January 2014 x ` 100

The Chinese Dream

PEOPLE FEATURE FIRST PERSON China’s NGO Dam issue: China’s A Lion Dancer Sector: A Reality Concern and is not a Disney or an Illusion? India’s Fear Character

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Vol 1, Issue 8, January 2014 WHOSE DREAM IS IT ANYWAY..?

EDITOR-IN-CHIEF This century has seen countries increasingly focusing on the Mohammed Saqib projection of benign country images. Such images are critical not only EXECUTIVE EDITOR for gaining access to new markets but also for building partnerships Urmila Rao IRUDGGUHVVLQJPXWXDOEHQH¿WVDQGFRQFHUQV Joseph Nye, an eminent International Relation Scholar, describes EDITORIAL BOARD Mani Shankar Aiyar Soft Power as ‘the ability of a nation to structure a situation so P.S. Deodhar WKDW RWKHU QDWLRQV GHYHORS SUHIHUHQFH RU GH¿QH WKHLU LQWHUHVW LQ Dilip Cherian ways consistent with one’s nation’. Soft Power is ultimately to be Amir Ullah Khan measured in terms of global public sentiments expressing attraction Chen Si (China) towards, and a desire to emulate, a state and its people. Thus, it is EDITORIAL TEAM much more than just admiration for the pace of economic growth Irfan Alam and modernization. Shawahiq Siddiqui Namrata Hasija Hence, the craving of China to shift attention from economic high Sreemoti Sengupta to utilizing Soft Power in emphasizing its growing position. Just like Vinny Sachdeva major Western countries, China is trying to garner positive popular Garima Arora sentiment through cultural diplomacy. DESIGN However, in the case of China, unlike other countries, the Manoj Raikwar attempt of leaning on Soft Power is viewed as governmental Public OWNED, PRINTED AND PUBLISHED BY Relations (PR). Despite dedicated efforts, China has had limited Mohammed Saqib success in ameliorating its image as a dominating regional power Registered with the Registrar of Newspapers which discourages freedom of expression and individual rights. of India under RNI No: DELENG/2011/43423 Its Confucius Institutes are often viewed as vehicles for achieving deeper strategic objectives in the garb of cultural diplomacy. PUBLISHED FROM Beijing’s Soft Power instruments also include economic A-82, Zakir Bagh, New Delhi - 110025 engagements. China wants its policies and actions to be viewed ADDRESS FOR ALL CORRESPONDENCE sympathetically. It also wants to conduct its affairs without foreign India China Chronicle interference. It wants less of bad press and more respect on the B-59 (GF), South Extension - II, international stage. It also wants to use public diplomacy for New Delhi - 110049 HFRQRPLFDQGFRPPHUFLDOEHQH¿WVIRULWVEXVLQHVVHV Telefax: 011-46550348 However, questions are raised: In this attempt, whose Dream is PRINTED AT &KLQDWU\LQJWRIXO¿OOHOLWHVRULQGLYLGXDOV"'RHVWKH&KLQD'UHDP Anne Print Solutions have the character of inclusivity, of individual’s aspirations vis-a-vis B-32, Okhla Industrial Area, Phase-I, DVSLUDWLRQV RI LWV HOLWH FODVV" ,W LV ZLGHO\ SHUFHLYHG WKDW LW LV XS WR New Delhi-110020 the government to decide what China is and then market it abroad. Tel. 011-40525878, 011-65690940 This marketing push is seen as necessary because of the lack of Email: [email protected] international Chinese brands and cultural exports. All Rights Reserved. Reproduction in whole The China Dream also envelopes the growth of hard power (a la or in part without written Soft Power) to attain the major power status. This endeavour also permission is prohibited. raises eyebrows. How do China’s aspirations of achieving its Dream All advertising enquiries, comments DIIHFW ,QGLD DQG UHVW RI WKH $VLD UHJLRQ" :LOO WKH &KLQHVH 'UHDP and feedback are welcome at make its neighbours friendlier to the country or will it turn them [email protected] DQWDJRQLVWLF" +DV WKH HFRQRPLF SURZHVV PDGH WKH &KLQHVH 'UHDP DQ\HDVLHU" The information contained in this Our cover story dwells on these questions and much more. magazine has been reviewed for accuracy and is deemed reliable but Read on. is not necessarily complete or guaranteed by the Editor. The views expressed in this digest are solely that of the writers and do not necessarily UHÁHFWWKHYLHZVRIWKHPDJD]LQH CONTENTS

COVER STORY 4 Feedback Interpreting the Great 6 Brief News

‘Chinese Dream’ RELIGION 9 Islamophobia in China The new vocabulary in the international relations lexicon China links the attacks of its ethnic is the concept of ‘Chinese Dream’. It is an ideational group Uighurs to Islam and Muslims concept with profound meanings that every country in the but the truth is that the Uighur populated Xinjiang region is rich in global sphere is trying to deconstruct and demystify. India’s resources and is a strategically placed concern lies in the current dynamics of ‘China’s rise’ in the region that borders eight countries. global sphere. There are some questions, which necessitate The anti-Muslim sentiment in addition to cultivated ‘Islamophobia’ immediate attention and deliberation. What does the is being politicized. ‘Chinese Dream’ mean for India? Whose Dream is it? What does it signify for the world? More importantly, in what ways does the ‘Chinese Dream’ hold relevance for India? According to some experts the Dream is a road that marks the regaining of China’s lost glories; a quest to reclaim its erstwhile position of being the ‘Son of Heaven’. 22

|2| India-China Chronicle ƒ January 2014 PEOPLE information. For the third time since 12 China’s NGO Sector: 1949, China’s leadership has come up with bold reforms to prevent the A Reality or an country from going wayward. Illusion? Post the reform era that began in ENERGY 1978, the NGO sector in China has 40 The Curious Case mushroomed greatly. According to of India’s Strategic the official statistics of the Ministry of Civil Society, the number of Petroleum Reserves STATE PROFILE NGOs rose from the 6000 mark before 1978, to 186,000 in 2006. 52 Brisk in Business, High on Tradition: 16 Dam issue: Gujarat China’s concern and Gujarat is ranked as one of India’s fear the topmost states for foreign investment and boasts of its excellent China’s proposed plan to harness pro-business infrastructure and 40000 MW of electricity from the governance. With 80 per cent waters of Brahmaputra at the Great literacy level and a per capita income Bend region will surely help its arid With the commissioning of higher than the national average, the northern region to deal with water Vishakhapatnam Strategic Petroleum State has performed spectacularly in crisis, but it will also adversely affect Reserves (SPR) in January 2014, trade and commerce. the water demands of millions of India will be starting its journey people in the lower riparian states of towards further strengthening of its DELEGATION India and Bangladesh. energy security, when it will start 54 stockpiling the crude, to deal with Checking the Pulse FIRST PERSON supply disruptions of various kinds. Qingdao medical delegation visits 30 A Lion Dancer is Delhi hospitals not a Disney Character BUSINESS 45 Investing in India: Taking forward the An Introduction for Relationship: Xiamen Chinese Companies and India The fundamentals that make India attractive to investors are its high potential of the domestic market driven pool of talent of an emerging middle class. The country’s domestic demand-driven growth model is playing the catalyst in attracting foreign investments in the country. MY VIEW 33 A Tangled Triangle: DELEGATION India, China and USA 50 Inviting SAIS EXHIBITION International for 55 Haat of India: MISSING PIECE Software Park and The Exposition & Investment 38 Interpreting China’s Education Summit in Bhopal, Madhya Pradesh 60-point Reforms China was behind India during the’ 51 Roadshows in Gujarat 62 Exhibitions & 40s. Today China is ahead of India Trade show in every aspect of business except on October-November In India & In China perhaps areas like freedom of press & 2013

January 2014 ƒ India-China Chronicle |3| F E E D B A C K

efforts for its own security. It must answer to any dispute settlement. work promptly to gain allies in the Asia is large enough for two giants. region so that its position remains %RWKVKRXOGZRUNLQKDUPRQ\VR secure. Any threat from Pakistan with that regional security and prosperity

013 x ` 100 LWVLQFUHDVHGFR]LQHVVIURP&KLQDRU is maintained. Trade and cultural November 2 vice versa should not be overlooked. UHODWLRQVKLSVKRXOGÀRXULVK:KDWLV Pankaj Saini, Navi Mumbai most important is that it shouldn’t give the West a chance to gain Global South Sculpting Moving with Legs Chained? advantage in the region. thoroughly enjoyed reading the Ashish Sontake, Mumbai Iarticle ‘Ascendancy of Social Media.’ G20 I thank the magazine for providing A Mixed Message to New World Order? a peek into the inner happenings of hina’s move in arming Pakistan &KLQD7KHRQHSDUW\JRYHUQPHQWLV &with nuclear reactors shows an taking strides to make its mark on the ambiguity between the country’s global landscape. However, it has its call for ‘peaceful rise ’. As a leading pitfalls as growth is unhealthy without nation of South Asia and as a member freedom. It is only a matter of time RIWKH816HFXULW\&RXQFLO&KLQD EDUCATION

MARITIME Cóng tóu dào wěi DIPLOMACY China’s Continental Strategy Expands into EHIRUHWKH&KLQHVH\RXWKJHWVH[SRVHG should recognize its responsibility China’s Reactor Sale to Pakistan: A Maritime Domain Nuclear Mistake? to the culture of expression. We do in contributing to stability in get to hear about the dissent that its neighboring countries. With general public has on the prevention the NATO armies moving out of BRICS Should Take Charge of expression. It is just a matter of Afghanistan , this particular move of he article, ‘Global South few years, I think, after which these helping Pakistan’s nuclear program TSculpting G20 to New World pent up feelings for expression will can not only lead to problems in our Order’ explains the inner intricacies HUXSW%XWLQWKHVDPHEUHDWK, country but in South West Asia as of G20 in a very lucid manner. I DGPLUHWKH&KLQHVHLQJHQXLW\DQG ZHOODQGLWVWLPH&KLQDUHDOL]HVWKDW thank the authors for breaking hard work in coming up with native Gautam Kapoor, Delhi down this complex grouping into social media sites. Its popularity is understandable sections. The amazing. Such technological advances Mandarin is the New Toast JURZLQJLQÀXHQFHRI%5,&6WKRXJK go on to prove that the West can’t s. Usha Sahoo’s article on HSK a dampener to the US aspirations, dictate in every realm. Mtests was a delight to read. I is exactly what the 21st century Deepshika Malhotra, Noida am currently a beginner in Mandarin demands. With the majority of world and to be able to comprehend the population living in this ‘global Despite Harmony, no Peace WLWOHRIWKHDUWLFOH $WR=RI+6.  south’ it is pertinent for the countries ndia has a moderate policy gave me great joy. It was nice to know OLNHRXUV ,QGLD&KLQDHWF WRWDNH Iin international affairs. The the inputs and suggestions given charge of the situation and think for philosophy of ‘neutrality’ and ‘peace’ by those who are at advanced levels RXUEHQH¿WDQGDVSLUDWLRQVZKLOH as well as ‘dispute settlement through and it gives me more inspiration decisions are being made at these mutual understanding’ has, by and WROHDUQDQGPDVWHUWKH&KLQHVH high echelons. large, guided India in foreign policy language. I thank you on behalf of my Hema Nandi, Bangalore PDWWHUV&KLQDWRRWRHVWKHOLQHRI batch-mates as we now have a better ‘peace’ and ‘harmonious’ existence. understanding of our future prospects India needs to Step up The two should then work closely and what we could achieve via taking its Efforts IRUDSRVLWLYHLQÀXHQFHWKHUHJLRQ the HSK tests. Thanks again! ndia’s constant effort to rise as An offensive relationship is not the Somsukla Biswas, Kolkata Ia support center in Asia is being

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capitalist holding a US passport, |COVER STORY was caught with a “prostitute” |INDIA-CHINA China’s Reactor Sale point. The recent sale of the nuclear INFOCUS and then paraded, in handcuffs, on Central Chinese TV’s flagship news program and madeto confess his sins. Before he was grabbed by lp the Chinese police, Xue, a sharp to Pakistan: A critic of corruption, social injustice reactor to Pakistan is probably the and government incompetence, Global South Sculpting had 12 million followers on the Chinese weibo. Almost at the same time, several other Big Vs, who had Nuclear Mistake? established their fame by exposing corruption and attempted cover-ups of scandals by local government offi hardest blow to India. Despite being cials, were arrested on charges of “ru- mor-mongering”, “fraud,” and “black- mail”. To underscore that such arrestsk- were legal, the Chinese Supreme These arres Court and the supreme prosecutor’s through ChinC office, both controlled by the party, Almost innstantl quickly issued a joint legal interpreta on the weeibo. B LQWKH816HFXULW\&RXQFLODQGEHLQJ tion (an act that technically violates- the Chine ese so the Chinese constitution) that crimi filled withh lively d nalized rumor-mongering and defined- To d a y, s u c ch di O s ld the severity of such acts. According to replaced by G20W y ente N this document, if an online news item health tips. to New World Order? that is deemed to be a rumor is seen by To the Chine 5,000 unique visitors and retweeted outcome off the c fully aware of Pakistan’s vulnerable 500 times, the person responsible for Ascendancy of highly satissfying. S the rumor is ccriminally liable. crackdown, riminally liable. the C GHPRFUDF\&KLQDZHQWIRUZDUGZLWK Social M in the Middle Kingdomedia

the deal! India too should step up its Minxin Pei catchy phrase means is unclear, it seems hose who have been paying even reasonable to assume that it includes, ciety under the tight control of a one- the slightest attention to China’s at least, some expression of personal party state. Beginning in late August, Tofficial press can hardly miss the freedom and liberties for ordinary Chinese authorities launched a well- “China Dream” media blitz. Originally Chinese people. planned, ferocious and comprehensive coined by the new chief of the However, even as the official propa crackdown on Chinese social media. Communist Party of China (CPC), ganda machine goes into overdrive to- Trumped-up criminal charges were Xi Jinping, when he formally assumed drum up popular support for Xi’s new filed against the most influential wei power in November 2012, the term has vision for China, a political nightmare bo (microblog) commentators, called- China’s existing stand of moving ahead with its aggressive stance on nuclear policy since become Beijing’s favorite official is unfolding across China’s social me Big Vs (which stands for individuals slogan. Although what exactly this dia, which had so far been the most- with large numbers of verified weibo clearly stems from Indo-US nuclear deal, which according to China, seriously vibrant and freest public space in a so followers). One of them, Charles damages the integrity and effectiveness of non-proliferation thereby setting |42| India-China Chronicle - Xue, a Chinese-American venture ƒ November 2013 dangerous precedence for other countries. Following its concerns about Indo-US civil nuclear deal, China continued to criticise the US efforts to provide a | | India-China Chronicle January 2014 “clean waiver” for India at IAEA and NSG. 9| ƒ ƒ India-China Chronicle | 4 November 2013

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January 2014 ƒ India-China Chronicle |7| INFOCUS | INDIA-CHINA | NEWS

it takes time to be accepted by the British people and become a part of the English glossary’, said Julie Kleeman, project manager of bilingual dictionaries with the Oxford 61 , 3 3( 76 University Press. The Press says that a reason for including &KLQHVHKRWZRUGVEHVLGHVWKHLQFUHDVLQJLQÀXHQFHRIWKH CHINESE UNIVERSITY SHOWS INTEREST TO SIGN MoU Chinese language, is that these words are often puns or WITH PUNJAB UNIVERSITY carry mockery and humor in a way that would be lost in Chinese delegation led by the deputy director general, translation. AForeign and Overseas Chinese Affairs, Office of Henan Provincial People’s Government, Mr HaoLijun visited the Chinese Evince Interest Punjab University (PU). Mr. Lijun said that both the universi- ties in his state (Zhengzhou University and Henan Univer- in Kerala sity) were open for collaboration for mutual exchange pro- six- member delegation from China, led by Feng grams and he looked forward to signing a MoU with PU. In ANai’en, Deputy Director of Palace Museum in Beijing, response to the query about language posing as a barrier in KHOGWDONVZLWKRI¿FLDOVRI.HUDOD&RXQFLORI+LVWRULFDO teaching, Hao Lijun said that they would provide translators. 5HVHDUFK .&+5 WRH[SORUHWKHSRVVLELOLW\RIDQDFDGHPLF ...... collaboration in the Pattanam archaeological research. ABE’s VISIT TO YASUKUNI SHRINE STOKES TENSION The delegation representing the Ceramic Institute (part AND MISTRUST IN CHINA RIWKH3DODFH0XVHXP&KLQD ZRXOGKHOSLQWKHVWXG\LQJ eijing refused the Japanese Prime Minister Shinzo Abe’s of the 300-odd Chinese ceramic pieces unearthed at the Brequest for an official meeting with his Chinese coun- excavation site and in establishing the historical links terpart. Abe stoked tensions with his visit to the Yasukuni between China and India. Shrine on December 26th, 2013. The shrine is widely viewed as a symbol of Japan’s past militarism, and the visit triggered strong protests from China and South Korea and the United States too expressed disappointment at the same. China’s Foreign Minister Wang Yi spoke scathingly of Abe’s visit and warned, “What Abe has done is leading Japan in a very dan- gerous direction. Lessons from history must be learned.” ...... ‘TRACK OF WINNERS’ CHOSEN AS NANJING 2014 GAMES MEDAL he International Olympic Committee (IOC) announced Tthe 23-year-old MatejČička, sports enthusiast from Slovakia, as the winner of the Nanjing 2014 Youth Olympic Games Medal Design Competition for the 2014 Summer Youth Olympic Games. The Games will be held from August 16-28 in Nanjing, China. Like the bold, colorful and fun mascot Nanjinglele, the ‘Track of Winners’ concept for the 7KH.&+5H[SUHVVHGLWVZLOOLQJQHVVWRH[WHQGD Games medal was described by the jurors as “modern, fresh student exchange program for research work and and dynamic”. accommodate students from China on internships. An ...... 0R8EHWZHHQ3DODFH0XVHXPRI&KLQDDQGWKH.&+5 MAO’S 120TH BIRTHDAY CELEBRATION will be signed shortly. resident Xi Jinping called for austere celebrations to The small city of Pattanam, Kerala came under Pmark the birthday of the great helmsman, Mao Zedong much limelight as both Indian and international on December 26. His call is consistent with his push against archaeologistsstarted speculating that it may have served lavish ceremonies and wasteful public spending. The cel- as the missing trade link, then known as ‘Muziris’, between ebrations did not highlight Mao’s central role in China’s India and the Roman Empire between 1st Century BC worst post-war tragedies: the Great Leap Forward and and 1st Century AD. Evidences of Roman artefacts have Cultural Revolution, in which millions died. The President EHHQIRXQGLQSOHQW\7KH%ULWLVK$FDGHP\ %$6$6 KDV pointed in his speech that “revolutionary leaders are not accorded recognition for the formation of an international gods, but human beings.” He praised Mao as “a great figure research group based on Pattanam. who changed the face of the nation and led the Chinese With China too coming on board, the excavation people to a new destiny”. exploration of Pattanam, the mystery that shrouds this little city on the Kerala coast line shall soon be solved. (Compiled by Sreemoti Sengupta)

|8| India-China Chronicle ƒ January 2014 INFOCUS|CHINA|RELIGION Islamophobia in China China links the attacks of its ethnic group Uighurs to Islam and Muslims but the truth is that the Uighur populated Xinjiang region is rich in resources and is a strategically placed region that borders eight countries. The anti-Muslim sentiment in addition to cultivated ‘Islamophobia’ is being politicized. For long, China was facing a series of separatist violence. Uighur separatists were known to exist way before the beginning of the ‘war on terror’. The extremism and terrorism in Asia is more of a supplementary concept to global political standoffs. On a positive note,China’s HQJDJHPHQWZLWK;LQMLDQJSURYLQFHLVEHQH¿FLDOIRULWVIXWXUHLQYROYHPHQWLQ&HQWUDO Asia rather than falling prey to the Western notion of ‘Islamophobia’.

