7KLQN7DQNV )RUXP¶ ZLOO KHOS LQFUHDVH DESIGN PXWXDOXQGHUVWDQGLQJWKURXJKLQFUHDVHGGLDORJXHSURFHVV,QVWLWXWLRQDOL]DWLRQRI Manoj Raikwar WKHµ+LJK/HYHO0HGLD)RUXP¶WRRLVDSURPLVLQJVWDUWLWLVLPSRUWDQWIRUMRXUQDOLVWV IURPERWKWKHVLGHVWRGHYHORSDKROLVWLFXQGHUVWDQGLQJRIHDFKRWKHULQDSRVLWLYH OWNED, PRINTED AND PUBLISHED BY Mohammed Saqib DQGUHDOLVWLFPDQQHUDVRSSRVHGWRMLQJRLVWLF'HOKL¶VJUDQWLQJRIHYLVDVWR&KLQHVH WRXULVWVZDVDSURDFWLYHPRYHWRZDUGVVXEVWDQWLYHUHODWLRQVKLS Registered with the Registrar of Newspapers 7KHPRRWTXHVWLRQKRZHYHUUHPDLQV:KDWZDVWKHFRQFUHWHRXWFRPHRIWKH of India under RNI No: DELENG/2011/43423 YLVLW":HUHDQ\WLPHOLQHV¿[HGWRDFKLHYHGHOLYHUDEOHV",Q)HEUXDU\ZKHQ([WHUQDO PUBLISHED FROM $IIDLUV0LQLVWHU0V6XVKPD6ZDUDMYLVLWHG%HLMLQJERWKVLGHVDJUHHGWKDWUHVROXWLRQ A-82, Zakir Bagh, New Delhi - 110025 RIWKHERUGHUGLVSXWHVKRXOGQRWEHOHIWWRIXWXUHJHQHUDWLRQV6KHH[SUHVVHG,QGLDQ ADDRESS FOR ALL CORRESPONDENCE JRYHUQPHQW¶VFRPPLWPHQW³WRH[SORULQJHDUO\VHWWOHPHQW´7KHH[SHFWHGµRXWRI India-China Chronicle WKHER[¶VROXWLRQSOD\HGHOXVLYH0RGL¶VYLVLWGLGQ¶WH[DFWO\\LHOGFRQFUHWHUHVXOWVRQ B-59 (GF), South Extension - II, ERXQGDU\TXHVWLRQDQGJRWLQWRWKHUKHWRULFRI³HDUO\VHWWOHPHQW´ New Delhi - 110049 6LPLODUO\ GLVFXVVLRQV RQ VHYHUDO RWKHU FULWLFDO DUHDV PDGH QR KHDGZD\ 1R Telefax: 011-46550348 DJUHHPHQWZDVUHDFKHGRQWKHLVVXHRIWUDQVERXQGDU\ULYHUV1RFRQFUHWHPHDVXUHV PRINTED AT ZHUHZRUNHGRQWRJHW&KLQDWRVXSSRUW,QGLD¶VPHPEHUVKLSRI816HFXULW\&RXQFLO Aleena Prints DQG 1XFOHDU 6XSSOLHU¶V *URXS 7KH LVVXH RI VWDSOHG YLVDV UHPDLQHG XQUHVROYHG Mr. Naved Rasheed ,QGLD¶VJURZLQJFRQFHUQRI&KLQD¶VLQYHVWPHQWVLQ3DNLVWDQZDVQ¶WDGGUHVVHGIXOO\ Block Z-II, 378, Shahadra, Delhi-110053 Mobile:+91-9582345886 &RQYHUVDWLRQRQKDUPRQL]DWLRQRI,QGLD¶Vµ0DXVDP¶DQGµ6SLFH5RXWH¶SURMHFWVZLWK E-mail : [email protected] &KLQD¶Vµ%HOWDQG5RDG¶SURMHFWFHUWDLQO\GLGQ¶WVHHDQ\KHDGZD\,QGLD¶VFRQFHUQ RQµ2QH%HOW2QH5RDG¶ 2%25 SURMHFWZDVQ¶WWDFNOHGWRVDWLVIDFWLRQ$OOLQDOO All Rights Reserved. Reproduction in whole WKHYLVLWKDGQRVXUSULVHRXWFRPHLQFULWLFDODUHDV7KH-RLQW6WDWHPHQWZDVIXOORI or in part without written SRVLWLYHQRWHVWKRXJK permission is prohibited. 7R JHW PHDQLQJIXO UHVXOWV DFWLRQ SODQ DQG WLPHOLQHV RXJKW WR EH ¿[HG )RU LQVWDQFHGHDOLQJZLWKPRUHWKDQELOOLRQWUDGHGH¿FLWQHHGVDWDQJLEOHZRUN All advertising enquiries, comments SODQ,WPHDQVVLPSOLI\LQJRIEXVLQHVVDQGFRQIHUHQFHYLVDVIRU&KLQHVHLQ,QGLD and feedback are welcome at [email protected] ,WDOVRPHDQVLPSOHPHQWLQJVWUXFWXUDOFKDQJHVDWKRPHVRWKDWLQYHVWPHQWVÀRZ HDVLO\,QGLDVFRUHVSRRURQWKHLQGH[RIµ(DVHRI'RLQJ%XVLQHVV¶UHSRUWEXUHDXFUDWLF The information contained in this KXUGOHVDQGRSDTXHQHVVPLUHEXVLQHVVHQYLURQPHQWLQ,QGLD magazine has been reviewed for ,I 0RGL¶V DFWLRQ SODQ IRU 6LQR,QGLD UHODWLRQVKLS LV OHW¶V LPSURYH EXVLQHVV accuracy and is deemed reliable but WREXVLQHVV DQG SHRSOHWRSHRSOH UHODWLRQV DQG WKHQ IRFXV RQ JRYHUQPHQW WR is not necessarily complete or guaranteed by the Editor. The views JRYHUQPHQWUHODWLRQVWKHQKHVKRXOGPDNHDVHULRXVVWDUWQRZ expressed in this digest are solely that of the writers and do not necessarily UHÁHFWWKHYLHZVRIWKHPDJD]LQH Editor-in-Chief Mohammed Saqib CONTENTS

approximately $95.3bn last year with a hope investments. But what is the nature of 6 Brief News of expansion to $100bn in 2015. Year China’s venture in Nepal and the geopolitical 2014 also saw $400 billion gas deal signed implications thereof? What are India’s 8 Letters between the two countries. Are the two concerns on China’s engagement with Nepal? powers knitting closer economic ties owing ECONOMY to Western sanctions on Russia? Does 51 Exhibitions & Trade Show 10 Modi’s China Visit Economic this coalition mark a step towards a new In India and China Questions That Need to Be international order, a multi-polar world where the United States is no longer the CULTURE Raised dominant power? 53 Boosting Soft Power in China India clearly has emerged as one of China’s FOREIGN POLICY FOREIGN POLICY largest markets. However, the trade Soft power is India’s most promising tool in relationship between the two countries is not 29 ‘All-Weather Friendship’ 40 Demystifying China’s Silk its foreign policy kit. New Delhi can a win-win situation one, and is not viable for Between China and Pakistan: Road Diplomacy successfully wield it to add more strength India. Is it time for India to resort to import Implications for India to its relationship with China. Mr. Modi’s substitution and reduce the volumes imported Through ‘One Belt, One Road’ (OBOR) visit attempted to do this when Beijing and from China? Xi’s recent visit to Pakistan has been dubbed project, Beijing plans to expand ties with Delhi signed agreements in fields of yoga, as “fate-changing visit” in China-Pakistan developing countries in a bid to exert education and youth exchange and established relations. India feels uneasy with this “all- economic influence and secure its foreign media forum and think-tanks forum among weather strategic cooperative partnership” policy goals. Many experts consider OBOR as other things. which it finds difficult to assess as well as ‘China’s Marshall Plan’. With several countries ignore even as both the countries celebrate part of OBOR, has China set out to reshape CINEMA 2015 as China-Pakistan Year of Friendship. the international system? How is India 56 My Favourite Movie and responding to Beijing’s Maritime project in COVER STORY INTERVIEW Indian Ocean Region? Read on. &KLQD¶V$QWLWUDI¿FNLQJ(IIRUWV 32 ³$VLDIRU$VLDQVUHÀHFWV ‘Dearest’ is my favourite Chinese Resentment of the movie, not because of its stars or awards, but 86¶V(QGXULQJ,QÀXHQFHLQ WKH because of its near- Modi’s China Visit: SOUTH ASIA Region” - Would it Mean Asia accurate portrayal of 13 Emerging India-China tensions in the current for the Chinese? Road to Pragmatism Relations: SAARC and India’s Chinese anti-trafficking movement. As an Policy Options Dr Jonathan Sullivan is Associate Professor of advocate dealing with children’s issues in China Prime Minister Modi’s visit to China was an attempt to India is keen to uphold its status as a South Contemporary Chinese for many years, I am Asian power; China’s ambition is to emerge Studies and Deputy revitalize strategic and economic ties. He highlighted ‘Brand impressed with the efficiency with which the as a ‘Greater Power’ in South Asian region. Is Director of the China INTERNAL AFFAIRS movie brings out the challenges related to India’ for Chinese investment in infrastructure and energy- India-China relation entering to a new mode Policy Institute at the 44 State Response to Separatist anti-trafficking movement. related projects. He emphasized on establishing “strategic of power politics in South Asia? Is there a University of Nottingham, middle rational approach for both to follow? UK. He regularly writes on China matters Movement: Xinjiang and trust” between the two nations. Can this visit be termed FIRST PERSON Find out. that includes China’s relations with its Kashmir as historic that could forge new synergies in the bi-lateral neighbors, its expanding global role, cross- 60 Meeting Modi in China: Strait relations, Taiwanese politics and The internal and international aspects of A Unique Experience relationship and reshape Asian geo-politics? more. In an interview with Urmila Rao, he the Kashmir and Xinjiang conflicts must be 18 articulates on a wide range of issues including analyzed and addressed not in isolated terms, The Chinese leadership the US conduct in Asia, China’s wariness of but in critical dialogue with shifts in the global reciprocated Mr. the US presence in the region, Beijing’s active order of things Narendra Modi’s role in international society, among others. ‘hometown diplomacy’ very well; Mr. Modi ECONOMY | INTERVIEW DIPLOMACY became the first ever 35 Responding Alike: India and foreign leader to “India Can Provide Better Return be received outside China on Western Sanctions Beijing in President Xi to Chinese Companies” 20 BI-LATERAL Despite mutual differences, there are instances Jinping’s birthplace, Xian. Mr. Modi’s selfies with Premier 26 Border: An Elusive Settlement? where India and China have taken similar positions. Two cases in point are Western Li Keqiang received millions of hits on DIPLOMACY | INTERVIEW A breakthrough on boundary talks was sanctions on Iran and Russia where India and Chinese social media. India now means a lot expected during Modi’s visit to China. There China have conveyed their opposition to these in terms of tourism, education and business “Both India and China Have were several signs since the beginning of the sanctions. for the Chinese. year, including visit of Ms Sushma Swaraj INFRASTRUCTURE EVENTS to Strive to Realise the Asian to Beijing who stated that boundary dispute DIPLOMACY 48 Nepal’s Engagements should not be left to future generations and 37 China’s Diplomacy Caught 62 ICEC Council Booth Receives Century, One or the Other there was a need to find ‘out of the box’ with China between Europe and Russia ‘Outstanding Exhibitor’ Award solutions. However, no concrete steps took Nepal requires investments and in all Can’t be Absent” 22 place in May. at Shenzhen Fair Russia and Chinese trade amounted to likelihood, is getting the benefits of Chinese

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:DV0RGL¶VYLVLWWR&KLQDVXFFHVVIXO",WGHSHQGVRQKRZRQHGH¿QHVVXFFHVVLQWKH6LQR FOLLOW US Indian context. Different experts analysed Modi’s visit differently; some called it a step IRUZDUGLQELODWHUDOUHODWLRQVRWKHUVUXHGWKHODFNRIPHDQLQJIXOSURJUHVV Subscribe Calling ,QGLD&KLQD UHODWLRQVKLS LV D FRPSOH[ RQH JLYHQ WKH KLVWRULFDO EDFNJURXQG DQG SUHVHQW Now! Writers GHYHORSPHQWV +HQFH FULWLFDO LVVXHV RQ WKH WDEOH IRU H[DPSOH ODQG ZDWHU DQG VHFXULW\KDYH QR simple solutions either. The fact that the mood of both the countries vacillate between confrontation, MONTHS ISSUES PRICE FRRSHUDWLRQDQGFRPSHWLWLRQPDNHPDWWHUVHYHQPRUHNQRWWHG We encourage dynamic ,WLVXQGHUVWDQGDEOHWKDWIRUHLJQSROLF\FRQFHUQVKDYHQRTXLFNDQVZHUV,QWKLVEDFNJURXQGWKH 6 3 300 writers with International YLVLWZDVDVROLGIRRWZRUNGRQHWRIRUJHIXWXUHDPLFDEOHDQGIUXLWIXOSDWK%XWVHHQIURPWKHSULVP Affairs background to RIDFWXDOUHVXOWVWKHYLVLWVDZOLWWOHSURJUHVV 12 6 600 7KH HFRQRPLF GLSORPDF\ PD\ ZHOO WXUQ RXW WR UHVROYH OLQJHULQJ VWUDWHJLF LVVXHV %XW IRU WKDW contribute in the magazine RXWFRPHPXFKGHSHQGVRQKRZEXVLQHVV0R8VDFWXDOO\WUDQVODWHRQJURXQGZKHQLPSOHPHQWHG 24 12 1200 Contact: 9818003533 India’s infrastructural and institutional unpreparedness may play the spoilsport. India has to readily provide comfort to Chinese business sense. In the past, we have seen MoUs on hydrocarbon projects between ONGC Videsh Limited (OVL) and China National Petroleum Corporation (CNPC) fall apart. I would like to subscribe for 6 12 24 months. &KLQDUHFHQWO\ZLWKGUHZHQHUJ\SURMHFWVIURPLWV³DOOZHDWKHU´IULHQG3DNLVWDQ)RUHFRQRPLFWLHVWR GHYHORSWKHEXVLQHVVHQYLURQPHQWKDVWREHPDGHFRQGXFLYH*UDGXDOO\SDWKZD\VIRUFRRSHUDWLRQ My name is Mr. / Ms.______. Please deliver India-China Chronicle issue at my LQRWKHUDUHDVLQFOXGLQJFXOWXUHFDQIROORZWRSURYLGHIXOOVWHDPWR0RGL¶VHFRQRPLFGLSORPDF\ ŽĸĐĞͬŚŽŵĞaddress ______&RPLQJ EDFN WR WKH DQDO\VLV RI 0RGL¶V WDNHDZD\ IURP WKH &KLQD YLVLW WKLV LVVXH SDFNV YDULRXV YLHZVIURPGLIIHUHQWTXDUWHUV7KHFRYHUVWRU\E\'U0RQLVK7RXUDQJEDPDVVHVVHVKLWVDQGPLVVHV PIN______CITY ______STATE ______INDIA. RQDEURDGSHUVSHFWLYHZKHUHDVLQWHUYLHZVRI'U5DKXO0LVKUDDQG0U5DYL%KRRWKDOLQJDPLQVWLOO RQH ZLWK KRSH DQG RSWLPLVP RQ WKH ELODWHUDO UHODWLRQVKLS 6WHSKHQ :HVWFRWW HYDOXDWHV ERUGHU PAYMENT DETAILS GLSORPDF\SRVWYLVLWZKHUHDV'U6ULSDUQD3DWKDNH[SORUHVWKHHFRQRPLFDQJOH7LODN-KDSUHVHQW DW 0RGL¶V 6KDQJKDL VSHHFK FDSWXUHV WKH VHQWLPHQWV OLYH $VPD 0DVRRG DSSUDLVHV 6RIW 3RZHU G\QDPLFVWKDWKDYHWKHSRWHQWLDOWRVWUHQJWKHQWKHFXOWXUDOWLHV%H\RQG0RGL¶VYLVLWWKHLVVXHKDV Cheque/DD No.______for INR ______RWKHUJULSSLQJDUWLFOHVWRR Bank Name ______Dated ______$UXVKL*XSWDDWWHPSWVDWGHP\VWLI\LQJ&KLQD¶V6LON5RDGGLSORPDF\ZKHUHDV$PULWD-DVKORRNVDW µ$OO:HDWKHU¶IULHQGVKLSEHWZHHQ&KLQDDQG3DNLVWDQDQGLWVLPSOLFDWLRQVIRU,QGLD'U-DJDQQDWK in favor of INDIA CHINA ECONOMIC AND CULTURAL COUNCIL. 3DQGDLQYHVWLJDWHVWKHHPHUJLQJ,QGLD&KLQD5HODWLRQV6$$5&DQG,QGLD¶V3ROLF\2SWLRQVDQG'U /ŚĂǀĞƌĞĂĚƚŚĞƚĞƌŵƐĂŶĚĐŽŶĚŝƟŽŶƐĂŶĚǁŽƵůĚůŝŬĞƚŽĂǀĂŝůƚŚŝƐŽīĞƌ͘ 3UDYHHQ 6DKL IRFXVHV RQ &KLQD1HSDO G\QDPLFV 'HVSLWH PXWXDO GLIIHUHQFHV WKHUH DUH LQVWDQFHV ZKHUH ,QGLD DQG &KLQD KDYH WDNHQ VLPLODU SRVLWLRQV ZKHUH H[DFWO\ 5LVKLND &KDXKDQ WHOOV XV Subscriber’s Signature ______+LPDQL3DQWZHLJKVKRZ&KLQD¶VGLSORPDF\LVFDXJKWEHWZHHQ(XURSHDQG5XVVLD6KDJXQ6KDUPD DUWLFXODWHVRQ&KLQDDQG,QGLD¶VUHJLRQDOLVWDQGVHFHVVLRQLVWPRYHPHQWV3URIHVVRUDW8QLYHUVLW\RI 1RWWLQJKDP8.'U-RQDWKDQ6XOOLYDQWDONVRQWKH86FRQGXFWLQ$VLDDQG&KLQD¶VZDULQHVVRIWKH dĞƌŵƐĂŶĚŽŶĚŝƟŽŶƐ /ŶĚŝĂͲŚŝŶĂŚƌŽŶŝĐůĞŝƐƐƵĞƐĂƌĞĂůƐŽĂǀĂŝůĂďůĞǁŝƚŚŽƵƚƚŚŝƐŽīĞƌ͘WůĞĂƐĞƉƌŽǀŝĚĞĨƵůůŶĂŵĞĂŶĚƐŝŐŶĂƚƵƌĞŽŶƚŚĞƌĞǀĞƌƐĞŽĨƚŚĞĐŚĞƋƵĞͬ͘WůĞĂƐĞĂůůŽǁĚĞůŝǀĞƌǇ 86SUHVHQFHLQWKHUHJLRQDPRQJRWKHUWRSLFV'U:HQMXDQ=KDQJH[HFXWLYHGLUHFWRUIRUWKHµ&HQWHU ƟŵĞŽĨϭǁĞĞŬĂŌĞƌĞŶĐĂƐŚŵĞŶƚŽĨƌĞŵŝƩĂŶĐĞ͘^ƵďƐĐƌŝƉƟŽŶĐŽƉŝĞƐǁŝůůďĞĚĞůŝǀĞƌĞĚďǇƉŽƐƚͬĐŽƵƌŝĞƌĂŌĞƌƚŚĞŝƐƐƵĞŝƐƌĞůĞĂƐĞĚ͘/ŶĚŝĂŚŝŶĂĐŽŶŽŵŝĐĂŶĚƵůƚƵƌĂů IRU,QGLD&KLQD6WXGLHV¶DW-LQGDO*OREDO8QLYHUVLW\JLYHVKLVIDYRXULWHPRYLHWUHDWRIµ7KH'HDUHVW¶ ŽƵŶĐŝůǁŝůůŶŽƚďĞƌĞƐƉŽŶƐŝďůĞĨŽƌƉŽƐƚĂůͬĐŽƵƌŝĞƌĚĞůĂǇƐ͘dŚŝƐŽīĞƌŝƐŶŽŶͲƌĞĨƵŶĚĂďůĞĂŶĚĐĂŶŶŽƚďĞĐŽŵďŝŶĞĚǁŝƚŚĂŶǇŽƚŚĞƌŽīĞƌ͘dΘĂƌĞƐƵďũĞĐƚƚŽĐŚĂŶŐĞĨƌŽŵ ZKLOHGLVFXVVLQJDQWLWUDI¿FNLQJHIIRUWVLQ&KLQDZKLFKLVWKHWKHPHRIWKHPRYLH ƟŵĞƚŽƟŵĞ͘ŝƐƉƵƚĞƐŝĨĂŶǇǁŝůůďĞƐƵďũĞĐƚƚŽƚŚĞũƵƌŝƐĚŝĐƟŽŶŽĨĐŽŵƉĞƚĞŶƚĐŽƵƌƚƐŝŶĞůŚŝŽŶůǇ͘ ,QDOOWKHLVVXHSDFNVSXQFKDQGSURPLVHRIDQLQWHUHVWLQJUHDG ΎŽŶĚŝƟŽŶƐƉƉůǇ͘ India-China Economic and Cultural Council +DSS\5HDGLQJ B-59, South Extension-II,, New Delhi-110049. Email: [email protected]. Ph: 011-41017185

