Is the -Pakistan What Are ’s Economic Corridor a Concerns about the Threat to India? BCIM Economic Corridor?

VOL.8 NO .3 | MAY - JUNE 2017

国内零售价：10 元 / India 100 www.chinaindiadialogue.com CONTENTS CHINA-INDIA DIALOGUE Administrative Agency: 主管： China International 中国外文出版发行事业局 NEWS / p.02 Publishing Group （中国国际出版集团） Publisher: 主办、出版： China Pictorial 人民画报社 Address: 地址： OPENING Belt and Road: Sharing Opportunities 33 Chegongzhuang Xilu, Haidian, 北京市海淀区 ESSAY 04 Beijing 100048, China 车公庄西路33号 Belt and Road: India’s Reluctance Could Email: Be to Its Detriment / p.11 [email protected] President: Yu Tao 社长：于涛 Editorial Board: 编委会： COMMENT Yu Tao, Li Xia, 于 涛 、李 霞 、 He Peng, Wang Lei , 贺 鹏 、王 磊 、 It’s High Time for China and India to Rebuild Climate Yu Jia, Yan Ying 于 佳 、闫颖 Cooperation / p.14 Executive Editor-in-Chief: Li Xia 执行总编：李霞 Editorial Directors: 编辑部主任： Wen Zhihong, Qiao Zhenqi 温 志 宏 、乔 振 祺 Can the Dragon and the Elephant Dance Together? / p.18 English Editor: 英文定稿： Xu Mingqiang 徐明强 Editorial Consultants: 语言顾问： SPECIAL REPORT Scott Huntsman, Nicholas Lanigan 苏 格 、丁 文 Editors and Translators: 编辑、翻译： Doklam Standoff: India’s Obsession with Pursuing “Absolute Gong Haiying, Hu Zhoumeng, 龚海莹、胡周萌、 Liu Haile, Li Zhuoxi, 刘 海 乐 、李 卓 希 、 Security” / p.22 Li Yiqi, Mithila Phadke, 李 艺 琦 、弥 萨 罗 、 Wang Dongmei, Wang Shuya, 王 冬 梅 、王 舒 雅 、 Xu Shuyuan, Yin Xing, 许 舒 园 、殷 星 、 Zhang Xue, Zhao Yue, Zhou Xin 张 雪 、赵 月 、周 昕 Editor-Visuals & Photographs: 视觉编辑： Li Zhuoxi 李卓希 STRATEGY Designed by: Alinea Productions 设计：Alinea Productions Web Maintenance and Graphic 网络运维与图表 Design Specialist: 设计专员： WHAT BELT AND ROAD FORUM FOR Andrey Maleev 安德烈 Remittance to: Publishing and 邮购收款人： INTERNATIONAL COOPERATION MEANS FOR Distribution Department, 人民画报社 CHINESE COOPERATION IN SOUTH ASIA 28 China Pictorial 出版发行部 Telephone 电话: +86-10-68413849, +86-10-68412166 Postal Code 邮编: 100048

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Startups Skyrocket / p.36 Online Silk Road / p.54 Advertising Business License: J.H.G.S. Advertising Business Registration No.20170199 CASE STUDY YOUNG VOICES Pricing: ¥10 / India ₹ 100 Empowering India / p.40 Learning in and out of Class: Studying in China and Battling the Imbalance: India / p.58 India’s Growing Trade Deficit with China / p.43 COLUMN DISCUSSION Chinese Take on Indian VOL.8 NO.3 | MAY - JUNE 2017 Buddhism / p.62 What Are India’s Concerns about Visit China-India Dialogue on the Internet: the BCIM Economic Corridor? / p.46 www.chinaindiadialogue.com BOOKS Follow us on: BCIM-EC: Reviving the Traditional India: Roads / p.50 A Floating Subcontinent / p.64

Consultants of the China-India Dialogue Advisory Board

Alka Acharya Professor and director of the Institute Ma Jiali Deputy Director of the Center for Tarun Vijay Member of Parliament, Rajya Sabha, of Chinese Studies, Delhi International Strategic Studies of China Reform Forum member of Parliamentary Standing Committee on Hu Shisheng Director of the Institute of South and Ma Weigong Consultant of the National Institute Defence, member of Parliamentary Consultative Southeast Asian and Oceanian Studies under China of Strategic Communication at Peking University Committee on External Affairs, president of Institutes of Contemporary International Relations and former deputy editor-in-chief of China Radio Parliamentary Group on India China Friendship. Li Daokui Economics professor and director of the International T. C. A. Rangachari Former Indian Ambassador to Center for China in the World Economy at Tsinghua Sun Shihai Former director of the Chinese France and Germany, dealt with India’s relations University Association for South Asian Studies and former with China for over 15 years in the Ministry of Lin Minwang Research fellow and Deputy Chief deputy director of the National Institute of External Affairs. of the Center of South Asian Studies, the Institute International Strategy under the Chinese Academy of Social Sciences Yang Yifeng Director of India Broadcast of South of International Studies at Fudan University, and a Asia Center, China Radio International research fellow with the Collaborative Innovation Sun Yuxi Former Special Envoy of the Chinese Center of South China Sea Studies at Nanjing Foreign Ministry on Afghan Affairs and former Zhang Wenmu Professor of the Center for Strategic University. Chinese ambassador to India Studies at Beihang University CHINDIA NEWS CHINA-INDIA DIALOGUE

Indian Border Troops coordination with the RGOB, Indian Indian Association for Dangal, the largest Indian Box personnel, who were present at general area Overstepped China-India Doka La, approached the Chinese construction Overseas Chinese Office Hit in China Boundary at Sikkim Section party and urged them to desist from changing Established in New Delhi The Indian film Dangal, starring Aamir Khan, has the status quo. These efforts continue.” The won great popularity in China with box office sales of statement also explained Indian troops’ action: On May 19, the Indian Association for Since mid-June, Indian troops have over 1 billion yuan, the largest ever box office earnings “Such construction would represent a Overseas Chinese was founded in New for an Indian film. First released on May 5, the movie crossed the border with China in an significant change of status quo with serious Delhi. Qiu Kaiyong, a renowned Chinese attempt to block a road construction in has been appreciated by Chinese fans due to its security implications for India.” expatriate in India and the head of an excellent content and production. Dangal’s box office Donglang (Doklam) area by the Chinese The Sikkim section of the China-India overseas Chinese group there, became the side. This is the first time that Indian revenue in China has surpassed that of its home boundary was defined by the Convention first chairperson of the association. country, making China its largest overseas audience. troops have infringed on the settled Between Great Britain and China Relating to Sikkim Nineteen representatives of overseas boundary between two countries, and it and Tibet in 1890. The Indian government has Chinese from all over India, including caused a dangerous standoff between repeatedly confirmed that agreement in New Delhi, , Mumbai and two armies. written forms since India’s independence, Bangalore, became members of the India and Pakistan Become Full On June 26, China’s Ministry of National recognizing that it concurs with China on the council. Qiu said that the association Members of SCO Defense and Ministry of Foreign Affairs boundary alignment at the Sikkim section. would boost Chinese-language education responded to media questions about the Moreover, China has held 24 rounds of talks on in India and help the Chinese in India The 17th Shanghai Cooperation Organization border confrontation. In fact, the Ministry boundary issues with Bhutan since the 1980s. adapt to and become part of (SCO) summit was held in Astana on June 9. During of Foreign Affairs provided information on Although the boundary between those two Indian society, thus the summit, India and Pakistan were granted full the incident for five consecutive days. countries has yet to be settled, both sides have promoting China-India membership of the organization. Founded in 2001, According to China, the road reached basic consensus on the actual situation relations. the SCO now counts China, Kazakhstan, construction in Donglang (Doklam) area is and the alignment of the boundary. China and Kyrgyzstan, Russia, Tajikistan, Uzbekistan, India a sovereign act within its own territory, Bhutan have no disagreement on the point that and Pakistan as its full members. and India has no right to interfere. The the Donglang (Doklam) area belongs to China. The expansion of the SCO carried historic unilateral provocation by Indian troops has significance as India and Pakistan became full violated consensus and relevant members of the bloc, SCO leaders said. agreements on border issues signed by Granting India and Pakistan membership of the Chinese and Indian governments. China is SCO will boost the organization’s development and committed to developing bilateral relations potential, according to a joint press communiqué with India, but it will also firmly defend its released after the summit. legitimate rights and interests. China Exhibition of Pictures of Hundreds of Indians requires India to respect the boundary Donate Blood in Shanghai convention and China’s territorial Dr. Dwarkanath Kotnis Held BRICS Film Festival Held in China sovereignty and demands that it Under the theme “Love Shanghai, the immediately withdraw border troops that in India Life Gift from India”, the fifth Indian The second BRICS Film Festival was held in have crossed into Chinese territory. On May 4, an exhibition of pictures of Dr. blood donation drive attracted nearly two Chengdu, capital of southwestern China’s Sichuan On June 30, India’s Ministry of External Dwarkanath Kotnis was held in Delhi. This hundred Indian nationals to donate blood Province, from June 23 to 27, with filmmakers and Affairs released a statement after nearly a year marks the 75th anniversary of the at the Shanghai Blood Center on May 28, government delegates from all five BRICS member week-long silence, saying that the road doctor’s death. The exhibition displayed who donated 216 bags of blood. This is an states attending the event. Where Has Time Gone?, construction was “inside” Bhutanese many handwritten letters, pictures of him and annual activity held ahead of June 14, jointly shot by directors from the five countries, territory and that Bhutan had “urged a precious profiles of his great support to the World Blood Donor Day, with the purpose debuted at the festival. A total of 33 movies from the return to the status quo as before 16 June Chinese People’s War of Resistance Against of promoting friendship between Chinese five countries were shown in movie theaters in 2017.” The statement reads: “In keeping Japanese Aggression. Dr. Dwarkanath Kotnis, and Indian people. The annual activity was Chengdu over 200 times, attracting a great number with their tradition of maintaining close who came to China in 1938 as a member of an first held in 2013, and has seen a growing of fans. A National Film Day was held, with the consultation on matters of mutual interest, Indian medical aid team, is well remembered number of Indian blood donors. It is also theme of “One Day, One Nation, One Movie Culture”, RGOB and the Government of India have in China for his selflessness and untiring attended by Indians living in cities in an attempt to showcase the film culture of each been in continuous contact through the support for the Chinese people. He died of adjoining Shanghai. Over 556 Indians have participating country. The next BRICS Film Festival unfolding of these developments… In illness in China in 1942 at the age of 32. donated 744 bags of blood. is scheduled to be held in South Africa in 2018. 02 03 OPENING ESSAY CHINA-INDIA DIALOGUE