Shandeepan Ganapathy Uighurs-native Turkic Muslim ethnic ,VODP OLQNHG WHUURULVP MXVWL¿HG" group to be responsible for the assault. ;LQMLDQJRURI¿FLDOO\;LQMLDQJ8\JKXU In another attack in the Forbidden Autonomous region is a prominent n 17th November, 2013, in City on 28th Oct last year, Uighurs were region with abundant oil reserves and the northwestern region of suspected of unleashing the violence. the largest natural gas production OXinjiang of China a police The Chinese authorities labeled these in China. Though the region has station was attacked leaving 11 dead incidents as ‘terrorist attacks’ linking enormous economic potential and which included two policemen. WKHP WR UDGLFDOV RYHUVHDV RXW¿WV capabilities, it is negatively linked to Government of China held the Xinjiang But is blaming the occurrences to terrorism and extremism, which in turn is nurturing the fear of Islam and Muslims (Islamophobia) in China.

A Cultivated Islamophobia The word “Islamophobia” mean- ing ‘irrational hatred and fear of Islam and Muslims’ was introduced by Run- nymede Trust Report in 1991. Though the concept originated from the West, it soon spread across all the continents in the aftermath of 9/11. The negative interpretation of Muslims and Islam, worsened the ‘us’ vs the ‘other’ debate in Asia, especially in East Asia, where the states are dominated by large non- Muslim population. In South Asia, the spread of Islamophobia was compara- tively sluggish. After 26/11, Islamo- phobia took momentum in India. One can debate that these threats are not

January 2014 ƒ India-China Chronicle |9| INFOCUS|CHINA|RELIGION

real and are just an over exaggerated XINJIANG LIES IN THE HEART OF Media Propaganda in Maligning impact of a phobia that has spilled Islam over from global North. Islam is not THE SILK ROAD, CONNECTING Before analyzing the argument a new religion to Asia. It has been in CHINA WITH THE CENTRAL of Islamophobia being politicized, existence for centuries. There is a con- we need to consider that for long the siderable Muslim population in Asia ASIAN COUNTRIES. CURRENTLY Chinese were facing a series of separa- including India and in most of these SIX PIPELINES ARE PLANNED tist violence. Uighur separatists were regions Islam dates back to 1400- known to exist way before the begin- 1500 years. With the long history of TO BE CONSTRUCTED WHICH ning of the ‘war on terror’. It is under trade and co-existence, why is there WOULD CONNECT THE CENTRAL 2VDPD%LQ/DGHQ¶VLQÀXHQFHWKDWWKH a sudden shift of opinion and skepti- separatist wave unrevealed its pres- FLVPRYHU0XVOLPVLQWKHUHJLRQ"7KH ASIAN OIL AND NATURAL GAS ence to the world. answer to the question isa mixture of RESERVES TO THE MAINLAND Between 1990 to 2001 Uighur both sub-regional politics and intri- separatists were reported to have un- cate cultural divergence. MARKETS AND THE OTHER leashed over 200 attacks. Following Traditionally Xinjiang is described EASTERN COUNTRIES, WHICH the beginning of campaign against as a resource rich and strategically im- global terrorism, the Eastern Turke- portant region bordering eight coun- WOULD PROVIDE HUGE stan Islamic Movement (ETIM) was tries. Xinjiang lies in the heart of the REVENUES IN THE FORM OF placed in the United States terrorist Silk Road, connecting China with the Exclusion List. China claimed that Central Asian countries. Currently six TRANSIT TO CHINA. ETIM had obtained funds and train- pipelines are planned to be constructed ing from Al-Qaeda. Similar is the case which would in turn connect the cen- province. When it comes to India, it with the Chinese neighborhood, where tral Asian oil and natural gas reserves is completely a different complexity. Moro Islamic Liberation Front (MILF) to the mainland markets and the other Muslims who constitute 14.4 per cent and Moro National Liberation Front eastern countries, which would pro- of the Indian population are spread a (MNLF) in south Philippine, the two vide huge revenues in the form of lot more diversely in all the states. Be- prominent separatist groups were transit to China. Control over the Cen- ing a secular state and accommodating frequently alleged by the state to have tral Asian hydrocarbon resources and multi-culturalism in India, the Muslim links with Abu Sayyaf Group (ASG),the China’s future involvement in Central population not only contributes to the South East Asian arm of the Al-Qaida Asia are inextricably associated with Indian economy, but has a larger stake network. In Southern Thailand, ethnic China’s engagement with the Xinjiang in national politics as well. Malay Muslims who contribute around

|10| India-China Chronicle ƒ January 2014 80 per cent of the total population in the southernmost provinces of Pattani, Narathiwat and Yalaare were involved in a series of violence against the Bud- dhist Thai state. Since 2004, the vio- lence has resulted in the death of over 1900 people in all the three provinces. Though a mass violence was reported only as late as 2004, there has been a long history of resistance since the time of Thai occupation in 1785. India carries an intricate animosity from the time of India-Pakistan partition. The populist notion perceives the com- munal divide to be associated with the India-Pakistan dispute over Kashmir. Though there had been a number of communal riots and violence recorded inside the country, it had never turned into phobia. The present developing phobia is a combination of construc- tion of ‘the other’ based on the global media propaganda, native prejudices limited cultural exchange with their violence poses a direct threat to the and Indian diaspora’s encounters. Muslim population, leaving them with expansion. The Muslim world and The major concern is the grow- lack of knowledge about Islam and a the West have reached a point where LQJVHFWDULDQQDWXUHRIWKHFRQÀLFWLQ wrongly interpreted meaning of jihad. neither of them can back down. It’s South and East Asia that had started This doesn’t mean that India does not a great opportunity for the two Asian attracting outside groups such as Al have any misconception issues. The giants to exploit this divide and expand Qaeda and Jemaah Islamiyah (JI). phobia against the Muslim minorities their role. Being the largest consumers These external groups are usually net- LV PRUH VLJQL¿FDQW DV D SROLWLFDO of energy, both have already become worked for weapons and aids. There aspect than a cultural one and Indian an intrinsic part of the energy market. is also an high probability of spillover political parties take great advantage If China wants to retain its double of the violence from Afghanistan and of this. Indian media takes more of a digit growth rate which it has been other parts of West Asia where the nationalist stand, in a way siding with recording for the last three decades, it West is involved in the war on terror political parties in the case of 26/11 VKRXOGQRWRQO\¿QGDVROXWLRQIRULWVHOI campaign. The terror groups have re- and other violence. but also for its neighbors as regional cently increased their involvement in For a majority of the Uighurs, in- stability holds the key to mutual these regions. Parallel to this debate, surgency and politics have been over- economic growth. The states have extremism and terrorism in Asia is shadowed by more mundane concerns already realized the same and China is more of a supplementary concept to OLNHLQÀDWLRQDQGXQHPSOR\PHQW7KH working on a development plan for the the existing political standoff. Many roots of violence in all these countries Xinjiang Uygur autonomous region. scholars challenge the naming of are a complex mix of bloody history, Though, there is a partial recognition ETIM as a terrorist organization. ethnicity, and differences over reli- of the need to engage, it still needs a gion, fueled by socio-economic dis- much stronger political backing. As Socio-economic Disparities and parities and political grievances. The the region’s largest economy, India Political Grievances states have to engage and resolve the and China have a larger role to play The cultural assimilation issue of grassroot level issues rather than fall- in decimating phobia among their Muslims to the majority class in the ing prey to the Western notion of Is- population. East Asia is another major huddle. The lamophobia. On a political note, main- The economic growth of Asia would lack of freedom of religion in China taining an amicable relation with the thus be dependent on their amicable complicates the integration process. Chinese Muslim population will only engagement rather than on alienating 7KH RI¿FLDOO\ DWKHLVW VWDWH LV RIWHQ deepen China’s relation with Arab the Muslim population. ‰ very repressive towards any religious countries on whom China is deeply practices and thus Muslim grief is dependent for its energy needs. The writer is associated with O.P. Jindal Global University. taking a more political stand. Compared Asian economy is expanding with He holds Master’s degree in Diplomacy, Law and Business from Jindal School of International Affairs to the Indian experience, East Asia has emergency BRICS economies and this

January 2014 ƒ India-China Chronicle |11| INFOCUS|CHINA|PEOPLE

China’s NGO Sector A Reality or an Illusion?

Post the reform era that began in 1978, the NGO sector in China has mushroomed greatly. $FFRUGLQJWRWKHRI¿FLDOVWDWLVWLFV of the Ministry of Civil Society, the number of NGOs rose from the 6000 mark before 1978, to 186,000 in 2006. Private NGOs that were absent in China prior to the reform era have now come into existence. But does the increase of private NGOs really imply the existence of a ‘free civil society’ in China? Does the law of the land stem the independent JURZWKRIQRQRI¿FLDO1*2VDQG PRQLWRUWKHRI¿FLDO1*2V":KDW exactly is the role and impact of NGOs within the Chinese society?

|12| India-China Chronicle ƒ January 2014 Namrata Hasija RI¿FLDO1*2¶V WR ZRUN VROHO\ IRU WKH on. This clause is in place in order to EHQH¿WRIWKHSXEOLF safeguard the Chinese government According to its internal policies, from the formation of any political, Q&KLQD1*2VDUHRI¿FLDOO\FDOOHG the Civil Affairs Department does social or religious organisation in ‘popular organisations’. They are not approve applications from any disguise of a NGO that could lead to Iclubbed into two broad categories µVSHFL¿F VRFLDO JURXS¶ OLNH PLJUDQW any movement challenging the party LHRI¿FLDOO\RUJDQLVHG she huituanti) workers, laid off workers, ex- or the state. There are many instances DQG SRSXODU 1*2V min ban servicemen, religious groups and so wherein associations formed by feiqiyedanwei  7KH ¿UVW FDWHJRU\ LV migrant labourers were ‘persuaded’ initiated and operated by the Chinese to dismantle themselves after the government. The staff members are A SURVEY DONE UNDER THE members threatened further action if mostly on a government payroll. On ASIAN BAROMETER PROJECT their demands for increase in salaries the other hand, popular NGOs are and decrease in working hours were initiated by private individuals and SHOWED THAT PUBLIC TRUST IN not given attention. they receive no subsidies from the NGOs HAS DECLINED IN CHINA Other than this the government government.The post liberalisation does not want any NGO to grow in phase has given an impetus to the non- FROM 2002 TO 2008. IN 2002, size and infrastructure so that it has RI¿FLDO1*2¶VWRPXVKURRPLQ&KLQD 18.3 PER CENT PEOPLE DID NOT networks all over the country. This – a possibility which did not exist at would help in preventing a movement all before the reforms. Now, they are HAVE TRUST IN THE NGOs FOR in one part of the country from having allowed to use non-state controlled CONTRIBUTING TOWARDS THE an impact on the rest of the region, resources and pursue independent or on the neighbouring regions. Thus interest and agendas. In 2006, there BETTERMENT OF THE SOCIETY there is a clause which restricts NGOs were around 159,000 private NGOs WHEREAS IN 2008 THE MISTRUST from opening regional branches in the country. However, many factors i.e. national NGOs are restricted to have hindered the ability of the non- LEVELROSE TO 45.7 PER CENT Beijing, while provincial and county

January 2014 ƒ India-China Chronicle |13| INFOCUS|CHINA|PEOPLE

level ones remain within the provincial for women issues can only touch on can be transferred. capital or county seat. This has certain issues through their websites, These controversial clauses have curtailed their growth potential. The and social media but cannot focus on also led to the growth of an overt mis- third controversial clause restricts gritty issues such as forced abortions, trust of Chinese citizens in this sector. new NGOs from opening if there is the One Child policy or any issue that The trust of citizens and their partici- already a NGO doing similar work ZLOOVKRZWKHJRYHUQPHQWRI¿FLDOVLQD pation is vital not only for its growth in the same administrative area. Thus, EDGOLJKW7KLVDOVRUHÀHFWVWKHDWWLWXGH but also attributes to its true survival. LI WKHUH LV DQ\ RI¿FLDO 1*2 ZRUNLQJ of the NGOs towards people who feel The lapses in setting up a proper citizen for the welfare of disabled persons WKDWRI¿FLDOVDQGJRYHUQPHQWSROLFLHV friendly atmosphere even by popular in a particular area, a popular NGO are more important than the citizens NGOs due to all the controversial laws cannot work for the same cause in the that they are actually working for. and the growth of internet as a source same area. 2I¿FLDO 1*2V DOVR IDFH D ORW RI IRU¿JKWLQJIRUDFDXVHLVDPDMRUUHD- problems. The Party wants govern- son why NGOs do not enjoy a good Effect of the Clauses: ment agencies to transfer some of rapport with the Chinese citizens. Be- These clauses not only restrict the their functions to NGOs but the agen- sides, there is also another side to this growth of NGOs, but also limit their cies refuse to do so, as they fear a re- story as had been highlighted in a pub- resources. Their existence implies duction in their power and resources. OLFVSHHFKE\0HQJ:HLQDD&KLQHVH that even popular NGOs have to look Thus, NGOs do not have a huge impact NGO activist for more than 20 years. up to the government for support. on the region in which they are estab- She said that not only is the govern- This in turn means collaborating with lished, as no real power or resources ment responsible for the slow develop- government agencies for projects and are transferred to them by the local ment of the NGO sector in China, but relying on their administrative net- governments. These NGOs are usually so are the citizens. She added that if works to implement projects. This staffed by retired or serving govern- she ever sharply criticises the govern- heavy dependency on the government PHQWRI¿FLDOVZKRVHLQFRPHVHFXULW\LV ment for its policies, the citizens and hindersthe progress of work and also not related to the NGO’s status. Thus, even members of her own NGO refuse restricts the direction of NGO work. they hardly show any entrepreneur- to support her. This is out of fear of the To add to this, there is constant moni- LDO ÀDLU +RZHYHU WKH PRVW LPSRU- backlash that they can suffer from the toring and restriction on campaigning WDQWÀLSVLGHRIWKHVHRI¿FLDO1*2VLV RI¿FLDOV7KHLUDWWLWXGHFDQEHXQGHU- for certain causes – the prevention of that they are created by government stood in context of the fact that China’s which is beyond their limits. For ex- agencies, as fronts for agency slush one-party system exerts a totalitarian ample, popular organisations working funds, to which unaccounted income control over all aspects of polity and society. Understandably, then, the so- cietal culture in which the average Chi- ‘Interim Procedures on the registration of social organisations’ was the first legal nese citizen exists has left little space document on NGOs that was passed in China. In 1989, a new regulation was IRU1*2VWRÀRXULVK passed to fit in with China’s new development model called the “Regulations Many surveys have been done which on the Registration and Administration of Social Organizations”. In 1998, it show that people come together for a was revised and “Interim Procedures on the Registration and Administration cause but once their own problems are of Private Non-enterprise Organizations” was promulgated. These two sets of solved they do not take any interest in regulations govern the establishment and management of China’s NGOs. the organisation. For example, a group of parents came together to demand

|14| India-China Chronicle ƒ January 2014 special education for autistic children. CERTAIN NGO’S HAVE industrial association, charities, However once the problem was solved community services and organisations many including its founding members TAKEN UP WOMEN ISSUES. associated with promotion of science left the organisation. They did not ALTHOUGH THEY CANNOT and technology a direct registration ¿JKWIRUQHZSDUHQWVZKRKDGMRLQHG with the Civil Affairs without the the association and were still facing TOUCH ON ISSUES LIKE FORCED lengthy procedure of pre-examination the same problem. There is, then, a ABORTIONS, OR ONE CHILD and approval by other regulators. collaborative and corresponding mix However, even if the new law comes of government policy, the inability of POLICY, THEY ARE EDUCATING into force by the end of this year, citizens to carry movements forward WOMEN ON DOMESTIC following the party line will hamper to their natural fruition and a real the growth of popular NGOs in China. social fear of government backlash VIOLENCE, HIV/AIDS AND Though the new law might help in that has restricted the growth of the COUNSELLING RURAL WOMEN setting up more NGOs yet the problem NGO sector in China.However, despite lies in the restrictions that they face in WKHVHÀLSVLGHVWKHUHDUHFHUWDLQDUHDV TO CONTROL THE GROWING their functioning due to political and where they are making a mark. SUICIDES AMONG THEM. institutional structures in the country. Although NGOs in China are heavily Sectors Touched by NGO’s dependent on Party funds and have In recent years, Chinese NGO’s the ill effects of a degrading to toe the Party line they have still have impacted certain sectors like environment on society. impacted many sectors of Chinese natural resource management, HIV/ Pesticide Eco-Alternative Centre society to a great extent under this AIDS, protection of environmental 3($&  SURYLGHV WUDLQLQJ DQG LQIRU- control. rights, public advocacy and education, mation on pesticide issues and eco- Nevertheless, despite the good etc. Moreover, since 2007, they have logical alternatives to pesticides, con- work being done within the limits of endeavoured to make an impact in sumer advocacy, gender equity, and their functions, talking about a free a more challenging and promising indigenous pest reduction practices. civil society is not correct at this point area—China’s clean energy policy. The NGO’s like this educate farmers who in in China. Civil society does exist in workings of these NGO’s are closely their haste of producing more do not China but, unfortunately, a ‘free’ civil entwined with the government and pay heed to the ill effects of pesticides. society is non- existential. ‰ thus, the major works of these NGOs :LWK WKHLU HGXFDWLRQ WKLV 1*2 KDV have been on ‘softer issues’ related to provided an alternative to the govern- environment. For example, Friends ment in Kunming by reducing chemi- of Nature works with environmental cal farming and engaging the farmers education, mainly in elementary in organic farming. schools. In addition, the NGO sponsors In 2013, the Chinese government wildlife conservation campaigns, with declared that by the end of the year it a special focus on the Tibetan antelope. will introduce revised administrative Namrata Hasija is Research Associate at Center for The group is creating awareness regulations for NGO’s. Administrative China Analysis and Strategy, New Delhi. She has recently published a book titled ‘Medieval Chinese Perception of among children on how and why to regulations are the biggest obstacle India: Two Medieval Chinese Accounts of Foreign People save the environment so that at least for the launch of an NGO. The new and Places, and their Representation of India’. She can be the coming generation understands law would allow four categories i.e. contacted at: [email protected]

January 2014 ƒ India-China Chronicle |15| INFOCUS|INDIA-CHINA|FEATURE

DAM ISSUE China’s Concern and India’s Fear

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

|16| India-China Chronicle ƒ January 2014 Brahmaputra River

Neeraj Kapoor Bangladesh. There is a basic threat people who will be forced to leave their to survival if there is water diversion ancestral land. For the Tibetans, it from the great bend of Brahmaputra would mean the loss of the last sacred ater, a fundamental human to northern China. It can also have a place and the home of their Protecting need, is a critical national large scale deleterious impact upon Deity. Furthermore, Tibetans will not Wasset too. It is a key to the biodiversity of Brahmaputra EHQH¿W LQ DQ\ ZD\ IURP WKH SRZHU socio-economic development and valley. Both India and Bangladesh produced by the hydroelectric plant, better quality of life for a country’s are vulnerable to hydrological as it will either be sold to China’s citizens. Water is becoming a key ÀXFWXDWLRQVZDWHUVWRUDJHDQGZDWHU southern neighbors or be used to send security issue and a reason for discord diversion activities on the upper the water upstream to North-Western in the north-eastern region at India- reaches of the river. Bangladesh, China. The possible use of nuclear China border on Brahmaputra River. being situated at the tail end, is the devices to create tunnels to divert the The three riparian or downstream most vulnerable in the lean season. water raises further serious concerns states sharing the Brahmaputra River, India has already expressed concern, about the environmental impact of namely China, India, and Bangladesh fearing similar effects in the states of such a project for the region and those DUH WKH ZRUOG¶V ¿UVW VHFRQG DQG Assam and Arunachal in the north- living downstream. seventh most populous countries. eastern region. China is an upper riparian country, A proposed reservoir at the great China’s Political Economy of (where the river is known as Yarlung- bend in the deep canyon will put more Dam Construction Tsangpo) while India and Bangladesh than 60 per cent of the biological China’s hunger for construction of are the lower ones. The river is called resources in danger. In terms of grand projects is age old and emerges Brahmaputra in India and Jamuna in population, it will affect indigenous from the Emperor’s dream to bring