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China Sets up Gold Sector Fund LQJWKH,QGLDQÀDJLQWKLVUHJLRQRIVWUDWHJLFLPSRUWDQFH The UK government’s project, HS2, will be built in two ¿QDQFHDJULFXOWXUHODQGDQGUHVRXUFHVDQGWKH6WDWH After each port call, passage exercises are also planned with SKDVHV7KH¿UVWSKDVHZLWKDQHVWLPDWHGFRVWRI Forestry Administration. hina, has set up a gold sector fund, led by Shanghai WKHGLIIHUHQWKRVWQDYLHV´VDLGDVHQLRURI¿FHU billion, will link London and Birmingham and is likely to In 18 provincial regions, 94 percent of reclaimed CGold Exchange, and is expecting to raise $16.1 billion in commence construction in 2017 and start operations in farmland will be turned into forest and six percent into three phases. The fund, set up in China’s northwest Xi’an, China’s New Regulations on 2026. Phase two will be an extension to Manchester and grassland to protect the ecosystem, according to the will be part of Beijing’s ‘Silk Road’ initiative to expand Smoking and Other Areas Leeds to be opened in the year 2033. statement. The target is double the previous year’s 5 trade and transport infrastructure across Asia and beyond. million mu. About 60 countries have invested in the fund that will help hina has introduced new regulations on smoking, Code of Conduct on Line of CPHGLFLQHSULFHVWUDI¿FFRQWUROVDQGRWKHUDUHDV Actual Control starting June 1. Ban has been put in place to stop smoking in public spaces like restaurants, public transportation and ccording to News Agency Press Trust of India, China LQRI¿FHV2QPHGLFLQHSULFHVWKHJRYHUQPHQWKDVGHFLGHG Ahas virtually rejected Prime Minister Narendra Modi’’s 61 , 3 3( 76 to change its role from decision maker to supervisor proposal to clarify positions on the Line of Actual Control and let the market forces set the cost. It is viewed that and said it prefers an agreement with India on a Code of ndian technology major Infosys will establish its market competition will lower the medicine prices and Conduct to maintain peace along the border. Outlining Ifirst overseas centre outside India in Chinaw ith an consumers will have access to good quality medicine at &KLQD¶V¿UVWSXEOLFUHDFWLRQWRWKH30¶VSURSRVDO'HSXW\ investment of about $120 million. An MoU was signed more affordable cost. From June 1 onward, import tariff Director General of the Asian Affairs at the Foreign between Infosys and the local Chinese provincial rates have been cut on clothing, shoes, skincare and Ministry, Huang Xilian, said previous attempts to clarify government at the India-China Business Forum, which diapers with an average decrease of 50 percent. Footwear PXWXDOSRVLWLRQVRQWKH/$&KDG³HQFRXQWHUHGGLI¿FXOWLHV´ was addressed by Prime Minister Narendra Modi in such as short boots and sports shoes will attract 12 per cent Shanghai. The development center, likely to be ready by customs duty rather than 22 percent to 24 percent, says China’s Vision for Education next year, will be established in Guizhou province. the news report. Further, Beijing announced that electric ...... vehicles with licenses will not be subject to peak time Military Servicemen recently released white paper states that about to facilitate gold purchase for the central banks of member WUDI¿FFRQWUROV ccording to Chinadaily. A8,000 Chinese students were dismissed from the states to increase their holdings of the precious metal. The Acom.cn, Chinese US schools at all levels from 2013 to 2015. The study fund involves 65 countries along the routes of Silk Road UK uses Chinese expertise in its President and Chairman found that more than 57 per cent were dismissed Economic Belt and the 21st-Century Maritime Silk Road. High Speed Train Project, HS2 of the Central Military because of poor academic performance. ‘The white ³7KH&KLQHVHJRYHUQPHQWVHHNVWRLQFUHDVHWKHLQÀXHQFH Commission (CMC) Xi paper also informed that academic dishonesty, including of RMB in gold pricing by opening the domestic gold hina will supply United Kingdom state-of-the-art Jinping’s vision for the cheating in exams and plagiarizing was the second- market to international investors,” said Tang Xisheng of CWUDLQVWKDWFDQUXQRQWKHFRXQWU\¶V¿UVWKLJKVSHHG educating of servicemen largest cause of dismissal,with nearly 23 percent of the Industrial Fund Management Co. Two leading gold rail. The high-speed train project, HS2, is slated to link has been published, the dismissed Chinese students expelled for this reason’, producers, Shandong Gold Group, the parent of Shandong London with the English Midlands and Northern England. military authority said Chinadaily.com.cn reported. Gold Mining Co Ltd, and Shaanxi Gold Group will take The factors that led China to work on the project is cost Wednesday. The book ...... stakes of 35 percent and 25 percent respectively, HI¿FLHQF\H[SHULHQFHDQGDGYDQFHGWHFKQRORJ\ was published by the mir Khan starrer Bollywood movie PK, garnered $ China is the world’s biggest producer of gold and its “Western companies, such as Germany’s Siemens AG People’s Liberation Army (PLA) Publishing House and was A5.14 million in its opening three days, a record for top consumer. and France’s Alstom, entered the high-speed rail sector distributed to company-level military units. an Indian film, by ousting the previous record holder, earlier, but no countries in the world have a high-speed The book includes the president’s remarks and written Dhoom 3. The movie, released on May 22, had 51,281 India Graduates from “Look rail network as extensive as China’s,” Yu Weiping, vice- instructions from November 2012 to February 2015, shows and 1.05 million admissions. East” to “Act East” president of CNR Corp, told China Daily at a recent rail in which he underscores that military personnel must ...... exhibition in the UK. have spirit, capacity, courage and morality. The military he Chinese Foreign Ministry spokesperson Hua ndia’s leading daily Times of India reported that India FRPPLVVLRQVDLGWKHERRNZRXOGKHOSVROGLHUVDQGRI¿FHUV TChunying recently said that South China Sea issue Ihas dispatched four warships, including a frontline to actively contribute to the Chinese Dream of rejuvenating doesn’t concern the US and that it should stop taking destroyer and a stealth frigate, on a long overseas the Chinese nation and a strong army. sides on territorial disputes. The US remarks are “ deployment to the South Indian Ocean and South China harmful both to regional peace and stability and to US- Sea in consonance with the country’s “Act East” policy. China: Going Green in 2015 China relations” she said. The Chinese Foreign Ministry As part of the endeavor, two of the warships — stealth ccording to Xinhua News Agency, China aims to issued a six-point response on US comments wherein it frigate INS Satpura and anti-submarine warfare corvette Areclaim 10 million mu (almost 670, 000 square mentioned that “China is sticking to its path of peaceful INS Kamorta - also kicked off the four-day SIMBEX kilometers) of farmland and return it to forest and grass development and its defensive security policy” and “code exercise with the Singaporean Navy on Saturday. in 2015, according to the country’s top economic planning of conduct in the South China Sea should be negotiated “The visits are aimed at strengthening bilateral ties and body on Thursday. The target was unveiled by the National between China and ASEAN nations.” enhancing interoperability between navies as well as show- Development and Reform Commission, ministries of

|8| India-China Chronicle May-June 2015 May-June 2015 India-China Chronicle |9| INFOCUS|INDIA-CHINA|ECONOMY Modi’s China Visit Economic Questions That Need to Be Raised India clearly has emerged as one of China’s largest markets. However, the trade relationship between the two countries is not a win-win situation one, and is not viable for India. Is it time for India to resort to import substitution and reduce the volumes imported from China?

Dr. Sriparna Pathak Raimedhi & countries have not been smooth. Rap- imbalance between India and China is Ms. Priyanka Dey id economic engagements did emerge a long lasting concern. between the two countries in the de- Trade facilitation between any two ndian Prime Minister Narendra cade of the 2000s, but closer observa- countries can be optimised in two Modi’s visit to China in May re- tion reveals the story ( See Graph 1) methods. Firstly, export promotion goods. The lack of domestic options ZRXOG GH¿QLWHO\ LQFOXGH ,QGLD¶V ¿UPV WR HQWHU +RZHYHU DFFRUGLQJ Imained a hot topic for discussion In 2003-04, the gap between im- wherein domestic manufacturing of imported commodities helps in pharmaceuticals, IT services, to interviews conducted with various in the media and among academicians ports and exports was USD 1098.13 is endorsed. Most commonly used foreign producers to capture domestic automotive components, media, Indian companies operating in the ever since the announcement of the millions, with the balance tilting in arguments for trade promotions are market and home country to lose a entertainment, outbound tourism industrial city of Yiwu, Zhejiang, entry visit. For China as well, the visit gen- &KLQD¶VIDYRXU,QWKHGH¿FLW infant industry argument, quantitative level playing ground. According to and farm products. However, the past LVYHU\GLI¿FXOWLQWKH&KLQHVHPDUNHW erated some basic amount of discourse grew to USD 36,210.26 millions, and restrictions and tariff impositions. In the Hecksher-Ohlin trade theory, a experience that companies dealing with which is heavily skewed in favour of in the country. Moving beyond the the balance still tilts in China’s favour. the case of trade between India and country should produce commodities these products have had, shows there PXOWLQDWLRQDO ¿UPV ZKLFK KDYH DQ common rhetoric of India and China 7KHJURZWKLQGH¿FLWIRU,QGLDWKHUH- China all these measures seem to have in it has input factor abundancy. are high levels of non-tariff barriers overbearing presence in China. As being inevitably caught in military fore, in a span of ten years has been IDLOHGJLYHQWKHKXJHWUDGHGH¿FLW,QGLD Given the multilateral trade situation existing for Indian companies in such, Indian companies are averse to FRQÀLFWZKLFKLVSHUPHDWHGZLWKWKH 319.74 per cent. If the current situa- has overused infant industry arguments LWLVQRWRQO\GLI¿FXOWWRVWLFNWRDOLVW China. In the case of pharmaceuticals, risk-taking due to issues of market classical security dilemma, a closer tion persists then India will experi- for the manufacturing industry and in of commodities but also essential that for example, while license and access, pricing and drug registration. look at trade relations in the more cur- HQFHDQXQVXVWDLQDEOHWUDGHGH¿FLWRI some cases of primary industry which constant growth in disadvantageous registration timelines for Chinese Indian drugs in advanced economies rent times needs to be focused on. USD 60000 million. The high trade has led to immature industries after segments is undertaken to build up Active Pharmaceutical Ingredients of the U.S. and EU are cleared by the In the aftermath of the subprime decades of protections. Second method pace in competition. (API) are granted by the Indian Drug Food and Drug Administration. mortgage crisis which emerged in the INDIAN IT SERVICES is by indigenous production of import 7KH PRVW SHUWLQHQW PHWKRG WR ¿[ Regulatory Authority in a time span However, this is not the case in U.S. in 2008 and wreaked economic substitutes in which case imports WKH WUDGH GH¿FLW ZRXOG LQHYLWDEO\ EH not exceeding six months, it takes China. Even in the case of IT/ITES havoc globally, China lost its prime ARE UNABLE TO MAKE A are reduced and local commodities increasing India’s exports to China, DERXW¿YHWRVL[\HDUVIRUHVWDEOLVKHG and agricultural commodities, there export destinations in the U.S. and the BREAKTHROUGH IN CHINA’S DUH XVHG 7KLV GLYHUVL¿FDWLRQ RI particularly in those commodities ,QGLDQSKDUPD¿UPVWRUHJLVWHUWKHLU exist a series of non-tariff barriers EU. The Chinese economic model- an manufacturing also helps in trade in which India has a comparative products to China. China insists for Indian exports. Indian IT services export driven growth model- needs a OPAQUE STATE- CONTROLLED GLYHUVL¿FDWLRQ LQ WKH ORQJ UXQ ,QGLD advantage over China. These that there are no barriers for Indian are unable to make a breakthrough in source for its manufactured exports, STATE-OWNED ENTERPRISES. has failed to provide enough time and China’s opaque state controlled state which has to be in places outside the concern towards what is entering the owned enterprises. Additional issues U.S. and EU. India with a booming ADDITIONAL ISSUES FACED country. The cheaper prices of Chinese Graph 1: Bilateral faced are those of banking and foreign PDUNHW ¿WV WKH SLFWXUH ,QGLD WKHUH- ARE THOSE OF BANKING imitation commodities have captured trade between exchange remittance procedures, lack fore, becomes an important destina- domestic markets. Concerns over India and China of intellectual property standards and tion for Chinese investment, a market AND FOREIGN EXCHANGE Banarasi silk imitations and rice crop 2004-14 the lack of transparency. A series of for its goods, and the low end segment REMITTANCE PROCEDURES, improvisation show what can happen Unit: USD millions Memorandums of Understanding have of its supply chain. India, for similar in future trade scenario. been signed in the past on allowing reasons requires China- particularly LACK OF INTELLECTUAL In the long cherished goal of Source: Export Import more bovine meat, IT services and Bank, Ministry of once the ‘Make in India’ campaign PROPERTY STANDARDS AND ‘Make in India’ Indian highly focuses Commerce, India pharmaceuticals from India to enter comes into full play. However, bilat- on exportable commodities but China. However, ground realities are eral trade relations between the two THE LACK OF TRANSPARENCY equivalently important are imported that no progress has taken place at all.

In an interview conducted in Yiwu, 20 Indian business entrepreneurs Graph 2: Problems Faced by Indian Emerging India-China Relations and investors were asked questions Entrepreneurs in on various aspects related to their business undertakings in China. The Yiwu Unit: % Source: Personal results are displayed in Graph 2. Interviews conducted in While 50 per cent had conducted Yiwu on June 5, 6, 7 2013; UV 5 W\ V D LQJ QJ P UL WLH April 16, 17 2014. EXVLQHVVHVLQ&KLQDIRUPRUHWKDQ¿YH *),, WL WH ,3 D X \H RUW V J && REOHPV S Q ¶&O 3DUWQHU OV\ UR V UW' (Notes: CGFII is the H 3U ([ ,PSRU D H R SAARC and India’s years, 50 per cent had done the same HV Q Q J 6W S R LQ H P LQ V O 5XO , Catalogue for the &K UDWL P OH K VW H IRUOHVVWKDQ¿YH\HDUV$OOKDGD&KL- L EO OLDE +LJ Guidance of Foreign R nese partner. 98 per cent knew (even 5HJ 3U 3UREOHPVL 5H Investment in Industries) if it was vaguely) of the CGFII. 95 per cent encountered problems in register- ing the enterprise, 95 faced problems Policy Options in importing goods from their coun- Graph 3: FDI tries or from anywhere outside China, inflows from while none faced any issues in export- China India is keen to uphold its status as a South Asian power; China’s ambition is ing goods. 80 per cent stated that to emerge as a ‘Greater Power’ in South Asian region. Is India-China relation the legal system was not reliable, 90 Source: Department of Industrial Policy entering to a new mode of power politics in South Asia? Is there a middle per cent stated Intellectual Property and Promotion, Rights protection was weak, only 5 per Government of India rational approach for both to follow? Find out. cent agreed that rules were clear, and 95 per cent of the respondents com- plained of the duties on imports as be- Dr. Jagannath Panda (BCIM) Economic Corridor initiative, ment. Narendra Modi’s decision to ing too high. Clearly, a lot of non-tariff ONE METHOD TO TACKLE Overall, the period only saw declines the South Asian countries’ proxim- invite all the SAARC members to at- measures exist in the Chinese market. which have not been in India’s favour. mong many immediate ity to the Indian Ocean Region (IOR), tend his oath-taking ceremony as the The other method to tackle the THE BURGEONING TRADE India clearly has emerged as one of neighbourhood politics, India- Beijing’s Maritime Silk Road (MSR) to new Prime Minister was an indication EXUJHRQLQJ WUDGH GH¿FLW ZRXOG EH DEFICIT WOULD BE China’s largest markets. However, the AChina relations in South Asian Silk Road Economic Belt (SREB) and of this, which the Chinese media saw that of increasing Chinese investment situation which has emerged in the re- region have been quite rocky. India’s the evolving security conditions in as a part of India’s “stronger regional in India. An action plan by the TO INCREASE CHINESE lationship between the two countries keenness to uphold its status as a South $IJKDQLVWDQPDNHWKHUHJLRQDÀDVK- diplomacy” and as “an extraordinary Confederation of Indian Industries INVESTMENT IN INDIA. THE as far as trade is concerned is not a Asian power and China’s ambition point of regional power politics. What step”. Three factors probably explain called for prioritisation of Chinese win-win situation one, and is not vi- to emerge as a ‘Greater Power’ in should be India’s approach to manage this new policy boldness. First, the Foreign Direct Investment (FDI) in CONFEDERATION OF INDIAN able for India. For India, there is an South Asian region which will China in South Asia? This calls for a economic potential of the South Asian LGHQWL¿HG LQGXVWU\ VHFWRUV DQG INDUSTRIES (CII) CALLED FOR urgent need to change the trade basket facilitate its global power strategy, is greater deliberation in India-China market in terms of enabling India establishing a sovereign deal to attract and to introduce elements where India prime factor in India-China bilateral context. to brighten up its economy within a investment in Indian infrastructure. PRIORITISATION OF CHINESE has a proven competence. However, if dynamism today. premise of ‘Make in India’ initiative. During Chinese President Xi Jinping’s FDI IN 18 IDENTIFIED INDUSTRY these are being restricted, then it is Important aspects that further Narendra Modi, India’s South Modi had hinted about this during his visit to India in September 2014, China time that India resorts to import sub- shape this balancing propensity be- Asia Policy and China election campaign. India’s exports to had committed an investment of USD SECTORS. FDI FROM CHINA stitution and reduces the volumes im- tween India and China in South Asia Under the Narendra Modi gov- the South Asian market remain unim- ELOOLRQ LQ ,QGLD RYHU WKH QH[W ¿YH HAS DECLINED IN THE LAST SRUWHGIURP&KLQD$KLJKWUDGHGH¿FLW are: resource politics, bilateral con- ernment, India’s South Asia policy pressive compared to its total global years, which included setting up of weakens the fundamentals of the econ- nectivity to regional infrastructural seems to be receiving a renewed life exports. Even though India is a lo- industrial parks. However, the parks COUPLE OF YEARS. RP\DVLWLVFRPSOLFDWHGWR¿QDQFHWKH SURMHFWV DQG FRQÀLFWLQJ LVVXHV ZLWK through a strong diplomatic engage- cal power and the biggest economy have not seen much development at excess demand for foreign exchange ‘third party’ states including Paki- in South Asia, India’s exports to the all. As such, empty promises need to RIKHOSLQJWKHWUDGHGH¿FLWWXUQLQWRD which in turn destabilises the Indian stan. To see objectively, the character, CHINA HAS ALWAYS PURSUED SAARC countries account for a mea- be taken up as a point during future favourable one for India in any way. A UXSHH,QLWVHOIWKHWUDGHGH¿- course and dynamism of South Asia ITS SOUTH ASIA POLICY UNDER gre 4.9 per cent of its global exports. RI¿FLDO GLVFXVVLRQV &XPXODWLYH )', closer analysis reveals that FDI from cit with China works out to a quarter have never before been matters of In 2012-13, India’s exports to the oth- LQÀRZV ZKLFK LQFOXGH HTXLW\ UH China has actually declined in the last RI,QGLD¶VGH¿FLWZLWKDOORWKHUWUDGLQJ such resolute importance for India and TWO BROAD TERMINOLOGIES, er South Asian countries were around invested earnings and other capital couple of years. countries, and this is clearly not eco- China as it is now. New nuances like THROUGH A DIALOGUE OF $17.3 billion, compared to its global from China in the period April 2000 7KHPD[LPXP)',HTXLW\ÀRZIURP nomically viable for India, and needs the renewed importance of SAARC, exports, which totalled around $312 to February 2014, are USD 321.81 &KLQDZDVLQWKH¿QDQFLDO\HDURI a serious rethink on India’s foreign demands of smaller but resource-rich “GOOD NEIGHBOUR DIPLOMACY” billion. India seems to be now pursu- billion. China represents 0.19 per cent 7KHSUHYLRXVKLJKZDVLQWKH¿QDQ- trade policies with China which has countries for a better place in Asian (MULINWAIJIAO) AND THROUGH ing a strategy where economic diplo- in the total FDI received by India in cial year of 2008-09. Between 2011-12 RQO\VHHQGH¿FLWVLQWKHODVWGHFDGH power politics, persisting border row macy will simultaneously move with the period April 2000 to February DQGWKHGHFOLQHLQ)',LQÀRZV between India and China, unceasing A DIALOGUE OF “PERIPHERAL strategic reach. 2014, and ranks at 28 in the list of from China was of 56.62 per cent. The Dr. Sriparna Pathak Raimedhi is an Associate Fellow antagonism between India and Pa- 6HFRQG WKH VWUDWHJLF VLJQL¿FDQFH at the Observer Research Foundation, Kolkata. OR REGIONAL DIPLOMACY” countries with highest FDI in India. LQFUHDVH LQ WUDGH GH¿FLW LQ WKH VDPH Ms. Priyanka Dey is a Research Associate at kistan on the issue of Kashmir, the of South Asia is realised well enough Millward Brown, Mumbai This miniscule amount is not capable time period was that of 3.96 per cent. Bangladesh-China-India-Myanmar (ZHOUBIANWAIJIAO) today in Indian diplomacy. Prime