Belt and Road Sharing Opportunities

By Liu Jinsong

May 15, 2017: Chinese President Xi Jinping and foreign leaders exit the Yanqi Lake International Convention and Exhibition Center after the first meeting of the Leaders’ Roundtable Summit at the Belt and Road Forum for International Cooperation. by Xu Xun The and CPEC aim at promoting economic to today’s reconstruction of fishing nets are not only a the help of monsoons. This cooperation and connectivity. They are not related to, nor do they Indian history and the study means of livelihood for local was the prelude to today’s affect sovereignty disputes. China’s position on the Kashmir issue has of the ancient Silk Road. people, but have become globalization. China and India A hundred years before landmark tourism attractions. are the pioneers of economic not changed either. Xuanzang, the guru Buffalo, cotton, spinach, globalization. Bodhidharma from southern Buddhism, Gandhara arts, Today’s BRI stretches in India came to China along Indian astronomy, medicine two directions—the land resident Xi Jinping realize an early harvest of the China. He set out from the the Maritime Silk Road. and science were spread to and the sea, roughly similar hosted the Belt Belt and Road Initiative (BRI). Chang’an City of China, He developed Chinese countries along the ancient to the ancient Silk Road and Road Forum The event ushered in a new went through the Xinjiang Zen Buddhism and played Silk Road, including China. network. The Initiative is the for International stage and left a deep mark in region of China, Central an important role in the Similarly, China’s silk, inheritance and upgrade of the CooperationP from May 14 history. Asia, Afghanistan, Kashmir flourishing of Buddhism in porcelain, peaches, pears, tea, ancient Silk Road, as well as to 15 in Beijing. Leaders I have noticed recently that and finally reached Nalanda China. The Shaolin Temple, art of printing, gunpowder the revival of the ancient Silk from 29 countries and the Indian media, scholars and University. Xuanzang stayed where he worked as an abbot, and paper vastly enriched Road and Asia. Both India and UN Secretary-General think tanks have paid more and studied in India for 17 is well-known among Indian Indian people’s lives and China are the major founders attended the Forum. In attention to the Initiative, years, traveled across India friends for being the cradle of changed India’s economic and of, and contributors to, the addition, delegates of and have also had some and returned along the Silk Chinese Kungfu. social history. ancient Silk Road, and forged various social sectors from debates. The core questions Road to China. Over 600 years ago, the In the more than ten the Silk Road spirit of peaceful more than 130 countries they raise are: whether India Xuanzang wrote a book Chinese envoy of the Ming centuries before the Western cooperation, openness and and over 70 international should join the BRI, and titled Report of the Regions Dynasty (1368-1644), Zheng colonists invaded India inclusiveness, mutual learning, organizations participated whether it is good or bad for West of Great Tang, which He, led expedition fleets to and China, Chinese, Indian mutual benefit and win-win in related meetings under India. gives a precise depiction of the West seven times and and Arab merchant ships results. The two countries the framework of this First of all, from a historical local conditions, customs berthed in Kerala Calicut were navigating intensively should resume their common Forum. This Forum featured and cultural perspective, and religious environments State’s six times. In nearby between the South China efforts and continue to work to cooperation and win-win India has always been on the of dozens of kingdoms in the Cochin, local people are still Sea, the East China Sea and revive the Silk Road. results. Delegates reviewed Belt and Road. Indian subcontinent. The building and using fishing the Indian Ocean and a huge Second, from the past achievements and Monk Xuanzang is well book is incredibly accurate. nets learned from Zheng He flow of people, information perspective of reality, India chartered the future course to known in both India and Xuanzang contributed greatly and his fleet. These Chinese and trade occurred with has already been closely 04 05 OPENING ESSAY CHINA-INDIA DIALOGUE linked to the BRI. of Resolution 2344 on obligations of documents and The idea of the on developing six economic each other. However, they Before the Initiative was Afghanistan issues by the UN treaties and will contribute corridors: the new Eurasian are compartmentalized and put forward, China, India Security Council in March to the development of the Belt and Road Land Bridge, and the China- fragmented and regional and other countries had 2017 called for consensus SCO in the future. China Initiative is a Mongolia-Russia, China- countries have always been reached consensus on the on assisting Afghanistan welcomes and congratulates Central Asia-West Asia, yearning for large-scale -China-India- and strengthening regional India’s membership. The well-perceived China-Pakistan, Bangladesh- and in-depth cooperation (BCIM) Economic economic cooperation Joint Communiqué of Meeting initiative of lasting China-India-Myanmar and across Europe, Asia and Corridor, established inter- through the BRI. The of Council of Heads of SCO China-Indochina Peninsula Africa by connecting all governmental cooperation resolution urged all Members indicated that “the importance based economic corridors. kinds of regional cooperation mechanisms and held a series parties to provide security leaders reiterated their on many years of 7: The Initiative mainly mechanisms. The BRI meets of meetings. The BCIM safeguards for the Initiative, support to the initiative of the covers seven plates: Northeast this need. Economic Corridor is listed as strengthen the synergy of Silk Road Economic Belt and practice. Asia, Southeast Asia, South For a long time, the eastern one of the six land economic development strategies agreed to continue the efforts Asia, Central Asia, West Asia and western wings of the corridors of the BRI. and push forward the to implement the initiative comfort level, in order to and North Africa, Russia and Eurasian continent have been In 2013, President Xi cooperation on connectivity. as one of the approach achieve regional integration, Europe, and other areas. The rich, and the coastal areas of Jinping proposed the The UN Economic and of creating advantage lasting peace, and prosperity. Initiative is open to all sharing countries are also relatively BRI as well as the Asian Social Commission for Asia for regional economic 2: Take the Asian and similar goals. It mainly richer. This is the result of Infrastructure Investment and the Pacific and the UN cooperation”. European continents and focuses on the Eurasian colonial rule by the West and Bank (AIIB), which aims to Development Programme Third, the BRI does not their adjacent seas as the continent, yet is not limited in line with economic rules. provide financial support for both signed cooperation refer to just one “Belt” or core, the land and the sea as to the area of the ancient Silk This has caused the economic infrastructure construction agreements with China on one “Road”; it is a network the two wings, and plug two Road and Eurasian countries. “cave-in” of the interior of in the countries along the the BRI. of regional cooperation and wings for the Asian “Garuda”. 8: Infrastructure connectivity, the Eurasian continent and routes of the BRI. India China is strongly pushing a systematic project of global 3: The Initiative should industrialization, exploration the inland areas of countries. gave a positive response for the integration of significance. be jointly built through of energy sources, economic Regional economic imbalance to China’s proposal and development strategies The Belt and Road consultation to meet the and trade cooperation, financial is thus created and worsened. held the second round of between the BRI and the Initiative is a general term interests of all. It was initiated cooperation, cultural exchange, How can one bring the negotiation working group Shanghai Cooperation for the Silk Road Economic by China, but will not be eco-environmental protection advantages of the inland areas, meetings in Mumbai. India Organization (SCO) and its Belt and the 21st-Century monopolized by China. The and maritime cooperation optimize the distribution contributed US$8 billion and member states. India has Maritime Silk Road, which relationship of China and are eight priority areas for of economic elements and became the second largest become an official member were announced by Chinese other countries concerned is implementing the Initiative. fundamentally solve problems shareholder at the AIIB. state of the SCO. It has President Xi Jinping during not that between donor and Fourth, the idea of the BRI like poverty and extremism in The unanimous adoption thus been bound by the his visits to Kazakhstan and recipient. It is different from is not something coming Asia? The BRI is no doubt a Indonesia in 2013. the Marshall Plan in nature. out of the blue. It is a well- useful attempt. This magnificent Initiative 4: The Initiative will have perceived initiative of lasting Asia is rich in savings May 20, 2017: An Indian student (left) paints Mehendi on the hand of a Chinese may be briefly summarized a direct influence on 4 billion importance based on many and strong in demand for student during the JSU 2017 International Culture Festival held in Jiangsu from number “1” to number “8”. people in Eurasia. So far, the years