January 2014 ƒ India-China Chronicle |17| INFOCUS|INDIA-CHINA|FEATURE

heaven’s vision on earth like Grand Canal or Great Wall. This legacy The National Strategy of Dam has always been carried forward by he Yarlung Tsangpo or Brahmaputra as it is known in India has an immense successive emperors and leaders. Tbearing on the life of hundreds of millions in the sub-continent. It is the largest China’s present environmental and river on the Tibetan plateau and is also considered to be the highest river on earth water crisis had its origin in the policies with an average altitude of 4,000 meters. One of its interesting characteristics is the that had been initiated by Chairman sharp U- turn that it takes at the proximity of Mt. Namcha Barwa (7,782 meters) near Mao when he had insisted, “Men must the Indian border. At this bend China is building a dam and wants to divert water to conquer nature”. The ‘Great Leap its drier northern region. China being the upper riparian state is at an advantageous Forward’ was a peep into that and its position and can thus threaten the lower riparian states of India and Bangladesh. repercussions in China were for all to Its ‘Tsangpo’ project is perhaps the most mind-blowing part of the national strategy see. The Great South-to-North Water of China to divert water from rivers in the South and West to its drought-stricken Diversion Project was also visualized northern areas. by Mao in 1952. “The South has a lot of water, the North little; It is okay to lend a little water,” he had said. Mao- is expected to come from hydropower. under threat from water crisis. initiated programs to develop massive This means that China aims to have This scenario has led the Chinese hydro-engineering projects have 430,000 MW of hydropower which is experts to hunt for water outside resulted in China completing between double of its existing capacity. China and they shot the arrow at 22000 and 24000 large dams (A Tibet which is considered as the most ZLGHO\ DFFHSWHG GH¿QLWLRQ RI D ODUJH China’s Water Crisis incredible water tank of the world. dam, as drafted by the International China has to meet set targets to The Tibetan plateau is the ‘Principal Commission on Large Dams, is a overcome severe water shortages in Asian watershed’. Tibet water travels structure with “a height of 15 meters North China. Northern China, home to eleven countries and is said to bring from the foundation or, if the height to nearly half of the population, has fresh water to over 85 per cent of the is between 5 to 15 meters, it should OHVVWKDQRQH¿IWKRIQDWLRQDOWKHZDWHU Asian population. Four of the World’s have a reservoir capacity of more than resources and is thus facing a severe ten rivers, namely, the Brahmaputra, 3 million cubic meter.”) water crisis. Under the North China Indus, and the Yangtze, including China, the world’s most ‘dammed’ Plain- a region that stretches from Mekong have their head water in the country today, and by far one leading North of Shanghai to North of Beijing Tibetan plateau. producer of hydroelectricity of the producing 40 per cent of China’s China’s Tsangpo Project or Bra- world has hydropower capacity grain- the water table is dropping hamaputra project has two compo- reportedly to the tune of 213,000 MW, by an average of 1.5 meters per year. nents: one is the construction of the by a 2010 estimate. China plans to The concern of water crisis can be world’s largest hydroelectric plant increase the proportion of non-fossil well understood from former Premier to generate twice the electricity pro- fuel use in the country’s energy sector Wen Jiabao who comments that the duced by Three Gorges Dam (18200 to 15 percent by 2020; and half of that ‘survival of the Chinese nation’ is MW) and the other is the diversion of the waters of the Tsangpo. The di- verted water is intended to be pumped northward across hundreds of kilome- ters of mountainous regions to China’s northwestern provinces of Xinjiang and Gansu. (In 2011, China has denied any diversion of Brahmaputra water).

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

|18| India-China Chronicle ƒ January 2014 (between June to September), and low (20%) during the remaining eight months. To serve her own interests, China could withhold water for power generation and irrigation during the dry season and release water during WKHÀRRGVHDVRQZLWKWKHFDWDVWURSKLF consequences for eastern South Asia. More than anything else, the diversion project along the Brahmaputra River is likely to lead to a reduction in the nutrient-rich sediments in the basin. ([SHUWV EHOLHYH WKDW WKH ÀRRGLQJ LQ the basin could become worse due to relentless silting. Both India and Bangladesh are likely to be seriously affected by the diversion project as their agriculture and inland water transportation are heavily dependent on the Brahmaputra River. The construction activities as part of the Brahmaputra water diversion project will also pollute the water and Western Diversion is proposed at the U-bend of Brahmaputra River thereby lead to many environmental, social and geological risks in the Tibet Autonomous Region of China, India the Brahmaputra water towards the of diversion and the possible impact and Bangladesh. This would threaten North. But later China gave up this on the environment and state-to-state livelihoods, deplete marine species plan following the disasters at the relations, the Chinese government has and destroy farmlands, and is thus Three Gorges dam on the Yangzi QRSODQWRFRQGXFWDQ\GLYHUVL¿FDWLRQ likely to lead to natural disasters River. In fact, the Three Georges dam project in this river”. Wang Shucheng, which will further degrade the fragile has created severe geological, human China’s Minister for Water Resources ecology of the region. All this might and ecological problems. The growing stated that, “the proposal to divert the DOVRFDXVHFRQÀLFWLQWKHUHJLRQ±EHLW siltation problem in the reservoir Brahmaputra waters is unnecessary, high, medium or low intensity. basin of the dam badly exposed the XQIHDVLEOH DQG XQVFLHQWL¿F´$QRWKHU weaknesses of the Chinese system of VLJQL¿FDQW IDFWRU LV WKDW WKH FRVW China’s Response to Neutralize damming the river. involved in diverting Brahmaputra’s the Fear of Downstream States Jiao Yong, Vice Minister at China’s water would be higher than the China has given assurances that it Ministry of Water Resources, said that alternative of desalination of seawater. ZRXOGGRQRWKLQJWRDIIHFWWKHÀRZRI although there is a demand among As such, many people believe that the water from the rivers in Tibet to Chinese to make greater use of the China would not commit another South Asia. There was a plan during Yarlung Tsangpo, “considering the blunder by diverting the Brahmaputra the Cultural Revolution to divert WHFKQLFDO GLI¿FXOWLHV WKH DFWXDO QHHG water since it is now guided by

January 2014 ƒ India-China Chronicle |19| INFOCUS|INDIA-CHINA|FEATURE

Yarlung Tsangpo river in China considerations like rationality Currently, China is believed to be main concern of lower riparian states. and cost-effectiveness rather than EXLOGLQJVL[GDPV±/HQJGD=KRQJGD Further confusion regarding the ideology. /DQJ]KHQ -LH[X -LDFKD DQG =DQJ- diversion of water gets cleared when However, China’s plan to build mu. In November 2010, China began we look at the data available about the hydroelectric power projects that ZRUN RQ LWV ¿UVW PDMRU K\GURSRZHU ÀRZRIWKHWULEXWDULHVRI%UDKPDSXWUD could generate 40,000 MW of power project on the river, a 510-MW pro- in the riparian states, according to will still be a cause of concern for India. MHFWDW=DQJPXZKLFKZLOOFRPHLQWR which, “China contributes only 7 per The Great Bend is at a geologically RSHUDWLRQLQ0U=KDQJVDLGWKH FHQWWRWKHÀRZRIWKUHHWULEXWDULHVRI fragile knick-zone with very rapid =DQJPXSURMHFWZDVDQH[FHSWLRQDQG Brahmaputra—Subansiri, Siang and bedrock exhumation rates. In case of China had not yet approved a compre- Lohit—which originate from China. an earthquake, there could be ominous hensive plan to take the other projects What can the Chinese do or how much consequences for millions living in forward. However, the satellite pic- can they divert?” the downstream areas. On February tures show that China is merely build- 3, 2013, an NGO in Guwahati alleged ing dams and not attempting to divert India’s Fear that China is building 26 run-of-the- the waters. Of course, both damming Actually India’s fear is not ULYHU K\GUR±SRZHU GDP SURMHFWV and diversion have a bearing on the concerned with the diversion of (which will not store water) on the ÀRZ RI ULYHU ZDWHUV DOWKRXJK GLYHU- water but, the slow pace of work on upper reaches of the Brahmaputra sion is more serious in nature than Brahmaputra because any delay in in Tibet. They further said that once damming. Damming only reduces the executing hydropower projects in China completes these projects, India ÀRZRIWKHULYHUZDWHUZKHUHDVGLYHU- the region, particularly on rivers will receive 64 per cent less water sion would mean altering the normal originating in China, will affect India’s during the monsoon and 85 per cent ÀRZRIWKHULYHULQDQRWKHUGLUHFWLRQ strategy of establishing prior-use claim. OHVV LQ WKH QRQ±PRQVRRQ VHDVRQ ,I The latter course adversely affects the Under international law, a country’s these claims turn out to be true, it environment and the lifeline of the re- right over natural resources it shares could seriously harm India’s interests. cipient country/countries which is the with other nations becomes stronger

|20| India-China Chronicle ƒ January 2014 if it is already putting them to use. Further to avoid any confusion, during 5HÁHFWLQJRQWKH3RVLWLYHV KLV UHFHQWRI¿FLDOYLVLWWR &KLQDIURP fter running across 1790 Km the Brahmaputra River leaves the Tibetan plateau October 22 - 24 2013, Indian Prime Anear Namcha Barwa, and tumbles down into the plains of India forming a Minister Dr. Manmohan Singh signed massive U bend in Arunachal Pradesh, known as Dihang. The massive U bend of a Memorandum of Understanding the river Brahmaputra is very crucial in the sense that it is here, that the river picks (MoU) on transboundary rivers. up huge amounts of water and momentum. This is where the three dams are being According to the new MoU, Beijing constructed just 550 kilometers away from the Indian border near the U bend area. has agreed to provide New Delhi In constructing dams, the Chinese follow the principle of “Prior Appropriation”. It with richer hydrological data on river means that when a nation has the source of the river within its territory, it has the %UDKPDSXWUDGXULQJWKHÀRRGVHDVRQ absolute right to access the water resources for its domestic use without any external (May 15 to October 15). As part of interference. The River Brahmaputra sets the perfect example for China. China is the MoU, India can also ask for data HQWLWOHG WR WDNH XS GDP SURMHFWV VR ORQJ DV WKH H[LVWLQJ ÁRZ RI  ELOOLRQ FXELF relating to dams being built by China meters (BCM) of water into India remains unimpeded. Most of the Brahmaputra’s on river Brahmaputra. While the data catchment area, providing over 600 BCM average runoff, falls within Arunachal PD\EHKHOSIXOIRUEHWWHUÀRRGDOHUWVLQ Pradesh. The volume increases by ten times during the monsoon. Allowing China Assam, it does not address India’s core WRGLYHUWDFRQVWDQWYROXPHRIZDWHUGXULQJWKDWSHULRGFRXOGKHOSPLWLJDWHÁRRGV concern about possible Chinese plans in India and Bangladesh. Non-consumptive exploitation of water by China for power to divert the Brahmaputra’s waters JHQHUDWLRQPD\DOVREHEHQHÀFLDOIRU,QGLDDVWKHÁRZLVH[SHFWHGWRLQFUHDVHE\ WR LWV DULG 1RUWK±ZHVWHUQ SURYLQFHV 10-20 per cent during the dry season. China selling surplus electricity to India may a matter that has concerned India in not be a bad idea. Therefore, if a dam is constructed well in advance in order to recent years. safeguard the interest of country’s economy, it will not only prove to be a useful PHFKDQLVP LQ FRQWUROOLQJ ÁRRGV DQG GURXJKW EXW ZLOO DOVR VHUYHWKH QDYLJDWLRQDO China’s Dam Diplomacy purposes of the country. Perhaps China well understands what the author of the book ‘Com- munist China and Tibet’, George AS PART OF THE MoU WITH China’s unilateralism is well- Ginsburg wrote, “it could dominate known. It has never consulted riparian the Himalayan piedmont by virtue CHINA, INDIA CAN ALSO ASK states before building any dam. Until of holding Tibet, and by doing so, it FOR DATA RELATING TO DAMS ,QGLDZDVXQDZDUHRIWKH=DGD could even threaten the Indian sub- dam on the Sutlej basin and even ap- continent, and thereby further threat- BEING BUILT BY CHINA ON peared clueless when the Chinese an- en the entire South-east Asia and so RIVER BRAHMAPUTRA. WHILE nounced that they were building dams to say all of Asia”. This is one of the at Dagu, Jiacha, and Jiexu. Now, with reasons why China has not signed any THE DATA MIGHT BE HELPFUL this attitude, if the diversion at the bilateral treaty in regard to the utili- FOR BETTER FLOOD ALERTS IN Great Bend becomes a reality, the fear zation of water resources with any is that China will inevitably leverage of its neighbors, and has not signed ASSAM, IT WILL NOT ADDRESS Tibetan water as a tool for coercive di- the 1997 UN Convention on the Law INDIA’S CORE CONCERN OF plomacy and may even link the water of the Non-Navigational Uses of issue to a border settlement. Given the International Waterways. POSSIBLE CHINESE PLANS TO rising demand for food security and Former diplomat and senior fellow DIVERT THE BRAHMAPUTRA’S clean drinking water both China and at the Institute of Defense Studies and India will be water stressed. Analyses states that the original idea WATERS TO ITS ARID NORTH– In an era of global diplomatic pres- of shuo-tian UHYHUVHÀRZ DQGxibu da WESTERN PROVINCES. sures, China is behaving differently. kaifa (great Western extraction), sup- +DYLQJ OHDUQW IURP WKH GLI¿FXOWLHV ported by 118 PLA generals, was aimed faced by its attitude in South China Sea at building a dam to generate 40,000 from the Yangtze and the Yellow River and the hurdles that it had faced dur- MW of hydro power and to divert 200 WR WKH DULG QRUWK´ 7KH ¿UVW SKDVH RI ing the construction of Three Gorges BCM water annually to the north. In the SNWTP was completed in March Dam, it can be hoped that China’s one of the write-ups, published in the 2013. The second phase aimed at feed- behavior will be that of a responsible Indian Express, he articulates that ing water to the North by 2014 and power. Only time has the answer. ‰ “The diversion project was part of the third stage involves the Tsangpo’s

China’s $60-billion South-North Wa- diversion. “For China, the stakes are Neeraj Kapoor is an independent research scholar. ter Transfer Project (SNWTP), aimed huge. It could turn millions of arid His area of interest includes Strategic Affairs and Development Issues. at sending 40 BCM of water annually hectares into arable land,” he says.

January 2014 ƒ India-China Chronicle |21| INFOCUS|CHINA|COVER STORY Interpreting the Great ‘Chinese Dream’ The new vocabulary in the international relations lexicon is the concept of ‘Chinese Dream’. It is an ideational concept with profound meanings that every country in the global sphere is trying to deconstruct and demystify. India’s concern lies in the current dynamics of ‘China’s rise’ in the global sphere. There are some questions, which necessitate immediate attention and deliberation. What does the ‘Chinese Dream’ mean for India? Whose Dream is it? What does it signify for the world? More importantly, in what ways does the ‘Chinese Dream’ hold relevance for India? According to some experts the Dream is a road that marks the regaining of China’s lost glories; a quest to reclaim its erstwhile position of being the ‘Son of Heaven’.

|22| India-China Chronicle ƒ January 2014 AmritaAm Jash efforts, press ahead with indomitable through development.” From these will, continue to push forward very words one can sense the nostalgia the great cause of socialism with that underpins the Dream, where he idea of ‘Chinese Dream’ was Chinese characteristics, and strive to there exists a conscious endeavour ¿UVW SXW IRUZDUG E\ &KLQD¶V achieve the Chinese dream of great to recall China’s past humiliations ¿IWK JHQHUDWLRQ OHDGHUVKLS rejuvenation of the Chinese nation”. and sufferings as a mirror to look T th followingfol the 18 CPC National On 29 November 2012, while speaking forward to the future of great revival CoCongress. It was the new leadership at the National Museum “Road to of the Chinese nation. Hence, the ununder the command of Xi Jinping Revival” exhibition at Beijing, Xi Dream is a quest to reclaim China’s tthath put forward the strategic vision pronounced his grand vision for the erstwhile position of being the ‘Son of the Chinese Dream, whereby the achievement of the “great renewal or of Heaven’ who in the vestiges of its cconsciousnesso of the past seems to rejuvenation of the Chinese nation” humiliation,lost its glory and became shshape the future. Expounding the which would aim at the “national the ‘Sick Man of Asia’. For China, the nonotion of the ‘Chinese Dream’, Xi aspiration for a ‘Chinese Dream’ Chinese Dream paves the way for the sstatedta that “We must make persistent about making the country stronger ‘road that stretches ahead’ that is going

January 2014 ƒ India-China Chronicle |23| INFOCUS|CHINA|COVER STORY

to be one of a ‘strong and prosperous IT IS NOT AN INDIVIDUAL Chinese people”. The statements of Xi state, a revived nation and a well-off Jinping clearly outline the image of the society of the Chinese people’. DREAM BUT RATHER A Chinese Dream. Here the dream of the NATIONAL DREAM. THE people is not their own dream to ac- Whose Dream Is It? tualize their interests. Rather it is the In this context, the question that CHINESE DREAM IS A NATIONAL collective dream of the people to reju- lies central to the understanding of CONCEPT THAT PIVOTS ON venate the Chinese nation as a whole. the Chinese Dream is: ‘whose dream In this way, Xi has rendered a LVLW"¶)URP;L¶VZRUGVLWLVUHÀHFWLYH CHINESE NATIONALISM OVER sense of unanimity and inclusivity in that it is the ‘Chinese people’ who are CHINESE INDIVIDUALISM. the grand Chinese vision where one at the centre of gravity of this Dream. hand, the Chinese people join hands The objective would be met when the THIS IS BECAUSE THOUGH IT with the Communist Party to make the Party at the apex in cohesion with the IS PEOPLE CENTRIC AND HAS dream come true, while on the other hundreds of millions of people will it unites the divided people of varied work to foster the national rejuvena- A CHARACTER OF INCLUSIVITY ethnic groups under the same Chinese tion. In resonance to the Chinese pub- YET IT EVIDENTLY IGNORES THE umbrella. It is not just the dream of lic, Xi reminded “we must be clear that the Han Chinese but also of the mul- 128 million Chinese people still live in CHINESE PEOPLE’S INDIVIDUAL ti-ethnic groups in China, that taken poverty, China has a lower ranking ASPIRATIONS AND AMBITIONS. together make up the Chinese Dream per capita GDP, the gap remains be- of all the Chinese People. Apart from tween us and the developed countries this, the most distinct feature of the in terms of science and technology, velopment, or releasing the bonus of dream is its commitment to socialism. thus the urban and rural gaps as well reform and development, only when It can be seen as the Dream that leads as social injustice are yet to be solved”. we carry forward the spirit can we to the ‘road of socialism with Chinese He further elaborated, “As the reform have a brighter prospect”. He further characteristics’, which walks the path LVQRW\HW¿QLVKHGZHVKRXOGIXUWKHU stated “to realize the Chinese dream of socialism which is distinctive to carry forward the spirit when we stand we must pool the strength of the whole China and not universal in approach. at a new starting point. Be it breaking country, that is, the strength of all Xi’s visionary outlook holds to be a the mental shackles, shattering inter- ethnic groups across the country and pragmatic road to China’s modernisa- est groups, removing obstacles to de- the concerted efforts of the 1.3 billion tion. It is strategic in its approach and

|24| India-China Chronicle ƒ January 2014 philosophical in its beliefs. It is the Be- AS THE 21ST CENTURY CLEARLY turn of the compass rotating from the ijing spirit that seems to join in matri- West to the East, where both India and mony with China’s internal instability MARKS THE SURGING WAVE China are the key actors, both rapidly to its external relations. It is the Dream OF SELF-DETERMINATION OF growing and emerging. This is making that is constructive and waits to come for a paradigm shift in international true with the actualisation of peace PEOPLE AND NATIONS IN ALL politics with the dawn of the Asian and development. PARTS OF THE WORLD AGAINST Century. It can be anticipated that there is much that India can gain by How Does the Chinese Dream ALL FORMS OF HEGEMONY, IT engaging with this vision rather than Translate for India? IS THIS PHENOMENON THAT by remaining in isolation. With both The Chinese Dream can be seen CAN BE SAID TO ACT AS A KEY the Asian giants coming together, the as a window of opportunity for India. dream can therefore, become that of The Dream is chased at the right time DRIVER FOR THE CHINESE an ‘Asian Dream’. where India can have optimal gains. In DREAM, MAKING IT MORE REAL the current global dynamics, there is a power shift that is exhibited in the AND FEASIBLE IN APPROACH.