Minister Modi’s invitation to all the South Asian leaders explained the case that India wants serious engagement with its neighbours, where Mr. Modi wants to carry forward more “positive and respectful relations” with India’s South Asian neighbours. His travel to %KXWDQLQKLV¿UVWRYHUVHDVWULSDIWHU DVVXPLQJ RI¿FH DQG WKHUHDIWHU DQ RI¿FLDO YLVLW WR 1HSDO LQ $XJXVW further emphasise this sentiment. The Bhutan visit was seen as an “uncon- ventional policy” choice which car- ried the message that India wants to FDSLWDOLVH ¿UVW RQ LWV QHLJKERXUKRRG policy. This perception got further strengthened when External Affairs Minister Ms Sushma Swaraj visited Nepal and Bangladesh. Third, the NDA government’s South Asia policy factors in China. A FOHDUUHÀHFWLRQRIWKLVZDV0U0RGL¶V is partly because most of the South THE CRUX OF THE DEBATE FOR ly. In both these constructs, India has invitation to the Prime Minister of the Asian states share land with China. In been a factor in China’s overall South Tibetan Government in Exile (TGIE), addition, in the recent Chinese foreign INDIA IS HOW TO MANAGE Asia outlook. Policymakers in Beijing Lobsang Sangay, to attend his swear- policy understanding, the strategic CHINA’S EVENTUAL ENTRY INTO have mostly seen India as a regional ing-in ceremony. This gesture was milieu of South Asia as a region and power in the South Asian context. clearly intended as a strategic signal the standing of the countries in this SAARC BY ENGAGING WITH At the same time, China’s current to China that India valued the cause region have increased in regional poli- THE ISSUE OF RATIONALLY. South Asia policy is distinguished by of Tibet and the Tibetan community. tics. The Chinese strategic community the fact that Beijing accommodates The Chinese government took up this foresees the region of South Asia as BEIJING EVEN WITHOUT SAARC India under its great-power diplomacy message and sent a demarche to India vital in the overall regional stratagem MEMBERSHIP, IS A POWERFUL (daguowaijiao), partly because India protesting this move. of power politics and neighbourhood has emerged as a power both at the Although India does not have any politics where Beijing must aim to PRESENCE IN SOUTH ASIA, regional and the global levels. China’s diplomatic ties with Taiwan, the new have a strong position. SAARC mem- A FACT INDIA CANNOT QHZ,QGLDIRFXVDOVRVLJQL¿HVDPRGL- government invited Taiwan’s Eco- ber countries like India, Pakistan, ¿HG DQG UHQHZHG 6RXWK $VLD SROLF\ nomic and Cultural Council (TECC) Bangladesh and Afghanistan are cata- REALISTICALLY IGNORE this is not entirely different from Chi- representative in New Delhi, seating logued as important in China’s trans- na’s traditional approach. For some him with other ambassadors. It may be national projects under a “neighbour- Compared with China’s convention- time, China has visualised South Asia recalled that Mr. Modi had criticised hood strategy”. al outlook vis-à-vis South Asia, has a within its broader construct of world China on his election campaign trail A number of other factors that have new policy evolved under the leader- order, where having a nuanced foot- for its “expansionist” policy and mind- shaped China’s South Asia outlook in ship of Xi Jinping? It would appear hold in South Asian affairs is a core set. Ms Swaraj has gone on record the process are: strategic and economic that neither China has an entirely new aspect of its strategic outlook. Con- stating that China must appreciate standing of South Asia in today’s con- South Asia policy nor is China’s stra- ventionally, China viewed South Asia “One-India” policy and that “for India text; connections between China’s two tegic thrust on India in its South Asia more as part of its conformist security to agree to a One-China policy, China arduous regions – Xinjiang and Tibet policy has anything new. The newness perspective, with secondary empha- VKRXOG UHDI¿UP D 2QH,QGLD SROLF\´ – with the South Asian region; tacti- seems to be only in the strategic focus, sis on its economic interests. Today, and that “China should appreciate cal dynamism of Pakistan and India in the mode of contacts and the channels China sees South Asia as an economic and understand India’s sensitivities its strategic interests; and the vitality of understanding. Essentially, China opportunity concurrently with its stra- on Arunachal Pradesh while raising of infrastructural linkages along with has always pursued its South Asia tegic intents and security interests. issues like Tibet and Taiwan”. economic tie-ups with the South Asian policy under two broad terminologies: President Xi has invested strong countries. The principal objective of through a dialogue of “good neigh- focus on “neighbourhood” or “periph- China’s South Asia Policy under China’s South Asia policy is to expand bour diplomacy” (mulinwaijiao) and eral” diplomacy in his endeavour to Xi Jinping “multi-dimensional strategic coopera- through a dialogue of “peripheral or re- establish a “prosperous, strong, dem- In recent times, South Asia has action” with the region that is the key to gional diplomacy” (zhoubianwaijiao). ocratic and culturally advanced, har- quired a new “strategic focus” in the the successful pursuit of Beijing’s over- Both essentially imply a similar ap- monious and modern socialist country Chinese power building dialogue. This all regional strategic interests. proach: take your neighbours serious- by 2049”, as set out by the 18th CPC

National Congress in November 2012. an observer member, the Chinese For- RUDWLRQ VKRXOG H[WHQG WR RWKHU ¿HOGV Acknowledging the import of neigh- eign Minister Li Zhaoxing said: “We like disaster relief and mitigation. In bourhood politics in China’s overall all belong to the developing world, the last few years, China has steadily foreign policy, President Xi has at- are experiencing fast growth and fac- increased its economic connections tempted to employ a multipronged ing geographical location and popu- with SAARC. In December 2006, the strategy to establish stronger bilateral lar support will greatly boost China- China South Asia Commercial Affairs as well as multilateral relationships SAARC cooperation, which serves our Council was founded in Kunming for with the neighbouring regions across common interests and peace, stability promoting this economic collabora- Asia and its sub-regions. Xi emphasis- and development of the region.” This tion. China’s trade contacts with the es that recently there have been many articulation allows China to pursue a South Asian countries have also seen changes in China’s relations with its two-fold strategy of establishing bilat- a constant rise. neighbours, which must induce China eral or multilateral/institutional con- to revitalise its neighbourhood policy tacts with South Asia through SAARC. A SAARC Membership for through a win-win diplomacy, capital- This is a classic foreign policy strategy Beijing? ising on economic bonding with the that China has articulated in the post- China has recently lobbied hard neighbouring region through inter- Deng Xiaoping era. for SAARC membership for itself, and the case for Beijing becoming a full SAARC member has gathered momentum. But will India like to see China as a prospective partner in South Asian affairs? In India’s perception, inviting China to be a SAARC member would the Japanese business and industrial change the dynamics of SAARC since Policy Option for India lobbies advocating closer engagement China is not a South Asian country. eijing by itself, even without SAARC membership, is a powerful presence in with the Chinese economy. Similarly, To perhaps impede China’s entry into BSouth Asia, a fact India cannot realistically ignore. Sri Lanka, the Maldives, in South China Sea dispute, no matter SAARC, India has raised the issue of Pakistan, and Bangladesh have already agreed to join China’s SREB and MSR how much Vietnam and other South- “institutional reform within SAARC”. programmes, pushing India into a corner. SAARC membership will allow Beijing east Asian powers grumble, China’s Most of SAARC’s institutional mecha- to have greater connectivity to South Asia – physically and non-physically – which economic supremacy outmanoeu- nisms operate and function consen- will change the balance to China’s advantage vis-à-vis India. Can something be vres them, mainly when China and sually, where members have veto. retrieved from this situation? ASEAN members along with dia- Article X, General Provisions of the To welcome China as a SAARC member, India could play for its own stakes: (i) logue partners are engaged in RCEP SAARC Charter, lays down that deci- SCO permanent membership for itself in return, on similar standards; (ii) asking (Regional Comprehensive Economic sions within SAARC at all levels will be Beijing to publicly declare its position on the India-China boundary dispute, Partnership) negotiations. taken on the basis of “unanimity” and mainly in terms of ofÀcially retracting its claim on Tawang or Arunachal Pradesh. After the 18th SAARC summit held “bilateral and contentious issues shall Also, India must wait and observe how the India-China boundary negotiations in Kathmandu on November 27-28 connectivity and Silk Road Economic The Chinese effort to tie up with be excluded from the deliberations”. If progress in the Modi-Xi regimes, which holds the key to most of the two countries’ last year, China is likely to emerge as Belt (SREB) and Maritime Silk Road South Asia institutionally through &KLQD EHFRPHV D IXOOÀHGJHG 6$$5& bilateral and regional problems. In the alternative, India can block China’s “lead dialogue partner” with SAARC. (MSR) projects. More remarkably, in SAARC incorporates two objectives: member, its veto could become trou- formal entry into SAARC. This is doable. India has been doing this in similar In the circumstances, India needs China’s focus on institutionalising its ¿UVW WR UHPDLQ DQ DFWLYH SOD\HU LQ blesome to India’s interests, blocking circumstances. A longer-term vision for India has to be in terms of emerging as to follow, at least in the short term, regional and neighbourhood diplo- neighbourhood politics and second many of India’s regional planning and an alternative power to China in South Asia and create conÀdence and goodwill a prudent middle path for a more macy and in the context of South Asia, to maximise its strategic interests by infrastructural activities in South Asia. among its South Asian neighbours. It looks difÀcult, but is not beyond the realm constructive engagement between there is an understandable interest in integrating into the region. In effect, Thus, India may be open to the idea of the possible. China and SAARC. The crux of the SAARC, which in a way has become institutionalising its regional engage- of granting a more institutionalised debate for India is how to manage an anchor in China’s engagement with ments remains a priority in China’s dialogue mechanism facility to China China’s eventual entry into SAARC by South Asia. contemporary thinking. As an institu- rather than SAARC membership. accept China as a permanent SAARC Beijing is balancing the American dealing with the issue rationally and tion, SAARC has built up a coopera- Since China’s entry into SAARC as member in the times to come? Can reach in Asia, leading regional politics with prudence. Beijing’s SAARC Attention tive framework with various countries, an observer in 2005, its presence and LW EHQH¿W IURP WKLV SRVVLEOH GHYHORS- with a number of arrangements like Beijing has steadily gained clout bodies and institutions at the regional LQÀXHQFH LQ 6RXWK $VLD KDV JURZQ ment? In answer, India needs to note the Asian Infrastructure Investment within SAARC as an observer member and global levels. Taking note of this, from strength to strength, even to and revisit the changing course of Asia. Bank (AIIB), SREB and MSR. In its and also with its member countries in- China aims to play a leadership posi- the extent of obsolescing the debate Without doubt, China has emerged as FRQÀLFWZLWK-DSDQRQWKH(DVW&KLQD GLYLGXDOO\5HVRXUFHIXOO\LWÀRDWHGWZR tion in SAARC itself. Li Zhaoxing, a whether China is a South Asian power. a stronger power than India, shar- Sea, China holds the strategic edge constructive dialogues within SAARC: &KLQHVHRI¿FLDOVDLGDWWKHth SAARC President Xi’s visit in September 2014 ing a wide range of networks with the through joint maritime exercises with (i) the dialogue of developing coun- summit that China was of the view that to South Asia, covering Sri Lanka, South Asian countries. China leads Russia to counter any possible joint Dr. Jagannath Panda is Research Fellow & Centre tries and (ii) the dialogue of “common there should be a “cooperative mecha- Maldives and India elucidated the in- the Asian power politics, no matter eventuality from Japan and the USA. Coordinator for East Asia at the Institute for Defence interests”. At the 14th SAARC summit, nism” for poverty alleviation between terests that Beijing currently holds in how much the US “pivot” Asia policy Further playing to China’s advantage Studies and Analyses (IDSA), New Delhi. He can be contacted at: [email protected] the year after China was admitted as China and SAARC and that this collab- South Asia. Should India prepare to tries to limit its outreach. Ironically, is the current recession in Japan, with

The Stairway to Progress Needs Constant Servicing The Joint Statement between The need to maintain a conducive India and China issued during external environment for uninter- Prime Minister Modi’s visit to rupted domestic growth has been re- China stated that “…the process iterated and all diplomatic outreach in of the two countries pursuing their recent times have been geared towards respective national developmental increasing economic linkages between goals and security interests must India and the rest of the world. It will unfold in a mutually supportive be an understatement to say that In- manner with both sides showing dia’s relationship with China is the mutual respect and sensitivity to PRVW VLJQL¿FDQW YHFWRU GHWHUPLQLQJ each other’s concerns, interests India’s external environment and and aspirations.” hence for the Asian balance of power as well. By dint of their economic rise, there has been resultant geo-political importance of the agreements, Modi’s visit that showed Arunachal manifestation of the rising importance protocols and border mechanisms Pradesh as ‘South Tibet’ and excluded of India and China not only in the re- between the two countries, Modi large parts of Jammu and Kashmir. In gional scheme of things but also across lamented the uncertainty existent over the context of the Sino-Pakistan ties all dimensions of the international sensitive areas of the border region, that has serious security repercussions system. A simple cursory browse of the KHQFH QHFHVVLWDWLQJ FODUL¿FDWLRQ RI for India-China engagement, and most pertinent issues of the globalized the Line of Actual Control “without India’s concerns over China’s world ranging from climate change prejudice” to the position of the two encirclement policy in South Asia, the to security of the international trade countries on the boundary question. Prime Minister hinted at the need to corridors, would show the inevitable Beijing’s response to Indian leaders’ reshape policies and restructure for a importance of these two Asian giants. visits to Arunachal Pradesh and the EHWWHUHQYLURQPHQWVSHFL¿FDOO\FDOOLQJ The evolution of the Sino-India rela- issuing of stapled visas to residents for “deeper strategic communication tionship has shown a level of maturity, of Jammu & Kashmir and Arunachal WREXLOGPXWXDOWUXVWDQGFRQ¿GHQFH´ in which both the sides understand the 3UDGHVK KDV VLJQL¿FDQWO\ LPSHGHG He said: Modi’s China Visit: importance of the relationship bilater- progress in mutual understanding. ….We must ensure that our ally and beyond, while also acknowl- As such the need to develop creative relationships with other countries edging the divergences that is manifest solutions to irritants concerning visa do not become a source of most prominently in the unresolved policies and trans-border rivers were concern for each other….We both Road to Pragmatism border dispute. referred to. Ironically as Mr. Modi face instability in our shared Despite all the bonhomie and hinted at the uncertainty regarding neighbourhood that can threaten camaraderie enveloping the the border issue, Chinese media was our security and slow down our Prime Minister Modi’s visit to China was an attempt to revitalize strategic and atmospherics of the relationship, the not to be left too far behind in its economies. The spreading tide UHFHQWYLVLWZDVGH¿QLWHO\QRWH[SHFWHG anti-India views; China’s national of extremism and terrorism is a economic ties. He highlighted ‘Brand India’ for Chinese investment in infrastructure to create serious breakthroughs in television broadcaster CCTV beamed threat we both face; for both, its and energy-related projects. He emphasized on establishing “strategic trust” between the relationship in general or for a controversial map of India during source is in the same region. that matter, in the border talks in the two nations. Can this visit be termed as historic that could forge new synergies in particular. Nevertheless, Mr. Modi did INDIA DECIDED TO PROVIDE No Great Wall between India and the bi-lateral relationship and reshape Asian geo-politics? engage in straight talks besides the China: Connect More Approach usual niceties of any high level visit. ELECTRONIC VISAS TO CHINESE China is still seen as India’s chief Speaking at the Tsinghua University TOURISTS; A PROACTIVE military adversary. However, this Monish Tourangbam RIWKHPRVWVLJQL¿FDQWYLVLWVKDVEHHQ and pragmatic drive in the execution in Beijing, Modi emphasized the need reality and the ensuing competition the one made to the People’s Republic of the country’s diplomacy. There has to resolve the border question, calling STEP FROM NEW DELHI THAT for resources between the two ebates are emerging in of China drawing enthusiastic been immense emphasis paid on the it a shared responsibility to the future SHOULD BE RECIPROCATED countries do not negate the fact that India’s strategic community crowds and attention from Indian economic rejuvenation of India. All- to “…move ahead with new purpose India and China are entwined in a Dand beyond, regarding the and Chinese leaders, policymakers out diplomatic efforts have been made and determination.” “….The solution BY BEIJING WITH CLEARER complex interdependence and are momentum that Prime Minister and media. The visit was marked by in the past one year to signal to the we choose should do more than settle COMMITMENTS ON ITS trading partners of the highest order. Narendra Modi has arguably brought actions that are being seen to lift the developed as well as the developing the boundary question. It should However, the trading ties are highly to India’s foreign policy. Certainly, relationship to a new level. Modi’s economies that India means business do so in a manner that transforms STAPLED VISA POLICY, KEEPING imbalanced in favour of China, an Mr. Modi has generated rock star like ¿UVW\HDUDV3ULPH0LQLVWHUZLWKD and that the new government will our relationship and not cause new INDIA’S CONCERNS AND issue that forms a major component responses wherever he has travelled stable mandate in the current political make all efforts possible to ease doing disruptions,” he said. of the deliberations between the two GXULQJWKH¿UVW\HDULQKLVRI¿FH2QH milieu has brought a sense of vigour of business in India. While acknowledging the SENSITIVITIES IN MIND countries, and the recent visit included