of practice. It will not investment. At the same time, University. [IC ] 1: Jointly build one Initiative has been supported only benefit China, but also Asia faces a financing gap in community of shared by over 100 countries and countries along the routes. infrastructure construction, interests, development, international organizations, After the Cold War, Asian which amounts to US$1.7 responsibility and destiny. including developing regional cooperation and trillion per year. However, the The community will be countries such as Mongolia, inter-regional cooperation financing resources available different from the European Nepal and Malaysia, as well began to take off, forging new from the treasuries of regional Union (EU) which is as developed ones such as the mechanisms such as the Asia- countries and multilateral characterized by a transfer UK, Germany and France. Pacific Economic Cooperation financial institutions can of sovereignty and high- 5: Promoting policy (APEC), the Asia-Europe meet less than 15 percent of level institutionalization; coordination, infrastructure Meeting (ASEM), China- the demand. The BRI and instead, it is based on respect connectivity, unimpeded Japan-ROK, East Asia the associated AIIB and the for sovereignty of countries, trade, financial integration Cooperation and the Shanghai are attempts upholds the principles of and people-to-people bonds Cooperation Organization. to foster new demand by openness, equality and a which are the five major goals These mechanisms have providing effective supply, step-by-step approach, and of the BRI. played their respective roles accelerating infrastructure accommodates each other’s 6: The Initiative will focus and are complementary to building, and turning savings 06 07 OPENING ESSAY CHINA-INDIA DIALOGUE into effective investment. In talk in promoting the BRI, My point is, if this is the Article 6 of this Agreement an “Asian Age”. cooperation and free trade. this way, new driving forces but takes its commitments only reason that affects reads as follows: The two China and India have It is a typical model of the for economic growth can seriously and puts in a lot Indian friends’ will to join Parties have agreed that after established a strategic sharing economy, which could be formed and the world of real work. China’s direct the BRI, this concern could the settlement of the Kashmir partnership for peace and help India integrate further economy can be rebalanced. investment in countries along be resolved. dispute between Pakistan prosperity and a closer into the global industrial and To get rich, you need the BRI routes exceeds US$50 Reason 1: Transportation and India, the sovereign developmental partnership. value chain. roads and bridges. There billion, and a number of is the basis of the CPEC, and authority concerned will China always adheres to the India is promoting “Act have been connectivity landmark projects have been the connectivity between reopen negotiations with the Five Principles of Peaceful East”, “Think West”, projects across Eurasia for launched. In 2016, China’s China and Pakistan will Government of the People’s Coexistence, and respects the “Sagarmala Project”, decades, but there are still a trade in goods with countries unavoidably pass through the Republic of China, on the the reasonable concerns and “Diamond Quadrilateral” and lot of unfinished roads and along the BRI routes was Kashmir area on the Pakistan boundary as described in interests of the Indian side. the “North South Transport institutional hindrances to nearly US$1 trillion, and its side. It’s known to all that Article Two of the present India plays an important Corridor”, all of which have cross-border transportation. growth rate overtook that such transportation could Agreement, so as to sign a role in the process of global connectivity as the core. For example, China and of China’s overall foreign not detour through India or formal Boundary Treaty multi-polarization, and China If those policies could be India, each with over 1.3 trade. Chinese businesses Afghanistan. to replace the present welcomes India to play a connected with the BRI, they billion people, are still not have established 56 economic Reason 2: the Karakorum- agreement... bigger and more constructive would certainly achieve the connected by railways. The and trade cooperation zones Kunlun Road between China Reason 4: The CPEC is an role in regional as well as effect of “one plus one equals Stilwell Road, built during in over 20 countries along and Pakistan was built in the economic project focusing on global affairs. The sky and more than two”. World War II, does not play the routes, with a total 1960s and put into use in the development and prioritizing oceans of Asia are big enough India has lot of remarkable its intended role. There are investment of over US$1.5 1980s. Therefore, it’s no fresh energy and transportation for the dragon and the tourism resources, and only around 40 direct flights billion, contributing almost news for India that China- infrastructure, which is elephant to dance together, many of them are related to between the two countries US$1.1 billion in tax revenue Pakistan transportation the dire need of Pakistani which will bring about a true Buddhism and the Maritime each week, considerably less and 180,000 jobs to the host connections and related people. Currently, the 18 Asian Age. Silk Road. Experts and than the 1,000 direct flights countries. cooperation pass through the early harvest projects are The BRI focuses on businessmen suggest that per week between China and China contributed nearly Kashmir region. progressing smoothly and development, aims for if China and India had South Korea. New Delhi and US$30 billion of founding Reason 3: China has no have so far created 13,000 global multi-polarity and jointly developed quality Islamabad are not far apart, capital of the AIIB, US$40 intention of interfering in the jobs for local people. Pakistani democracy by multilateralism, tourist routes and built on but it is more expensive billion to the Silk Road Fund territorial and sovereignty people would be lifted out of regionalism instead of infrastructure and promotion, to transport containers and US$41 billion to the disputes between India and poverty and power shortages, alignment and spheres of the number of Chinese by land between the two BRICS New Development its neighbors. The BRI and and enjoy a more open and influence. This concept is in tourists to India would be cities than from Mumbai to Bank. China is putting in solid the CPEC aim at promoting better life. The CPEC serves line with Indian diplomacy. more than two hundred London by sea, and takes money and the projects in economic cooperation and the common interests of In today’s world where anti- thousand as of now, or even almost the same time. The which it has invested have connectivity. They are not regional countries to address globalization, protectionism more than two million, BRI takes connectivity as yielded concrete benefits related to nor do they affect both the symptoms and and isolationism are on the since the number of China’s its priority, and aims at to people in the countries sovereignty disputes. China’s root causes of terrorism and rise, the BRI could serve as outbound tourists was 120 speeding up connectivity concerned. position on the Kashmir issue extremism. This is also India’s the new force for openness, million last year. On average, of transportation networks Fifth, the BRI doesn’t has not changed either. expectation, isn’t it? by land, sea and air, as well affect India’s territorial and I sincerely hope that Reason 5: The CPEC is as that of pipelines, power sovereignty interests and Indian friends carefully open, transparent, market- grids, telecommunication, will benefit South Asian study the Agreement between driven and international, in satellites and the internet countries, including India, in the Government of the People’s compliance with economic within Eurasia and with other the long run. Republic of China and the logic and legal procedures. regions to reduce transaction Some Indian friends say Government of Pakistan on Some friends have already and personnel exchange costs, that they are not against the the Boundary between China’s suggested that the CPEC so that products from the Initiative and they support Xinjiang and the Contiguous could extend to India in inland areas can sell at a good connectivity, but as the Areas the Defense of Which the future, and the BCIM price and children from the China-Pakistan Economic Is Under the Actual Control Economic Corridor could be countryside can have better Corridor (CPEC) passes of Pakistan signed in 1963. connected with India’s North- access to quality education, through the northern The title and content of South Transport Corridor. medical services and internet Kashmir, the Indian side has this Agreement have fully Sixth, China and India may connections. serious concerns over related accommodated India’s well cooperate on the BRI China is not just talking the territorial sovereignty issues. concerns. related areas and jointly build 08 09 OPENING ESSAY CHINA-INDIA DIALOGUE a Chinese tourist spends US$2,300 overseas, and that would be a huge benefit of Silk Road tourism for India. Both China and India Belt and Road are actively participating in the new round of global industrialization India’s Reluctance Could and developing the new manufacturing industry. An important part of the Be to Its Detriment BRI is industrial capacity cooperation, which includes financial support measures. China has also established always was, remains so and on the BRI, the AIIB, and many investment funds with will be so in the future. I used other cooperation initiatives, By Pravin Sawhney Central and West Asian to be in charge of BRI affairs as well as India’s Act East countries. Chinese banks in the Ministry of Foreign policy, find out where successfully issued the Affairs. When the idea of the their interests converge, Initiative bonds in Initiative was initially put synergize each other’s some countries to finance forward and before the Vision policies, discuss mutually key projects. and Actions on Jointly Building beneficial cooperation Chinese companies have the Silk Road Economic Belt models, and enhance supported and participated