January 2014 ƒ India-China Chronicle |25| INFOCUS|CHINA|COVER STORY

There is a commonality of objec- THE COMMONALITIES OF CHINA be anticipated that the much awaited tives for both India and China as they territorial tension can be resolved at strive for peace and stability with sus- AND INDIA CAN BE TAPPED the best interest of each nation. The tainable economic growth. Since India TOGETHER FOR GREATER phenomenon of ‘hot economics and and China have two of the biggest hu- cold politics’ can be transformed into a man capital with the largest popula- BENEFITS FOR THE GREATEST ‘win-win cooperation’, making the pol- tions in the world, they face the same NUMBER, THUS, MAKING THE itics and economics go hand in hand risks in terms of driving economic de- with each other. Apart from these, the velopment, improving the livelihood of DREAM MORE UTILITARIAN. two nations can act in collaboration in the people and deepening of reforms. CHINA AND INDIA CAN security issues as those of both tradi- This makes the political objective tional and non-traditional concerns. same for both as that of ‘well-being, COOPERATE IN THE FIELDS OF There can be more engagements in prosperity and development’ for the TRADE, FINANCE, ENERGY AND maritime sectors, energy issues, cli- people. Hence, when the objective is mate concerns and others. same, both countries can cooperate in INTERCONNECTION. What opens the window of pooling their means to meet the ends. RSSRUWXQLWLHVIRU,QGLDLVLWVVLJQL¿FDQW This therefore, calls for more Dream being actualised sooner. China characteristics vis-à-vis China as the engagement between India and China with India can share the burden of largest neighbour, emerging power, both economically, politically and bringing prosperity to the people of biggest trading partner, huge human socially. The existing differences can the nation and the world with their resource, traditional and civilizational be resolved only when there are some peaceful emergence. links and the similar socio-economic common grounds for co-existence In this environment of bonhomie, conditionality. China and India with active economic cooperation by ZKDWUHPDLQVVLJQL¿FDQWIRU,QGLDDQG can together become the factory increasing trade, and more people- China is the ‘boundary question’. With and service centre to the world and to- people exchanges rather than the hopes held high with the Chinese thereby, largely drive much of the just keeping the relationship to the Dream which calls for China to be world economy of this century and leadership level as that can lead to the more responsive and egalitarian, it can also in the future. This way the Chinese

|26| India-China Chronicle ƒ January 2014 'UHDP ZRXOG EULQJ MRLQW EHQH¿WV WR THE CHINESE DREAM IS NOT the globe as well. It acts as a linkage to both the countries, ensuring greater connect China to its own people as well livelihood to its people to enjoy the JUST A STRATEGIC BLUEPRINT as to the larger international public. UHDOEHQH¿WVRIFRPPRQGHYHORSPHQW THAT IS LIMITED ONLY TO It is exhibited in the commitment of The Chinese Dream can thus act as the unison to create a harmonious world axis to uphold the ‘Panchsheel’ in the FURTHERING CHINA’S OWN and peaceful development, rested on current times, making it more real in FUTURE DEVELOPMENT, BUT mutual respect and win-win coopera- existence. tion. This gives the realization of the Hence, India can actively IT ALSO REFLECTS A NEW ERA Chinese Dream profound meanings engage with a more responsible and IN CHINA’S FOREIGN POLICY for the world at large. KDUPRQLRXV &KLQD LQ IXO¿OOLQJ WKH There is a focus on global peace and objectives of prosperity and peace for WHICH HAS SIGNIFICANT AND development that goes beyond China’s the human race. In this way, both the WIDE SPREAD IMPLICATIONS borders and reaches worldwide. It is Asian powers will become an epitome of equally extrinsic as it is intrinsic in ‘friendship and peace’ and build a road FOR THE WORLD AT LARGE. approach. The international sphere that looks forward to development. It is more saprophytic than parasitic in would bring fortune to Asia and the whole world. This Dream of shared character. So, if China dreams of pros- world as a whole both literally and YLVLRQVKRXOGQRWEHVDFUL¿FHGLQWKH perity and well-being, it can only be ¿JXUDWLYHO\ 7KH GDZQ RI WKH $VLDQ name of great power ambitions and achieved with the help of the others. Century awaits the cooperation of competitions. A lot can be gained This pool of strength to actualise the India-China in actualising the Dream. through cooperationand by making dream would thus bring fortune to the This makes the Dream look more Asia an anchor for world peace. world at large. real and concrete. China and India, In analysing the connection of the making up nearly a third of mankind, Chinese Dream and the World Chinese Dream to the world, one can can chase the Dream cooperatively, In its broader understanding, the draw a link in terms of Xi’s aspiration and thus become a game-changer for Dream is a ray of hope not just for the to make China a more responsible ac- the holistic good of the people of the people of China but the people around WRULQWKHJOREDOVWDJHWKHUHE\IXO¿OO-

January 2014 ƒ India-China Chronicle |27| INFOCUS|CHINA|COVER STORY

ing the objective of ascending China’s image in the global sphere. This can be viewed in the scenario of the ‘Chi- na rise’ factor that has impeded this core desire of the Chinese leadership in the recent past. It has led to nega- tive apprehensions and speculations resulting in ‘China threat theory’ that questions China’s ability to play a re- sponsive actor in the international do- main thereby, making China seem to be more of a foe than a friend in the circle of nations. In its connect to the world, Xi’s Chinese Dream also acts like magic wand that can dispel the erroneous myths and speculations that have often been attached to China’s rise. $V WKH RI¿FLDO VWDWHPHQW RI &KLQD posits that “the Chinese Dream is THE CONSTRUCTION OF THE CHINESE DREAM IS BEING ACCESSED IN PARALLEL WITH THE AMERICAN DREAM, WHICH IS ATTRIBUTED TO CHINA’S GREAT POWER AMBITIONS.

not the Chinese people’s dreaming of remaining behind closed doors, but a dream of opening up; a dream that China can collaborate with the world and achieve a win-win situation. The &KLQHVHGUHDPZLOOEHQH¿W&KLQDDQG the world. It will remove doubts and misunderstandings in the world about China’s rapid development.” China is now ready to become more visible in the international realm. The time is seen to be ripe for China to JLYHDZD\LWVORZSUR¿OHDQGHQJDJHLQ a more proactive diplomacy in order to become a more responsible major power in global politics. The aim is therefore, to make China more open to new issues, ideas, engagements, and developments in the multi-polar world. The slogan of “Peace, Develop- ment and Win-Win Cooperation” ad- YRFDWHGE\&KLQDLVDQDI¿UPDWLRQRID positive role that China aspires to play on the international stage. It exhibits China’s benign intentions towards the

|28| India-China Chronicle ƒ January 2014 international community. This very outlook, or one that can change the Dream’. With apprehensions of it be- composition of the Chinese Dream entire paradigm of global order which ing translated into the agenda of be- makes it a World Dream, as there is is hegemonic, ethnocentric, unequal, coming a dominant world power, the a commonality of aspirations, as the and exclusive and to replace it with a “peaceful rise of China” can also be a people of the whole world strive for democratic, equitable, inclusive and civilizational catalyst for transform- the ultimate goal to accomplish peace, consensus-driven world. China is at ing the unequal world. The Dream can prosperity and happiness. the centre of high politics as a perma- VXFFHVVIXOO\ FRQWULEXWH WR WKH IXO¿OO- In this light, China’s efforts at nent member of UN Security Council, ing of the objective of making China “national rejuvenation, improvement a member of G-20 and BRICS, in ful- a self-reliant global power which is of people’s livelihoods, prosperity, ¿OOLQJ LWV GUHDP DQG FDQ WKXV XVH LWV responsive and egalitarian and not construction of a better society and privilege either to pursue the big pow- hegemonic in approach. The Chinese military strengthening”- can all add to er road or the egalitarian road. There- Dream is therefore, the gateway to the economic well-being of the world. by, it would be in the best interest of China’s ‘Peaceful Rise and Develop- The military strengthening comes China to have excellent external rela- ment’. There is no zero-sum game in as a natural trait,which coupled with tions as that can fetch China its goal this dream as it is more absolute in its defensive posture, can contribute of reforms, development and stability. nature, holistic, inclusive and prag- to increased international security. matic in approach. The realization of With this China can become an equal Chinese Dream: No Zero-Sum this dream won’t be at the cost of shat- stakeholder in the international arena Game tered dreams of others but it would vis-à-vis the U.S., and stands tall as a The Chinese Dream is at its nascent help in realizing the dreams of all oth- responsible global actor. VWDJH EXW LWFDUULHVVLJQL¿FDQWLPSOL- er nations. Therefore, it can be rightly But to make it a World Dream, Chi- cations for the future. To gain for the called a ‘World Dream with Chinese na has to accommodate the interests whole, one need to assess this dream Characteristics’ based on peace and of other countries. How China will do with a leap of faith than with precon- prosperity for the humankind. ‰ it is the question that remains unan- ceived notions. It opens a window of The writer is Ph. D Research Scholar at the swered. At this stage, Chinese Dream opportunities both for the world at Centre for East Asian Studies, Chinese Division, can either be one that conforms to the large making it a ‘World Dream’ and School of International Studies at colonial great powers with hegemonic ,QGLDLQVSHFL¿FE\PDNLQJLWDQµ$VLDQ Jawaharlal Nehru University, New Delhi)

January 2014 ƒ India-China Chronicle |29| INFOCUS|INDIA-CHINA|NDIA-CHINA|FIRSTFIRST PERSONPERSON A Lion Dancer is not a Disney Character

James Liao

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

|30| India-China--China Chronicle ƒ January 20201414 and the lion looked alive! In 2001, and thus must have a lot of courage. whole- heartedly to his art. I formed a troupe called“ Fitness 7KH PHQWDO UHDGLQHVV ¿JKWLQJ VSLULW Wisdom- Plucking the green Club”. This has given me the chance to DQG WKH ZLOOLQJQHVV WR VDFUL¿FH IRU in Lion Dance is the spontaneous choreograph the Dance the way I had the sake of the performance are very experience. always wanted. important. With a routine consistency Sincerity- We must be sincere in and continuous training, one gains learning Lion Dance. The head, the Moral Sentiment behind FRQ¿GHQFH$FRXUDJHRXVDQGVNLOOIXO tail, drum, gong and cymbals incorpo- the Dance lion dancer has no fear. He is always rate, coordinate and complement each The standard of the art of Lion responsible and commits himself other so as to give a lasting as well as Dance in India was very low. I started the best of performances. It gives the following The World Lion Dance com- message of being together, for every- petitions and found out that Malay- thing needs to be in harmony. VLDQ WHDP DOZD\V FDPH ¿UVW 6R , UH- Mannerism- The holy man once searched and found out that the Lion said “Do not say, see, listen or do Dance troupe in Malaysia is one of anything if you do not have manners”. the best in the world, and even beats If everybody is humble and possesses China, from where the art had origi- manners, then there will be world nated. I went to Malaysia to meet a peace. well -known great grand master, (Mas- The Lion Dance is the tradition and ter Siao) and I asked him the secret of culture of the Chinese. The above eight his strong team. He explained that it values inherit the beauty of the way of was not only about how the training is life. I am glad to be able to learn the art done, the diet or the exercise but also of the Dance, perform well and achieve the embodiment of the ethos behind glory to make the Dance successful as the Dance form that makes them one well as popular. It has taught me to of the best. He went on to explain to assimilate all the good values of the me the eight key elements which com- Dance and pass it on to our younger prised the Dance. “They were Zhong generation and teach them loyalty to (loyalty), Zhen (righteousness), Ee one’s country without fear or favor. In (endurance), Yung (bravery), Zhi Lion Dance and martial art, the stress is (wisdom), Chen (sincerity), Her (harmony) and Li (mannerism),” I remember his words clearly. All these are required in addition to building up SK\VLFDODQGPHQWDO¿WQHVVLQWKHGLV- cipline of Lion Dance. I am articulating the eight impor- tant values that characterize the Lion Dance. Loyalty- Nurturing the young generation to be loyal to one’s country, loyal to the organization, loyal to the work of culture and art. Righteousness- We must never sway but must always follow the mid- dle path and believe in right thinking. Endurance- Without this, no one can ever be successful. Bear the hard work, work conscientiously without being tired, for it is only then that we can achieve success. Bravery- Today’s Lion Dances need the spirit to dare and be brave. In order to climb the tall ‘green’, pole, tower or chung to perform one KDVWRIDFHKLJKGHJUHHRIGLI¿FXOWLHV Liao with his master Shifu

January 2014 ƒ India-China Chronicle |31| INFOCUS|INDIA-CHINA|FIRST PERSON

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

Lesson behind the Music The artistic skill of the performing dancers is accompanied by drum and music. Drumming plays an important part in the Dance and the music LQÀXHQFHVDQGPRWLYDWHVWKHOLIHDQG movements of the dancers. Without the drum play and its support, the aggressive and powerful Lion Dance has no mood or enthusiasm. There is a saying, “drum play is the soul of the Lion Dance.” A drummer is just like a General who gives instructions to the combination as gong and cymbals play their parts. A drummer gives commands and the cymbals support and build up the atmosphere whereas heighten the spirit of cooperation lion in Buddhism was like the holy the gong decides the rhythm and and only then comes the climax in the God of the religion. Lion Dance is position. Music for the Dance, Dance performance. now performed during important with the Music, heart-to heart and soul- The lion is the king of all animals; occasions and festivals. It is also to-soul connection allows coordination it daring and brave. However, it is not used in chasing away bad omens and and cooperation work wonderfully. DV¿HUFHDVZHWKLQNLWWREH7KRXJK spirits; to bring prosperity and good The team work is very important to it looks strong and powerful, it’s be- fortune. We have been performing nevolent and tame. Its heroic outlook all over India. The Indian audience puts other animals in fear. Thousands enjoys our shows, especially children. of years ago, the Chinese respected However, they lack the understanding and became impressed by the quali- of the sentiments behind the Dance. ties and characters of the lion. They They don’t understand the why, when looked upon the lion as an animal of what, where and how of it. To them, it God. Historical records state that the is just another Disney character. They Lion dance was started during the Han just love the external part of it. Dynasty. His Majesty Han Wu Ti made Time has changed with the progress commercial ties with the West through of culture. The standard and skills of the Silk Road to China. Cultural inter- Lion Dance too have gone through action, by way of organizing functions, progressive upgradation. As the skills was meant to welcome guests from are being improvised on, the Dance is the West. During the song and dance becoming more and more popular in performances, dancers wore animal India. It now involves acrobats and masks to entertain the guests. stunts. Lots of Indians learn the Lion The guests noticed that there Dance. Some of them have already were no lion masks and were told that mastered the art. We are planning to there were no lions in China. Later, UHSUHVHQW ,QGLD IRU WKH ¿UVW WLPH LQ the traders from the West who used the“World Lion Dance competition in the Silk Road brought along lions 2016”. Our troupe is going to Malay- as gifts to China. They also brought sia twice a year for advanced training. along lion trainers. The Lion Dance I have selected my three top students started to take place in China. Initially already for the competition and all of lions came to China from India as them are Indians! ‰ Buddhism spread and contacts with (James Liao, 42, has been performing India increased. The place of the since 1978. He lives in Kolkata)

|32| India-China Chronicle ƒ January 2014 INFOCUS|INDIA-CHINA|MY VIEW

A Tangled Triangle: India, China and USA

P.S. Deodhar region. China has emerged as a new, world affairs. While China’s role as strong economic and military power an economic and geo strategic player that can challenge the US hegemony, is more widely recognized, India is elations among countries in thus leaving India far behind. How- trying to establish itself as a regional Asia have undergone a dra- ever, India too in a limited way has competitor. Rmatic change over after the emerged as a regional power of con- demise of USSR. During the Cold VLGHUDEOH LQÀXHQFH ZLWK LPSUHVVLYH China-USA Tensions War, Indo-US relations were rather economic growth in terms of GDP. The For several decades now, the U.S. estranged. The US did not approve of growing strengths of China as well as has had an unprecedented military India’s non-aligned policy, close rela- India are evinced by their impressive presence in South Asia and the Asia tions with the erstwhile Soviet Union economic growth, the development of 3DFL¿F UHJLRQ &KLQD KDV QHYHU EHHQ and its tensions with Pakistan. On the nuclear arsenals, and their expressed comfortable with this US supremacy other hand, the US had a strong alli- DPELWLRQV VHHNLQJ WR LQÀXHQFH WKH in its waters. Americans would never ance with Pakistan. It is only during ZDQWHURVLRQRIWKHLULQÀXHQFHLQWKH the last twenty years that this situa- region. But the speedy economic de- tion has progressively changed due SINCE 2010, INDIA IS INDEED cline of the US since a decade and its to some corresponding strategic, eco- LEANING MORE TOWARDS THE deep trade engagement with China, nomic and political interests of India have created big problems for the US. and the US. The US-India relationship US. TO SOME EXTENT, CHINA Since 2003, it has fought wars that is now as happily ‘engaged’ nations HAS ONLY ITSELF TO BLAME, have distracted it from its economic than ‘estranged’ mutually suspicious problems, and wasted trillions of des- nations. This of course, has a lot to FOR PUSHING INDIA AWAY BY SHUDWHO\ QHHGHG GROODUV LQ ¿JKWLQJ do with the changed US strategy and SEVERAL OF ITS PROVOCATIVE wars that did little else but spoil its policy towards India as well as the image in the world community. These other nations in South Asia and the POSTURES AND UTTERANCES days American system appears to be $VLD3DFL¿F WHICH DO NOT BEFIT ITS in deep trouble. However, even today, During this period remarkable strategically and militarily, the US changes have taken place in the Asian FRIENDLY OVERTURES. indeed remains a super power that