|18| India-China Chronicle May-June 2015 May-June 2015 India-China Chronicle |19| INFOCUS|INDIA-CHINA|COVER STORY an emphatic statement by the Indian Economy help incubate fresh ideas to bridge Prime Minister to allow increased 867UHDVXU\ERQGV2IFRXUVHWKH our huge exports of IT and IT- divergences and create convergenc- access to the Chinese market. Constant issues you mention relate to ‘ease enabled services. Having said that, es. Moreover, the ‘High Level Media attention at the highest level and of doing business’ and need to be ,QGLD¶VELODWHUDOWUDGHGH¿FLWZLWK Forum’ to be convened on an annual reciprocal visits are required to clear “India Can Provide sorted out both for domestic as well China has become a political hot basis by India’s Ministry of External differences in the relationship. In this as foreign investors. In addition, for potato and needs tackling. My own Affairs and the State Council Informa- context, breaking the usual protocol, foreign investors, security clearances IRUHFDVWLVWKDWWKLVGH¿FLWZLOOQRW WLRQ2I¿FHRI&KLQDLVUHTXLUHGWREULQJ Chinese President Xi Jinping received Better Return to need to be made non-discriminatory, improve even if India’s exports to more nuanced and sober perspectives Mr. Modi at his hometown Xian, in transparent and speedy. The Chinese China increase. But Chinese inward in each other’s media vis-à-vis the bi- response to Mr. Modi hosting him last are concerned here since they are LQYHVWPHQWVZLOOGH¿QLWHO\KHOSWKH lateral relationship, and also to help year at his home state of Gujarat. The Chinese Companies” particularly at the receiving end of bilateral balance of payments, since build positive perceptions about each gesture was aimed not only to inject a WKLVVLWXDWLRQ2QHPXVWUHPHPEHU LQYHVWPHQWLQÀRZVRQWKHFDSLWDO other in both the countries. A Memo- new life into the relationship but also Prime Minister Mr. Narendra Modi’s visit to China that investments are decided and DFFRXQWZLOOUHGXFHWKHGH¿FLWRQWKH randum of Understanding (MoU) has to highlight the importance of other led to signing of 21 business agreements. Donning operated by people, and at the end of trade account. been signed between India’s Doord- regions and provinces. the day people like to feel welcome in arshan and China Central Television In a bid to capitalise on the increas- the cap India Inc.’s CEO, he endorsed ‘Make in the host environment. Q: New business deals are being &&79 WR FRRSHUDWH LQ WKH ¿HOG RI ing role played by Indian states and India’ and ‘Digital India’ campaigns in China. VLJQHG7KHFKDQFHVIRUH[LVWLQJ broadcasting through exchange of Chinese provinces, an agreement was Q: Do you view this meeting as a step and new companies getting into television programmes, promotion of struck to establish a State/Provincial +RZGRWKHVHHIIRUWVUDLVH,QGLD¶VHFRQRPLFSUR¿OH forward for Indian companies in terms business disputes are also very real. co-production on themes of mutual /HDGHUV¶ )RUXP WKH ¿UVW PHHWLQJ RI in China? Ravi Bhoothalingam, Chairman of of getting better access to Chinese Is there any bi-lateral agreement interest and training of production which was held on 15 May 2015. Steps 0DQDV$GYLVRU\DQH[HFXWLYHFRDFKLQJ¿UPDQG PDUNHWVIRUWKHLU3KDUPDDQG,7 on arbitrage of business disputes and technical staff. The establishment have been taken to open a new Con- products? FXUUHQWO\",IQRWGR\RXWKLQNWKHVH of the Center for Gandhian and Indian sulate General of India in Chengdu business consultancy service for Indian and Chinese Studies at Fudan University, Shanghai and a new Consulate General of China companies, shares his thoughts with Urmila Rao. is also a welcome step towards better in Chennai. This will facilitate and THE SETTING UP OF TASK FORCES TO EXAMINE IN DETAIL THE understanding of each other’s history promote greater cultural, tourism, Q: Modi’s visit to China saw 21 A: The agreements are actually in the ACTUAL GROUND CONDITIONS IN CHINA PREVAILING IN THE and culture. economic and people-to-people business agreements signed worth nature of Memoranda of Understand- engagement. In addition, an agree- $22 billion. Can you please simplify ing which will result in concrete invest- PHARMA AND IT SECTORS IS A VERY WELCOME STEP The Economic Narrative that ment to establish Sister-State/ IRURXUUHDGHUVWKHVLJQLÀFDQFH ments later, depending on conditions Needs a Strategic View Province Relations between Karna- of $22 billion in terms of what on the ground in India. These projects Increasing trade volume between In- taka/Sichuan, Chennai/Chongqing, EHQHÀWVLWLVOLNHO\WREULQJWRD are largely in the sectors of infrastruc- A: The setting up of task forces to nuances too ought to be discussed dia and China has also come with high- Hyderabad/Qingdao and Aurang- common man of IndiIndia?a? tureture,, eneenergy and connectivity-all sec- examine in detail the actual ground on the high table for continuity of O\LPEDODQFHGWUDGH¿JXUHVLQIDYRXURI abad/Dunhuang in India and China tors whwheree India badly requires invest- conditions in China prevailing in the cordial economic relationship? China, which has become a prominent UHVSHFWLYHO\ZDVPDGH,QDVLJQL¿FDQW mmentent aandn to that extent important for pharma and IT sectors is a very wel- A: Generally, joint venture agree- matter of concern for India. The trade move, India decided to provide elec- all ooff us,us, more so for the common man, come step. Like India, China is a vast ments, loan agreements and the like GH¿FLW ZDV LQ WKH WXQH RI ELOOLRQ tronic visas to Chinese tourists; a pro- because whilst the rich can generate and complex country, and any prob- have a clause stating how business in the last one year (and cumulatively active step from New Delhi that should their ownow power or drive their own lems or entry barriers for Indian in- disputes between the parties will be DERXWELOOLRQVLQFH 0RVW be reciprocated by Beijing with clear- cars, thethe ordinary people have to rely dustry that exist at the local or provin- resolved, the arbitration procedures, analysts have pointed out the need er commitments on its stapled visa on publicpubli transport and public utilities. cial levels cannot be removed simply FRXUWVRIMXULVGLFWLRQHWF2EYLRXVO\ for China to open its market access to policy, keeping India’s concerns and by an order from Beijing. These task it is far better not to have a dispute Indian products, particularly in phar- sensitivities in mind. Q: ModModii has invited Chinese companies forces with domain knowledge should LQWKH¿UVWSODFH$VDVDIHJXDUG maceuticals products and IT services, Public diplomacy initiatives have ttoo iinnvesvestt in India. Given the current be able to get into granular detail and both parties must have a clear mu- as a way out from this highly skewed been augmented to increase people- EXVLQHVVHQYLURQPHQWODFNRIEXVLQHVV ¿QGVROXWLRQVWRWKHSUREOHPV tual understanding of each others’ statistics. Joint measures have been to-people ties between the two coun- transparency,transpar bureaucratic hurdles, goals and intentions well before discussed to resolve this unsustain- WULHV SDUWLFXODUO\ LQ WKH ¿HOG RI HGX- regulatoryregulato issues and to top it all Q:7RZKDWH[WHQW&KLQHVHLQÁRZRI signing any agreement. This re- able situation, including cooperation cation and cultural exchanges, most ODQJXDJHLVVXHVKRZNHHQZRXOGEHODQJXDJ Chinese FDI help narrow down the bi- quires some mundane but necessary on pharmaceutical supervision includ- recently seen in the collaboration ChineseChinese companies to invest in India? ODWHUDOWUDGHGHÀFLW" business support systems like effec- ing registration, speedier phytosani- between the Indian Council for Cul- A: IIndian is a large market, has a A: To start with, it is misleading to tive interpretation and translation, tary negotiations on agro-products for tural Relations and Yunnan National ststable polity and a sound legal ORRNDWWUDGHVXUSOXVHVRUGH¿FLWV good legal and tax advisory services, two-way trade, stronger links between University. Expanded educational and DQG¿QDQFLDOV\VWHPVRWKHD only on a bilateral basis. They should YHUL¿FDWLRQDQGGXHGLOLJHQFHSUR- Indian IT companies and Chinese en- cultural exchanges will see the annual Chinese regard India as a always be examined holistically as FHGXUHVHWF2WKHUFRXQWULHVRSHUDW- terprises and increasing services trade exchange of 200 youths from each side safe investment destination part of the overall national accounts. ing in China do have such support, LQ WRXULVP ¿OPV KHDOWKFDUH ,7 DQG in the second half of this year. The where they can earn a better For instance, telecom imports from so we in India must also develop it logistics. Moreover, issues pertaining decision to establish an ‘India-China return than the very poor China have improved India’s tele- quickly by a government-industry to tariff reduction in respect of rele- Think-Tanks Forum’ is a promising yield they now get on the connectivity and thus made possible partnership. vant Indian products under the frame- start and a much needed step that will ZRUNRI$VLD3DFL¿F7UDGH$JUHHPHQW

Diplomacy With respect to the trans-boundary ZDWHULVVXHVLQ2FWREHUGXU- ing Manmohan Singh’s China visit, “Both India and China Have to both countries had signed a MoU on Trans-boundary rivers in which Bei- Strive to Realise the Asian Century, jing agreed to provide hydrological data on the Brahmaputra River dur- LQJWKHÀRRGVHDVRQ7KHDJUHHPHQWLV One or the Other Can’t be Absent” still in place and during Modi’s China visit; the Indian side also appreciated µ6HO¿HV¶ZHUHWDNHQDQGFUHDWLYHVROXWLRQVWROLQJHULQJLVVXHVZHUHGLVFXVVHG and acknowledged China’s efforts to provide hydrological data during the during PM Modi’s visit to China, but talks on ‘One Belt, One Road Project’ and ÀRRGVHDVRQ ‘One China Policy’ was given a miss. Overall, what progress did India make? SEEMINGLY, THE BORDER QUESTION WILL REMAIN UNRESOLVED FOR YEARS TO COME WITH OR WITHOUT BORDER CLASHES. WHAT Q: It seemed that the leaders touched Dr. Rahul Mishra, Research Fellow at the Indian Council of World Affairs upon almost all top-of-the list matters; (ICWA) assesses Mr. Modi’s visit in an interview with Urmila Rao REMAINS TO BE SEEN IS WHETHER BOTH THE COUNTRIES WILL border dispute, water issues, trade BE ABLE TO MAINTAIN STATUS QUO TILL A MUTUALLY AGREED GHÀFLWFXOWXUHRXWHUVSDFHPHGLD Q: Prime Minister Narendra Modi a separate joint statement on climate infrastructure… was any issue missing received a warm welcome in China, change was issued that signaled India SOLUTION IS WORKED OUT from the high table? WKHELODWHUDOWDONVZHUHFRQGXFWHG DQG&KLQD¶VFRQ¿GHQFHLQHDFKRWKHU A: Most of the important issues were LQDIULHQGO\HQYLURQPHQWVHOÀHV It also manifested that that both the discussed between the two sides and ZHUHWDNHQLQWHUJRYHUQPHQWDO countries realise the importance of co- Mr. Modi wants to give a boost ber of border incursions has considering the state of India-China agreements and 21 business operating with each other to address to infrastructural development in VLJQL¿FDQWO\FRPHGRZQ7KHODVW relations, expecting more would have agreements worth $22 billion were issues of global concern. different states and attract foreign border skirmish took place in Chu- been ambitious. Perhaps, in the next signed. Would you term this visit a investments in India. Chief Ministers mar valley during the visit of Chinese meetings, Modi and Xi would be more watershed in the history of Sino-Indian Q: Agreements and MoUs have been of different states accompanying a President Xi Jinping’s India visit in candid and discuss issues of conver- relationship? signed but when the spotlight fades Prime Minister during foreign visits 6HSWHPEHU,QVRIDUWKHUH gence and divergence with equal ease. A: Mr. Modi’s China visit was highly DZD\WKHUHLVDWHQGHQF\WRVOLSEDFN has not been a common practice in has been no major stand-offs along the Finesse in Indian diplomacy was successful and was certainly different on signing of formal agreements India. However, during Modi’s China India-China border. In fact, in March evident when just a few days before from the past visits on at least four and if done, implementation tends visit, Chief Ministers of Gujarat and 2015, Chinese Foreign Modi’s China visit, the Indian side counts. Prime Minister made Xian WRVHHDGRZQZDUGVSLUDO7KLVLV Maharashtra were a part of Modi’s Minister Wang Yi’s assured that “there expressed its concerns with respect to his stopover in China. This was the especially true of inter-governmental KLJKSUR¿OHGHOHJDWLRQ$GGLWLRQDOO\ will be no incursions across the India- China-Pakistan Economic Corridor. ¿UVWWLPHWKDW%HLMLQJDFFRPPRGDWHG agreements. Would you agree? How China-India State/Provincial Leaders’ China border and that the border The statement was made just before a departure from the protocol, that would you rate the sustainability and Forum got established which is seen dispute has been contained”. Unfortu- the visit, so that the China-Pakistan of receiving a foreign leader outside success of these agreements/ MoUs? DVD¿UVWRILWVNLQGLQLWLDWLYH8QGHU nately, in the recent past, almost all the issue does not get hyped in the me- Beijing. During his three-day visit, Sina Weibo. This suggests that Mr. A: A careful analysis of the past events Modi government, inter-governmen- visits exchanged between Indian and dia. Thus, the timing was most apt to Mr. Modi also visited Beijing and con- Modi is gaining popularity among the reveals that MoUs signed between In- tal agreements are closely linked with Chinese leaders were overshadowed by highlight the issue and yet do not let cluded the visit at Shanghai. While his Chinese wherein he is being viewed dia and China during the earlier visits Modi’s campaign of ‘Make in India’ the border skirmishes. For instance, in that spoil the visit. During his visit, one-day stay at Xian proved fruitful DVRQHRIWKHPRVWLQÀXHQWLDOIRUHLJQ have not been religiously implement- or 'make, market and research in In- April-May 2013, Li Keqiang’s maiden Modi also refrained from mention- in reinforcing cultural ties and un- leaders in China. ed, both the sides are to be blamed for dia'. Modi has also been taking steps visit to India was overshadowed by ing China’s growing infrastructural derscoring the newfound salience of Thirdly, while there was a personal that. Furthermore, Border Defence WRZDUGVVLPSOL¿FDWLRQRILQYHVWPHQW almost a three-week long border clash development in Pakistan and India’s 'hometown diplomacy', political rela- touch to the visit, Modi did not shy Cooperation Agreement (BDCA) processes to facilitate investments. at Depsang. Thankfully, Modi’s visit to apprehensions. The corridor holds tions were strengthened in Beijing. Fi- away from discussing issues of dif- signed during the former Indian Therefore, it seems that MoU signed China got over smoothly. India-China immense importance in China’s nally, the two sides pledged to elevate ference openly and candidly. For Prime Minister Manmohan Singh’s under Modi government will be suc- border dispute is a long drawn out con- strategic and economic calculus as it economic relations in Shanghai. This instance, while delivering his speech YLVLWWR&KLQDLQ2FWREHUKDVDOVR cessfully implemented, though one ÀLFWDQGWKHVROXWLRQWRWKHTXHVWLRQLV aims to secure and diversify its routes is indicative of India-China coopera- at Tsinghua University on May 15, been taken as a rhetorical pledge to a cannot overrule the possibility of not easily achievable. Seemingly, the to energy-rich countries towards its tion at different levels. Secondly, the KHHPSKDVL]HGRQWKHQHHGWR¿QG great extent. However, Modi’s style of some issues getting overlooked. border question will remain unresolved west. Nevertheless, several countries µVHO¿HGLSORPDF\¶ZDVDGRSWHGE\0U ‘creative solutions’ to the lingering is- diplomacy which includes inter-alia for years to come with or without bor- believe that the corridor will be an- 0RGL +HZDVVHHQWDNLQJVHO¿HVZLWK sues of stapled visas, China-Pakistan giving personal touch to a proactive Q: 7RZKDWH[WHQWFDQZHVHHWKHYLVLW der clashes. What remains to be seen other means for China to establish the Chinese Premier Li Keqianq and Economic Corridor (CPEC), and approach in strengthening ties with SUHYHQWLQJIXUWKHUERUGHUVNLUPLVKHV is whether both countries will be able its foothold in the Central, West and &KLQHVHVWXGHQWV 0RGL/LVHO¿HDW- trans-boundary rivers. Additionally, RWKHUFRXQWULHVLVVLJQL¿FDQW7KLVKDV and rarely openly discussed trans- to maintain status quo over the border South Asia. tracted as many as 32 million ‘likes’ he spoke of settling the question of been seen in cases of US, Japan, China boundary water issues? DQGZRUNWRZDUGV¿QGLQJDPXWXDOO\ Additionally, there was no men- on China’s microblogging website, boundary dispute quickly. Fourthly, and South Korea, to name a few. A: In the past few months, the num- agreeable solution. WLRQRIµ2QH&KLQD3ROLF\¶LQWKH

have been put forward by both sides China, a parallel narrative of distrust DURING THE MEETING WITH been put forward as areas of substan- joint statement. This suggests that stance on CPEC and stand on Indo- as an important agenda in the days to runs between the two countries. The INDIAN PRIME MINISTER, tial interest between the two countries. ,QGLDKDVVWRSSHGHQGRUVLQJWKH2QH Vietnam joint oil exploration pro- come. In recent times, business deals leaderships in India and China have China’s mega proposal in the form of China Policy which is mainly due to ject off-the-Vietnam coast, are not worth several billion dollars have been LQWHQGHGWRLPSURYHFRQ¿GHQFHEXLOG- TOP CHINESE CEOS WKHµ2QH%HOW2QH5RDG¶ 2%25 LQL- China’s continued claim on Arunachal in harmony. This causes concerns VWUXFNEHWZHHQWKHWZRFRXQWULHV ing measures, to prevent sourness in EXPRESSED ENTHUSIASM WLDWLYHGLGQRW¿JXUHLQWKHDJHQGDRI Pradesh as Southern Tibet. Perhaps it in Indian corridors of power. ELOOLRQVLJQHGDW%HLMLQJDQGELO- relationships; border or elsewhere. India-China discussions perhaps ow- signals that China has to understand lion at Shanghai during Modi’s visit, A geospatial reading of interna- ABOUT INDIA’S DYNAMIC ing to the possibility that New Delhi India's concerns on sovereignty and Q: &KLQD·VQDWLRQDOSDSHUUHPDUNHG DQG ELOOLRQ DQQRXQFHG GXULQJ tional affairs shows a shift of attention WORK FORCE AND HUGE has not clearly subscribed to this idea territorial integrity. A quid pro quo that Western elite don’t want to see President Xi Jinping’s visit to India in towards Asia, and numerous analyses till date. The joint statement reiterated has to be arrived at between New India and China drawing closer to IRUWKHQH[W¿YH\HDUV 7RS&KL- have inferred that the growth trajecto- MARKET AND SAW A LOT OF cooperative engagements to mitigate Delhi and Beijing on this issue. each other because it will confront QHVH&(2VGXULQJDPHHWLQJZLWKWKH ries of India and China and their bilat- POTENTIAL IN THE ‘MAKE IN climate change, committing to work their vision for Asia’s future. What Indian Prime Minister, expressed op- eral relationship will be consequential together and with other relevant par- Q: 7KH2QHEHOWRQH5RDGSURMHFW DUH\RXUWKRXJKWVRQWKLVUHPDUN" timism and enthusiasm about India’s across the board. In this sense, there is INDIA’ CAMPAIGN ties under the United Nations Frame- GLGQ·WVHHGHWDLOHGWDONV:RXOG\RX A: It has been inherent in China’s dynamic work force and huge market say the reason could be India’s guard strategic thinking that India is used and saw a lot of potential in the ‘Make on China’s motives with regard to by western countries and adversar- in India’ campaign. Prime Minister Modi during his keynote H[SDQVLRQDVDKHJHPRQ" ies of China primarily as a counter- India and China have shown intent address at the India-China Business A: Though before the visit specula- weight against China. It is notewor- to use the Strategic Economic Dia- Forum in Shanghai noted: “You are tions were rife that India will en- thy that while India and China have logue (SED) to explore new areas for the ‘factory of the world’. Whereas we GRUVH&KLQD¶Vµ2QH%HOW2QH5RDG a few issues of differences, India is economic cooperation in crosscutting are the ‘back ofÀce of the world’. You 3URMHFW¶ 2%25 KRZHYHUWKHWZR not a threat to China’s national in- ¿HOGVLQFOXGLQJLQGXVWULDOLQYHVWPHQW give thrust on production of hardware, VLGHVGLGQRWHYHQPHQWLRQWKH2%25 terests. China is at loggerheads with infrastructure development, energy while India focuses on software and India is still hesitant in extending its Japan on the ownership of islands conservation and environment protec- services…The component design support for China’s ambitious project, in the East China Sea; whereas tion and sustainable urbanisation, in- expertise of Indian engineers and which may also be termed as one of Vietnam and the Philippines are cluding partnership in smart cities’ de- low cost mass production by China the biggest Chinese initiatives in the equally assertive in the South China velopment. For instance, the Gujarat can cater to the global markets in a ZRUOGKLVWRU\:LWKWKH2%25SUR- Sea dispute. As far as the US is con- International Finance Tec-City (GIFT) better way. This industrial partnership ject, what China aims to achieve is the FHUQHG&KLQD¶V2%25DQG&KLQD in India and Shenzhen in China have of China and India can bring about greater connectivity between China led Asia Infrastructure Investment EHHQLGHQWL¿HGDVSLORWVPDUWFLWLHVIRU greater investment, employment and and Europe, Central Asia, and West Bank (AIIB) are seen as answers to joint demonstration projects. The In- satisfaction of our people.” Asia. Bangladesh-China-India-My- the US’ Pivot to Asia and the US-led dia-China Joint Economic Group has anmar (BCIM). The reasons behind 7UDQV3DFL¿F3DUWQHUVKLS 733 IRULQVWDQFHLGHQWL¿HGYDULRXVVWUDWH- India’s hesitant approach vis-à-vis In such a situation, where China is gic areas of cooperation and has signed a growing realization, in the words of the United Nations Security Council work Convention on Climate Change 2%25DUHPDQLIROGJLYHQWKDW,QGLD confronted by rivals and adversar- a Five-Year Development Program for the Indian Prime Minister that “issues (UNSC) or multilateral export control (UNFCCC). In addition, cooperation and China are still involved in a pro- LHV&KLQD¿QGVLWVXLWDEOHWRPDLQ- Economic and Trade Cooperation that that lead to hesitation and doubts, even regimes like the Nuclear Suppliers’ in the space domain was sought too tracted border dispute, India does not tain cordial relations with India. lays out a roadmap for deepening and distrust” in the relationship should be Group (NSG). And as such, no break- along with the need for securing the wish to endorse any of China’s pro- So far as India is concerned, balancing bilateral economic engage- addressed. Referring to concerns of throughs were expected on these areas sea lanes of communication for mari- MHFWVZKLFKPLJKWKDYHUDPL¿FDWLRQV maintaining strategic autonomy ment.India seems to be on a mission alliances and counter-alliances in the and Beijing remained true to rhetoric time trade and commerce. on its border dispute with China later. through the practice of an mode concerning development tra- region aiming to contain each other’s such as China “…understands and sup- The 21st century is being already 6HFRQGO\2%25LVFRQFHSWXDOLVHGWR independent foreign policy is the jectory which involves revitalizing growth, Prime Minister Modi said: ports India’s aspiration to play a great- labelled an Asian century in which the serve two purposes: to re-energise re- cornerstone of its foreign policy. economic ties with China. ‘‘If the last century was the age of er role in the United Nations including two rising giants, India and China will lations with neighbours through effec- India has proved it over and again )RU LQVWDQFH VLJQL¿FDQW SURMHFWV alliances, this is an era of inter- in the Security Council” and that it “… GH¿QLWHO\ SOD\ D ELJ UROH 8SJUDGLQJ tive use of naval diplomacy and to re- that it does not believe in alliance are in pipeline in the railway sector dependence. So, talks of alliances took note of India’s aspirations to be- economic diplomacy and making India spond to the US’ rebalancing towards politics. India has gone out of such as speed-raising on the existing against one another have no come a member of the NSG, in a bid to a favoured destination for business and Asia in diplomatic terms. While China its way to befriend China. From Chennai-Bengaluru-Mysore line, pro- foundation. In any case, we are strengthen international non-prolifer- investment is the way forward. It seems and the US are stuck in cooperation- unilaterally endorsing China's posed feasibility studies for the Delhi- both ancient civilizations, large ation efforts.” that Mr. Modi is on the right road. confrontation mode, India might not claims for United Nation Security Nagpur section of high speed rail link, and independent nations. Neither Cooperation in regional forums want to get involved in any regional or Council (UNSC) to supporting its station re-development planning for of us can be contained or become and initiatives were also highlighted. global rivalry situation. Thirdly, CPEC AIIB and BRICS Bank plans, India Bhubaneswar and Baiyappanahalli, part of anyone’s plans. So, our Increased cooperation at the Shang- LVYHU\PXFKDSDUWRI2%25DQG,Q- has been looking at China as a heavy haul transportation training partnership in international KDL &RRSHUDWLRQ 2UJDQLVDWLRQ 6&2 dia has its own apprehensions with partner in the long run. Both India and setting up of a railway university. forums should not be determined South Asian Association for Regional respect to the corridor. India cannot and China have to strive honestly by the concerns of others, but the Cooperation (SAARC), Bangladesh, approve of a Chinese investment in a to realise the Asian Century; a %XLOGLQJ&RQ¿GHQFH$PLGVW interests of our two countries.’’ China, India and Myanmar (BCIM) disputed territory between India and dream that cannot be realised in the Lingering Mistrust India has hardly counted on China’s Economic Corridor and towards es- Monish Tourangbam is Assistant Professor at 3DNLVWDQ2QHPD\VD\WKDW&KLQD V absence of one or the other. Alongside the narrative of econom- support when it comes to India’s aspi- tablishment of the Asian Infrastruc- the Department of Geopolitics and International ic connectedness between India and rations for permanent membership at ture Investment Bank (AIIB) have Relations, Manipal University