in and the 21st-Century Maritime common development. The the “Make in India” program Silk Road was released, the two countries need to link with a total investment Chinese side briefed the their development strategies of US$5 billion so far. But Indian side thoroughly even more closely and be there is much to explore, through diplomatic channels. complementary with their considering the amount with Through high-level dialogue, economies on a higher level. Geo-economics are expected to strongly impact geo-politics with the other countries as well as diplomatic consultations and As the double engines for investment potential between academic discussions, the regional and global economic Belt and Road Initiative, and it might be time for India to adopt a more China and India. If India Chinese side introduced to growth, the two countries accommodating stance towards it. joined the BRI, it would be a the Indian side the origin, need to work together to push huge boost for our capacity content and influence of the forward regional integration investment and financial Initiative. Without hesitation, and contribute to the global cooperation, and there would the Chinese side sincerely economy. Prime Minister he Belt and January 12, 2017: Khanderi, India’s second Scorpene-class stealth submarine be more and better solutions invited the Indian side to join Modi also said that India and Road Forum for , is launched in Mumbai. This indigenously built submarine is expected to be for trade deficit, which is one many BRI forums in the first China are providing support International commissioned into the India Navy by the end of this year. [IC] of India’s concerns. place, including the Forum and assistance to South Asian Cooperation India has its own “Project held in May. countries. China proposed T(BRF) was held in Beijing Mausam” and “Spice Route”, India is a country with the BRI, and India also on May 14-15, under the which could complement the distinctive character and values connectivity in South chairmanship of President Xi Silk Road. China is willing to China always respects India’s Asia, which would facilitate Jinping. With its successful study and participate in how independent diplomatic regional development conclusion, China has the projects could integrate choices. China is willing to and prosperity. In this acquired global endorsement with the BRI, and enhance the discuss all problems and regard, India would like to for more exclusive spheres people-to-people exchange possibilities with India on strengthen cooperation with of influence, across Eurasia between China and India as the basis of mutual benefits. China in the field. and the western Pacific and well as countries along the In May 2015, President Xi Indian Ocean waters. A routes. conveyed to Prime Minister novel concept in which geo- India is an important Modi that the two sides can The author is Minister of the Embassy of economics drives geo-politics, partner of the Initiative. It enhance communications P.R. China in India. the Belt and Road Initiative 10 11 OPENING ESSAY CHINA-INDIA DIALOGUE

(BRI) comprises the Silk Road even the European Union. It for rejecting the Chinese India Economic Corridor critical assemblies, propulsion infrastructure development Economic Belt and the 21st- also suggested cooperation invitation to the forum was or the South Asia Economic and weapon systems are plan, it should review the Century Maritime Silk Road. with Africa and South Beijing’s insensitivity to Corridor. procured from abroad. Given projects that, given the Attended by the heads of 20 America. its sovereignty. The CPEC, On the issue of whether the state of the indigenous security concerns, could be governments and institutions Signaling China’s leadership which is a flagship project the BRI is the only game defense industry and the finite carried out with Chinese like the United Nations, the of the BRI, Xi promised an of the BRI, passes through in town, the reality is that, annual defense allocations, companies. World Bank Group and the additional US$124 billion Pakistan-occupied Kashmir, given its scope, it is indeed the Indian Navy has limited Once this happens, International Monetary for the Initiative. He also which India claims belongs to so. Comparing the BRI with capabilities and capacity. there will be numerous Fund, the BRF released a announced that the next India. The unstated reason is the Act East policy is akin to Since the Indian Navy’s opportunities at the joint communiqué accepting forum would be held in 2019. that Prime Minister Narendra comparing chalk and cheese. resources are not sufficient political, commercial and the BRI as an umbrella Ties between China and Modi’s government cannot The leading figures behind for its own primary task of infrastructure level for under which all present and Russia, which have grown accept the BRI as the only the Act East policy, which war-fighting for territorial bilateral benefits. One future bilateral, triangular, steadily since the 1990s, were game in town. Former Indian was re-christened so by Prime defense, it is difficult to example could be movement regional and multilateral finally sealed into a genuine ambassador to China, Ashok Minister Modi within a few understand how India could on the resolution of the cooperation mechanisms strategic partnership. Russian Kantha, said that India could weeks of assuming office in contribute to out-of-area boundary question. Moreover, for trade, investment and President Vladimir Putin not “emerge as a junior May 2014, have said that it operations against China. taking cues from the BRI, infrastructure-building can was the second keynote partner in a grand Chinese is different from the earlier Peacetime naval diplomacy, India should build its military be accommodated. These speaker after Xi; he sat next enterprise.” Look East policy in two ways. humanitarian relief missions, power and bring the military include the China-Pakistan to Xi during the round table Given the unfriendly One, it is more hard-wired for and tactical exercises do not into the ambit of policy- Economic Corridor (CPEC), meetings, and both stood attitude towards the BRI, connectivity well beyond the automatically translate into making. After all, if India the China-Central Asia-West side-by-side for a photograph Indian analysts, while South China Sea, to include joint patrols with friendly genuinely desires strategic Asia Economic Corridor, of the attending heads of prognosticating on everything Japan and South Korea. And powers. reach through its Act East the China-Mongolia-Russia government. Putin confirmed that could go wrong with two, it is also meant to deepen What are India’s policy, it should be able to Economic Corridor, the that Russia will be a part of the Initiative, have advised defense and security ties with constructive options protect its people, assets and Bangladesh-China-India- the BRI. the government to respond friendly nations in the Far regarding the BRI? It has interests abroad with a strong Myanmar Economic Corridor, Critics sought to pick holes with its own connectivity East, something which was plenty. It should, to begin and capable military. the Shanghai Cooperation in the BRI by pointing out its and infrastructure projects not there in the earlier policy. with, stop viewing China as Even while India remains Organization, ASEAN, the shortcomings. India, the only under the Act East policy for The reality is different. its rival in Asia; instead it opposed to becoming a part of Eurasian Economic Union, notable absentee from the geopolitical gains. For Indian China has a robust, indigenous should seek, as the Chinese the BRI, it should not reject the Regional Comprehensive forum, had two objections to policymakers, it should be defense-industrial complex say, win-win situations. Next, participation in the BRI forum Economic Partnership, and the BRI. India’s stated reason BRI versus Act East, even and the number one warship- it should review its China in 2019. This would give India if India is unable to grow in building capability in Asia. It policy — as the U.S. and a first-hand assessment of double digits every year. is the world’s biggest trading Japan are doing — to find China’s upward trajectory. February 13, 2017: A mobile crane carries a container at Thar Dry Port in Sanand in Keen to get India’s Act East nation and it is the second out how its own Act East In the larger sense, India’s the western state of Gujarat, India. [VCG] policy and its other trans- biggest economy after the policy can be harmonized — relations with Russia, its national connectivity projects U.S.; it has over US$3 trillion without outright commitment traditional strategic, energy in sync with the BRI, China in international reserves. By to the BRI — with Chinese and defense partner, will not has responded to India’s 2020, it is predicted to have infrastructure projects, be strained, and there could sovereignty sensitivity with a US$1 trillion annual trade for mutual gains. A good be a possibility of less hostile novel suggestion. Speaking at with ASEAN; and the Sino-U. beginning could be made by relations between India and an Indian defense think-tank S. economic relationship upgrading the Bangladesh- Pakistan. Meanwhile, instead on May 5, China’s ambassador is today the world’s most China-India-Myanmar of focusing on perception to India, Luo Zhaohui, said important, with combined (BCIM) economic corridor management for domestic that the CPEC was not an annual trade adding up dialogue from Track-I (official political gains, India should infringement on India’s to US$600 billion and diplomacy) to the inter- strive to make its Act East sovereignty but a project investment in each other’s governmental level. policy a wholesome one. meant to bring economic economies totaling around Moreover, India should development and prosperity US$350 billion. consider the Chinese proposal to the region. To assuage On the other hand, India’s of a Free Trade Agreement. Indian concerns, he felt that ship-building industry is not Since India has made a strong The author is the editor of FORCE news magazine, and has co-authored Dragon China could re-name the as developed. Except for the case for Chinese investments, on Our Doorstep: Managing China CPEC the China-Pakistan- hull of the warships, most under the “Make in India” Through Military Power. 