January 2014 ƒ India-China Chronicle |33| INFOCUS|INDIA-CHINA|MY VIEW

cannot be challenged even by China. Chinese have their own Asian way and has its own plans. By 2020, the Since the last 18 months, military traditionally they plan long term. It Pentagon will launch a three-tiered tensions between the U.S. and China is establishing its own network of shield of space drones — reaching from have begun to rise in the western Pa- 35 satellites for global positioning, the stratosphere to the exosphere, FL¿F&KLQDLVXVLQJPXOWLELOOLRQGRO- communications, and reconnaissance armed with agile missiles, linked by ODUVRILWVFRPPHUFLDOSUR¿WVIURPLWV capabilities by 2020. All this certainly a resilient modular satellite system, export trade to US, Europe and other rattles the current super power, and and operated through total telescopic nations to fund its war machine. This hence, it may not keep quiet. The US surveillance. These instances well obviously is to face the US military SRLQW RXW WKDW VRPH NLQG RI FRQÀLFW challenge arising out of American between the U.S. and China may domination over the Asian and the Pa- CHINA BELIEVES THAT IT happen sooner than anticipated. FL¿FVHDURXWHVDVZHOODVWRSUHYDLORYHU HAS THE RIGHT TO ITS OWN other Asian economic giant, Japan. It &KLQD86&RQÀLFW3XVKHV%RWKWR is no secret that Beijing has a plan to SPHERE OF INFLUENCE IN Seek India’s Friendship establish its maritime predominance THE ASIA-PACIFIC REGION. 7KLV FRQÀLFW LV DQ LPSRUWDQW UHD- from Korea to Indonesia. The US is son for remarkable changes that have mindful of Chinese ‘assertiveness’ in IT SAYS THAT EAST ASIA HAS taken place in the US-India security South China Sea. A US report says BEEN SINO-CENTRIC FOR relations in recent years. China al- that ‘the Chinese military modernisa- ready has a complex security situation tion is an attempt to deny the US an SEVERAL THOUSAND YEARS. in South Asia, and therefore the cur- access to Asia, by acquiring ballistic THIS, SOME BELIEVE, MAY rent leadership of China recognises missile capability to hit giant aircraft the importance of its friendship with carriers of the US stationed in the re- POSSIBLY LEAD TO A WAR-LIKE India. In spite of some hiccups, China gion’. Relatively their mutual concerns CONFRONTATION [BETWEEN is careful in maintaining friendly rela- about North Korea and Taiwan are on tions with India by having close dip- a back burner. CHINA AND THE US]. FOR THE lomatic ties. Besides this, its rapidly If the Republicans were in power in PRESENT, IT IS LIMITED TO AN growing bilateral trade too demands the US, engaging in a war with China that the relations between the two re- would have been more probable. After ARMS RACE BETWEEN THE main friendly. China fears that the US all, it did go for a war with Iraq due to the TWO. CHINA’S ENORMOUS will push the situation and try to pull alleged ‘Weapons of Mass Destruction’ India away from China. India, there- and was till recently, planning to start MILITARY BUILD UP HOWEVER fore, has to be careful and keep its US another one with Iran. In addition, MAY, SOMEDAY, PROVOKE THE tilt under control. the weak US economy needs the US to History tells us that US never revive its ‘military industrial complex’. US FOR A SHOWDOWN. makes friends without a motive and turns its back with equal ruthlessness. The nuclear deal that India and the US signed in 2007 has to be understood in this context. The US always has a self- ish and hidden motive in its strategic policies. Some experts are of the opin- ion that for the US, the nuclear deal is not really about allowing India to use it for generating power, but for allowing India to arm itself with nuclear weap- ons as a counter measure to China’s nuclear arsenal. After all India has done nothing about nuclear energy for power after six long years except talk- ing and procrastinating. So much for the urgency that Dr. Manmohan Singh had harped on while rushing to sign the deal. The real motive is not the en- HUJ\VKRUWDJH7KLVJHWVFRQ¿UPHGE\ the fact the deal allows India to under- take developmental work in this area,

|34| India-China Chronicle ƒ January 2014 without being questioned by the global an ‘Asian’ power, disturbs China like China that crossed the border and its nuclear powers. The intention indeed nothing else. China desires friendship political thinking as well as its na- is not to help India, but to ensure that with India for many valid reasons. tional ambitions have undergone sea India is on its side if as and when the However, its diplomatic effort to come changes since 1980. Presently China US engages in a war with China. This closer to India is a strategic move to is a completely different country than would ensure that such a war will then keep the US from getting India on its what it used to be. Many of us expected QRWEHIRXJKWLQWKH3DFL¿FUHJLRQEXW side. Unfortunately China certainly is WKLVWRUHÀHFWLQLWV,QGLDSROLF\&KL- on Indian soil. After all, the US has not doing it right. If the Chinese do not nese leadership must realise that most fought all its wars on foreign territory. recognise this soon, it is certain that of the Indians still mistrust China. It India therefore, would be a good battle India will gravitate more towards the friendship with India has not gone ¿HOGIRUWKHSRVVLEOH&KLQD86ZDULI US as a hedge against China. Perceived much beyond its diplomatic overtures. or when it happens. threat of China in India therefore, de- Today China’s diplomatic moves are cides the extent of its tilt towards the seen by many as very opportunistic. &KLQD¶V6WUDWHJLF0RYHV US. China must see and feel concerned Chinese leadership is also con- about this and speed up its friendly )ULHQGVKLS1HHGVD&RRO0LQG vinced that some form of confronta- engagement with India to prevent this After 26 years of diplomatic isola- tion with the U.S. could come earlier from happening. tion, it was Rajiv Gandhi who went to WKDQH[SHFWHG,WKDVEHHQ¿QHWXQLQJ The Chinese know very well that Beijing in 1988 to start afresh India’s its domestic and security policies to India has stood by China till the 1962 engagement with China, in spite of lo- counter the perceived threat from crisis. Chinese aggression was a shock cal resistance. Then Vajpayee, heading what it calls the U.S. imperialism. Chi- that many feel is one important rea- the non-Congress NDA government, na has always been conscious about son for Nehru’s early death. How can upgraded it in 1993 by raising the disasters and downturns and thinks China forget that from recognizing border talks to a higher level with the about dangers in the midst of current the new Communist-led government National Security Adviser heading the peace. It is building up strategic oil re- of China in December 1949, and ac- Indian team and recognizing Tibet as a serves along with that of industrial raw cepting Taiwan being a part of China, part of China with even stronger resist- materials. Interestingly, all roads and to voting in its favour by opposing the ance in India. Dr. Manmohan Singh other infrastructures in China have US resolution in UN Assembly in 1951, set in motion bilateral trade and over been planned keeping in mind the re- which labelled China as an aggressor- the years it resulted in China becoming quirements of the defence forces. That India has always been by China’s side? India’s largest trading partner, with a a foresight indeed. Then, like a bolt from the blue, came trade volume of over US$70 billion The presence of the US, as if it is WKHERUGHUFRQÀLFW/XFNLO\0DR¶V in 2012; raising it from a mere US$1

January 2014 ƒ India-China Chronicle |35| INFOCUS|INDIA-CHINA|MY VIEW

billion in 2001. So far China has great- friction. China unfortunately does not India media made it a ‘Breaking News’ O\ EHQH¿WWHG IURP ,QGLD WKURXJK RXU UHFRJQLVHWKDWLWVVLOHQFHFRQ¿UPVWKH whereas China accomplished noth- bilateral relations. China should care- validity of the theory. One also wonders ing. May be, China believes that by fully assess what it has done in return why China made such an issue out of indirectly warning India through such in order to win over the Indian people. the meeting of the Indian PM with actions, it would prevent India from If China indeed wants to develop 'DODL/DPDRUWKHYLVLWRILWVGHIHQFH turning for close support from the US. friendship with India, it needs to minister to Arunachal Pradesh. Till the China should realise that this policy change the opinion of Indians about border issue is under negotiation, such does not work within a friendship. it through sincere overtures and not provocation is certainly uncalled for. merely through diplomatic cordiality. /DUJH6FDOH&LYLO6RFLHW\,QWHUDF- China must understand that unlike &KLQHVH,QDFWLRQ:LOO+DYH WLRQV9LWDOIRU'HYHORSLQJ7UXVW in their country, in India people are 8QGHVLUDEOH&RQVHTXHQFHV As neighbouring countries wanting supreme and not its weak government. Some of us fear that if China does to groom friendly ties, China and One quick way to win over Indian not revisit its India policy, India would India must realise the importance people is by resolving the border issue one day get sucked into the global ri- of developing people-to-people in India’s favour or at least a quick valry between the US hegemony and contact rather than merely relying FRPSURPLVH WKDW LV EHQH¿FLDO ,QGLD China. So far, India has been careful on diplomacy. In this respect the US I am sure that this single action will in maintaining cordial relations with is miles ahead of China. Close to half change the anti-China feeling amongst both China and the US, without ref- a percent of all Indians today either Indian people. erence to the proximity or otherwise live in the US or work for it, on-line, Chinese often complain that Indian with either power. For example, India IURP ,QGLD /DQJXDJH LV DQRWKHU PHGLD NHHSV WKH  FRQÀLFW DOLYH not only exercised its military regu- good cementing material for social China should know that press today is larly with the US, but also has had two connectivity. India therefore, has many so powerful that all the governments rounds of exercises with China. Westernised Indians who believe that in the free world fear them. After all, If India seems to be getting closer India needs to get closer to the US the Indian press is not like the state to the US during the last three to four since it needs technology, both civilian controlled media in China. The free- years, a part of the reason for this de- and military, as well as capital. The US, dom of press is India’s strength. One velopment is Pakistan. China has not on its part, is shrewd enough to oblige wonders why China creates such rath- behaved in a way that would make the since it needs India as a counterweight er unwise irritants if it actually does average Indian feel friendly towards it. to China. The US, however, has a poor not want to push India away from it. I wonder why the Chinese ever creat- UHFRUG RI ¿GHOLW\ LQ LWV UHODWLRQVKLSV All Indians know that press is a weap- ed minor irritants like stapled visas to It is known to interfere with local on in India. Therefore, if China desires Indians from Jammu & Kashmir. The domestic matters and it does so quite to build good will amongst Indians, it trickily. Many Americans themselves should avoid such provocations. Main- have proved it conclusively. taining mere cordial and diplomatic HISTORY TELLS US THAT Traditionally, war has not been the ties are too bureaucratic, and certainly US NEVER MAKES FRIENDS methodology for resolving problems not enough. China must understand in India as well as in China, except in that India is a democracy and that its WITHOUT A MOTIVE AND the event of war for liberation. Even people are far more important than its TURNS ITS BACK WITH EQUAL the short border invasion was a con- handful of diplomats and politicians. ÀLFWRQDFFRXQWRIHUURUVRQERWKWKH Such misjudgements by China make RUTHLESSNESS. CHINA IS sides and not a full-scale war. Both for good opportunity for the shrewd THE MAIN REASON FOR THIS countries would rightfully want to be Americans to relish it and exploit militarily strong nations, but the peo- it. After all, the Yankees are experts NEW LOVE THAT THE US HAS ple in both countries certainly want in exploiting the media machine DEVELOPED FOR INDIA OTHER peace, development and reduction in to their advantage. The American poverty. Both countries want to march PHGLD DOVR DGGV IXHO WR WKH ¿UH WR THAN THEIR DISILLUSION towards inclusive development and add to the Indian doubts regarding WITH PAKISTAN. THESE prosperity. This is very unlike the peo- China. Its press added to these fears ple in the West and the middle-east, with an observation that China is CHANGING RELATIONS ARE who love wars to settle disputes. One encircling India by constructing INDEED MAKING A GREAT must remember that Hinduism and ports in the Indian Ocean that could Buddhism are religions that spread potentially have military use later. IMPACT ON CHINA’S SECURITY through love and human search for This has proved to be a great fodder ENVIRONMENT. peace and salvation. That’s exactly for further enhancing the India-China how Buddhism enveloped China;

|36| India-China Chronicle ƒ January 2014 improve India’s relations with China. So far India has always attached the highest value to maintaining independence in making its foreign policy and sovereignty, and avoided becoming the part of a US or Western agenda towards China. The United States is also unlikely to be willing to underwrite the costs of guaranteeing Indian security and it would be foolish for India to entrust her security to a superpower. Its people are able enough if it focuses on self-reliance on modern armaments. If a little state like Israel can do it, why not India? We have great talents waiting to be gainfully utilised.

7KH)XQGDPHQWDO5HDOLW\ The fundamental reality at a social and economic level is that both China and India need America’s cooperation and support for their economic development whereas the US needs the huge markets of 2.5 billion Indians and Chinese. The US, therefore will do well by encouraging Sino-Indian through love and not war. That cannot it is not still an ‘open’ country. It has relationship for the regional stability be said of Christian, Muslim or Jewish to soften its generally abrasive talks in South Asia and help both China and religions that were born in the desert. about the border dispute and help the India in their economic modernization. The spread of these faiths was primar- Delhi diplomats to convince people of /HW µWHFKQRORJ\ IRU SHDFHIXO KXPDQ ily through wars and it involved im- the merits of its friendly diplomatic race’ be the new principle of the position on others rather than convic- ties. Diplomacy is required in speedily globalised world. Knowledge needs to tion. Thus neither India nor China has concluding the border talks. China, be freed by mobilising it for the good of attacked any country to rule over it or in a sense, is a far larger power than human race so that it does not become have shown imperialistic ambitions. I India. China loses little by conceding ‘a property’ that gives unreasonable don’t see any war between the two in to India’s border claims. Indian people returns to businesses. China too needs the near future. In any case, both na- must also understand the basic truth. to revisit its India policy and realise its tions actually have enough challenges Before the British, there was nothing importance in geo-politics as well as in ruling over their own countries. OLNH,QGLDZLWKGH¿QHGERUGHUV,QGLD in its role in regional affairs. There is got its borders drawn by the British a reason to believe that China desires &DQ,QGLD5HPDLQ1RQ$OLJQHG" arbitrarily. ‘Aasetu Himachala’ is that the nature of their relationship Some Indians have their an idea that indeed was never fully with India should be like that between reservations on whether India can realised. Peace with neighbours is vital good neighbours and good friends remain non-aligned. The best option for India since it has many internal in economic cooperation and good for India is to stay friendly with both, problems including poor and weak partners in international affairs. ‰ the US and China. India needs to governance, and this strategy would engage them in regular dialogue. India give it time to set its house in order. should be seen as non-aligned and ,QPDQ\ZD\V,QGLDFDQEHQH¿WDORW equidistant. This would give it time to more from China in creating good speed up its economic growth by having infrastructure that is necessary for the best of both in this endeavour. its economic and social development. China would then gradually develop The US has little to offer other than

FRQ¿GHQFH WKDW LW GRHV QRW QHHG technology and, of course, weapons Mr. P.S. Deodhar is author of ‘Cinasthana Today’, Pakistan’s support anymore. Beijing of mass destruction. A visible non- published by McGraw Hill in 2012. He shares his views in this piece needs to do a lot more than India since aligned foreign policy would certainly

January 2014 ƒ India-China Chronicle |37| MISSING PIECES Interpreting China’s 60-point Reforms &KLQDZDVEHKLQG,QGLDGXULQJWKH¶V7RGD\&KLQDLVDKHDGRI,QGLDLQHYHU\ DVSHFWRIEXVLQHVVH[FHSWSHUKDSVDUHDVOLNHIUHHGRPRISUHVV LQIRUPDWLRQ)RU WKHWKLUGWLPHVLQFH&KLQD¶VOHDGHUVKLSKDVFRPHXSZLWKEROGUHIRUPVWR SUHYHQWWKHFRXQWU\IURPJRLQJZD\ZDUG5HFHQWO\WKH7KLUG3OHQXPDGRSWHGD SRLQWSODQWRNHHS&KLQDRQLWVJURZWKWUDFNDQGHQVXUHWKDWWKH&RPPXQLVW 3DUW\UHWDLQVLWVJULSRQSRZHU7KHPHUHIDFWWKDWZLGHUDQJLQJUHIRUPVKDYHEHHQ DQQRXQFHGKDVLJQLWHGWKHJOREDOVWRFNPDUNHWWKRXJKLWPD\WDNH\HDUVIRUWKHPWR EHLPSOHPHQWHG:KDWHYHUWKHRXWFRPHRI&KLQD¶VUHIRUPSODQVPLJKWEHWKHUHDUH OHVVRQVIRU,QGLDJULSSHGLQWKHDQ[LHWLHVRIDVWXPEOLQJGHPRFUDF\

hina’s Communist Party has persistently reinvented UHIRUP SODQ FRPSULVHV RI GHIHQVH DQG DUP\ UHIRUPV DV LWVHOIZKLOHPDLQWDLQLQJD¿UPJULSRQWKHFRXQWU\ ZHOODVIXUWKHURSHQLQJXSRIWKHHFRQRP\&KLQD¶VUHIRUPV C7KH QRUPDOO\ VWURQJ 3DUW\ QRZ IHHOV FRQ¿GHQW SODQFRXOGEHQH¿WVHFWRUVVXFKDVFRQVXPHULQIUDVWUXFWXUH HQRXJKWRDFNQRZOHGJHWKDWLWVKDQGZDVIRUFHGE\VRFLDO LQVXUDQFHDQGFOHDQHQHUJ\ GHYHORSPHQWV&KLQD¶VSRLQWUHIRUPSODQVFRPHXQGHU The reforms stem from the growing popular anger at the EURDG FDWHJRULHV RI VLJQL¿FDQFH DQG SULQFLSOHV EDVLF PRXQWLQJLQFRPHJDSVLQWKHFRXQWU\±RQHRIWKHODUJHVW HFRQRPLFV\VWHPPRGHUQPDUNHWV\VWHPDQG*RYHUQPHQW LQWKHZRUOG5HVLGHQF\UHIRUPVWRIDFLOLWDWHUXUDO&KLQHVH UROH ,W DOVR LQFOXGHV ¿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¶V WRXJK RQHFKLOG SROLF\ IRU XUEDQ FRXSOHV ZLWK D VLQJOH SDUHQW FDQ EH VHHQ DV DQ DGPLVVLRQ WKDW WKH 3DUW\ ZDV ZURQJ WR GLFWDWH SULYDWH GHFLVLRQV ,W GRHV DFNQRZOHGJH LWV QHJDWLYH HFRQRPLF FRQVHTXHQFHV (PSOR\LQJ VRPH KDOI D PLOOLRQ ZRUNHUV WR HQIRUFH WKH DERUWLRQV RI XQDXWKRUL]HG SUHJQDQFLHV  PLOOLRQVLQFH DQGLPSRVH¿QHVKDVEURXJKWXQLQWHQGHG FRQVHTXHQFHV)RUWKH¿UVWWLPHLQ\HDUV&KLQD¶VZRUNLQJ DJHSRSXODWLRQKDVVKUXQNLQ:LWKELUWKUDWHVEHORZ UHSODFHPHQWOHYHOV&KLQDZLOOJHWROGHUEHIRUHLWJHWVULFK