Bengal BJP members. the status quo has repeatedly proven thus poisoning the atmosphere sur- Yet, during Modi’s visit, little was just too great in the past and Modi’s rounding the negotiations and even said with regard to the dispute other recent visit clearly was no exception. damaging progress in other areas of Border: An Elusive than the usual platitudes from both $QRWDEOHWUXVWGH¿FLWEHWZHHQWKH the bilateral relationship. sides declaring that it is their intention China and India also has exacerbated WRVHHNDµIDLUDQGUHDVRQDEOH¶VROXWLRQ the efforts by both sides to construc- Intractable Disagreements to the boundary question and in tively negotiate. There have been nu- $WDGHHSHUOHYHOWKHUHDUHVLJQL¿FDQW WKH LQWHULP PDLQWDLQ µSHDFH DQG PHURXVUH¿QHPHQWVRIWKHPXWXDOSUR- and intractable disagreements between Settlement? tranquillity’ at the border. To be sure, tocols of conduct and joint exercises China and India that has impeded any the only notable development was conducted in an effort to build up trust effort to come to a solution thus far. Modi’s call to clarify the Line of Actual DQGFRQ¿GHQFHEHWZHHQWKHWZRVLGHV In essence, the boundary question Control (LAC) “without prejudice +RZHYHUPRUHRIWHQWKDQQRWWKHLQN LV GH¿QHG DV DSSUR[LPDWHO\ to our position on the boundary is barely dry on a new agreement or km2 of contested territory with an question”. Why did Modi’s visit result WKH PRVW UHFHQW H[HUFLVH ¿QLVKHG EH- undelimitated LAC stretching a little in no movement despite the promising fore one country is antagonising the over 4000km and acting as the de facto indicators of progress? What factors other again. While both sides have ERUGHU +RZHYHU WKHVH ¿JXUHV DUH are currently delaying a possible avoided having any serious confronta- based on the possible interpretation solution to the dispute? tions since 1987, the bilateral relations of the disputed border. Both countries Inertia is partly to blame for any are frequently stirred by provocative disagree with the length of the LAC lack of progress. Negotiations over the speeches or actions in the disputed ZLWK RI¿FLDO ,QGLDQ ¿JXUHV SXWWLQJ border dispute have progressed only WHUULWRU\UDQJLQJIURPRI¿FLDOYLVLWVWR the border at 3488 km whereas JODFLDOO\VLQFHWKH\ZHUH¿UVWLQLWLDWHG actively patrolling to erecting observa- China acknowledging it to be only in 1981. Indeed, there has been no sig- tion posts. Such behaviour, often con- 2000 km long. QL¿FDQW SURJUHVV WRZDUGV UHVROXWLRQ ÀDWHGZLWKPXWXDOFRQFHUQVRYHUHDFK Both sides have formally recognised since the Agreement on the Political other’s geopolitical ambitions, are that the border dispute should be Parameters and Guiding Principles UHVROYHG ZLWK D ¿QDO VHWWOHPHQW WKDW for the Settlement was signed in 2005. THERE WAS SIGNIFICANT would cover all sections and that each Since that time the objective of the would have to make concessions to WDONVJUDGXDOO\VKLIWHGIURP¿QGLQJD DEGREE OF SPECULATION IN DUULYH DW D µSDFNDJH GHDO¶ +RZHYHU A breakthrough on boundary talks was expected during Modi’s visit to China. There solution to managing the dispute and THE INTERNATIONAL MEDIA the clear disparities between the smoothing over the latest crisis or con- WZR VLGH¶V GH¿QLWLRQV RI ZKDW LV were several signs since the beginning of the year, including visit of Ms Sushma WURYHUV\ +RZHYHU LQ FRQWUDVW WR WKH THAT SOME AGREEMENT TO actually disputed make it inherently Swaraj to Beijing who stated that boundary dispute should not be left to future regular skirmishes on Indo-Pakistan MOVE TOWARDS SETTLING THE GLI¿FXOWIRUDQ\SURJUHVVWREHPDGH or in the South China Sea, the Sino-In- &RPSRXQGLQJ WKHVH GLI¿FXOWLHV DUH JHQHUDWLRQVDQGWKHUHZDVDQHHGWR¿QGµRXWRIWKHER[¶VROXWLRQV+RZHYHUQR dian border is relatively placid ensur- BORDER DISPUTE WOULD BE the different understandings of how to concrete steps took place in May. ing that the leadership of both coun- ANNOUNCED DURING MODI’S approach the border negotiations and tries lack the impetus to actively seek a the role the dispute should have on solution. Thus the temptation to retain VISIT TO CHINA the bilateral relationship.The Chinese Stephen Westcott concerning the border dispute with February visit to China stated that the longstanding position has been that Chinese President Xi Jinping and Pre- dispute should not be left to future the border dispute should not impede rime Minister Narendra Modi’s mier Li Keqiang, there was no hint of generations and there was a need to improvements in other areas of the much anticipated three day DQ\QHZGHDORQZKDWLVRI¿FLDOO\FDOOHG ¿QG µRXW RI WKH ER[¶ VROXWLRQV WR WKH bilateral relationship, especially Pvisit to China in May 2015 can the boundary question. dispute. In addition, the 18th round of improving economic connections. As be seen as a success on many levels. Special Representatives Talks held in such the Chinese have been keen to Several new trade deals worth $22 No Progress on Boundary Talks March and the 7th Defence and Strategic incorporate India in its new Maritime billion were signed, new e-visas to en- This lack of progress is somewhat Dialogue held in April were conducted Silk Route and raised it during Modi’s able the Chinese to visit India were GLVDSSRLQWLQJ JLYHQ WKH VLJQL¿FDQW smoothly, with both seemingly laying visit. In response, Modi reiterated announced and several historical and degree of speculation in the the foundation for talks during India’s equally longstanding position cultural links between the two coun- international media that some the state visit. Modi also recently that, while there are areas to cooperate, tries were strengthened throughout agreement to move the border dispute demonstrated his determination to WKHERXQGDU\TXHVWLRQSOD\VDµOLPLWLQJ the visit, demonstrating the growing forward would be announced during resolve troublesome longstanding factor’ on the bilateral relationship connections between the two coun- this visit. Indeed, there were several border disputes when he insisted on and its resolution is needed for deeper WULHV+RZHYHUWKHSURJUHVVRQUHVROY- signs since the beginning of the year WKH UDWL¿FDWLRQ RI /DQG %RXQGDU\ economic ties. ing China and India’s disputed border that some form of breakthrough Agreement with Bangladesh that Though Modi’s visit was something once again has proven elusive. Though was in the making. India’s External will see mutual exchange of enclaves of a missed opportunity for a break- Modi conducted cordial discussions Affairs Minister Sushma Swaraj in her despite the opposition of Assam and through on the boundary question, the

‘All-Weather obstacles outlined above make such a THE CHINESE LONG-STANDING The two sides’ special representa- shortcoming understandable. Indeed, POSITION HAS BEEN THATTHE tives are expected to meet on the side- Friendship’ in face of these problems former Chi- lines of the upcoming BRICS summit nese Premier Wen Jiabao fatalistically BORDER DISPUTE SHOULD in Russia where it is likely they will REVHUYHG LQ WKDW D ¿QDO UHVROX- explore Modi’s proposal. During this tion to the border dispute may be un- NOT IMPEDE IMPROVEMENTS visit, Modi put the onus for settlement achievable and that every attempt to IN OTHER AREAS OF THE on China by calling for it to “reconsider Between China and Pakistan: ¿QGDVROXWLRQWHQGHGWRGDPDJH&KL- its approach on some issues that hold QHVH,QGLDQUHODWLRQV+RZHYHULWLVWR BILATERAL RELATIONSHIP, XV EDFN´ +RZHYHU LI DQ\ DJUHHPHQW be noted positively that both sides are ESPECIALLY IN ECONOMIC is to be reached it would require a de- still actively engaged in negotiations CONNECTIONS JUHHRIÀH[LELOLW\IURPERWKVLGHVEXW Implications for India DQG FRQ¿GHQFH EXLOGLQJ PHDVXUHV there is little public evidence at the This visit may yet prove to be a catalyst moment that India has seriously con- for the next step towards resolution Tibet, the Chinese have been hesitant sidered to change its position. Yet it is Xi’s recent visit to Pakistan has been dubbed as “fate-changing visit” in China- if Modi’s suggestion to clarify the LAC to agree to any such deal in the past. still relatively early in Modi’s Prime Pakistan relations. India feels uneasy with this “all-weather strategic cooperative is pursued. Modi’s proposal, seemingly still at a 0LQLVWHUVKLS+LVJRYHUQPHQWWKXVIDU The Chinese have avoided clearly conceptual stage, explicitly stated that has shown that it is willing to consider SDUWQHUVKLS´ZKLFKLW¿QGVGLI¿FXOWWRDVVHVVDVZHOODVLJQRUHHYHQDVERWKWKH delimiting the LAC as they were WKHFODUL¿FDWLRQRIWKH/$&ZRXOGQRW a wide range of options to revitalise countries celebrate 2015 as China-Pakistan Year of Friendship. concerned it would involve at least the imply any relinquishing of territorial stagnating relations. As such, with the tacit recognition of the McMohan Line, claims from either side. Both sides rapport that Modi has ostensibly built which it denounces as illegal, and will are keenly aware that the ambiguous with the Chinese leadership and the Amrita Jash phenomenal shift has been bestowed friendship to the world at large, Xi undermine its territorial claims south and unmarked LAC is a leading cause potential that increased trade could by Chinese President Xi Jinping when Jinping prior to his visit stated in of the line by effectively turning it into a of misunderstandings and paranoia have for both economies,it is likely he ‘All-Weather Friendship’ he made his maiden visit to Pakistan an op-ed titled “Pak-China Dosti permanent border. As this would entail on the border with patrols regularly that some form of agreement is now between China and Pakistan, (April 20-21, 2015) to the land of its Zindabad” in Pakistan Daily Times : China relinquishing approximately inadvertently straying onto the wrong not a matter of if, but when. TPHWDSKRULFDOO\ GH¿QHG DV “iron friend”, Pakistan. It also marks ³7KLVZLOOEHP\¿UVWWULSWR3DNLVWDQ 90,000 of the 128,000 km2of contested side. With a notable increase of “higher than the mountains, deeper WKH ¿UVW YLVLW E\ D &KLQHVH 3UHVLGHQW but I feel as if I am going to visit the territory, including the Tawang Tract border incidences over the past two than the oceans, stronger than steel, to Islamabad after an interregnum home of my own brother”- thereby Stephen Westcott is a PhD student at Murdoch which it has been primarily interested years, this suggestion might be taken University, Western Australia. His major area of dearer than eyesight and sweeter than of 9 years. In an attempt to reassure adding great symbolism to the act in acquiring due to its strong links to seriously by the Chinese. study international border disputes honey”, has taken a new high. The the durability of the long-standing of diplomacy.

In total consensus, both sides also honoured Xi with Nishan-e- Europe, Asia and Africa through roads recipient of funding from China’s $40 elevated the bilateral relations to Pakistan, the highest civilian award and port networks. billion Silk Road Infrastructure Fund. a new dimension, as the 20 point for “outstanding contribution in the Under this initiative, China plans On the bilateral trade front, both Joint Communique signed between promotion of the relationship between to build a $46 billion 3,000 km- the countries agreed to raise the trade Xi and Pakistan’s Prime Minister the two countries.” In response, Xi long strategic economic corridor to $20 billion in three years from Nawaz Sharif pointed out: “The remarked that “China considers through the PoK (Pakistan occupied WKH H[LVWLQJ ¿JXUH RI ELOOLRQ ,Q two sides agreed to elevate the Pakistan as its ‘Iron Brother’” for Kashmir). It aims to comprise a total, Xi and Nawaz Sharif sealed Pakistan-China relationship to the Islamabad stood by Beijing at a time planned network of roads, railways 51 Memorandum of Understanding All-Weather Strategic Cooperative when it stood isolated on the world and energy projects linking southwest (MoUs) for cooperation in various Partnership, enriching the Pakistan- stage. Xi also added that China would Pakistan’s deepwater Gwadar Port ¿HOGVVXFKDVWUDQVSRUWLQIUDVWUXFWXUH China Community of Shared Destiny, continue to support Pakistan for with northwest China’s Xinjiang HQHUJ\ DJULFXOWXUH WUDGH ¿QDQFH to ensure the perpetual continuity its “sovereignty, independence and Uygur Autonomous Region. Being health, local affairs, media, ocean in Pakistan-China friendship from territorial integrity”. Weighed by heavy an important leg of China’s visionary sciences and education. Of the 51 generation to generation”. Further, political symbolisms, these behavioral “One Belt, One Road” Initiative, Xi agreements, 30 were centered on the prioritizing their foreign policy dynamics cannot be overlooked as they pointed out the “need to form a ‘1+4’ strategic corridor, which is to be the agenda, both countries upheld that FDUU\VWURQJVLJQDOV,WLVUHÀHFWLYHRI cooperation structure with the CPEC biggest connectivity project between “the friendship and cooperation at the center and the Gwadar Port, the two countries after the Karakoram between Pakistan and China serve THE MOST SIGNIFICANT AND transport infrastructure, energy and highway that was built in 1979. the fundamental interests of the two CHARACTERISTIC FEATURE OF industrial cooperation being the four Adding to the strategic partnership, countries and peoples, and contribute key areas to achieve a win-win result both sides agreed to further tra suggested “enemy’s enemy is your to peace, stability and development in XI’S VISIT TO PAKISTAN WAS and common development”. Here, strengthen strategic communication hinese President Xi Jinping’s IULHQG´7KLVGLFWXPDSSURSULDWHO\¿WV the region and beyond”. In addition, SIGNING UP ISLAMABAD FOR China’s motive behind building the and cooperation, continue to give CPakistan visit does mark a into the dynamics of China-Pakistan- applauding the two countries success $46 billion CPEC is primarily driven mutual support on issues related to historic turn in the China-Pakistan India nexus. Xi’s’s India visit in Sep- in evacuating their citizens from war CHINA-PAKISTAN ECONOMIC by its strategic interest wherein by each other’s core interests and major friendship. It is reÁective of the tember 2014 was mainly centered on torn Yemen, Xi noted that “China CORRIDOR (CPEC). CPEC IS AN building the Gwadar Port, it wants to concerns, strengthen coordination mutual strategic trust and prior- the economic domain, whereas Xi’s and Pakistan have always trusted, link it to the western city of Kashgar and cooperation on international ity that each holds for the other. It Pakistan visit was characterised by po- understood and supported each other, INTEGRAL PART OF BEIJING’S in order to secure its trade and energy and regional issues of common opened a window of opportunity OLWLFDODQGVWUDWHJLFVLJQL¿FDQFH+HUH and are all-weather friends”. MAMMOTH SILK ROAD PROJECT imports from the existing chokepoints. concern, maintain the victorious for Pakistan by the launch of the India stands at the centre stage where It is argued that the CPEC will shorten achievements of World War II as well China-Pakistan Economic Corridor, both China and Pakistan can accord- The Heights of Balancing THAT AIMS TO CONNECT the route of China’s energy imports as the contemporary international which holds greater potential in ingly shift their policies to strategical- Interests EUROPE, ASIA AND AFRICA from the Middle East by about 12,000 order and system on the basis of the reconstruction of Pakistan’s econ- ly counter India’s might in the South It is an accepted fact that interna- kms and would also provide China United Nations Charter, and jointly omy and stabilization the state. Asian region. tional politics is driven by national in- THROUGH ROADS AND with a direct access to the Indian build a new type of international Both literally and Àguratively, Xi’s The main concern lies with respect terest, wherein survival is the primary PORT NETWORKS Ocean, while for Pakistan, the relations with win-win cooperation at Pakistan visit does assure China’s to the China-Pakistan Economic goal. In this view, in understanding the CPEC opens the window of oppor- the core. China also agreed to support unconditional ties with Pakistan, Corridor, which creates a strategic importance of Xi’s visit to Pakistan, it tunity to end its chronic energy Pakistan’s full-time membership at with symbolic underpinnings for discomfort for India. This is because is imperative to analyse the motives WKH JUHDW VLJQL¿FDQFH WKDW 3DNLVWDQ crisis as well as build itself into a the Shanghai Cooperation Organi- the world at large. Therefore, it is an accepted fact that China- that drive China’s interests in Paki- and China attach to each other in their regional economic hub. zation (SCO). Besides, it was also an elevated China-Pakistan friend- Pakistan relationship is mainly stan. In doing so, one needs to assess foreign policy agenda. It is an act of In this aspect, as pointed out in jointly agreed by the two countries ship to an “all-weather strategic anchored by the military quotient of the achievements and outcomes of this reassurance of the pillars of strength the Joint Statement that both sides to enhance cooperation on the cooperative partnership” does both sides. Therefore, the 3,000 km high-level visit. of their long standing friendship, will “actively facilitate the important Afghan issue and play a positive come with strategic signiÀcance, long economic corridor that aims to One of the high points of the visit thus epitomizing their “all-weather cooperation projects including the role in the reconciliation process which is difÀcult to assess as well pass through PoK with port facilities was the honour conferred to Xi to friendship”. Karakoram Highway (Phase II) RI $IJKDQLVWDQ ZKLFK UHÀHFWHG WKH as ignore. at Gwadar holds severe strategic address a joint sitting of the Pakistani %XW DERYH DOO WKH PRVW VLJQL¿FDQW Upgrade and Reconstruction, the width and depth of China-Pakistan and security implications for India. Parliament, at the National Assembly and characteristic feature of Xi’s Pa- Gwadar Port, the Karachi-Lahore strategic cooperation. Concern will always loom regarding and the Senate. In his address, kistan visit is the signing up of the Motorway (Multan-Sukkur section), Therefore, these strategic collabo- Strategic Implications for India the military activities in these areas Xi described Pakistan as China’s agreement on the construction of the Lahore Metro Orange Line, the rations between China and Pakistan In this gamut of cooperation, it is in order to balance India’s might in “dependable” friend, with an emphasis China-Pakistan Economic Corridor Haier-Ruba Economic Zone, the exemplify the new heights of their “all- clear that the China-Pakistan axis is South Asian Region as well as in the that bilateral ties are based on mutual (CPEC). Highlighting the centrality of Suki Kinari Hydropower Project, the weather strategic cooperative part- representative of a strong partnership. Indian Ocean. In this way China will trust and support. Xi pledged to work CPEC, Xi in his op-ed remarked: “The Pakistan-China Cross-border Fiber nership”. From these well-calibrated Pakistan, being a strategic card for check and balance India in its own hand-in-hand with the South Asian China-Pakistan Economic Corridor is Optic Cable, the Landing of DTMB goals and strategic objectives, it can China in South Asia, is mainly used by strategic backyard, Pakistan. nation, praised Pakistan’s counter- located where the Silk Road Economic in Pakistan, as well as a number of be strongly stated that President Xi’s China to counterweigh India’s balance terrorism activities and pronounced Belt and the 21st Century Maritime energy, infrastructure and power Pakistan visit strategically mapped out of power in the South Asian region. In China’s keen interest to support Silk Road meet”. In this light, CPEC generation projects”. In putting the future trajectory of China-Pakistan this line of thought, Xi’s visit to Paki- Amrita Jash is a Doctoral Candidate at the Centre for East Asian Studies (Chinese Studies), Pakistan in overcoming its security is an integral part of Xi’s’s mammoth CPEC into function, Pakistan’s Karot relations, giving a new thrust to the VWDQGRHVKROGVLJQL¿FDQWLPSOLFDWLRQV School of International Studies, Jawaharlal Nehru University, New Delhi. challenges. In addition to this, Pakistan Silk Road Project that aims to connect K\GURSRZHUSURMHFWEHFDPHWKH¿UVW diplomatic ties. for India. As Kautilya in Arthashash-