12 13 COMMENT CHINA-INDIA DIALOGUE Nevertheless, since the climate change and MOUs of COP in 2011, while China Copenhagen UNFCCC Green Technology showed growing confidence Conference of Parties (COP) Cooperation. There were also on voluntary mitigation, in 2009, with the expansion institutional minitrial level which increased doubts and and deterioration of global coordinating meetings within worry on the Indian side. In economic crisis, developed the BASIC (Brazil, South 2015, when Chinese climate It’s High Time for China countries had been Africa, India and China) delegates and experts met for discontented with the group right before the annual a meeting with their Indian bisection method of Kyoto COPs. On these occasions, counterparts before the Paris and India to Rebuild Protocol, and kept challenging China and India could discuss COP, the latter mildly turned the UNFCCC principles to and coordinate their climate down the invitation and pressure the emerging positions sufficiently. During showed anxiety about China’s Climate Cooperation economies to take the the COPs, the heads of aggressive climate obligations of quantified Chinese and Indian commitments. mitigation and providing delegations frequently and Why did this happen? financial support, which was publicly echoed each other As the modality of By Zeng Xianglai certainly objected to by most and accused developed international climate of the developing countries. countries of shunning their negotiation adjusted, the lack China and India, as the liabilities. of bilateral policy pillars of G77+China Group, communication intensified There are solid foundations and great potential oppotunities for China resisted enormous pressure THE DILUTION OF CHINA- India’s worry that China and India to make joint efforts to rebuild climate cooperation under the from the Umbrella Group INDIA CLIMATE COALITION would no longer toughly headed by the U.S., since It’s regretful to observe the prioritize CBDR and that its Paris Agreement. many developing countries honeymoon gradually turn climate stance is shifting cannot afford to offend lukewarm with the dynamic towards developed countries. developed countries. situation of international Meanwhile, India also y now, climate force in November 2016. leading roles in climate China and India have been climate negotiation. It was worried that more ambitious change is far more As two largest emerging governance under the Paris confronted with similar preluded by the divergence mitigation and financial than a scientific Asian economies and two of Agreement. situations, problems and within the BASIC group as commitment by China concept, but a the largest Green House Gas pressures. On the bilateral Brazil and South Africa objectively would mount the worldwide,B wide-ranging, (GHG) emitters, China and CHINA AND INDIA CLIMATE level, in 2009 and 2010, China apparently adjusted their pressure on India and make comprehensive and India share quite a few COALITION – THE PILLAR TO and India signed agreements positions on taking mitigation India compromise much complicated issue, and one similarities in the perspective SAFEGUARD UNFCCC of cooperation in dealing with obligation since the Durban more on climate treaty. can hardly find anything or of national circumstances, PRINCIPLES The substantial factors that any party completely which drove the two To guarantee the interests enlarged the divergence are irrelative. Therefore, it’s been countries to echo each other’s of developing countries and October 21, 2009: China’s chief climate change official, Xie Zhenhua (right, front), as below: shakes hands with Indian Environment Minister Jairam Ramesh after signing an gathering more and more climate stances and jointly encourage their participation agreement during a joint workshop on action plan on climate change in New A) The tactic of developed attention and emphasis from safeguard the UNFCCC in global climate action, Delhi, India. [IC] countries. During the Durban various countries and principles in favor of UNFCCC set a series of COP in 2011, a roadmap was multilateral cooperation developing countries. guiding principles such as drawn to reach a climate mechanisms. Unfortunately, the climate Common but Differentiated agreement with legal force The global climate coalition weakened due to the Responsibilities (CBDR) and and applicable to all. governance is mainly guided dynamic situation of climate Respective Capabilities (RC). Developed countries and coordinated by the negotiations. However, U.S. Kyoto Protocol, the first legal narrowed down the target United Nations Framework President Donald Trump’s instrument of UNFCCC, scope to the emerging Convention on Climate reckless withdrawal from the faithfully reflected these economy emitters, especially Change (UNFCCC) and its Paris Agreement created shock principles by differentiating China. Developed countries legal instruments, such as and frustration across the the member countries as also shuffled original top- Kyoto Protocol, which will be world, which also created Annex I Parties and non- down negotiation modalities valid till 2020. As the great potential for China and Annex I Parties and stipulated and transformed the conflicts successive instrument, the India to rebuild climate their respective rights and between developed countries Paris Agreement entered into cooperation and jointly take obligations. and developing countries into 14 15 COMMENT CHINA-INDIA DIALOGUE the conflicts between the big decades of rapid growth, the develop clean energy. While Paris Agreement text, like much more crucial for the keep on committing emitters and the climate Chinese economy is China took a further step and financial support and future of the Paris Agreement. quantified emission cuts and vulnerable countries. At the experiencing a period of set up a 20-billion-RMB technology transfer are still shouldering more same time, the EU leaders structural adjustment. The South-South Climate up in the air. The Marrakech PATH FORWARD responsibilities to support and then U.S. President backward production Cooperation Fund, which COP in 2016 was expected to Against the above backdrop, developing countries for their Barack Obama actively capacity and high-emission may be perceived be a COP of implementation there are solid foundations efforts in addressing climate lobbied and urged China to industries are being phased unacceptable by India, since and action, since it was held and great potential change. play a more positive role in out, which indicates that as per the original right after the Paris Agreement opportunities for China and To limit the risk of global dealing with global warming. China can meet its emission interpretation of CBDR, only came into force. To our India to make joint efforts to temperature rise of 2oC or B) The Chinese government peak around 2030 or even developed countries should disappointment but not to our rebuild climate cooperation 1.5oC, green industry must be has been facing more sooner. In the meantime, take the obligation for surprise, it has made very under the Paris Agreement in developed at scale and pace pressure from the civil society China has been stepping up providing climate financial limited progress. the light of development. across advanced and than its Indian counterpart. its efforts in curbing emission support. To a large extent, the U.S. The international climate emerging economies. There is Chinese public awareness of and developing green energy A noteworthy episode is the presidential election and the governance is a great platform great potential for China and environmental protection has industry with outstanding sudden rise of High Ambition political situation in Europe for emerging economies like India to supplement each been rising quickly and administrative efficiency. Coalition (HAC) on the cast a shadow on the China and India to lead and other and cooperate on significantly. Since GHG and D) Both China and India critical moment of the Paris Marrakech COP. When some represent the G77+China developing the green industry air pollutants are from the recognized that dealing with COP. This move has been U.S. delegates were nudged by Group and to promote the to realize national transition same sources, in recent years, climate change could imply secretly brewed by some their counterparts to restructuring of the to green economy and provide the Chinese public has opportunities for transition to developed countries for explicitly explain their international climate regime essential support to other become concerned about clean energy. To tap this months and mounted great positions, they shrugged and dominated by developed developing countries. urban air pollution and the potential, the Modi pressure on China and India looked frustrated, because countries when they are It’s high time that China and government’s regulations on government transformed the when they were raising they got no explicit losing political willingness India rebuild climate power plants and polluting Ministry of Environment and dissent on some texts of the instruction from the and capabilities. cooperation in an inclusive, factories. Forests into the Ministry of Paris Agreement. Ironically like government. Both Chinese and Indian innovative and coordinated C) The slowing down of Environment, Forest and coming out of nowhere, HAC On the one hand, the leaders have reiterated their manner and jointly contribute China’s economic growth Climate Change and disappeared like it never U.S., as the number one strong support for the Paris to the international climate remarkably improved formulated a grand and existed. accumulative GHG emitter Agreement on major governance and the global mitigation capability. After ambitious blueprint to and one of the biggest climate international occasions, while development of the green PARIS AGREEMENT: NEW patrons, withdrew from the they also emphasised dealing industry. One foreseeable Donald Trump’s reckless withdrawal CHALLENGES AND NEW Paris Agreement, and this is with climate issues in a obstacle is the lack of political OPPORTUNITIES surely a big blow to the balanced way. On the opening trust caused by lack of political from the Paris Agreement created shock The Paris Agreement soothed