|38| India-China Chronicle ƒ January 2014 CHINA INDIA

DQG LWV UDWLR RI UHWLUHHV WR ZRUNLQJDJH SRSXODWLRQ ZLOO RI DXWKRULW\ /HDGHUV NQRZ WKDW FRQWLQXHG SURVSHULW\ DW EHFRPHXQVXVWDLQDEOH$WWKHSUHVHQWUDWHVPRUHDQGPRUH KRPHDQGGLVSOD\VRIQDWLRQDOPLJKWDEURDGDUHWKHVXUHVW ³VHFRQGJHQHUDWLRQRQO\´FKLOGUHQDUHUHTXLUHGWRVXSSRUW JXDUDQWHHVRIDVWURQJJULSRQSRZHU WZRSDUHQWVDQGIRXUJUDQGSDUHQWV 7RWKHGLVPD\RIWKRVHZKRH[SHFWHG&KLQHVHOHDGHUVKLS Where is India’s Plan? WRGLVPDQWOHVWDWHRZQHGHQWHUSULVHVWKHUHIRUPVSURPLVH &KLQD¶V JUDQG SODQ FRPHV LQ VKDUS FRQWUDVW WR WKH JUDGXDO WUDQVIRUPDWLRQ :KLOH WKH SDUW\ VDLG WKDW LW ZDV ZHDNQHVVRI,QGLD¶VSROLWLFDOFODVVDQGLWVEURNHQV\VWHPRI SODQQLQJWRJLYHDPDUNHWDGHFLVLYHUDWKHUWKDQDEDVLFUROH JRYHUQDQFH&RUUXSWLRQDQGSDUWLVDQJULGORFNFRQWLQXHVWR DVLQWKHSDVWLWUHPDLQVXQFOHDUKRZWKDWZRXOGDIIHFWWKH OLPLW ,QGLD¶V PXFK QHHGHG UHIRUPV &KLQD KDV D SODQ DQG SULFHVVHWE\VWDWHFRUSRUDWLRQVHVSHFLDOO\WKRVHZKLFKDUH LVDZDUHRIWKHSULFHRIIDLOXUH,QGLD¶VSROLWLFDOHOLWHRQWKH PRQRSROLHV6WDWHFRUSRUDWLRQVZLOOEHDVNHGWRKDQGRYHU RWKHUKDQGLVXQDEOHWRPHUJHWKHGLIIHUHQFHVWRDJUHHRQD RIWKHLUSUR¿WVWRWKHVWDWHDVFRPSDUHGWRDW QDWLRQDOSODQWRHQGSRYHUW\DQGWDNHWKHFRXQWU\IRUZDUG SUHVHQW±EXWKRZWKDWZLOOEHLPSOHPHQWHGUHPDLQVWREH ,QGLDLVVWXFNVLQFHORQJZLWKUHIRUPVDZDLWHGLQUHWDLO)', VHHQ7KHSDUW\ELJZLJVWKDWFXUUHQWO\HQMR\WKHIUXLWVRIWKH LQVXUDQFH )', ¶V DQG ODERU ODZV )XUWKHU UHIRUPV VWDWHFRUSRUDWLRQVDQGKROGEDFNJURZWKDQGLQQRYDWLRQDUH DUH DZDLWHG LQ WUDQVSRUW SHQVLRQ DJULFXOWXUH DV ZHOO DV H[SHFWHGWRUHVLVWWKHFKDQJH LQDVSHFWVUHODWHGWRODZ/DQG$FWSULYDWL]DWLRQRI368¶V :LWKRXWDFNQRZOHGJLQJWKHYLRODWLRQVRIKXPDQULJKWV DQGPRUH7KHZRUVWRIDOOLVWKDW,QGLDGRHVQ¶WVHHPWRIHDU WKH SDUW\ FODLPV WKDW LW ZLOO HQG WKH SUDFWLFH RI DUELWUDU\ WKHKLJKSULFHIRUIDLOXUH0D\EHWKHHPHUJHQFHRIDQHZ GHWHQWLRQ XQGHU UHIRUP WKURXJK ODERU ZKLFK KDV EHHQ LQ SROLWLFDO IRUFH LQ 'HOKL 7KH $DP $DGPL 3DUW\  FDQ XVKHU SODFH VLQFH  (VWLPDWHV RI VXFK GHWHQWLRQ UDQJH IURP LQ WKH PXFK UHTXLUHG UHIRUP :KDW ,QGLD ,QF QHHGV LV D WRDPLOOLRQ+RZHYHULWLVQRWNQRZQLIDGLIIHUHQW GLIIHUHQWWRQHDQGGLUHFWLRQWRXSLWVHFRQRPLFVWDQG‰ V\VWHPRIGHWHQWLRQZLWKRXWWULDOZLOOUHSODFHLW7KHUHIRUP GHFLVLRQSOHGJHVWRXSKROGWKHFRQVWLWXWLRQZKLFKSURPLVHV IUHHGRPRIDVVHPEO\DQGRIVSHHFKDQGDOVRLQGHSHQGHQW IDLU XVH RI MXGLFLDO DXWKRULW\ %XW WKH SODQ WR VWUHQJWKHQ SXEOLFRSLQLRQJXLGDQFHDQGFUDFNGRZQRQLQWHUQHWFULPHV OHDYHVQRGRXEWWKDWWKHSDUW\SUHYDLOVRYHUWKHFRQVWLWXWLRQ JAGAT SHAH ,QVSLWHRIXQFHUWDLQW\DERXWWKHLPSOHPHQWDWLRQRIUHIRUPV The writer is Chairman, India China Economic & Cultural Council (ICEC), WKHQHZ&KLQHVHOHDGHUVKLSSODQKDVFOHDUO\ERRVWHG&KLQD¶V Gujarat HFRQRPLF SURVSHFWV DQG ERXJKW WKH 3DUW\ D QHZ OHDVH

January 2014 ƒ India-China Chronicle |39| INFOCUSIININFNNFFOOCOCUUS|INDIA-CHINA||ININNDIA-CHIINNAA|ENERGYENERGYGY The Curious Case of India’s Strategic Petroleum Reserves

With the likely commissioning of Vishakhapatnam Strategic Petroleum Reserves (SPR) in January 2014, India will be starting its journey towards further strengthening of its energy security, when it will start stockpiling the crude, to deal with supply disruptions of various kinds. This would be WKH¿UVWRIWKHWKUHH635VZKLFK,QGLDKDV planned to complete in its Phase I. India, however, still lags far behind. Projections have put China miles ahead of India’s strategic storage plans as China states SPRs to the tune of 500 million barrels by the end of its 3KDVH,,,7KRXJKWKLV¿JXUHIDOOVVKRUWRI the actual estimates i.e. 2,500 million barrels E\¿YHWLPHVDQGPD\EHLQDFFXUDWHWKHUH is still a word of caution for India’s lethargic SPR plans. Keeping in mind the sustainability factor in terms of quality, quantum and safety of these reserves,India should not waste IXUWKHUWLPHLQVWUXJJOLQJWR¿QGVXLWDEOH PRGHOVDQG¿QDQFHUVIRUWKH635SURMHFWV

|400| IIndia-Chinandia-C-China ChronicleChrohr nicclle ƒ JaJanuarynuary 2014202014 Manish Vaid Ministry had set up a Committee for while the details for the Padur project ‘Preparation of DFR for Strategic was awaited as preparation of DFR was Storages’ to oversee its preparation. under process. t has been about a decade since the Thereafter the same was prepared and )RU ¿QDQFLQJ WKHVH SURMHFWV WKH decision to build the SPRs (Strategic approved by yet another Committee government planned to enact a law IPetroleum Reserves) was taken by set up by the Ministry in 2001. This was to levy a surcharge on the domestic the Union Cabinet in January 2004. followed by acquiring clearances from consumption of petroleum products But it was in 1998 that the project related Ministries, and promptingthe after the same was approved for was conceived followed by its formal Cabinet of the Union Government of implementation. Funds so created, announcement in 2003. India to decide on building a strategic would have been used both for capital India’s journey towards the creation storage of 5 mmt of imported crude investment for putting up storage and RIWKH¿UVW635FDQEHEURDGO\FODVVL¿HG oil by January 7, 2004 (1.5mmt at allied facilities as well as for procuring in two periods. First, during the regime 0DQJDORUH QHDU 053/ 5H¿QHU\ crude oil for strategic cover. But soon of National Democratic Alliance 1.0 mmt at Vishakhapatnam near after the UPA government came to (NDA), as a reaction to US-Iraq war Dolphin’s nose and 2.5 mmt at Padur power in May 2004, it scrapped some and second when United Progressive in Udipi District). of the strategies of the petroleum Alliance (UPA) government decided to By this time the NDA government sector of the previous NDA regime and revisit SPR plans of NDA government, HVWLPDWHGWKHFRVWRIWKH¿UVWWZRSUR- sought the Planning Commission to immediately after it came to power in jects at Mangalore and Vishakhapa- review NDA’s plan of creating strategic May 2004. tnam to the tune of Rs. 700.08 crore oil storages. and 658.75 crore respectively and India’s Evolving SPR Strategy thereby calculated at an exchange rate Comparing Chinese Experience Around the time of the US-Iraq of US$ = Rs.45.41 (June 2004 rates), Both India and China being amongst war, India already had an operational the top three energy consuming storage capacity of 15-19-days crude AROUND US-IRAQ WAR, countries in the world rely heavily on reserves and 45 days stock of petroleum crude imports from the Middle East. SURGXFWV ZLWK YDULRXV UH¿QHULHV INDIA ALREADY HAD AN As for India, the Middle East accounted meant only for commercial purposes. OPERATIONAL STORAGE for approximately 64 per cent of its Hence, the need was felt to make a total crude import in 2012 while China clear distinction between a strategic CAPACITY OF 15-19 DAYS OF imported around 60 per cent of its and a commercial storage. The CRUDE RESERVES AND 45 crude oil needs from the Middle East UH¿QHULHV ZHUH DGYLVHG WR IRUPXODWH in 2011. Further, as India continues suitable proposals for additional DAYS STOCK OF PETROLEUM to struggle while commissioning its storage capacity for imported crude oil PRODUCTS WITH VARIOUS ¿UVW HYHU 635V LQ -DQXDU\  DQG for 45 days cover, over and above the is still mulling different models for existing reserves. But they were not REFINERIES, MEANT ONLY FOR ¿QDQFLQJ LWV 635 FDSDFLWLHV DQG incentivised to build crude oil tankage COMMERCIAL PURPOSES. ¿OOLQJ RI FUXGH &KLQD KDV WDNHQ D and maintaining a stock beyond their giant leap in this regard. Both these minimum operational requirement owing to the cost. Consequently, only 15 days of strategic reserve for crude oil was planned initially in Phase I in order to avoid the huge investments needed in putting up the 45 days reserve. The proposed 15 days of strategic reserve necessitated putting up gross tankage of 5.00 million metric tonnes (mmt). As per this decision, while the Government, would own crude stocks in SPRs, its implementation would be done by Indian Strategic Petroleum Reserves Limited (ISPRL), a wholly owned subsidiary of Oil Industry Development Board. On December 1998, the Petroleum

January 2014 ƒ India-China Chronicle |41| INFOCUS|INDIA-CHINA|ENERGY

countries are already competing with each other in securing hydrocarbon assets oversees, and China is miles ahead in its strategic crude reserve plans and implementation from India. China took the decision of stock build-up only in its 10th Five Year Plan in 2001 and is already eyeing 500 million barrels of SPR in three phases where its Phase 1 has already covered 103 million barrels in 2009. According to analysts at China International Capital Corp. (CICC), China is likely to add 210 million barrels and 310 million barrels in its next two phases by 2020, thereby accounting for 623 million barrels, or equivalent of 90 days of China’s net imports.

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

SPR, the government has urged large Background to the Reserve oil companies to build their own he common argument given for creating SPR is the 1973 Arab oil embargo, commercial oil reserves. But it is the Twhere this was used as one of the measures to deal with supply disruption QDVFHQW6WDWH2LO635RI¿FHDQG6WDWH by the US Administration. This oil crisis which lasted for five months from Oil Stockpiling Center, established by October 1973 to March 1974 prompted the US to become the first country to the National Development and Reform build such reserves which soon created the world’s largest stockpile. According Commission (NDRC), which has taken to the US Department of Energy, the capacity of such stockpile is of 727 million the responsibility of managing SPRs barrels or nearly 99 million tonnes and since then it has been the first line of instead of Chinese state-oil companies. defence for the US Government, should there be a disruption in commercial oil Though China’s Phase I SPR was state supplies threatening its economy. controlled, NDRC divided its Phase International Energy Agency (IEA) too reacted to the oil embargo of 1973 II SPR into three categories - namely, and set up an emergency response mechanism under the 1974 agreement national SPR, commercial petroleum on International Energy Program(I.E.P. Agreement). Under this agreement, storage by state oil companies all member countries are required to hold oil stocks equivalent to at least 90 and commercial storage by local days of net oil imports and release stocks besides other means like restraining governments or companies. demand, fuel switchover, augmenting domestic production and sharing of China therefore goes much beyond available oil, if necessary. IEA’s response action is to offset an actual physical its stated SPR plans of 623 million shortage, without reacting to the price movements. barrels if its commercial reserves IEA’s preparedness towards dealing with supply disruption got tested mostly are accounted for. China’s major oil during Iranian Revolution of 1979 and Gulf War during Iraq’s invasion of Kuwait companies; namely, Sinopec and CNPC in 1990-91. The gross peak supply loss during these two historical events was to have combined accounts for other the tune of 5.6 million barrels per day (mb/d) and 4.3 mb/d respectively. Since 300 million barrels of these reserves, the creation of IEA, it came to action, thrice, in bringing additional oil to the holding share of 50 per cent and 40 market – first during 1991 Gulf War, second during 2005 Hurricanes Katrina and per cent respectively. This clearly Rita and lastly in June 2011when oil supply to Europe got disrupted due to civil shows China’s much robust strategy of unrest in Libya. In the case of India, it will almost be a decade before its first SPR stockpiling, which is primarily driven in Vishakhapatnam can be commissioned, in January 2014. from its rising energy needs and an apprehension arising out of supply

|42| India-China Chronicle ƒ January 2014 The Dawn of Strategic Petroleum Reserves trategic Petroleum Reserves was recognised as a policy tool in the Saftermath of the first oil shock in 1973.Consequently, major industrialised nations integrated to form IEA, which was charged with the task of coordinating the purchase of oil during a future shock and drawdown of reserves during the crisis period. According to the IEA guidelines, the member nations are required to hold strategic stocks of about 90 days of net imports. India’s Integrated Energy Policy of 2006 followed the same suit and recommended maintenance of a strategic reserve, equivalent to 90 days of oil imports for strategic-cum-buffer stock purposes. India regarded the oil reserves as one of the effective means to deal with supply risk, thereby ensuring energy security as it could help in minimising the economic cost of interrupted supplies and high oil prices. In India, in 2011, it was decided that the authorisation for release or sale of strategic crude oil will rest on a competent authority which jointly comprises of Inter-Ministerial Empower Committee. The Committee, chaired by the Secretary, Ministry of Petroleum & Natural Gas will also include Secretary, Department of Expenditure, Ministry of Finance (MoF) as well as Secretaries of Home, Defence and Shipping ministry, along with secretaries of Planning Commission and National Security Council.

Existing State of Affairs and Future Course of Action

n order to deal with disruption of oil supplies during a Previously, the Integrated Energy Policy (IEP) had Iwar like situation, the Government of India has planned recommended the creation of a reserve equivalent to 90 strategic oil reserves of 5.33 million metric tonnes (mmt) in days of imports latest by 2012-13, but it has already been three locations, viz., Vishakhapatnam in Andhra Pradesh and delayed. According to the Approach Paper prepared by the one each in Mangalore & Padur in Karnataka under Phase I, Working Group constituted by MoPNG in December 2009, with the support of Engineers India Limited (EIL) (Table 1). India’s tappable storage capacity for holding commercial For Phase II, work relating to the preparation of DFR for stocks as on September 1, 2009 was 22.20 mmt. It was creating SPR has again been handed over to ISPRL by OIDB further estimated that by 2014 an additional capacity of in February 2011 in Padur (Karnataka), Bikaner (Rajasthan), 8.62 mmt would be added to the capacity thereby making Rajkot (Gujarat) and Chandikhol (Orissa). ISPRL has engaged it 30.82 mmt, which is sufficient to provide a cover for 70 EIL for conducting the DFR studies, and at present it is under days. Therefore, to cover the remaining 20 days, the Phase II progress (Table 2). SPR projects have been approved. disruptions occurring from events Based on Brig. Mandip Singh’s analysis challenge. The impact of this is also like the Gulf War and Arab uprisings at Institute for Defence Study and being felt on SPR projects. The same of recent times. Besides, China is also Analyses (IDSA), and CICC’s estimates was highlighted by one of the RI¿FLDOs sensitive to global crude oil price rise of China’s SPR projection of 2020, stating that, ‘the Vishakhapatnam stor- and with the expectation of further China is expected to have 295 days of age is to be commissioned in January price rise it will accelerate the pace oil reserves by 2020. 2014. But we don’t yet have an agency RI WDQN¿OOLQJ DV VWDWHG E\ K.F. Yan, which will buy crude oil, store and op- director at energy consultants CERA Visible Challenges for India in erate the facility’. Though, government in Beijing. Interestingly, China has the Future has offered Hindustan Petroleum Cor- DOUHDG\ VWUDWHJLFDOO\ ¿OOHG LWV 635V LQ An inadequacy of existing revenues poration Limited (HPCL) the respon- Phase I when the crude prices were to meet the requirements of the oil sibility to manage Vishakhapatnam low and averaged at $58 per barrel. industry remains the most obvious storage having 1.3 mmt capacity, it has

January 2014 ƒ India-China Chronicle |43| INFOCUS|INDIA-CHINA|ENERGY

Misdirected Strategies PA government soon found itself in a position where it in both cost and time overrun of the projects and despite a Uwas seemingly getting difficult for it to continue with the Standing Committee recommending the Government to SPR plans of the previous government, as it thought that ris- develop a perfect mechanism for creating SPR in the shortest ing global crude oil prices coupled with increasing inflation possible time, it continued to show a casual approach inherited could hamper the growth of the country. Therefore, despite from the previous government. But amidst consistent push getting close to implementation of the project, the govern- by the Standing Committee, the Congress led Government, ment planned to forge different approaches in dealing with finally came out with a proposal similar to that of the previous oil supply disruptions, which included buying future options, NDA regime, consequent to which India can witness its first securing more equity oil overseas, augmenting domestic crude SPR coming live in January 2014. production and encouraging the use of alternative fuel sources. Thus, so far, misdirected strategy coupled with politics of All these confusion and ambiguity in policies resulted ambiguity, has marred India’s progress towards the SPR goal. only taken 0.3 mmt capacity on rent per tonne. Alternatively, 2 per cent Companies. Though recently, India for storing crude oil that it imports increase in custom duty could have has increased its efforts in exploring for processing at the nearby Vizag also generated the amount equivalent the combination of strategic-cum- UH¿QHU\$VIRUWKHUHVWPPWFDSDF- WR WKH FRVW RI ¿OOLQJ XS WKH FUXGH commercial model, it should now look ity, it did not have money to buy crude assuming crude cost at $55 dollar a for an optimum and sustainable solution for storing and instead sought the barrel. Therefore, given the increase of for strategic storage plans in events government’s support. both currency exchange rates as well as of unforeseen circumstances causing $VWKHDSSUR[LPDWHFRVWRI¿OOLQJXS global crude oil prices, it remains to be disruption. ‰ the storage would be around Rs. 3,000 seen if this option is sustainable. crore per annum for three years after India, while learning from its the storage facilities get ready. Though own experience should explore other earlier, the government has planned models practiced world-wide so as to to fund this cost from the existing seek some possibility of adaptability OIDB cess collection and in case the not only in terms of its geological same is inadequate, then to consider conditions and but also considering the Manish Vaid is a Junior Fellow with an incremental cess of Rs. 1,000 crore ¿QDQFLDOFRQVWUDLQWVRI2LO0DUNHWLQJ Observer Research Foundation

|44| India-China Chronicle ƒ January 2014 INVESTING IN INDIA An Introduction for Chinese Companies The fundamentals that make India attractive to investors are its high potential of the domestic market driven pool of talent of an emerging middle class. The country’s domestic demand-driven growth model is playing the catalyst in attracting foreign investments in the country. Although the on-going global uncertainty stemming from recessionary concerns and sovereign debt crisis has, to some extent, prompted some discomfort among global investors regarding long-term commitments, yet India’s inherent advantages and its proven resilience to counter macro-economic challenges far outweigh these concerns. Most research reports see India among the world’s leading three destinations for manufacturing by 2020. In the given scenario, China has become India’s largest trading partner, with Sino-Indian trade touching the $75 billion mark.