Q: ,Q$SULO3UHVLGHQW;LZDVLQ instrumental) obstacle. China’s rise economic modernization of the ,QGRQHVLDWRFRPPHPRUDWHWKH to a position of economic strength country. With peaceful external WKDQQLYHUVDU\RIWKH%DQGXQJ has given rise to a feeling in some conditions and relative stability ´$VLDIRU$VLDQVUHÁHFWV FRQIHUHQFHRI$VLDQDQG$IULFDQ quarters that it is now able to take a domestically, the Chinese economy QDWLRQV:LWKVXFKFRPPHPRUDWLYH leading role in Asia. Japan’s military has been transformed and the China GLSORPDWLFPRYHVLV%HLMLQJ alliance with the US being an obstacle of 2015 is a far cry from the one that VHWWLQJRXWWRFODLPDGHÀQLWLYH to that. The two sides are important emerged battered from the Cultural &KLQHVH5HVHQWPHQW OHDGHUVKLSUROHVLQ$VLDLQDVRUWRI participants in many issues affecting Revolution and the Mao era. China XQGHUPLQLQJ86DOOLDQFHVLQ$VLD" the region-the East China Sea under Xi Jinping is more aware A: China was a major actor in the territorial disputes, Taiwan, North of its economic power and is very non-aligned movement and a Korea to name a few- and they are FRQ¿GHQWLQLWVJURZLQJGLSORPDWLF RIWKH86·V(QGXULQJ participant at Bandung in 1955, also major economic partners. Thus and political clout. Some analysts thus it is only natural that it should the near and mid-term relationship have interpreted this as manifest in take part in the commemorations. will be about reducing the possibility growing “assertiveness”. But that I wouldn’t read too much into IRUFRQÀLFWDQGPDQDJLQJWHQVLRQV doesn’t mean China will abandon ,QÁXHQFHLQWKH5HJLRQµ President Xi’s attendance at the event when they arise. Beijing and Tokyo the attitudes that previously served last month. China’s commitment have domestic constituencies that it so well—China is strengthening to many facets of the Bandung militarily but there is no evidence Declaration remain in force (at that it seeks or is preparing for least rhetorically). Through the JAPAN IS THE US’S MOST FRQÀLFW&RRSHUDWLRQZLOOFRQWLQXH extraordinary increase in the scale of IMPORTANT ALLY IN THE because economies in the region are Would it Mean Asia for the Chinese? its engagement with the developing interlinked and China is in many world in the past 15 years, combined REGION AND A CRUCIAL ways still a developing country with the fact that China is a role ANCHOR FOR RE-BALANCE. that has many issues that require model, economic partner and/or attention at home. Disputes and benefactor for many countries, it has MANY CHINESE BELIEVE tensions are common in foreign DrDr JJonathanonathan SSullivan is Associate emerged as a de facto leader of the THE USA SHOULD REMOVE relations, China and other countries developing world. Wary of potential in the region need to develop the ProProfessorfessor ooff ContemporaryCon Chinese Studies misinterpretation, Chinese leaders ITSELF FROM ASIA AS THE skills and infrastructure to manage have assiduously denied that they ENDURING STRENGTH OF WKHPZLWKRXWUHVRUWLQJWRFRQÀLFW and Deputy DiDirectorr of the China Policy are pursuing a deliberate policy to Institute at the University of Nottingham, provide leadership to the developing THE USA-JAPAN ALLIANCE Q: ´,IZHGRQ·WZULWHWKHUXOHV world or an alternative “Beijing IS A CAUSE OF GREAT &KLQDZLOOZULWHWKHUXOHVRXWLQWKDW UK.UK. He regularlyregular writes on China matters Model”. Many Chinese feel that some UHJLRQµ3UHVLGHQW2EDPDVDLGLQ kind of “leadership role” is its natural FRUSTRATION FOR CHINA DQLQWHUYLHZZLWK7KH:DOO6WUHHW thatthat includes China’sCh relations with its position in Asia, but I don’t see a -RXUQDOUHFHQWO\,VWKLV86SDUDQRLD deliberate attempt to undermine FRPLQJRXWFOHDUO\WRWKHIRUH",V nneighbors,eighbors, its eexpandingx global role, cross- American alliances. expect a certain kind of interaction WKDWWKHUHDVRQZK\86·VFRVLQHVLV with the other, which can exacerbate LQFUHDVLQJZLWK-DSDQDQDWLRQLW StraitStrait relations, Taiwanese politics and Q: $WWKH&RQIHUHQFH;L$EHSOHGJHG the friction of interactions. But FDQHDVLO\FRRSWLQLWVFDPSLQDELG more.more. In an interviewinter with Urmila Rao, EHWWHUUHODWLRQVWRZRUNIRUUHJLRQDO leaders should keep in mind the WRFRQWDLQDULVLQJ&KLQD" VWDELOLW\WKHPHHWLQJZDVVHHQE\ unalterable fact that they are A: This is an unusually frank hhee articulates onon a wide range of issues VRPHH[SHUWVDVDVLJQRIWKDZLQJRI geographical neighbors and have to admission of American thinking. -DSDQ&KLQDUHODWLRQVKLS+RZHYHU ¿QGDZD\RIFRH[LVWLQJ There is awareness that China iincludingncluding the USU conduct in Asia, China’s ÀYHGD\VODWHU-DSDQ·VGHIHQFH believes Asia to be its own backyard FRRSHUDWLRQZLWKWKH86HQVXHG Q: &KLQDLVVHHQWREHNHHQWR and therefore it should have the right wariness of the US presence in the XSVHWWLQJ&KLQD,QWKHQHDUIXWXUH FRQVROLGDWH$VLDEXWLWKDVWHUULWRULDO to lead. But to a greater or lesser regioregion,n Beijing’s active role in LWVHHPVWKHUHLVQRSRVVLELOLW\RI DQGPDULWLPHGLVSXWHVZLWKVHYHUDO H[WHQWWKH86FRQVLGHUVLWVHOID3DFL¿F WKDZLQJRIUHODWLRQVKLSEHWZHHQ RILWVQHLJKERXUV$JDLQVWWKLV nation and is not ready to withdraw iinternationalnt society, among %HLMLQJ7RN\R

actions in the East and South China Seas in the last two years, including construction on dispute territories, Responding Alike: can be interpreted as testing American resolve. Japan is clearly the US’s most important ally in the region and a crucial anchor for the re-balance. Many Chinese believe the US should India and China on remove itself from Asia, and the enduring strength of the US-Japan alliance is a cause of great frustration. Between “containment” and ensuring Western Sanctions that a rising power adheres to existing rules and norms there is broad scope for policy and action.

Q: :RUOG%DQNDQG,0)YHUVXV&KLQD OHG$VLDQ,QIUDVWUXFWXUH%DQN $,,% 7UDQV3DFLÀF3DUWQHUVKLS 733 YHUVXV&KLQDEDFNHG)UHH7UDGH $UHDRIWKH$VLD3DFLÀF )7$$3 $UH Chinese vision requires rejecting a ZHDJDLQKHDGLQJWRDQHUDRIWZR SOME COUNTRIES IN THE role for America. I don’t think, at GLVWLQFWFDPSV" ASIAN REGION FEAR THAT the moment, there is a necessity to A: The US made a strategic mistake “choose between” China and the in not joining the AIIB, which led to “ASIA FOR ASIANS” WOULD US. But changes are afoot. The US an informal popularity contest and ULTIMATELY MEAN “ASIA has been invested in the region for emergence of what now looks like a long time; China’s interest and two contending blocs. It didn’t need FOR THE CHINESE” AND ability to engage and shape the to be the case. In the end it provides HENCE THEY CONTINUE region’s development is a more recent China’s self-image and prestige a phenomenon. In the abstract, Chinese ¿OOLSDQGDIXUWKHUGHPRQVWUDWLRQ TO SUPPORT AMERICAN investment is a good thing for that China thinks big and is able to INVOLVEMENT developing regions, but the practice get things done. It is an impressive and practical effects of China’s accomplishment. Not enough is engagements around the world known about the AIIB to say with have not been universally positive. DespiteDespite mutual differences,differences, there are certainty how it is going to operate. Q: &KLQDLVLQYHVWLQJELOOLRQVRI The idea of Asia for Asians plays on iinstancesnstances where India and China have With such a wide membership, and GROODUVWRDFFHOHUDWHHFRQRPLF Chinese (and other Asian nations’, with many partners having dual JURZWKLQWKH$VLDUHJLRQXQGHULWV including Russia) resentment of taken similar positions. Two cases in point membership, it is unlikely to act in 6LON%HOW5RDGLQLWLDWLYH3ROLWLFDOO\ America’s strong and enduring are Western sanctions on Iran and RussiRussiaa the short term in ways that challenge &KLQHVHOHDGHUVKLSKDVVWXFNWR LQÀXHQFHRQWKHUHJLRQ,WLVD wwherehere India and China have conveyed or overturn the existing status quo. WKHVORJDQRI¶$VLDIRU$VLDQV·D rhetorical change after years of tacitly /RQJHUWHUPLWLVPRUHGLI¿FXOWWR GR\RXIHHOWKHHFRQRPLFLQLWLDWLYH accepting the US role in Asia and their opposition to these sanctions. predict how these initiatives will pan ZLOODGGDQHZHFRQRPLFYLJRXULQ following it through in practice would out. However, I can say with some WKHFRPLQJ\HDUVLQWKHUHJLRQE entail a challenge to the existing FRQ¿GHQFHWKDW&KLQDLVJRLQJWR EDFNHGE\HFRQRPLFSURVSHULW\LV order, particularly the economic RishikaRishika ChauhanChauhan become an increasingly active and WKHGUHDPRI¶$VLDIRU$VLDQ·VOLNHO\ and security realms. Many Asian congruent is Western sanctions. In to sanctions against Russia. While pro-active member of international WRFRPHWUXH" countries are deeply apprehensive of n the last few decades the simulta- early 2000s India and China shared several countries have checked their society and in many sectors where A: China has the motivation and a Chinese challenge to the existing neous rise of India and China and their discomfort regarding unilateral interaction with the sanctionee, the the existing regime is dominated by resources to ensure that its vision for order and hope that the US will Itheir overlapping interests have sanctions imposed on Iran. As regards two emerging Asian powers have the US (and to a lesser extent the Asian development succeeds, at least retain its interest and presence. It is constantly fuelled debates about com- sanctions against North Korea, India UXVKHGLQWR¿OOWKHYRLG other developed economies). This in terms of physical infrastructure reasonable that some countries in petition between the two countries was relatively supportive of the sanc- represents a change—whether one and “hardware”. Whether it has the the region fear that “Asia for Asians” While contestations and divergences tion regime compared to China, how- Iran Sanctions perceives this change in a positive “soft power” required to make others would ultimately mean “Asia for have often been discussed, there are ever, both the states later conveyed In the 2000s several unilateral and or negative light probably depends buy into its vision is another issue, the Chinese” and to forestall such a issues where India and China have their opposition to enhancement multilateral sanctions were imposed on how one feels about the current particularly if -and I’m not saying possibility they support continued taken similar positions. One of the of sanctions. India and China have on Iran to change its nuclear behav- status quo. it necessarily does- accepting the American involvement. subjects where their stands have been again announced their reservations iour. Iran was accused of possessing

undeclared nuclear materials, refusing Lavrov insisted, “We do not believe in Russian energy sector. to allow International Atomic Energy new sanctions — they will not help in However, both India and China have Agency to inspect its uranium enrich- any way to resolve the situation.” conveyed their opposition to sanctions ment facilities and rejecting diplomat- and maintained their ties with Russia. China’s Diplomacy ic solution. Iran was said to be creating Russian Sanctions In March 2014 when sanctions were nuclear proliferation risks. In addition The Russian policies on Crimea and imposed on Russia, India maintained, to multilateral sanctions, unilateral ¿QDOO\ LWV DQQH[DWLRQ LQ 0DUFK “India has never supported unilateral sanctions were also placed on Iran. invited Western sanctions on Russia. sanctions against any country like Iraq 7KH 86 ¿UVW LPSRVHG VDQFWLRQV RQ Caught between While India and China mostly sup- or Iran. Therefore, we will also not ported the sanctions imposed by the March 2014 through Executive Or- support any unilateral measures by a United Nations (UN), they were criti- GHU WKDW SDUWLFXODUO\ LQYROYHG country or a group of countries.” When cal of the sanctions enforced unilater- “blocking property of certain persons Russian President Vladimir Putin vis- ally by the US and other states. In 2010 contributing to the situation”. Accord- ited India in December to attend the Europe and Russia after the US selected Robert Einhorn ing to the White House, the sanctions 15th Annual India-Russia Summit in as its new coordinator to implement were a reaction to Russia asserting, New Delhi the Putin-Modi India-Rus- sanctions against Iran, Nirupama Rao “governmental authority in the Crime- sia vision document stated,” oppose Russia and Chinese trade the then Foreign Secretary of India an region without the authorization of economic sanctions that do not have amounted to approximately said that India was “concerned that the Government of Ukraine.” Later, the approval of the United Nations the extra-territorial nature of certain Security Council”, which conveyed $95.3bn last year with a hope unilateral sanctions recently imposed IN 2013, RUSSIA PRODUCED India’s disregard for the Western of expansion to $100bn in by individual countries, with their ABOUT 10.7 MILLION BARRELS sanctions against Russia. 2015. Year 2014 also saw restrictions on investment by third Concurrently, China also took a countries in Iran’s energy sector, can OF OIL A DAY, WHICH IS similar stand and not only opposed $400 billion gas deal signed have a direct and adverse impact on AROUND 12 PER CENT OF THE sanctions imposed on Russia, but between the two countries. Indian companies and more impor- DOVRUXVKHGLQWR¿OOWKHYRLGFUHDWHG tantly, on our energy security and our GLOBAL OIL PRODUCTION by the Western withdrawal. Hence it Are the two powers knitting attempts to meet the development OF ABOUT 90.88 MILLION enhanced cooperation with its neigh- closer economic ties owing to needs of our people.” bour. Deals were signed between China too expressed its dissent. BARRELS. THUS IT WAS China’s Export-Import Bank and Rus- Western sanctions on Russia? While talking about Iran in 2009, IMPERATIVE THAT SANCTIONS sia’s Development Bank, and Russian Does this coalition mark a step the Chinese foreign ministry spokes- Agricultural Bank. In 2014 on a visit towards a new international person, Jiang Yu said, “We believe TARGET THE RUSSIAN to Russia, Premier Li Keqiang’s signed that sanctions and exerting pressure ENERGY SECTOR a number of agreements dealing with order, a multi-polar world are not the way to solve problems LVVXHV H[WHQGLQJ IURP ¿QDQFH WR where the United States is no and are not conducive for the cur- President Obama used Executive Or- energy. The BRICS group also rent diplomatic efforts on the Iran GHU WR WLJKWHQ VDQFWLRQV DQG reacted strongly opposing sanctions on longer the dominant power? nuclear issue.” In 2012 the Chinese impose new ones. The International Russia as they believed “...sanctions Foreign Minister, Yang Jiechi lucidly Emergency Economic Powers Act and counter-sanctions, and force does Himani Pant “the Chinese were there in their place,” from Russia. As James D.J. Brown of explained,“..all along we have been and the National Emergencies Action not contribute to a sustainable and at a time when the West was absent the Temple University, Japan puts it, opposed to unilateral sanctions. When Ukraine were the primary Acts under peaceful solution.” he West has increasingly showed from the show. Apart from Xi Jinping, “Current U.S. policy on the Ukraine such sanctions affect other countries which the US sanctioned Russia. Euro- Hence it seems that Indian and its discontent with Russian in- sitting next to President Putin, what crisis is driving Russia into China’s and damage other countries’ interests, pean Union (EU) placed sanctions on Chinese aversion to Western sanctions Ttervention in Crimea, as evident also drew attention was the signing embrace”. So, if there is one country it is something we cannot accept.” The Russia in September 2014. According has been quite consistent with a few in various sanctions that have been of 32 bilateral agreements on the eve which has actually gained economical- two also opposed unilateral sanctions to news broadcaster BBC, the sanc- departures. It cannot be overlooked imposed upon Russia. More recently, of Victory parade, including a pact on ly out of the Ukraine crisis, it is China. on Iran as part of the BRICS (Brazil, WLRQV SULPDULO\ IRFXVHG RQ WKH ¿QDQ- that both, India and China have used the West also boycotted the Victory cyber security between the two. Xi Jinping’s response to strengthen Russia, India, China and South Africa) cial, energy and arms sector, including sanctions themselves at some point. parade in Russia that was celebrated China remains an important strate- strategic partnership with Russia in Group, especially when the West pres- 5XVVLDQRLO¿UPVOLNH7UDQVQHIW5RV- In the Indian case, Nepal and Pakistan to mark 70 years of Nazi Germany’s gic partner for Russia. As the director spite of the joint sanctions by Europe surized states to reduce their crude oil neft and Gazprom Neft. As per the US are examples, while in the Chinese defeat in the Second World War. How- of Russia and Central Asian research and the United States against the latter imports from Iran. Energy Information Administration, case it is Japan and Taiwan. How- ever, Chinese president Xi Jinping’s Centre at the Shanghai Institute of showcases the Chinese leader’s diplo- Though China has taken a tough Russia is among the highest produc- ever, it seems that India and China presence as the guest of honour in the International Studies states, “Russia matic way “of maintaining a compe- stand on sanctions imposed against ers of oil in the world. In 2013, Russia would not keenly support Western Victory parade in Moscow raised many needs more partners during this petition-cooperation relationship with North Korea, India has been lukewarm, produced about 10.7 million barrels of sanctions, especially the ones against eyebrows in the West. According to riod of Western sanctions and China Washington on one hand and reinforc- however the two have conveyed their oil a day, which is around 12 per cent its trade partners. the former US assistant secretary of surely remains an ideal one”. In fact, ing his country’s strategic cooperation opposition together in Groups as well. of the global oil production of around the Treasury for economic policy, Paul sanctions against Russia have given with Russia to secure the safety of Rishika Chauhan is a research scholar at the Centre for Speaking for Russia, India and China 90.88 million barrels. Thus it was International Politics, Organisation and Disarmament, Craig Roberts, the victory day celebra- China an opportunity to make the best China’s northern border on the other”. (RIC) Russia’s Foreign Minister Sergei imperative that sanctions target the Jawaharlal Nehru University, New Delhi tion was a “historical turning point,” as deals in terms of procuring resources However, the present situation also