confidence and political ceremony of the Paris COP, communication. It could be the long-term stalemate mutual trust among the Chinese President Xi Jinping anticipated that climate and frustration in the world, which also between developed countries COP parties. said that climate change cooperation will help create an and developing countries. On the other hand, should not deny the overall harmonious created great potential for China and After the grand hail on the impacted by the Brexit and legitimate needs of atmosphere and serve as India to rebuild climate cooperation. pass of the Paris Agreement, the sluggish economy growth, developing countries to special leverage for the two some experts calmly opined the EU influence and appeal reduce poverty and improve countries in promoting that it is a compromise to lead global climate their people’s living political trust in other fields. May 16, 2017: An Indian worker installs solar panels at a site in Greater Noida, between the two parties and cooperation is shrinking. standards. Special needs of The sooner the two countries some 45 kilometers east of the capital, New Delhi. [VCG] the beginning of a long Even worse, the deep- developing countries must be realize this and make march. The accumulative rooted political mistrust well attended to. substantial efforts to increase mitigation target of the between developing countries CBDR could still serve as efficient and effective policy National Determined and developed countries was the foundation for communication and Contributions (NDCs) so far not settled properly and may cooperation in the light of coordination, the better for the cannot meet the 2oC target, resurface and block future development. Both sides need future of the global efforts to and many developing climate talks. to recognize that making cope with climate change. countries made mitigation Amid the challenges, a voluntary commitment based commitment on sets of political vacuum is taking on CBDR and RC will be The author is a program director at the conditions. Meanwhile, some shape while the attitudes of helpful and not harmful. Economy and Regional Cooperation Centre key rules and elements of the China and India are becoming Developed countries should of Hainan Institute for World Watch. 16 17 COMMENT CHINA-INDIA DIALOGUE

global forum in May, where possibility of cutting through China’s shipments typically world leaders convened to continents and oceans, has travel 13,000 km and 45 days; discuss the way ahead. the potential to promote the with the CPEC, this could The issue is multi-layered integration of infrastructure come down to 2,500 km and and complex; let’s start with and economic activity on an 10 days. the basics. international level, and to an Pakistan benefits from the Can the Dragon and the First proposed by Chinese exceptional scale. If it comes upgraded infrastructure and President Xi Jinping in 2013, into effect, it can bring about increased GDP. This is the the BRI is an ambitious plan a remarkable evolution in the largest investment the Elephant Dance Together? to restore connectivity idea of globalization. country has attracted since its between the Pacific and So far, so good. Here comes independence. Indian Oceans, and link the ‘but’. However, India’s China’s coastline with India has declined to reservations with this go By Pankti Mehta Kadakia Southeast Asia, the Gulf participate in the BRI, thus beyond the land problem too. countries and the east coast far. One of the Indian In January, Observer of Africa. government’s major concerns Research Foundation’s Arun In its current form, the BRI — which some experts agree Mohan Sukumar wrote: If talks lead to constructive solutions, and the BRI can be somewhat altered routes through more than 60 are legitimate — is that one of “If China begins to countries which experts say the BRI’s flagship projects, guarantee the security of to alleviate some of India’s concerns, it could, in fact, bring India many will impact two-thirds of the the China-Pakistan major projects along the benefits. world’s population, 55 Economic Corridor (CPEC), corridor, would that free up percent of the global GDP passes through the disputed Pakistan’s budget and and 75 percent of global land of Pakistan-occupied resources to target defense energy reserves. Kashmir (PoK). spending elsewhere? The BRI, with the The CPEC aims to improve …India should observe the

he sky and the oceans Since the “Made in India” Initiative was launched in 2014, Indian Prime of Asia are Minister Narendra Modi has promoted it in various international arenas large enough and endeavored to make India a global manufacturing and exporting hub. for“T the dragon and the In this May 2015 photo, Modi speaks at a China-India Business Forum in Shanghai. In the speech, he noted that India will continue to improve the elephant to dance together…” country’s foreign investment policies to promote greater cooperation and Minister Liu Jinsong, from joint development between China and India. [VCG] the embassy of the People’s Republic of China in India set this rather poetic tone to inaugurate a discussion on In recent years, China and India have made increasing exchange on movies China’s Belt and Road and created greater opportunity for cooperation in production. In this January Initiative’s implications for 23, 2017 photo, Indian movie star Sonu Sood (left) and Chinese movie star India, at a conference in Jackie Chan attend the Mumbai premiere of Kung Fu Yoga, a 2017 Chinese- Indian movie directed by Stanley Tong. [IC] Mumbai on April 21. Conducted by the Observer regional connectivity and potential impact that the Research Foundation, a public energy exchange, via CPEC may have on regime policy think tank, the upgraded air travel, railways, creation in Asia…To attract conference gathered highways and fiber optic ‘quick and dirty’ investment, dignitaries from India and networks, along with autocratic regimes in Asia China to debate India’s stance cooperation in agriculture, will invite strategic linkages on the One Belt One Road technology and other fields. with China. (OBOR) project, which is China is building itself an India cannot sustain its now known as the Belt and alternate route for energy single-minded strategy of Road Initiative (BRI). The supplies and for trade. To isolating Pakistan when it has conference came ahead of the import oil from the Gulf, clearly not had the desired 18 19 COMMENT effect on China and other “At the base of it, the BRI Infrastructure Investment regional players. For now, the seems to us a primarily Bank (AIIB) too, and despite CPEC seems to be on course strategic plan that is China- reservations, when assured for completing some of its centric, and aims to draw the that it would be a multi- milestones, and India would region into a sphere of lateral bank, India engaged be ill-advised to rely on the political influence,” said closely. false comfort that profits Mukhopadhya. “It’s very If talks lead to constructive alone will drive China’s difficult to solve a security solutions, and the BRI can be business with Pakistan. dilemma like this, and the somewhat altered to alleviate Understanding the CPEC’s only way forward is some of India’s concerns, it regional impact and discussion. China needs to could, in fact, bring India mitigating its negative effects take the first step, and India many benefits. will require a comprehensive must accept talks in the Ajit Ranade, chief strategy from New Delhi that interest of the region.” economist at the Aditya Birla goes beyond the India- While Indian officials agree Group, highlighted five ‘low- Pakistan narrative.” that connectivity is an hanging fruit areas’ that India India’s concerns stem from antidote to geopolitics, the could gain from the BRI: a deep distrust of China’s October 1, 2015: Indian artists perform at a tourism festival in Beijing. [VCG] intentions; the problems The BRI without India would be a within China-India relations up in India. At the end of the Mumbai date — we don’t want have grown recently, with the different BRI, for itself and for India. Entertainment: India has conference, Observer hegemony.” CPEC issue, trade imbalance the infrastructure for Research Foundation’s Importantly, he added that and so on, said former China is one of India’s largest trading large-scale filmmaking and Mumbai chairman, at the BRI summit scheduled diplomat Gautam entertainment that China Sudheendra Kulkarni, noted for Beijing in May, leaders Mukhopadhya. “A major partners, and this could bring India could make use of. all the divergent perspectives, from countries such as problem is the lack of great gains. “As a businessman, I find it and hoped for more dialogue. Turkey, Mongolia and Sri consultation — China has not difficult to find pitfalls in “There will be differences, Lanka would be attending approached India for many of India’s participation in the but we should respect each despite disputes with China. its other initiatives, including country’s concerns lie in that Information technology BRI,” said Zheng Bin, CEO of other’s core concerns and find “They don’t think that China some ports where India is a the BRI process has not been and IT-enabled services, the Industrial and common ground for dominates the agenda,” he natural customer,” he added. transparent, sufficiently for which India has the Commercial Bank of China in cooperation,” he said. “If the said. “China will give you a “This leads to a natural consultative, and with PoK resources, and China, the India. “The BRI without CPEC is the problem, all comprehensive briefing, but strategic suspicion.” involved, what happens if market. India would be a different three countries involved need understands that India is Any country that wants to India and Pakistan go to war? Pharmaceuticals: India BRI, for itself and for India. to come together and discuss sovereign, and will make its be a global power — a position Terrorism is another threat, makes the lowest costing China is one of India’s largest it, and find a creative solution own decision. China has a big both India and China are and increased networks may medicines, and Chinese trading partners, and this — perhaps connectivity is that vision, stomach and strategy, vying for in the 21st century make it harder to curb. authorities are