Santosh Pai of India (GoI) is expected to further gone through almost two decades of boost manufacturing activities in the economic reforms. Continuity in the country. Thus any foreign investor who economic liberalization process and ndia is transitioning into the wishes to undertake business in India the political consensus that economic next phase of the growth cycle. ZLOO ¿QG WUHPHQGRXV RSSRUWXQLWLHV change necessitates has placed India IManufacturing is likely to play a The Industrial Policy offers a great on a growth path. leading role in this growth trajectory. deal of freedom to business houses The country ranks higher than The new National Manufacturing and entrepreneurs to make their many countries in key parameters such Policy introduced by the Government own investment decisions. India has as market size (3rd) and innovation

January 2014 ƒ India-China Chronicle |45| INFOCUS|INDIA-CHINA|BUSINESS

(38th  ,W DOVR KDV D VRXQG ¿QDQFLDO manufacturers. The national manu- carrier Etihad Airways recent ac- market, which is ranked 21st in the IDFWXULQJ SROLF\ LV EHLQJ ¿QDOL]HG  quisition of 24% stake in Jet Air- world. The Gross Domestic Product would focus on increasing the manu- ways, signals the willingness of (GDP) in India was worth 1,841 billion facturing sector’s share in GDP from foreign carriers to do business in US dollars in 2012 as against 1,684 15% to 25% by 2022. India, especially with a long-term billion US dollars in 2011. (See Table: The story of India has attracted a perspective. India’s Growth Story) lot of foreign companies to make long x Wal-Mart entered into a joint ven- term investment commitments in the ture with India’s Bharti Enterpris- India: An Attractive Investment country. es to get a toe hold in the booming Destination x Singapore Airlines’ decision to Indian retail market. India is poised to cash in on the de- launch a full service carrier in In- x Diageo Plc. acquired a 53.4% stake mographic advantage. It is projected dia with the Tata’s as its majority in United Spirits for about USD 2 that by the year 2035, the population partner, following UAE national billion as it sought to improve its will reach 1.5 billion. A 65% working performance in India. age population will make India, the x BP Plc. is making one of the big- world’s largest human resource base. THERE IS A GROWING APPETITE gest foreign direct investments in The young talent pool, with median FOR CHINESE PRODUCTS IN India, with a USD 7.2 billion tie-up age of 25 years, is expected to continue INDIA. HOWEVER, INDIAN with Reliance Industries to explore till 2025. The rural market is currently deepwater oil and gas resources. home to 790 million consumers. India MANUFACTURERS, WHO ARE x Vodafone entered India in 2007, KDVWKHWKLUGODUJHVWSRRORIVFLHQWL¿F WORRIED AT THE RISING SALES paying USD 11.1 billion to buy a and technical manpower in the world. OF CHINESE COMPANIES, HAVE 67% controlling stake in Hutchison With over 380 universities (11,200 Whampoa’s mobile business in In- colleges), 1,500 research institutions SUCCEEDED IN GETTING DUTIES dia, in which India’s Essar Group and 9,000 PhDs, there is no dearth IMPOSED ON IMPORTS OF CHINESE is a partner. The deal is the largest of talent. Every year, over 200,000 PRODUCTS. THIS CLUBBED WITH inbound foreign direct investment engineering graduates, 250,000 post to be completed. graduates and 2,000,000 graduates THE DEPRECIATING RUPEE, IS x Japanese drug maker Daiichi San- pass out of these colleges and institu- ADDING PRESSURE ON THE COST kyo paid up to USD 4.6 billion in tions. A large English-speaking work- OF IMPORTS, AND MAKING THEM 2008 for control over India’s Ran- force and democratic regime makes baxy Laboratories India an attractive destination for LESS ATTRACTIVE. x NTT DoCoMo Inc. agreed to pay

|46| India-China Chronicle ƒ January 2014 India’s Growth Story USD 2.7 billion in 2008 for a 26% Particulars 2012-13 2011-12 2010-11 VWDNHLQ,QGLDQWHOHFRPV¿UP7DWD Teleservices, giving Japan’s top GDP mobile operator a foothold in the In USD billion 1,844 1,841 1,684 world’s fastest-growing major mo- Growth % 5.40% 6.50% 8.40% bile market. Index of Industrial Production – Growth % 3.20% 3.40% 7.20% Agricultural Sector – Growth % 0.50% 2.80% 7.00% An analysis of Indian manufactur- Service Sector – Growth % 7.50% 8.90% 9.30% ing reveals that the sector will con- WLQXHWREHQH¿WIURPLWVGHPRJUDSKLF Exports dividend and domestic consumption. In USD billion 291.2 309.80 250.60 Open access to export markets and Growth % -6.0% 23.62% 40.50% government procurement will help In- Imports dian manufacturers to achieve econo- In USD billion 479.6 499.5 381.1 mies of scale and mitigate demand Growth % -4.0% 31.07% 28.20% volatility to some extent. Balance of Payments (in USD billion) 1.7 -12.8 13.1 &KLQD,QGLD7UDGH*UHHQ¿HOG Foreign exchange reserves 292.0 294.4 304.8 vs. Mergers & Acquisitions Source: Ministry of Finance, Central Statistics Organization Over the years China has become India’s largest trading partner. Sino- Differentiators Between Greenfield and Acquisition in India Indian trade is touching $75 billion. Parameter Greenfield Project Acquisition China had a whopping $39 billion WUDGHVXUSOXVZLWK,QGLDLQWKH¿QDQ- Permissions & All the approvals for setting No new approvals required as cial year ending March 31 2013. Approvals up new manufacturing the existing set-up will have Taking a clue from other multi- facility may take between 3 all the relevant approvals for nationals operating in India, Chinese to 6 months manufacturing companies are now opening up with Land Land acquisition for setting Ready availability of land along the idea of putting their manufactur- acquisitions up new projects is a rigorous with related permissions ing set ups in India. Over the past time consuming exercise decade many Chinese companies have Environmental Challenging and time Ready availability of all clearances entered India. However, many have clearances consuming failed to realize their potential. Over all most of the manufacturing compa- Lead time for Lead time for starting Significantly lower time than that nies which have opted to enter India set up production in India will be 18 required in case of Greenfield WKURXJK WKH LQGHSHQGHQW µJUHHQ¿HOG¶ to 24 months project route have not had very encouraging Market Faces competition before it Ready market share. Reduce experiences. The experience of a lead- Competition is setup competition by taking over rivals, ing commercial vehicle manufactur- and existing goodwill of the ing company is a glaring example: the acquired business. company had acquired land over two Corporate Relatively easy to build the Relatively difficult to change the years back. However, its project is yet Culture Company’s corporate culture existing corporate culture of the WR WDNH VKDSH $ µJUHHQ¿HOG¶ EXVLQHVV in the new entity acquired company to align the is favourable in situations where busi- same with that of the parent nesses can gain government-related company EHQH¿WV E\ VWDUWLQJ XS IURP VFUDWFK In India, the Governments at various Synergies Possibility of realizing Mergers and joint ventures differ levels provide subsidies, tax breaks or synergies is absent from Greenfield investment, RWKHUEHQH¿WVLQRUGHUWRSURPRWHWKH because they offer the country as a good location for foreign participating firms the possibility direct investment (FDI). to realize synergies If the company is seeking to enter Marketing The new entity will have to Ready availability of existing a market where there are already well- Network develop its own marketing company’s marketing & established incumbent enterprises, & distribution network from distribution network and where global competitors are also ground level interested in establishing a presence,

January 2014 ƒ India-China Chronicle |47| INFOCUS|INDIA-CHINA|BUSINESS

it may be good for the company to enter via an acquisition. In such cir- FXPVWDQFHVDµJUHHQ¿HOG¶LQYHVWPHQW may be too slow to establish a sizeable presence. While both methods usu- ally accomplish the goal of extending a company’s operations to a new for- eign market, there are several reasons why a company might choose one over the other. Businesses may be more in- Reliance Industries and BP announced the incorporation of India Gas Solutions Pvt. Ltd., a 50:50 clined to opt for acquiring an existing joint venture company which will focus on global sourcing and marketing of natural gas in India. foreign business in situations where it LVGLI¿FXOWWRHQWHUDIRUHLJQPDUNHW %X\LQJ IRUHLJQ EXVLQHVVHV VLPSOL¿HV a lot of potentially tedious details. For example, the purchased business will already have its own personnel (both labour and management), allowing the acquiring company to avoid hav- ing to hire and train new employees. Further more, the purchased company may already have a good brand name and other intangible assets, ensuring that the company will start off with a good customer base. Purchasing a foreign company can also provide the parent company with easier access to ¿QDQFLQJ EHFDXVH WKHUH PD\ EH OHVV red tape to navigate around. Finally, if a foreign market is at or near its saturation point, buying an existing company may be the only viable way India’s foreign investment panel approved plans by Singapore Airlines and the giant Tata Group to enter a foreign market. to start a new airline. )UDXJKWZLWK3UREOHPV*UHHQ- ¿HOG3URMHFWVLQ,QGLD 7KH FKRLFH EHWZHHQ 0 $ DQG µJUHHQ¿HOG¶,QYHVWPHQWLVQRWDQHDV\ one to make. Both modes have their advantages and disadvantages. Here DUH D IHZ LVVXHV ZLWK µJUHHQ¿HOG¶ projects.

Land acquisition 7KH¿UVWKXUGOHWRZDUGVVHWWLQJXS of a manufacturing set up in India is land acquisition. Most of the land in India is privately owned and as such acquiring the same is a tedious task. The core issues that surround the ac- quisition of land in India are: x Litigations due to inheritance x Multiple sales which have not been properly recorded Managing Director of India's Bharti Enterprises Rajan Bharti Mittal (L) shakes hands with x Pledging of land to local money President of US Wal-Mart's operations in India. lenders

|48| India-China Chronicle ƒ January 2014 x Fragmented holdings x Requirement of cash while dealing with sellers x 'LI¿FXOW\ LQ REWDLQLQJ FRQWLJXRXV land x Land ceiling laws x Tough resettlement and rehabilitation laws

As things stand now, land acquisition in India is full of tough regulations and complexities.

(QYLURQPHQWDOFOHDUDQFH Securing environmental clear- ances for new projects have been a key roadblock for investors in the past due The VEICET (Vodafone Essar-IIT Centre of Excellence in Telecommunications) MOU made to long delays and social hurdles. The between the IIT Kharagpur, Vodafone-Essar Ltd, and Goverenment of India. present clearance process with its se- quential hurdles either forces a project INDIA HAS A MULTI-TIER RI ,QGLD ZLWK PLQLPDO ¿QDQFLDO proponent to give up the venture, as is REGULATORY STRUCTURE FOR exposure and risk. An Indian company reportedly the case with major road that is strong in each of these areas projects of late, or burdens the project INVESTORS. A MANUFACTURER can ensure the success of a project. with time and cost over-runs. Over HAS TO COMPLY WITH ALMOST An alliance with an Indian compa- time, the instrument of Public Interest 70 REGULATIONS AND FILE ny whether by way of a Joint Venture Litigations (PIL) has spawned scores or an acquisition will offer the Chinese of green Non-Governmental Organi- 100 RETURNS A YEAR. RECENT company: zations (NGOs) and interest groups ATTEMPTS TO STREAMLINE x an immediate 'in country' presence; and generated much media atten- PROCEDURES FOR BRINGING DOWN x DQHOHYDWHGWUDGLQJSUR¿OHDQGIDVW tion. This has had an impact on those track marketplace penetration; charged with the clearance process COMPLIANCE REQUIREMENTS (VIZ. x utilization ofalready developed and made them overcautious. SINGLE WINDOW SYSTEMS) HAVE trade links and networks; ONLY BEEN PARTIALLY SUCCESSFUL. x use of existing plants and / or 0XOWLWLHUUHJXODWRU\IUDPHZRUN machinery; DQGFRPSOH[SURFHGXUHV x UHGXFWLRQRI¿QDQFLDOH[SRVXUH Multi-tier regulatory frameworks $GYDQWDJHVRI3DUWQHULQJD/RFDO x circumnavigation ofsome of the and complex procedures, prevailing at &RPSDQ\LQWKH,QGLDQ0DUNHW inevitable ‘red tape’ that could the central, state and local jurisdictions, ,Q HQWHULQJ ,QGLD RQH RI WKH ¿UVW otherwise be both prohibitive and increase the burden on investors and considerations of a Chinese company time consuming deter them from venturing into capital LVKRZWRHQVXUH¿QDQFLDOVXFFHVVLQDQ intensive projects. For example, unfamiliar market. Local partners are India has an exponentially according to the World Bank’s ‘Doing often sought to assist in this pursuit, growing middle class that is reaping Business 2012’ survey (on overall ease and particularly for maneuvering WKH¿QDQFLDOUHZDUGVRIKLJKJURZWK of doing business across the world) around the inherent challenges in the So the domestic market is almost the procedures and costs for starting Indian environment. A local partner straining with opportunities for a manufacturing business in India are brings along its working knowledge ambitious Chinese companies. ‰ among the most cumbersome. of the particular industry’s business practices, the governing statutes /DERUUHODWHGLVVXHV and regulations. It also brings in A major concern for manufactur- the knowledge related to obtaining ers is managing rigid and archaic la- permits. An idea of the company’s bor laws. In India, there are 45 laws standing within the local community at the national level and close to four surrounding the particular project Santosh Pai is a Partner at DH Law Associates, times that at the level of state govern- in that country is another advantage. which is the only Indian law firm to have an active ments that monitor the functioning of Chinese companies willing to work in China practice since 2010. He is based in Beijing and can be reached at [email protected] labor markets. India gets to sense an ‘instant brand’

January 2014 ƒ India-China Chronicle |49| INFOCUS|INDIA-CHINA|DELEGATION Inviting SAIS International for Software Park and Education

CEC Council hosted Chinese delegation from Jinshui invited. The other wing is for India. The third wing is for for (Henan) in November 2013. The visit was related to other countries around the globe. Ideveloping SIAS International Software park. SIAS The delegates visited Ahmedabad, Gujarat to discuss ,QWHUQDWLRQDO 8QLYHUVLW\ D SULYDWH FROOHJH DI¿OLDWHG opportunities in Jinshui, Henan, China. MoU were signed to Zhengzhou University in Henan Province, is developing with Indus University, Gujarat Technological University the Park in China, which will have three wings; one wing is (GTU), India-China Economic & Cultural Council - Gujarat, for- the USA where investors from the Silicon Valley will be Radiant Media Solutions, Designmate & Global Gujarat.

Indus University signing MoU with Sias-Amidi International Software GTU signing MoU with SIAS International University of China Park Nov 2013 Nov 2013

ICEC -Gujarat signing MoU with Jinshui Government Sias-Amidi International Software Park signing MoU with Radiant Nov 2013 Media Solutions

|50| India-China Chronicle ƒ January 2014 Roadshows in Gujarat on October-November 2013

CEC – Gujarat organized roadshows on “Latest business initiatives. The Buddha relics may be displayed at Sichuan opportunities with China” in different parts of Gujarat. as part of a Buddhist tourism circuit between Sichuan IMany companies participated to understand the differ- and Gujarat. ent aspects of trade & investment like Chinese marketing Among other initiatives, an industrial park comprising techniques Chinese technology, How to source from China, 6LFKXDQFRPSDQLHVPD\EHVHWXSLQ*XMDUDW$GLUHFWÀLJKW How to export to China, Dispute redressal system in China between Ahmedabad and the Sichuan capital — Chengdu and many more. may also be launched and there are chances of opening an Indian SME innovation centre in Sichuan. China Council for the Promotion of International The two Councils have also planned a trade and invest- Trade Sichuan Council (CCPIT) ment summit in Chengdu in June 2014 and a 50-member India China Economic & Cultural Council (ICEC) delegation from Gujarat is expected to participate. Gujarat and China Council for the Promotion of International government's Vibrant Gujarat 2015 will also include a road Trade (CCPIT) Sichuan Council signed a Memorandum of show in Sichuan to promote the state in China. Understanding (MoU) in December 2013 to launch several With inputs from Jagat Shah

Ahmedabad - Oct 2013 Rajkot - Oct 2013 Baroda - Nov 2013

January 2014 ƒ India-China Chronicle |51| INFOCUS|INDIA|STATE PROFILE Brisk in Business, High on Tradition: Gujarat Gujarat is ranked as one of the topmost states for foreign investment and boasts of its excellent pro-business infrastructure and governance. With 80 per cent literacy level and a per capita income higher than the national average, the State has performed spectacularly in trade and commerce. From the days of the Harappan dockyard in Lothal to the modern day busy Kandla port Gujarat has always been brisk in business. Besides, being culturally rich, state also beckons lovers of folk tradition, folk music and traditional cuisine.

Sreemoti Sengupta Gujarat is hailed as the hub of Known as the Manchester of the East the pharmaceutical Industry, the and the denim city, six percent of An Investment Destination most developed and cost competitive Gujarat’stotal industrial production Gujarat, situated in the West coast sector with over 3245 manufacturing comes from the textile industry. It is of India, is a hot-spot destination for licenses ‘with 42 per cent of India’s the largest producer (35 per cent) and both investments and industries. Gu- pharmaceutical turnover and 22 exporter (60 per cent) of cotton and jarat has established itself as a leader per cent of India’s exports,” as per a is the third largest denim producer in in various industrial sectors, including report. The state is also called India’s the world. It accounts for 12 per cent textiles, chemicals, petrochemicals, ‘Petro Capital’ State with 30 per cent of textile exportsof India. Jalalpur is a pharmaceuticals and auto. It is home Petrochemicals business. . large town of Gujarat, where several to dairy products, gems and jewellery With a coastline that stretches, small and large textile industrial units among others. Post-liberalization pe- 992 miles (1,596 km) long, marine have been established riod has seen Gujarat’s State Domes- SURGXFWLRQ¿VKHULHVDQGSRUWVDUHWKH tic Product (GDP) rising at an average highlights of the state. Gujarat gives Automobile, Diamonds and More growth rate of 14 per cent per annum the country about 78% of its national *XMDUDW LV RQH RI WKH ¿UVW IHZ in real terms (from 1994–2002).In requirement of salt. It produces about states in India to have encouraged 2009-10, the state’s per capita income 98% of soda ash, a chemical compound private-sector investment. In Vibrant rose from INR 55,140, a year ago to frequently used in manufacturing, Gujarat Global Investors’ Summit, INR. 63,961. ‘This was a rise of 16 per industry, and households. Its capital year 2011, MoUs worth 21 trillion cent’, as highlighted by the state’s so- Gandhinagar is one of the well- (US$ 463 billion) were signed. cio-economic review (2010-11) report. known cotton-textile centers in India. The automobile cluster is growing.