places China in a “diplomatic bind”. initiative. China has also found sup- matter can be gauged from the remarks shifts from the United States as the China’s Ambition for China-Russia relationship is a transac- A strong proponent of the absolute port from Europe in its Asian Infra- made by Colonel Fang of the Chinese central power. According to a Russian Central Asia tional relationship. China is an emerg- nature of sovereignty, the People’s structure Investment Bank Initiative. National Defence University in Beijing security expert, Dmitry Trenin, “the In more ways than one Sino-Rus- ing economy, but it has not yet reached Republic of China does not support Major European nations like France, where he emphasises that the process Russia-China rapprochement is a sign sian alliance serves to estrange the the top spot in world affairs. What VHSDUDWLVW PRYHPHQWV 0RUH VLJQL¿- Germany, Luxembourg, Switzerland, of NATO expansion post the collapse of the changing world order, in which latter from the West. The Russian- happens to Sino-Russian alliance if cantly, Chinese constitution under- Denmark and Austria have sought of the Soviet Union had been a “bit- the West is still very relevant, but no Chinese ties may turn out to be more &KLQD¶V LQÀXHQFH FRQWLQXHV WR JURZ scores its policy of non interference in membership of the bank inspite of ter pill” for Russia to swallow since its longer dominant”. binding than liberating for the former while Russia gets alienated from the other states’ internal affairs. Russia’s opposition by the United States. “strategic space was contracting” Jolted by the Western sanctions, in the long term. It is true that in the West all the more? Already, China’s use of a referendum to break Crimea Thus, it seems but natural that Russian president was quick to make wake of isolation from the West, Rus- economy is over four times larger than away from Ukraine contradicts this China has not been very vocal in inter- What Brings China and “a dramatic China pivot”. While it was sia’s inclination with China has been Russia’s, and the gap is likely to con- fundamental tenet of the Chinese for- national forum in voicing support for Russia Together? Russian economic weakness that drove but natural. The sanctions regime tinue, considering the economic woes eign policy. China obviously would not Russia. In general, what we see is cau- According to Orville Schell of Asia Putin towards China, it was the lure to KDVEHHQDFWXDOO\EHQH¿FLDOIRU&KLQD of Russia. This is important to pon- want the precedent of Crimean refer- tious China that has maintained quite Society, since both Russia and China garner support that evoked positive re- DV WKH WHQ \HDU ROG JDV GHDO ¿QDOO\ der over because Moscow may not be endum repeated in its own disputes, a restrained approach on the crisis. ¿QGWKHPVHOYHVDWRGGVZLWKWKH:HVW sponse from China. So, while it did not concluded last year where Russia willing to accept a junior partnership be it with Tibet, Xinjiang or Taiwan. support Russia in international forum, with China, nor is China likely to treat Beijing remains caught in the dip- it did not oppose the country either. CHINA HAS ALSO FOUND Russia as an elder brother. lomatic bind also because Europe, Russia is in search of new markets SUPPORT FROM EUROPE IN It is important to mention here the post the Western sanctions against growth of Shanghai Cooperation Or- DURING HIS VISIT TO it. China is a preeminent Asian power ITS ASIAN INFRASTRUCTURE ganisation (SCO) is often viewed as a GERMANY IN 2014 PRESIDENT with a great need for natural resources INVESTMENT BANK INITIATIVE. counterbalance to NATO by the West. and Russia at this juncture needs mar- Both China and Russia dominate the XI JINPING CLEARLY ket for exports. Hence, a sort of part- MAJOR EUROPEAN COUNTRIES SCO and try all means to garner sup- EXPRESSED HIS NEUTRAL nership of convenience between the LIKE GERMANY, FRANCE, UNITED port of growing powers like India to WZRFDQEHVHHQZKLFKLVEHQH¿FLDOIRU consolidate the organisation further. POSITION OVER THE UKRAINE both. So, while China may not be inter- KINGDOM , THE NORDICS Moreover, China’s “Belt and Road” CRISIS REMARKING THAT ested in the developments in Ukraine, (DENMARK, FINLAND, SWEDEN, initiative has also been under scanner. LWGH¿QLWHO\LVLQWHUHVWHGLQDFTXLULQJ Shannon Tiezzi compares the China’s “CHINA DOES NOT HAVE ANY resources for its large population. NORWAY),LUXEMBOURG, initiative with the U.S by stating that PRIVATE INTERESTS IN THE Russia and Chinese trade amounted SWITZERLAND, POLAND AND just like the latter in 1948, China is a to approximately $95.3bn last year, rising global power seeking to use its UKRAINE QUESTION” and China’s foreign minister Wang AUSTRIA AMONG OTHERS HAVE economic strength in securing foreign Li had pointed to closer cooperation SOUGHT MEMBERSHIP OF THE policy goals. According to her, just as which in the past was outside China’s in 2015 hoping for a close to $100bn the Marshall Plan acted as a catalyst in VWUDWHJLF LQÀXHQFH KDV FRPH FORVHU bilateral trade in 2015. Thus, it may BANK INSPITE OF OPPOSITION establishing the U.S as a superpower, to the latter in the previous decade. not be an exaggeration to say that BY THE UNITED STATES “Beijing is betting its twin Silk Roads The EU remains China’s biggest trad- Sino-Russian relations have entered can do the same”. China, on its part, ing partner while China is the EU’s a new phase ever since the West lev- has continuously reiterated that the second largest trading partner. When Nevertheless, it has consistently called their tendency is to team up. While ied sanctions on Russia. During his ultimately had to abide by China’s “Belt and Road” initiative should not Xi Jinping visited Germany last year, for dialogue and a peaceful resolution. Russia and China may not be the best visit to Shanghai in mid 2014, Russian prices. As Sijbren De Jong, who is an be compared with the “Marshall Plan” bi-lateral business deals amounting During his visit to Germany in March of friends, what brings the two pow- president Vladimir Putin remarked analyst of Russian and Central Asian of the 1950s. Chinese foreign minister to about 140 billion Euros took place. 2014, Xi Jinping clearly expressed his ers together at this time is mutual that bilateral interactions between the affairs at the Hague Institute of Inter- Wang Li has come to the defence by China’s 2015 diplomacy is focussed neutral position over the Ukraine cri- need and prospects of gain. From a two had become “best in all their many QDWLRQDO$IIDLUVSXWVLW³&KLQDSUR¿WV stating that the “Belt and Road ‘initia- on making all encompassing progress sis while remarking that “China does fundamental standpoint, the main ba- centuries of history.” The case in point off the fact that the negotiating posi- tives concern the interests of all par- in the “Belt and Road” initiatives. In not have any private interests in the sis for a possible China-India-Russia is the $400 billion gas deal signed be- tion of Russia is weak”. ties like a symphony performed by all this regard, promotion of connectiv- Ukraine question,” and that “all par- coalition is stated to be their common tween China and Russia last year. In It is important to note that both rather than China’s solo show”. ity, building corridors for overland ties involved should work for a po- desire to build a multipolar world or- 2014 itself, it was reported that Russia 5XVVLDDQG&KLQDDUHY\LQJIRULQÀX- Whether or not China intends to economic activities and pillars of litical and diplomatic solution to the der within which a rising powers like ZDVUHDG\WRVXSSO\6X¿JKWHUMHWV ence in Central Asia. Xi Jinping’s for- imitate the Marshall Plan, China’s maritime cooperation top the list of FRQÀLFW´ This neutral tone was well China can play a larger role. As Gil- to China. The two countries also con- eign policy gives acute emphasis in the JURZWKUHPDLQVGH¿QLWHIURPWKH³%HOW its priorities. It is also speculated that evident when China chose to abstain bert Rozman, a professor of Northeast ducted a combined military exercise in development of Silk Roads. Hence, it and Road” initiative. There is a huge economic ties with Europe is commer- from voting in the UN Security Council Asian affairs in Princeton University the East China Sea the same year. The is not surprising that China will try its possibility that China growth might cially viable for China as it could off- last year. In the internal debates how- puts it; Sino-Russian alliance is all Russian and Chinese navies have also EHVWWRLQÀXHQFHHFRQRPLFDQGSROLWL- VWLÀH 5XVVLD¶V H[SDQVLRQ SDUWLFXODUO\ set the effects of a falling investment ever, we see an understanding for Rus- about “national identity and the big EHJXQWKHLU¿UVWMRLQWH[HUFLVHVLQWKH cal might in the Central Asian region. in the light of Ukraine related sanctions rate and rising overcapacity in China’s sia’s position by referring to the “his- efforts in both countries to establish a Mediterranean. This portrays growing According to Sijbren De Jong, “the Chi- against Russia. domestic economy. Cordial relations torical reasons” behind the annexation different kind of international order.” defence ties between Beijing and Mos- QHVHZLOOQRWZDQWWRSOD\VHFRQG¿GGOH with Europe thus become important of Crimea. For instance, the tone of This new international order refers cow and a demonstration that China’s to Moscow in the quest for primacy in Himani Pant is Research Assistant at from the point of building the “road” internal Chinese discussions on the to a multipolar world where the focus maritime horizons are broadening. Central Asia”. In more ways than one, Observer Research Foundation, New Delhi

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OBOR project is seen as a ating an open, inclusive and balanced IURP$VLDQ,QIUDVWUXFWXUH,QYHVWPHQW strategy that would open multiple ac- regional economic cooperation and %DQN ELOOLRQ 1HZ 6LON 5RDG FHVVURXWHVIRU&KLQDWKXVPDNLQJLW DUFKLWHFWXUHWKDWEHQH¿WVDOO´&KLQD¶V )XQG ELOOLRQ DQG WKH 1HZ 'H- HDV\ IRU &KLQD WR FDUU\ RXW LWV REMHF- policies have been growing at an im- YHORSPHQW %DQN LQLWLDWLYHV EHWZHHQ WLYHV 7KH V\VWHP RI SRUWV UDLOV DQG pressive pace since the 1980s. On its %5,&6QDWLRQV$FFRUGLQJWRWKHURXJK roads will enable China to have access 65th anniversary last year, China’s estimates, the program encompasses to oil and gas and other essential com- President Xi Jinping stated that ‘Chi- more than 65 countries wherein an- PRGLWLHVQHHGHGIRU&KLQHVHHFRQRP\ na would continue to give priority to QXDO WUDGH RI FRQWULEXWLQJ PHPEHU Thus OBOR in a way helps China in GHYHORSPHQWDGKHUHWRUHIRUPDQGLQ- FRXOGWRXFKWULOOLRQRYHUDGHFDGH expanding its economy which was oth- novation and remain committed to the erwise not possible given its relations SDWKRISHDFHIXOGHYHORSPHQW¶ THE BELT AND ROAD with neighbouring countries. OBOR China’s policies are drawing near DOVRVHUYHVWKHIRUHLJQSROLF\JRDOVRI WKHHQKDQFHPHQWRIFRRSHUDWLRQZLWK PROJECT, IN A WAY HELPS the country by deepening China’s re- LWV&HQWUDODQG6RXWKHDVW$VLDQHLJK- CHINA IN EXPANDING lationship with its neighbours. With so ERXUVLQZKDWLVNQRZQDV³1HZ6LON PDQ\FRXQWULHVSDUWRI2%25LWKHOSV 5RDG 'LSORPDF\´ 2Q 6HSWHPEHU ITS ECONOMY WHICH &KLQDWREHDWWKHFHQWUHRIWKHZRUOG 2013, President Xi Jinping visited Ka- OTHERWISE WOULD NOT power, reshape the international sys- ]DNKVWDQDQGSURSRVHGLQKLVVSHHFKD tem as well as expand Beijing’s ties QHZIRUHLJQSROLF\LQLWLDWLYHFDOOHG³6LON HAVE BEEN POSSIBLE with other developing countries and 5RDG(FRQRPLF%HOW´ 6(% 7KLVLQLWL- GIVEN ITS RELATIONS WITH having access to much needed extra DWLYHIRFXVVHGPRUHRQHQKDQFLQJWKH IXQGVWRPDNHWKHVHSURMHFWDVXFFHVV international cooperation, strength- NEIGHBOURING COUNTRIES. 2%25 ZDV WKRXJKW RI WR FRXQWHU WKH ening the economic collaboration by THE PROJECT IS SEEN AS :HVWHUQ LQÀXHQFH DQG WR VWUHQJWKHQ building road connectivity, promoting the bilateral ties along the dual trade WUDGHDQGLQYHVWPHQWIDFLOLWDWLQJFXU- A STRATEGY THAT WOULD routes to support China to build a net- UHQF\FRQYHUVLRQDVZHOODVUHLQIRUFLQJ OPEN MULTIPLE ACCESS ZRUNRIQRQZHVWHUQLQWHUQDWLRQDORU- people-to-people exchanges. On Octo- ganisation in which China could play a ber 3, 2013, the President spelt out a ROUTES FOR CHINA PDMRUUROHLIQRWDGRPLQDQWRQH QHZLQLWLDWLYHRI0DULWLPH6LON5RXWH 065 LQKLVVSHHFKDWWKH,QGRQHVLDQ Demystifying China’s Parliament, during his state visit to the No Halting of MSR FRXQWU\7KLVLQLWLDWLYHIRFXVVHGPRUH f one takes news reports seriously, then it is believed that MSR will begin in on upholding the international con- IQuanzhou, moving towards Guangzhou, Beihai and Haikou before heading QHFWLYLW\ ¿VKHU\ DFWLYLWLHV DQG VFLHQ- south to the Malacca strait. From Kuala Lampur, the MSR heads towards WL¿FDQGHQYLURQPHQWDOUHVHDUFKZLWK Kolkata, India from where it crosses the rest of Indian Ocean to reach Nairobi, the aim to bolster China’s economic Kenya. From Nairobi, MSR goes north around the Horn of Africa and move Silk Road Diplomacy WLHVZLWKFRXQWULHVIURP$VLDDQG(X- through the Red Sea in to the Mediterranean, with a stop at Athens before URSHWKHUHE\IRFXVVLQJRQGHYHORSLQJ meeting the Silk Road in Venice. On the other hand, the ‘new Silk Road’ Through ‘One Belt, One Road’ (OBOR) project, Beijing Arushi Gupta regions along with the ancient route starts from Xi’an in Central China before extending to west Asia through Iraq, which connects Western China with Syria and Turkey. From Istanbul, the Silk Road crosses the Bosporus Strait plans to expand ties with developing countries in a n March 2015, China’s National 6RXWK DQG &HQWUDO $VLD 7KH 065 and heads northwest through Europe, including Romania, Czech Republic, ELGWRH[HUWHFRQRPLFLQÀXHQFHDQGVHFXUHLWVIRUHLJQ 'HYHORSPHQWDQG5HIRUP&RPPLV- FRQQHFWV WKH 3DFL¿FWRWKH %DOWLF6HD Bulgaria and Germany. From Germany, it then moves towards north to policy goals. Many experts consider OBOR as ‘China’s Ision (NDRC), released an expansive E\EXLOGLQJXSWKHLQIUDVWUXFWXUHXS- Rotterdam in the Netherlands and then ends to south of Venice, Italy, where EOXHSULQW RI ZKDW LW FDOOV DV WKH 6LON JUDGLQJ SRUW IDFLOLWLHV DQG FUHDWLQJ it meets the MSR project. Over the last six months further ‘new stops’ have 0DUVKDOO3ODQ¶:LWKVHYHUDOFRXQWULHVSDUWRI2%25 Road Economic Belt and 21st century economic compatibilities with coun- been added including Moscow (Russia), Dushambe (Tajikistan), Jakarta has China set out to reshape the international system? 0DULWLPH6LON5RDGRIWHQDEEUHYLDWHG tries along the maritime zone. There- ( Indonesia) and Sri Lanka. Afghanistan has also shown its willingness to as “One Belt, One Road” (OBOR). The IRUHWKHRYHUDOOVWUDWHJ\EHKLQGERWK be part of the project. 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|50| India-China Chronicle May-June 2015 May–June 2015 India-China Chronicle |51| CHINA EXHIBITION DATE VENUE EVENT PROFILE CONTACT PERSON China Imported June 30 to Shanghai New Wood (Shanghai) Exhibition (Woodexpo Shanghai 2015) will cover the Mr. Zhang Wood (Shanghai) July 2, 2015 International Expo exhibition area of 120,000 m2, Woodexpo Shanghai 2015 will be the best E-Mail: woodexpo@ Exhibition, Shanghai Centre (SNIEC), China choice for manufacturer of furniture, wooden floor, cupboard, wooden shjzexpo.com.cn door & stairs and wooden products, decoration company, construction Tel: +86-137-6110 5737; material & wood marketing, domestic distributor/agent, international +86-21-5169 8082, sourcing groups to display and communicate with each other. Fax: +86-21-5121 8416 The 10th Shanghai June 30 to Shanghai New Woodexpo Shanghai 2015 will be the best choice for manufacturer Mr. Zhang International Flame- July 2, 2015 International Expo of furniture, wooden floor, cupboard, wooden door & stairs and wooden E-Mail: woodexpo@ retarding Material Centre (SNIEC),2345 products, decoration company, construction material & wood marketing, shjzexpo.com.cn Technology Fair Long Yang Road, domestic distributor/agent, international sourcing groups to display and Tel: +86-137-6110 5737; Pudong Area, Shanghai, communicate with each other. +86-21-5169 8082 201204, China Fax: +86-21-5121 8416 China International June 30 to Shanghai New Within the exhibition area of 20,000 square meters, 2014 China Shanghai [email protected]. Fenestration July 2, 2015 International Expo International Fenestration Exhibition (CIFE 2014) attracted 300 exhibitors Tel:+86-21-3107 Exhibition 2015 Centre (SNIEC) and the total visitors of 32,855 to the fair. 5788/5707, Fax: +86-21- 3107 5789 Shanghai June 30 to Shanghai New is the largest, most complete products, highest professional standards, [email protected] International July 7, 2015 International Expo most extensive in social influence of windoors. and curtain wall Tel: +86-21-6328 8899 Windoors & Centre (SNIEC) exhibition, which will be staged from June 30 to July 2, 2015 at Shanghai Fax: +86-21-6374 9188 Curtain Wall and New International Expo Centre (SNIEC), he total exhibition area of Architectural Shanghai International Windoors & Curtain Wall and Architectural Shading Exhibition Shading Exhibition 2015 will reach 150,000m2. The exhibition will 2015 reputate “the first exhibition of Chinese building energy-saving in windoors”, revolve the theme about “energy-saving windoors, sunshine Boosting Soft life”, fully demonstrate the high quality of building energy-saving windoors and curtain wall system solutions. Shanghai June 30 to Shanghai Modern Shanghai International Building Water Expo (IBW) focuses on building Emily Gao International July 7, 2015 International Exhibition water supply, drainage, building water, building water saving equipment E-Mail: marketing@ Building Water Expo Co.,Ltd (SMIE) and the most advanced products and technology, providing an excellent lvboexpo.com platform of display for the well-known enterprises in the building water Tel: +86-139-1872 9898; industry, high-quality buyers, real estate developers, construction design +86-21-6052 2696 institute, building developers, architects and other high-end customers. Power in China The 11th Shanghai June 30 to Shanghai Modern The 11th Shanghai International Interior Wall External Wall Decoration E-Mail: International Interior July 2, 2015 International Exhibition Materials Expo (IEDM 2015) will cover the total exhibition area of [email protected], Wall External Wall Co.,Ltd (SMIE) 150,000 square meters with 12 pavilions, gathering the best and the Tel: +86-21-5161 9878; 6RIWSRZHULV,QGLD¶VPRVWSURPLVLQJWRROLQLWVIRUHLJQSROLF\NLW1HZ Decoration Materials most influential domestic and foreign companies in building materials +86-21-6492 5766 Expo industry. 'HOKLFDQVXFFHVVIXOO\ZLHOGLWWRDGGPRUHVWUHQJWKWRLWVUHODWLRQVKLSZLWK Shanghai World Jul. No.1099 Guozhan The 28th China Wedding Expo 2015 provides an chinawedding@siec- &KLQD0U0RGL¶VYLVLWDWWHPSWHGWRGRWKLVZKHQ%HLMLQJDQG'HOKLVLJQHG Expo Exhibition & 2-5, 2015 road, Pudong District, international platform to showcase photo frames, photo ccpit.com Convention Center Shanghai, China albums, wedding gowns & garments, photographic equipment & Tel: +86-21-6297 2828; DJUHHPHQWVLQ¿HOGVRI\RJDHGXFDWLRQDQG\RXWKH[FKDQJHDQGHVWDEOLVKHG (SWEECC, Formerly accessories, children’s photography, imaging software and related +86-21-6247 2387 Shanghai World Expo service, wedding goods, etc. Fax: +86-21-6386 6972 PHGLDIRUXPDQGWKLQNWDQNVIRUXPDPRQJRWKHUWKLQJV Theme Pavilion) China (Wuhan) July 4-6 Wuhan International Within the exhibition area of 12,000 sqm, GAF 2014 - China (Wuhan) Tel: +86-27-8461 1828 International Game Expo Center (WIEC) International Game and Amusement Fair 2014 attracted nearly 50,000 /29 and Amusement Fair visitors, including 1,000 overseas visitors from over 20 countries and Fax: +86-27-8461 1829 Asma Masood RQ0D\KHMRLQHG&KLQHVHWeibo India’s Soft Power: A Dynamic 2015 regions, such as Canada, Poland, Australia, Southeast Asia, Middle East, DFFRXQW &KLQD¶V PLFUREORJJLQJ VLWH Package and so on. QWKHWKLUGDQG¿QDOOHJRIKLVWKUHH DNLQWR)DFHERRN ZKHUHLQKLV¿UVWSRVW -RVHSK1\HVWDWHGWKDWDFRXQWU\¶V ChinaJoy World July 30 to Shanghai New Within the exhibition area of 12,000 sqm, GAF 2014 - China (Wuhan) Contact: Hannah Li GD\ PDLGHQ YLVLW WR &KLQD 3ULPH UHDG ³+HOOR &KLQD /RRNLQJ IRUZDUG VRIW SRZHU UHVWV SULPDULO\ RQ WKUHH Mobile Game August 1 International Expo International Game and Amusement Fair 2014 attracted nearly 50,000 E-Mail: hannah_li@ 0LQLVWHU 1DUHQGUD 0RGL VWRSSHG WR LQWHUDFWLQJ ZLWK &KLQHVH IULHQGV UHVRXUFHV LWV FXOWXUH LWV SROLWLFDO Conference 2015 Centre (SNIEC) visitors, including 1,000 overseas visitors from over 20 countries and howellexpo.com I regions, such as Canada, Poland, Australia, Southeast Asia, Middle East, Tel: +86-10-5165 9355 DW 6KDQJKDL WR DGGUHVV WKH ,QGLDQ WKURXJKWeibo´:LWKLQ¿YHKRXUVKH YDOXHVDQGLWVIRUHLJQSROLFLHV,QGLD¶V and so on. ext. 16 FRPPXQLW\%HIRUHKLVVSHHFKDJURXS KDGPRUHWKDQIROORZHUVDQG VRIW SRZHU YLV±j±YLV &KLQD ODUJHO\ China Drug Store July 30 to E: Century City n order to provide information and services for the end-user market of Contact: Ms. Susu Chen RI,QGLDQIRONVLQJHUVVDQJ,QGLDQ PRUH ZHUH MRLQLQJ LQ 6LPLODUO\ KLV VXUURXQGV WKH FXOWXUDO DQG IRUHLJQ Show / 2015 Lifecare August 1 New International healthcare products with touchpoints spanning various sectors, China E-Mail: susu.chen@ VRQJV ZKLOH VRPH LQ WKH DXGLHQFH 7ZLWWHUDFFRXQWZDVDEX]]GXULQJWKH SROLF\ FRPSRQHQW $V LW LV REVHUYHG Convention & Exhibition Drug Store Show (DS Show) is the best place for the retail pharmacy reedsinopharm.com Center (CCNICEC) business by brings together top players and customers in pharmacy Tel: +86-10-8455 6570 GDQFHG /DWHU GXULQJ WKH VSHHFK YLVLW ZLWK XSGDWHV LQFOXGLQJ µVHO¿HV¶ FXOWXUDODWWUDFWLRQVVSDQDZLGHSULVP retailing business. 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and tensions in the current Chinese DQWLWUDI¿FNLQJ PRYHPHQW ,WV SXEOLF My Favourite Movie and China’s education efforts are very effective, combining compelling story-telling and demonstrating the critical issues $QWLWUDIÀFNLQJ(IIRUWV LQDQWLWUDI¿FNLQJHIIRUWV The Movie: Dearest %HIRUH , EHJLQ ZLWK P\ DQDO\VLV about the challenges and tensions of ‘Dearest’ is my favourite DQWLWUDI¿FNLQJ PRYHPHQW LQ &KLQD movie, not because of ,ZLOOVWDUWZLWKWKHVWRU\¿UVW$ER\ QDPHG 7LDQ 3HQJ JHWV NLGQDSSHG its stars or awards, but His parents Tian Wenjun (Huang Bo) because of its near- and Lu Xiaojuan (Hao Lei) migrate to accurate portrayal of 6KHQ]KHQWKHODQGPDUNFLW\RI&KLQD¶V open and reform policy, to pursue tensions in the current their dreams. For some reason, this &KLQHVHDQWLWUDI¿FNLQJ couple gets divorced. The Court ruled WKDW WKH IDWKHU ZLOO WDNH FXVWRG\ RI movement. As an the boy. His father runs an electronic advocate dealing with accessories store. One day, at the age children’s issues in RIWKUHHWKHER\JHWVNLGQDSSHGZKLOH he was alone on the streets. After the IN CHINA, MOST INFANTS, went there so that they could get some &KLQDIRUPDQ\\HDUV, failure of business and marriage, Tian information about the missing child am impressed with the Peng is the only hope of his father TODDLERS AND YOUNG from the suspects. Meaningful infor- Tian. The disappearance of Tian Peng CHILDREN ARE BOUGHT AND mation, however, was hard to come by. HI¿FLHQF\ZLWKZKLFK nearly drives him mad. He starts a Sometimes the information was found the movie brings out the long winding journey in search of SOLD FOR ILLEGAL ADOPTION negative. For example, a suspect said his son. This process is tortuous, but BY FAMILIES AND NOT FOR WKDWDER\WUDI¿FNHGGXULQJWKHWLPHRI challenges related to anti- very typical among parents whose Tian Peng’s disappearance was smoth- WUDI¿FNLQJPRYHPHQW FKLOGUHQDUHNLGQDSSHGRUWUDI¿FNHG COMMERCIAL EXPLOITATION ered to death as he was crying loudly He starts by putting his son’s photo on on the train. Hearing this, the mood of À\HUVEHJVPHGLDRXWOHWVWRSXEOLFL]H Tian and Lu became as cold as ice. Wenjuan Zhang WKH VHDUFKQRWLFH DQG PRELOL]HV KLV LQJIRUWKHLUVRQ7LDQ:HQMXQVDLG³, Compared to many parents who are friends and relatives to search street- even miss the days of being cheated VHDUFKLQJWKHLUNLGQDSSHGRUWUDI¿FNHG he Chinese-language movie by-street. He gets some information because the cheating information at FKLOGUHQ 7LDQ DQG /X DUH OXFN\ “Dearest” opened in September from different sources and travels to least provided me some hope.” He because they are among the only few T2014 starring Zhao Wei, Huang various cities to verify them. Among said, hope was as important as meals ZKR¿QDOO\JHWWKHLUFKLOGEDFN$IWHU Bo, Tong Dawei, Hao Lei,among those who gave him information, some for him. He needed it for searching three years of self-blaming, searching RWKHUV $FFRUGLQJ WR ¿OP PDJD]LQH even aimed to cheat him for money. KLVVRQ1RVLQJOHSDUHQWFDQVXVWDLQ and relentless efforts, they got another ’Screen Daily’, the movie, directed by After some time, there was no news such a nightmare of a searching pro- piece of information about their son. Peter Chan “topped the China box anymore. What he could do further cess. Fortunately, Tian found a group Tian and Lu travel to a small village RI¿FH IRU WKH ZHHN 6HSWHPEHU is to leave his job and search for his called Missing Child Support Group, in Anhui province, far away from JURVVLQJPRYHULWV¿UVW son full-time. Meanwhile, his ex-wife’s composed of parents who share the 6KHQ]KHQ 7KH\ ZHUH FRQ¿GHQW WKDW four days.” From the title, you might life has also changed and she was same experience. He joins them and WKHER\ZDVWKHLUVRQDIWHUUHFRJQL]LQJ WKLQNLWLVDURPDQWLFORYHVWRU\1R,W having a hard time with her current has a community to share sufferings WKHPDUNRQKLVIRUHKHDGHYHQWKRXJK LVQRW,WLVEDVHGRQDUHDOFDVHRIFKLOG KXVEDQG6KHDOVRIRFXVHVRQORRNLQJ and new information as well as to ex- Tian Peng’s name had been changed to NLGQDSSLQJ$PRQJWKHODVW\HDU¶VQHZ for Tian Peng. change encouragements and support Yang Jigang and was being raised by a movies, this is my most favourite; not As the media commented, no night- in moments of desperation. This helps woman called Li Hongqin (Zhao Wei). because of its cast, or because of the mare is more chilling than having Tian sustain his efforts to hunt for his Before the arrival of police Tian and Lu many awards it has won. As a child one’s child stolen. For these parents, son. The Missing Child Support Group FRXOGQ¶WZDLWWRWDNH7LDQ3HQJRXWRI DGYRFDWHLQ&KLQDIRUPDQ\\HDUV,DP their distress is not just monetary and WULHVWRFOLQJRQWRDQ\FKDQFHRI¿QG- WKHYLOODJH$¿JKWHQVXHVEHWZHHQWKH PRUHLPSUHVVHGZLWKLWVSUR¿FLHQF\WR physical but also psychological. They ing their son. For example, when they villagers on behalf of Li Hongqin and clearly and almost accurately draw DUHOLNHDVPDOOOHDIDGULIWRQWKHYDVW heard that the police department had Tian Peng’s biological parents that was the general picture of challenges sea, aimlessly and hopelessly search- DUUHVWHGQHZWUDI¿FNHUVXVSHFWVWKH\ stopped till the police arrived. Li was