particularly could bring India great gains. solution? A time will come and so does India. China is — must first rise to regional As a counter-strategy, India looking to lower healthcare If a trust-deficit and a media- when the CPEC will happen happy to endorse India’s power. China’s increasing has set the ball rolling on costs. deficit are resolved, we can despite our opposition. We campaigns, such as “Make in economic investments have maritime projects such as Tourism: The world’s recalibrate relations.” should wake up and start India” — our partnership is raised suspicions in India. Project Mausam and SAGAR largest tourist contingent India should be an active looking for solutions.” vital for regional “And more importantly, why in the Indian Ocean, which it comes from China. If even participant, yet independent, Liu Jinsong closed the development, and the world aren’t China and India could focus on instead. one million Chinese people added Zheng. “The new conference on a hopeful note would appreciate it that the talking?” asked Raj Verma, While India has not — a fraction of the generation of Chinese and too. “The BRI is open to dragon and the elephant assistant professor of endorsed the BRI, it has not population — visit India, Indian people should not let equal, inclusive finally dance together. It’s international affairs at Jilin outwardly rejected it either, this could lead to history dictate their business memberships,” he said. “The time for India to decide.” University, China and visiting and the difference is vital, considerable gains. The decisions. As a relatively only approach for the BRI is fellow at the Institute of said Ashok Kantha, former government could focus on young person from China, I development; yes, there are Defence Studies and ambassador of India to China, special Buddhism packages feel great about India, and my issues, but we should talk Analyses, New Delhi. “This and the way ahead can be too. son, from an even newer about the next generation of The author is a Mumbai-based journalist raises questions about constructive. India initially Auto ancillaries generation, has Indian friends, geopolitics. The idea of the focused on culture, education and social Chinese intentions.” was wary of the Asian manufacturing could be set and has no animosity here.” Middle Kingdom is out of development. 20 21 SPECIAL REPORT CHINA-INDIA DIALOGUE selectively accept and break the convention unilaterally. It can never claim rights with a map produced by Britain Doklam Standoff years later and tread the 1890 treaty at its own will. We can take a look at the map. After the 1890 India’s Obsession with convention was signed, the British were soon dissatisfied with the first clause in the “Absolute Security” treaty. The clause states that “the boundary of Sikkim and Tibet shall be the crest of the mountain range separating By Hu Shisheng the waters flowing into the Sikkim Teesta and its affluents from the waters The Modi administration’s hostile attitude towards China and its flowing into the Tibetan accompanying policies have reduced China-India relations to a serious status Mochu and northwards into other rivers of Tibet. The line June 29, 2017: China’s Foreign Ministry spokesperson Lu Kang displays a photo of strategic distrust, which may even jeopardize their previous cooperative- commences at Mount showing the Indian border troops’ trespass of the Chinese territory at the Sikkim competitive equation to a total “adversarial relationship.” Gipmochi on the Bhutan section of the China-India border at a press conference. He again urges the Indian frontier, and follows the side to immediately bring the border troops that have crossed into China back to above-mentioned water- the Indian side of the boundary, so as not to worsen the situation. [photo courtesy of China’s Ministry of Foreign Affairs] parting to the point where it n terms of the Doklam built fortifications in the Measures in the Military Field meets Nepal territory”. standoff, the Modi Sikkim section of the China- Along the However, the British believed Sikkim section of the China- concern about its own safety. administration has India boundary. Now, India’s in the China-India Border Areas that the features of Mount India boundary at Batang La But most importantly, made three major entrenchment and abundant signed in 1996. Thus, talking Gipmochi as the starting rather than Mount Gipmochi. Britain’s producing of the mistakes:I blockhouses in this region about border defense point of the boundary were Thus, the Indian troops’ map is undoubtedly a First, India damaged the have overwhelming construction threats, it is not obvious. Thus, in a time “entry” into Doklam is legal. unilateral action. The map is existing consensus and superiority over China in India’s unconventional border between 1907 and 1913, However, although the border not a necessary part of the already-signed treaty by its terms of border defense. defense construction that has Britain published a map between China and Bhutan is 1890 convention, and China own will. The Sikkim section Actually, India’s posed serious real threat to showing that the boundary yet to be demarcated due to has no obligation to abide by of the China-India boundary unconventional border China’s security. started at Batang La, six the obstructions set by India, it. Indian troops’ trespassing was delimited in 1890 in the defense construction has The standoff in China’s kilometers north of Mount it is clear that Mount into the Chinese territory has, Convention Between Great already seriously violated the Doklam area was caused by Gipmochi, and believed that Gipmochi is located south to in effect, turned the 1890 Britain and China Relating to Agreement Between the the Indian troops’ trespassing its features were more Doklam and Doklam belongs convention invalid, and made Sikkim and Tibet, and the Government of the People’s of Chinese territory. It is a evident as the dividing crest. to China. In the 1890 the China-India boundary boundary demarcation is Republic of China and the breach of the 1890 convention India’s basis for trespassing convention, the tri-junction question even more recognized by both China and Government of the Republic of and a gross violation of into the Chinese territory is between China, India and complicated. Actually, the India. Successive Indian India on the Maintenance of international law, going probably from the map Bhutan is Mount Gipmochi, Sikkim section, as the governments have repeatedly Peace and Tranquility Along the against the promissory produced by Britain. One of which was put down in black mutually recognized confirmed in the past that Line of Actual Control in the estoppel. It also completely the reasons offered by the and white. Although this point boundary section, facilitates they recognize this part of the China-India Border Areas contradicts the Modi Modi administration is that has no specific latitude and the border trade between boundary, and no disputes signed in 1993 and the administration’s call of India, China and Bhutan have longitude due to the China and India, and offered had previously existed. Based Agreement Between the establishing an international different opinions on the undemarcated boundary a safer route for Indian on this treaty, China Government of the People’s order “based on international tri-junction. India and Bhutan between China and Bhutan, a pilgrims to Tibet. However, constructed border roads Republic of China and the rules”. Even if India believes hold that it is more point is a point. It can never be the Doklam standoff not only within its own territory. Also Government of the Republic of that the 1890 convention was reasonable to place the expanded to a plane. On this made the whole China-India based on this treaty, India India on Confidence Building not fair, it should never southeast starting point of the issue, India quibbles due to its boundary undemarcated, 22 23 SPECIAL REPORT influenced the bilateral trade imbalanced treaty, the most mutual reliance in national India will endure a and the route for Indian important of which was strategies, and cultural deteriorating image in the pilgrims to Tibet, but also changing the word “guidance” connection to develop a rich eyes of Chinese people and granted the Chinese into “close cooperation.” But and mutually beneficial less favorable China policy government the right to that change seems to be only relationship. For the two toward India. renegotiate the legal status of superficial, and in practice emerging economies with India, a civilization of over Sikkim and its administrative Bhutan seems to be a huge populations and long five millennia, is the second division. China has the right protected patron of India. histories, ensuring that both most populated country in the to ask India to restore the The 24 rounds of governments optimally world, following only China. Sikkim section of the border negotiations over the past 33 benefit their peoples during Governed by a multi-party to the 1794 boundary decided years have led to many development is the primary system since 1952, the by China’s Tibet and Sikkim. consensuses between China goal of bilateral cooperation. politically mature country Sikkim, which was known as and Bhutan concerning the Chinese President Xi Jinping would not make such poor Dremojong then, was a vassal border area. Yet, Bhutan has stressed that China and India, decisions if common sense Indian border troops crossed the mutually-recognized boundary at the state of Tibet, although it was Sikkim section and entered China. [photo courtesy of China’s Ministry of never formally established as the two largest developing were a guiding principle of independent back then. Foreign Affairs] diplomatic relations with countries in the world, should the current government. The Second, India uses the China because of Indian properly manage and handle standoff persists today and excuse of “own security illegally crossed the China- area. This position evidences manipulation. Of the 14 disagreements and sensitive casts a dark shadow over the concern” to interfere in the India border and entered China’s respect for the treaty nations sharing a border with issues when he met Indian entire region. domestic and foreign affairs of Chinese territory. Moreover, as well as