|52| India-China Chronicle ƒ January 2014 Several units of low cost and high HI¿FLHQF\DXWRFDUVDQGFDUFRPSRQHQW units have set up base in Gujarat. For example, CEAT Tyres, General Motors, Tata Motors, Asia Motor Works The State also has the biggest in- dustrial area for ceramic business in Morbi, Himatanagar, which produces around 80 per cent of the country’s gross ceramic production. Gujarat has the distinction of being the second largest producer of gold jewellery and accounts for 85 per cent of the nation- al jewellery production. Surat, a city by GUJARAT IS ONE OF THE of the very ancient temples of India. the Gulf of Khambhat, is a major hub Located in Gujarat,it stands as a of the global diamond trade. As per a FIRST FEW STATES IN INDIA famous landmark in Indian history. 2003 study, 92 per cent of the world’s TO HAVE ENCOURAGED PRIVATE- It is believed that Somraj, the moon diamonds were cut and polished in Su- SECTOR INVESTMENT. IN god, built the Somnath Temple or the rat. The town of Kalol, in Gandhina- Somnath Pattan out of gold. gar district, is an important industrial THE VIBRANT GUJARAT Gujarat has a long and beautiful center. Plastic Giant manufacturer GLOBAL INVESTORS’ SUMMIT, coastline, as well as inviting beach Sintex is as well as Bharat Vijay Mill, resorts, shore temples and blue a huge cloth manufacturer have their YEAR 2011, MOUS WORTH lagoons.. Beaches like Mandvi Beach bases in Kalol. 21 TRILLION (US$ 463 BILLION) (Kutch) Somnath Beach (Somnath) Khambhat, (formerly known WERE SIGNED. THE STATE and many more give the sun-bathers as Cambay,) a city in the Anand the highest delight.No tourist visit district,is known for oil and natural IS HOME TO PHARMACEUTICAL is complete without a stopover at gas production as is Dhuvaran, locat- BUSINESS, AUTOMAKERS, Sabarmati Ashram, which was built by ed near Khambhat in Anand District Mahatma Gandhi in Ahmedabad. with oil and gas based power stations. DIAMOND CUTTERS, TEXTILE Gujarat has a rich cultural heritage. Oil and Natural Gas Corporation Lim- MANUFACTURERS, CERAMIC Gujarati folk music, known as Sugam LWHG 21*&  KDV DQ RI¿FH LQ $QNOH- Sangeet, is a hereditary profession of shwar, a city located ten kilometers BUSINESSMEN AND the Gadhvi and Charan communities. from Bharuch. The city has over 1000 SEVERAL MORE The omnipresent instruments in Gu- chemical plants, producing products jarati folk music include wind instru- such as pesticides, pharmaceuticals, ments, such as Turi, Bungal, and Pava, chemicals, and paints. On the Gulf of Tourism and Culture: string instruments, such as, rktaro, and Khambhat, 50 kilometres southeast Within Gujarat there are a wide jantar and percussion instruments, of Bhavnagar, is the Alang Ship Recy- variety of historic forts, palaces, such as the manjira and zanz pot drum. cling Yard which is considered to be mosques, temples, and places of his- Folk traditions of Gujarat include the world’s largest. torical importance pertaining to In- Bhavai and Rass-garba. Bhavai is a folk Legatum Institute’s Global dia’s struggle for independence. Many theatre which is partly entertainment Prosperity Index 2012 has also of these palaces and forts have been and partly ritualistic, and is dedicated recognized Gujarat as the highest converted into heritage hotels to keep to Goddess Amba. The Rass-garba is a scoring amongst all the states of India tourists close to the vibrant history folk dance which is a part of a celebra- in matters of social capital. of Gujarat. For example, Laxmi Vilas tion of Navratri by the Gujaratis. The Palace, Vadodara is reputed folk costume of this dance is Chaniya to have been the largest pri- choli for women and Kedia for men. vate dwelling built at that time Makar Sankranti is a festival where and it is four times the size of SHRSOH RI *XMDUDW À\ NLWHV1DYUDWUL Buckingham Palace in Lon- Uttarayana, Diwali, Holi,and Tazia are don. World heritage sites like also celebrated with much fervor. Lothal, Dholavira and Cham- So whether you are a business paner are also located within visitor or a causal tourist, be assured, Gujarat or nearby. either way, Gujarat will mesmerize Somnath Temple is one you! ‰

January 2014 ƒ India-China Chronicle |53| INFOCUS|INDIA-CHINA|DELEGATION Checking the pulse Qingdao medical delegation visits Delhi hospitals

WKHGHOHJDWLRQRIWKHSHUFHQWDJHRIHDUQLQJVVSHQWLQGLYLGX- DOO\RQ+XPDQ5HVRXUFHVPHGLFLQHVDQGSXUFKDVHRI1HZ (TXLSPHQW 7KH TXDOLW\ FRQVFLRXV YLVLWRUV ZHUH LQIRUPHG DERXW WKH QDWLRQDO TXDOLW\ FRQWURO DXWKRULWLHV OLNH 1$%+ 1$%/DQG,62FHUWL¿FDWLRQVXQGHUZKLFKWKHKRVSLWDOZDV UHJXODUO\DXGLWHGRQTXDOLW\FKHFNV7KHµFURVVVXEVLG\¶PRG- HO *DQJDUDPGRFWRUVGRQDWLQJSHUFHQWRIWKHLUVDODU\LQ RUGHUWRKHOSWKHKRVSLWDOIDFLOLWDWHFKHDSPHGLFDOVHUYLFHVWR SRRU IDVFLQDWHGWKHJXHVWV7KHRWKHUTXHULHVUDQJHGIURP WD[EHQH¿WVUHFHLYHGWRVXFFHVVIXOUHWHQWLRQRIPHGLFDOVWDII 3URI1DQG\SUDLVHGWKH&KLQHVHFRQWULEXWLRQWRSXEOLVKLQJ medicalresearch papers. The next stop of the delegation was Apollo Hospital, -DVROD+HUH'U2EHURLDQGKLVWHDPDSSULVHGWKH4LQJGDR QGLD&KLQD(FRQRPLFDQG&XOWXUDO&RXQFLOKRVWHGD¿YH team about Apollo’s growth from one single unit in Chennai member delegation from Qingdao Municipal Health Bu- WR D QDWLRQZLGH JLDQW LQ +HDOWKFDUH 6HUYLFHV DWWUDFWLQJ IUHDXDW1HZ'HOKLLQ'HFHPEHU7KHREMHFWLYHRIWKH SDWLHQWVIURPRYHUFRXQWULHV³$SDUWIURP0LGGOH(DVW GHOHJDWLRQ¶VYLVLWZDVWRXQGHUVWDQGKRZ,QGLDQFKDULWDEOH DQG$IULFDZHKDYHSDWLHQWVIURPWKH86DOVRZKRDUHQRW DQGSULYDWHKRVSLWDOVDUHDEOHWRGHOLYHUKLJKTXDOLW\PHGLFDO DEOHWRDIIRUGWKHKLJKFRVWRIPHGLFDOFDUHRYHUWKHUH´VDLG VHUYLFHDWDUHDVRQDEOHFRVW 'U2EHURL)XUWKHUUHVSRQGLQJWRTXHULHV'U2EHURLVDLG 7KHGHOHJDWLRQKHDGHGE\0U&DR

|54| India-China Chronicle ƒ January 2014 INFOCUS|INDIA|EXHIBITION HAAT OF INDIA The Exposition & Investment Summit 21-23 December 2013, Bhopal, Madhya Pradesh (India)

n order to realize the tremendous 75 Chinese industrial establishments Chinese Special Economic Zone (SEZ), potential of its rural non-farm from various sectors set up their agro farm technology zone, textile and Ieconomy to contribute to growth stalls in the Haat along with Indian apparel park among others. and employment in the state, the gov- participants. The occasion was graced by State ernment of Madhya Pradesh organized The objective of the Summit was Chief Minister Shri Shivraj Singh ‘Haat of India’ – the Exposition and to bring Foreign Direct Investment Chouhan, Chinese ambassador to Investment Summit – with China. The (FDI) through a mass scale production India, H.E. Wei Wei and Chief Secretary aim of the Summit was to explore and model and to establish linkages with of Madhya Pradesh, Shri Antony exchange meaningful collaborations rural non-farm sector for ‘inclusive De Sa. Other dignitaries included towards large-scale investment in the development.’ Additional Chief Secretary, Panchayat manufacturing sector with China. This interactive and creative and Rural Development, Ms. Aruna The three-day event, from platform with focus on eliminating Sharma, Vice President of Huawei December 21 to December 23, 2013 rural poverty and employment for Telecommunications India Pvt. Ltd., was held under the aegis of Madhya the youth in the state, witnessed the Mr. Rajiv, ICEC Council President Pradesh Livelihood Forum with the signing of 56 MoUs with the investor Mr. P.S. Deodhar, ICEC Council cooperation of India-China Economic companies from China. The sectors Secretary General Mr. Mohammad and Cultural (ICEC) Council. About included tourism development, Saqib among others. ‰

Lighting the lamp to mark the inauguration of the Haat Festival

January 2014 ƒ India-China Chronicle |55| INFOCUS|INDIA|EXHIBITION

His Excellency Wei Wei, Chinese Ambassador to India speaking at Dr. Aruna Sharma Additional Chief Secretary & Development the inaugural ceremony Commissioner, Department of Panchayat and Rural Development addressing the audience at the inaugural ceremony

Mr. Antony DeSa, Chief Secretary, Government of Madhya Pradesh Mr. Weimin Yao, Vice President, Huawei India addressing the at the inaugural ceremony audience

Mr. P S Deodhar, President, ICEC Council speaking to the Dignitaries at the dais at the Inaugural Ceremony participants

Hon’ble Chief Minister, Shri Shivraj Singh Chauhan being At the Valedictory Ceremony welcomed in the event

|56| India-China Chronicle ƒ January 2014 Hon’ble Chief Minister addressing audiences at the Valedictory Hon’ble Chief Minister interacting with Chinese exhibitors Ceremony

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

Mr. Wang Hejun, Economic and Commercial Counsellor, Chinese Hon’ble Chief Minister is welcomed by Mr.Lalit M Belwal, CEO, MP Embassy in India with Dr. Aruna Sharma Rajya Ajeevika Forum

An audience posing a question for dignitaries Chinese audiences listening with rapt attention

January 2014 ƒ India-China Chronicle |57| INFOCUS|INDIA|EXHIBITION

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

‘Expression of Interest’ signing ceremony on December 22nd, 2013 Networking at the ‘EOI’ Signing Ceremony

Discussions are on with one of the groups in the signing ceremony Mr. Chen Si, ICEC China representative presenting a Pan China picture

|58| India-China Chronicle ƒ January 2014 Some paint manufacturing companies also participated Interacting with visitors

Chinese taking a look at Indian exhibits Artists from Jhabua district performing Bhagoria Dance

Chinese participants of Haat joining the dance

January 2014 ƒ India-China Chronicle |59| INFOCUS|INDIA|EXHIBITION

Chinese participants for photo ops Some more fun and frolic

Visitors from India thronging the booths Visitors at a Chinese booth

Interested audiences asking questions Taking a stock of items

A Chinese cloth manufacturer answering queries Chinese audiences taking deep interest in Indian bangles

|60| India-China Chronicle ƒ January 2014 More interest in being generated Answering to a query from an interested visitors

Warming up to visitors early morning on December 22, 2013 A brief moment of pause before visitors throng

Taking a moment off Re-setting the items

An Indian exhibitor displaying their wares The demand for Indian wares was high

January 2014 ƒ India-China Chronicle |61| Exhibitions&Trade Shows In India x In China INDIA EXHIBITION DATE VENUE EVENT PROFILE CONTACT PERSON

HOSTS 01 - 03 February Mumbai, India This is India's first and largest hospitality trade show, HOSTS, since its Pallavi Kashyap 2014 inception in 1992. HOSTS 2014 promises a presence to provide sourcing Tel: +91-22-65169662 solutions to over 100,000 hotel rooms that are supposed to be coming up in the country over the next few years.

Times Franchise 01 - 02 February Pune Sun N Sand The Times Franchise Expo-Pune will provide a platform to India's Biggest Mr. Vishwesh , 091 20 Expo-Pune 2014 Hotel, Pune, India B2B Marketplace. The exhibition will attract many visitors form different 25668118 parts of world.

Pune Famdent Show 01 - 02 February Auto Cluster Pune Famdent Show is a leading event that helps in the development of Famdent Events, 2014 Exhibition Centre, the dentistry industry. Leading ideas and new services associated with the (91)-(22)-65049697 / Pune, India sector will be showcased at the event to enhance the business opportunities 26742425 and new developments that have been produced in the sector.

India International 01 - 02 February Park Plaza This event showcases furniture and fixtures, home furnishing, home decor, Neha Singla Decorex Home Show 2014 Chandigarh, India wall papers, textures, floorings, paintings and artifacts, garden furniture, Tel: +91-9041619666 swings, plants, lights, fountains etc..

Save Power 01 - 03 February CIAL Trade Fairs & This is the exhibition in Kerala showcasing more than 100 Renewable Energy Mr. Raj Kapoor Singh, 2014 Exhibition Centre, companies in the fields of Solar, Wind and Bio Gas Energy from all over India Tel: +91-80- Cochin, India under one roof. This is an excellent opportunity for the exhibiting companies 25201687/88/89 to promote their latest products and innovative solutions in Kerala.

Rice Pro-Tech Expo 01 - 03 February Indian Institute of The show encourages the exchange of valuable information and Business Empire 2014 Sugarcane Research knowledge about the industry and is a wonderful platform and leading Exhibition , (91)-(175)- Lucknow, India destination that informs the professionals about the new technologies and 2302254 equipments that have been developed in the sector.

Coir Kerala Fair 01 - 05 February EMS Stadium, The main aim of this event is to explore and expand the international Event Manager , Tel: 91- 2014 Alappuzha, India market for coir products from Kerala and to encourage the use of latest 471-2730162 machinery and technology in the coir production sector.

Silk Mark Expo 01 - 09 February Jammu, India The main aim of this event namely Silk Mark Expo Jammu is to provide a Silk Mark Organisation of Jammu 2014 significant platform for the Authorised Users so that they can gather here India , 91-80-26282114 to showcase and sell an array of intricate silk designs produced by the silk manufacturers or traders.

SATTE Mumbai West 03 - 04 February Nehru Centre The event will help various renowned tour operators and travel agents to Cross Section 2014 Mumbai meet the suppliers of the products. The suppliers will be coming from all Publications Pvt. Ltd. , Mumbai, India over Indian and across the world. SATTE Mumbai West 2012 will broadly 91-11-43784444 inculcate 1000 visitors from the western region.

Air Cargo India 04 - 06 February Bombay Convention This is the 5th edition of the Biennial International Air Cargo event Priyo Patra , 91-22- 2014 & Exhibition Centre consisting of Exhibition and Conference running concurrently. It attracts 27570550 / 27575055 (BCEC), Mumbai, International Players from the Air Cargo industry to exhibit their products India and services. The event has the distinction of being the only one to be featured in the India Report of the BBC World News.

Internet Retail Expo 05 - 07 February Epicentre, Gurgaon, It will showcase the latest Brands, Products, Retail Equipment, Display Mohit Taneja , 2014 India & Storage and Security technology and services for the retail industry, 9990903000 thereby bringing UK multichannel and online retailers the very latest technology, services & solutions to drive their digital business forward.

IAAPI Amusement 05 - 07 February Bombay Convention This B2B event will attract industry stalwarts and key market players Aarti Chavale , 91-22- Expo 2014 & Exhibition Centre from the amusement industry to showcase their innovative products 65231643 (BCEC), Mumbai, and services. Bowling alleys, computer systems and software, games and India devices, playground equipments, toys and vending machines are some of the important products which will be at display in this show.

Retail Leadership 05 - 06 February Rennaissance Hotel This will be the ideal platform for participants to increase their networking Nilima Ghosh , 88- Summit 2014 and Convention opportunities as this event will bring together CEOs, entrepreneurs and 79434268 Center, Mumbai, RAI members under one roof. Retail community from all around India will India be participating in this event and will learn about the best practices and extensive possibilities associated with this sector.

Hpci Congress India 05 - 06 February Bombay Convention The show will exhibit a lot of new products and services related with the Indo-German Chamber 2014 & Exhibition Centre ingredients required for home and personal care. All the professionals and of Commerce, 011- (BCEC), Mumbai, other experts of the sector will be present at the show. 47168822 India

|62| India-China Chronicle ƒ January 2014 CHINA EXHIBITION DATE VENUE EVENT PROFILE CONTACT PERSON China Fish 10 - 12 February New China International China International Fishing Tackle Trade Exhibition is a Li Jiang, 86-10-58203101 2014 Exhibition Center, Beijing, commercial fishing event dedicated to the needs of the India commercial fishermen. It continues to attract visitors from around the world. China International 17 - 19 February China Import & Export Since the first debut in 2006, AAITF rapidly grew in the Rita Lee , 86-20-38219963 Automotive Aftermarket 2014 Fair Pazhou Complex, recent years to be the world's NO.1 exhibition of this Industry and Tuning Guangzhou, China industry. Compared with its first area of 3,000 square (Guangzhou) Trade Fair meters in 2006, AAITF 2011 has developed into 220,000 square meters, which has set a new record for the auto aftermarket trade show worldwide. China (Shanghai) 18 - 20 February Shanghai World Expo The fair is approved by the Ministry of Commerce and is International Optics Fair 2014 Exhibition And Convention sponsored by the China National Light Industry Council. Center, Shanghai, China Organized at The World Expo Theme Pavilion, the title of show is enough to reflect the prominence and vitality which it enjoys among its visitors and exhibitors. With presence of more than 780 exhibitors,the leading players from USA, China, Japan etc, become part of this gala fair. D.PES Digital Printers & 18 - 21 February Poly World Trade Expo Approximately 600 printing & engraving enterprises Lisa Gao , 0086-20-38023852 805 Engravers Expo 2014 Center, Guangzhou, China will attend this expo, and the exhibition area will cover 4 halls , of about 55,000 square meters.The most exquisite engraving techniques and the most advanced equipment of printing industry globally will be displayed together at this exhibition. All the industry professionals are welcome to attend this show. Personal Care & 19 - 21 February Shanghai New International PCHi is a global trade show for the personal care and Lynn XU ,86-10-84556677 Homecare Ingredients 2014 Expo Centre(SNIEC), home care community. It is held annually in China. Shanghai, China The innovation-led event attracts manufacturers and ingredient suppliers from all over the world, and provides a quality platform for sourcing new ingredients, gaining insight into global trends,and networking with world-class experts. ISPO China 19 - 22 February China National Convention Organizing by Messe Munchen GmbH, the ISPO China is Liu Jing , 86-10-84600388 2014 Center(CNCC), Beijing, India an international show for the sports industry.The event will showcase various products/services of the related sector and will provide enormous opportunities to explore industrial place throughout the globe. Alpitec China 19 - 22 February China National Convention Alpitec China, International Tradeshow for Mountain- Juju Zhu , 86-21-50580707 2014 Center(CNCC), Beijing, and Winter Technologies, is an important meeting China point for operators of ski resorts. Starting Feb 19 2014, ALPITEC will take place annually in China, where it will present itself together with the winter sport trade fair ISPO China to create a complete platform for the Chinese winter sports market. China International Auto 20 - 23 February China International China International Auto Accessories Electronics, Ruby Yang , 86-10-57970888 Accessories Electronics, 2014 Exhibition Center, Beijing, Tuning and Care Products Expo is one of the most Tuning & Care Products China comprehensive automobile sector trade shows in China. Expo Held in Beijing for 4 days at the China International exhibition center, this show focuses mainly on China's auto aftermarket sector, and attracts more than 6000 professional exhibitors from various parts of the region. Guangzhou Vehicle 20 - 21 February China Import & Export Guangzhou Vehicle Cooling System and Allied Event Manager , 86-20-34095177 Cooling System and Allied 2014 Fair Pazhou Complex, Equipment Exhibition will take place in Guangzhou, Equipment Exhibition Guangzhou, China China for a period of two days. In this international trade show all kinds of products and services related to automotive industry and various kinds of vehicles will be given supreme importance. Technical persons and other professionals related to this field will attend this event and will get a scope to improve and enhance their knowledge. Sign China Expo 23 - 26 February China Import & Export SIGN CHINA pioneered the combination of indoor and Yan Zheng , 86-20-38106261 2014 Fair Pazhou Complex, outdoor format printers, engravers, exhibition and Guangzhou, China display equipment, as well as LED displays, components and lighting into a single comprehensive sourcing platform for the sign industry. Nine years of global promotion and brand building has made it one of the most high-profile and influential sign events in the world.

January 2014 ƒ India-China Chronicle |63| FOLLOW US

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SSepeeptep pteptemeem mbeber 2013 3 x ` FORWARD ` 100 TO GGO MUSTFO WEW M BABridgingBBr JackieJaJa borders Chan OOKK ridi ckck LOOKLOO BACKdgig iei er backwb ngn C ThThee farth for offscreenoff g hah thhee farther hurchif AGRI-BUSINESS fsf b a NoodlesNoodl n odle s be t Entanglednntantangleddles oro taaangledess crc WWiWinston Chcan't steepe r r ssaaid. This c eee ded ations INTERVIEW e e SSh hhaaan rrs aaF Freeng Tra CChina rela FFre gghghahhaiha n s eee ai w eTTraT wDeng Xiaoping ded ZZoneillill s setse uup s eZZoZoneetttu up oonne upup n e Higher Educatio r Breaking EDUCATION the Barrie CatchingCatchaatchi u ChChinah on e Two Locomotives Higher Education inana oning e u a o Chugging ne p with wiwithw edudducatiducat on Track ucatic h For futher details, Plz. contact us at B-59, South Extension - II, New Delhi - 110049 Email: [email protected] Web: www.icec-council.org