WKHQ WDNHQ WR WKH SROLFH GHSDUWPHQW to punish his biological parents for WULHGDOOKHUHIIRUWVWR¿JKWZLWKSROLFH 7KH FKLOG WUDI¿FNLQJ VLWXDWLRQ LQ rescued by police who cannot get a PRUH UHVSRQVLYH WR WUDI¿FNLQJ FDVHV for investigation. The surveillance ³NLGQDSSLQJ´KLPDZD\IURP/L:KLOH to collect evidence of Jifang being China is a little bit different from the long-term placement. Some of them WKURXJK GHYHORSLQJ 1DWLRQDO $QWL camera shows that Li’s husband Yang living with his biological parents, Tian abandoned, to hire a lawyer to sue the rest of the world or more complicated. have been placed in the State-run WUDI¿FNLQJ 3ODQ EXLOGLQJ SDUWQHU- ZDV VXVSHFWHG RI NLGQDSSLQJ 7LDQ Peng was unhappy. Tian and Lu face 6WDWHRZQHG &KLOG :HOIDUH ,QVWLWXWH ,Q &KLQD PRVW LQIDQWV WRGGOHUV DQG &KLOG:HOIDUH,QVWLWXWHIRUIRVWHUFDUH VKLSV ZLWK WKH FLYLO VRFLHW\ RUJDQL]D- 3HQJ LQ 6KHQ]KHQ DQG WDNLQJ KLP WR a real challenge for integrating Tian Unfortunately, all these efforts proved young children are sold and bought for RYHU¿YH\HDUVZKLFKLVGH¿QLWHO\QRW tions and media outlets, and opening his village. Yang was already dead due 3HQJEDFNWRWKHLUOLIH to be futile because her husband was illegal adoption by families and is not good for their well-being. social media platforms to get case to cancer. Li’s “adoption” proved to For Li, her situation is even more VXVSHFWHGRIEHLQJDFKLOGWUDI¿FNHU IRU FRPPHUFLDO H[SORLWDWLRQ ,QIDQWV You may also have a question about UHSRUWV ,Q IDFW WKH HVWDEOLVKPHQW EHLOOHJDO0HDQZKLOH'1$PDWFKLQJ terrible. She and her husband Yang and toddlers are either abandoned the role of police when you watch the RI WKH $QWLWUDI¿FNLQJ 2I¿FH ZDV test proved that Tian and Lu are Yang were infertile. When Tian Peng was Beyond the Movie: Child or sold by their parents, or stolen or movie. Why do these parents need to inspired by the civil-society-based Jigang’s biological parents. Yang KDQGHG EDFN WR KLV SDUHQWV WKH JLUO 7UDI¿FNLQJ NLGQDSSHGE\WUDI¿FNHUV7KLVVWUDQJH hunt for their children by themselves? DQWLWUDI¿FNLQJ FDPSDLJQ 7KH LV- Jigang alias Tian Peng was handed -LIDQJZDVDOVRWDNHQIURP/LDQGZDV 1RZOHW¶VIRFXVRQWKHRYHUDOOVLWXD- phenomenon might result from fac- After Tian Peng disappeared for suance of the Opinion is the result EDFNWRKLVWUXHSDUHQWV placed at the State-run Child Welfare WLRQRIFKLOGNLGQDSSLQJRUWUDI¿FNLQJ tors such as Chinese family-planning three hours his father turned to po- RI MRLQW HIIRUWV RI WKH 2I¿FH DQG FLYLO 7KH PRYLH GRHVQ¶W VWRS KHUH ,W ,QVWLWXWH 6KH ORVW ERWK WKH FKLOGUHQ LQ&KLQDDQGVRPHRIWKHDQWLWUDI¿FN- policy, the rise of infertile rate and lice for help. But the police said they VRFLHW\RUJDQL]DWLRQV then moves to another tension or whom she had treated as her own LQJ HIIRUWV WDNHQ E\ WKH JRYHUQPHQW preference for boys. But it creates par- couldn’t start the investigation un- &KLOG WUDI¿FNLQJ LV RQH RI WKH challenge faced by Tian and Lu after FKLOGUHQ,WLVREYLRXVWKDWVKHFRXOGQ¶W DQG WKH FLYLO VRFLHW\ RUJDQL]DWLRQV adox for child replacement after they til 72 hours later. Due to this delay, top concerns in China. The efforts the return of Tian Peng. The three JHW -LJDQJ 7LDQ 3HQJ EDFN EHFDXVH $FFRUGLQJWRWKH813URWRFROWR3UH- are rescued by the police. More on police missed out on the right time to described above are far behind the years of separation has changed the the police had found his parents. Her YHQW 6XSSUHVV DQG 3XQLVK 7UDI¿FN- that later. For older children, most of ¿QGWKHER\DWWKHUDLOZD\VWDWLRQ7KLV expectation of the public. There relationship between the parents and only hope was with the girl Jifang. ing in Persons, especially Women and WKHPDUHWUDI¿FNHGIRUWKHSXUSRVHRI are still many questions in need of son. Tian Peng has little memory of Her husband had told her that Jifang &KLOGUHQ FKLOG WUDI¿FNLQJ LV prostitution, forced labour or for com- THIS MOVIE TOUCHES ON systematic response. How to protect KLVELRORJLFDOSDUHQWV,QVWHDGKHKDV was an abandoned baby. She thought GH¿QHG DV WKH ³UHFUXLWPHQW WUDQV- mercial exploitation. These children children being abused or neglected? established close relationship with if she was abandoned her parents portation, transfer, harbouring, and/ are usually cheated by online friends ONE TYPE OF TRAFFICKING IN +RZ WR HQDEOH WKH VRFLHW\ WR NQRZ Li and his sister Jifang. At the police ZRXOG QHYHU FRPH EDFN WR SLFN KHU or receipt” of a child for the purpose or by job intermediaries or they choose CHINA; THAT OF TODDLERS that a family has bought a child, at the GHSDUWPHQW KH HYHQ DVNV WKH SROLFH XS,QRUGHUWRKDYH-LIDQJEDFNVKH of exploitation. to run away due to abuse at home or ¿UVWLQVWDQFH"+RZWRSUHYHQWSDUHQWV ODFNRIIDPLO\FDUH,QDGGLWLRQEDVHG GETTING KIDNAPPED FOR from abandoning and/or exploiting on the information released by police, ILLEGAL ADOPTION. THE their children? These questions all most children begging on streets are point to the role of the state in ensuring HLWKHU UHQWHG IURP RU WDNHQ RXW E\ STORY OF TIAN PENG AND the quality of child family care. On their own parents. Only some of them JIFANG CAPTURES THE 'HFHPEHU WK WKH 6XSUHPH DUHWUDI¿FNHGWREHJ People’s Court, the Supreme People’s This movie touches on one type of PARADOX OF GROWING UP IN Procuratorate, the Ministry of Public WUDI¿FNLQJ LQ &KLQD WKDW RI WRGGOHUV AN ILLEGAL HOME Security and the Ministry of Civil JHWWLQJNLGQDSSHGIRULOOHJDODGRSWLRQ Affairs issued the Opinion on Several The story of Tian Peng and Jifang ,VVXHV LQ +DQGOLQJ *XDUGLDQV¶ clearly demonstrates the paradox of was the police practice in dealing with Violations of Minors’ Rights and UHSODFHPHQW8VXDOO\LWWDNHVVHYHUDO FKLOGWUDI¿FNLQJUHSRUWEHIRUH ,QWHUHVWV LQ $FFRUGDQFH ZLWK /DZ \HDUVIRUWKHWUDI¿FNHGFKLOGUHQWREH On August 15th 2011, the General Of- ZKLFKDVNV6WDWHLQWHUYHQWLRQLQVRPH IRXQG E\ WKHLU ELRORJLFDO SDUHQWV ,Q ¿FHRIWKH6WDWH&RXQFLOLVVXHGDQHZ serious cases of violation by family Tian Peng’s case, it is comparatively policy called Opinions on Strengthen- members and establishes mandatory VKRUW WKUHH \HDUV ,W VKRZHG WKDW LQJDQG,PSURYLQJWKH3URWHFWLRQDQG report systems for minors’ rights the reintegration into his biological Assistance to Street Children which violation. Meanwhile, the Regulation parents’ family is very challenging. requires the police departments to im- on Child Welfare is in the drafting 7KHVH NLGV XVXDOO\ HVWDEOLVK FORVH mediately conduct investigation once process which is expected to specify connection with their illegal they get a report of suspected child the role of State in family care support. parents. But it is morally and legally WUDI¿FNLQJ,WDOVRUHTXLUHGSROLFHGH- Hopefully, with such comprehensive XQDFFHSWDEOHWRJLYHWKHPEDFNWRWKH SDUWPHQWVWRWDNHDQGNHHS'1$GDWD HIIRUWV FKLOG WUDI¿FNLQJ ZLOO EH LOOHJDOIDPLOLHV,Q-LIDQJ¶VFDVHWKHUH of these parents without any charge. substantially reduced in China in the LV QR PDWFKLQJ '1$ LQIRUPDWLRQ RI This is a great step for Chinese anti- near future. SDUHQWVLQWKHGDWDEDVH,WLVQRWVXUH WUDI¿FNLQJ RI FKLOGUHQ %HIRUH WKH LV- whether she was abandoned by her suance of this Opinion another mean- SDUHQWV RU KHU SDUHQWV GLGQ¶W NQRZ LQJIXO VWHS WDNHQ E\ WKH JRYHUQPHQW KRZWRJRIRU'1$VDPSOLQJZLWKWKH ZDV WR HVWDEOLVK WKH $QWLWUDI¿FNLQJ police department. According to the 2I¿FH XQGHU WKH 0LQLVWU\ RI 3XEOLF law, due to the indeterminate status Security in December 2007. Headed by Wenjuan Zhang is associate professor at Jindal of her guardianship, she can only be 0U &KHQ 6KLTX WKH 2I¿FH LV YHU\ Global Law School and is Executive Director for the placed for foster care, not for adoption. committed to pushing and enabling ‘ Center for India-China Studies’ at the Jindal Global University, Delhi-NCR There are a large number of children the police across the country to be

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

ndia-China Economic and Cultural (ICEC) brass metal works, essential oils, sandalwood Council participated in the 11th International soaps, incense, in addition to herbal tea ICultural Industries Fair held at Shenzhen, among others. Indian silk and other regional China from May 14-18, 2015. The ICEC-India fabrics like bandhani, cotton and khadi booth at Silk Maritime Pavilion attracted too were showcased. Display of various maximum visitors and was felicitated with printing techniques such as block printing, ‘Outstanding Exhibitor’ award. The booth ajrakh, dabu printing etc kept the visitors displayed an interactive art of bangle-making captivated. Alumni of National Institute of using natural resin (popularly known as Laakh). Fashion Technology (NIFT), Delhi led by The exhibits at the stall comprised a wide Chairperson Dr. Sudha Dhingra too showcased array of Indian handicraft items such as their designs.

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Full Page (Inside) Rs. 25,000 Rs. 1,50,000

Front Cover (Inner) Rs. 30,000 Rs. 1,80,000

To inform about seminars, workshops or conclaves, Back Cover (Inner) Rs. 30,000 Rs. 1,80,000

advertise here Back Cover (Outer) Rs. 40,000 Rs. 2,40,000

x ` 100 uary 2015 January–Febr

lication Council pub and Cultural na Economic An India-Chi

[email protected] Mr. Irfan Alam (9811059646) Resetting the China 2015: |64| India-China Chronicle May-June 2015 Asian Growth Story? FOREIGN POLICY

INTERVIEW Managing the Geopolitical Implications ECONOMY “Silk Route of China’s Economic Rise hi ill be a