international law. China, only Bhutan lacks Prime Minister Narendra The incident was born with its neighboring countries. in its reaction to the However, because Bhutan has formal diplomatic ties to Modi on June 9, 2017, in Indian strategists, particularly According to the 1890 incident, Bhutan had no idea some disagreement on the China. And Bhutan is one of Astana, Kazakhstan. Modi Modi’s policy consultants, convention, the Doklam what India was planning to 1890 treaty, China is willing to only two countries with an agreed and noted that the two who have shown an obsession region is a part of Chinese do. So, India, under the guise negotiate a “packaged ongoing border issue with countries should explore with absolute security that territory and since then, of justice, sabotages solution” through peaceful China. The other country is of potential for cooperation, has driven the Indian Doklam has always been Bhutan’s foreign affairs and means. course India. Using Bhutan as strengthen communication government to treat perceived under China’s effective forcefully undermines the India often claims it “works a pawn is failing to capitalize and coordination in security threats as real, even jurisdiction. Because the efforts to resolve border closely with Bhutan to on its strategic advantages international affairs and at the cost of disturbing the Bhutanese government objects disputes by China and prevent damage to both due to its geographic position respect each other’s core domestic and foreign affairs to the southeastern end Bhutan through diplomatic nations’ interests.” But directly between the world’s interests and major concerns. of other countries including defined in the 1890 convention and political means. illegally encroaching into two largest emerging The standoff in Doklam, Sri Lanka, Nepal and Bhutan. that defines the tri-junction of China and Bhutan started China’s territory “for Bhutan” economies. Bhutan could be however, unfolded and was The driving motive for the the three countries, China and their border negotiations in neither aligns with the enjoying the fruits of clearly caused by the Indian Modi government to cause Bhutan have, at most, some the 1980s, and have held 24 friendly consultations development, but it remains government when those this standoff is Indian disagreements over the rounds of talks so far. In conducted between China one of the Least Developed words were still fresh. New strategists’ concern that the Doklam area. However, not August 2016, after the 24th and Bhutan, nor protects Countries in the world. Delhi unilaterally opted to Siliguri Corridor, India’s until 2000, when the 14th round, Chinese Vice Foreign Bhutan’s national interests. Third, India is ignorant forgo “properly” handling the strategic hub, would be round of talks was held, did Minister Liu Zhenmin India’s move is the Modi about the overall situation of disagreement in favor of threatened if China builds Bhutan make clear its declared that the two administration taking China-India relations. Hard- triggering a larger dispute. roads to Mount Gipmochi. understanding of the countries’ border negotiations advantage of Bhutan to earned stability in bilateral The incident will leave a deep These analysts are alignment of the boundary in had made great progress in protect its own interests. The relations requires efforts to and prolonged strain on intimidating themselves, the Doklam area. Even then, recent years. Despite the event has exposed how India sustain. Although China and China-India relations. however, and creating an the decision seemed to be progress, the prospects for an is manipulating Bhutan’s India are confronted by the Considering the current illusory new cold war to keep inspired by pressure from agreement remain weak internal and external affairs. challenges of developmental development status and themselves relevant. Such India. This boundary issue because Bhutan remains so The “friendly treaty” signed competition, clashing bilateral relations of the two concerns hardly make sense should involve only two close to India. As for the in 1949 between India and strategies, disputes over countries, the event will likely considering India’s strong countries: China and Bhutan. “Doklam dispute”, China’s Bhutan stipulated that territorial sovereignty and destabilize regional and military forces positioned on India is not a party with a position is very clear: China “Bhutan agrees to accept the problems left by history, the global cooperation between both sides of the corridor all claim. However, because must defend its rights guidance of the Indian countries share enough China and India, considering the way from Doklam. It’s “Bhutan claims sovereignty specified in the 1890 treaty government in diplomatic mutual dependence in how aggressively the Modi difficult to argue that India’s over Doklam area” and “to and strengthen its effective relations.” Not until 2007 geopolitics, complementary government addresses sabotage of its neighbor’s protect Bhutan,” India jurisdiction over the Doklam were changes made to the positions in development, disagreements. Furthermore, legitimate infrastructure 24 25 FEATURE project in the border area in zone between China and of India. In foreign affairs, the the name of “absolute India, and the Himalayas the India-U.S. security security” benefits anyone. natural barrier. Therefore, the partnership has made many In fact, “absolute security” Nehru administration (1947- big strides towards the bonds far transcends borders if the 1964) strongly opposed the of alliance, and the India- concept is treated like zero- Chinese central government’s Japan security agreement has sum game in which one peaceful liberation of Tibet. continually reached new country’s security becomes a Indian elites would have levels. Trilateral dialogue threat to its neighbor. It will preferred that Tibet keep its between the U.S., Japan and only lead to an arms race. As half-independent status India has become increasingly the standoff in Doklam forever, and India signed concrete and high-reaching. continues, China is seeing friendship treaties with The scale of the Malabar that its forces on the border Nepal, Bhutan and Sikkim naval exercise involving all are far weaker than those of soon after it won three countries has grown India, so China is looking independence to manipulate and could soon involve November 26, 2014: Heads of state or top leaders from eight countries, including India, Pakistan, Bangladesh, Bhutan, harder at catching up with the security and diplomatic Australia too. The India- Maldives, Sri Lanka, Afghanistan, and the host Nepal, attend the 18th South Asian Association for Regional Cooperation India through its ongoing policies of those small states Africa Forum Summit (IAFS) (SAARC) Summit, Kathmandu. Other nine countries, including China, the U.S., and Japan, also participate in the summit as military reform and along the Himalayas. and Forum for India-Pacific observers. [VCG] modernizing its defense Consequently, New Delhi Islands Cooperation (FIPIC) facilities near the boundaries doesn’t want to see the are attracting more and more rate surpassed China, but it Premier Li called Modi to administration treats China as to enable the country to construction and operation of participation. also became the top market congratulate him soon after its arch rival, which has better curb India’s impulses the China-Nepal Railway and In this context, it’s no for international greenfield Modi took office. On many inspired it to embrace various to conduct standoffs and end the establishment of normal surprise that India’s Minister investors. Surprising occasions, Chinese President security cooperation them before they start. India diplomatic ties between of State for External Affairs successes of past aggressive Xi Jinping has proposed strategies offered by the U.S. should be seeking sustainable China and Bhutan. Vijay Kumar Singh has polices further stimulated discussions with Modi on the and its allies, to contain China security rather than absolute In the Doklam standoff, declared with great even bolder and more possibility of aligning the Belt and curb its influence. security, which can only be India wants to make Doklam confidence that the majority aggressively impulsive moves and Road Initiative with The Modi administration’s attained through win-win a small buffer zone by of countries around the world from the Modi India’s Monsoon Plan, Spice resulting hostility towards cooperation. preventing China from support India on the Doklam administration. The Doklam Route and Cotton Route. China is putting China-India Why is India, especially the constructing any frontier standoff. In domestic affairs, standoff is just one of them. In general, the Chinese relations on thin ice, and the Modi administration, so facilities there so that India Modi launched the Goods and Third, the Modi government’s diplomatic dynamic could quickly shift obsessed with absolute has absolute unilateral Services Tax (GST), India’s administration has deepened policies towards India are from cooperative and security? Three key factors defense advantage for the biggest tax reform since hostility toward China. The intended to broaden competitive to adversarial. are influencing the long term. However, poor and independence, and election victories of Modi and consensus to reduce the However, the more government’s actions: backward Bhutan, Nepal and established the first unified his Bharatiya Janata Party impact of differences between adversarial China-India First, India’s strategic even the northern and market in history. Modi’s ended the ruling status of the the two countries on bilateral relations become, the easier it thinking is suffering from northeastern part of India are strong cash ban enabled coalition government of the relations. However, China’s would be for India to take inertia. India considers itself the biggest victims of the leap-frog development of past 30 years and greatly good intentions are often extreme precautions against a natural inheritor of the Buffer Zone theory and domestic mobile payments. enhanced the government’s frustrated by India’s negative China. The Doklam standoff British Empire’s colonial practices, which are And largely thanks to Modi’s decision-making capacity, diplomatic responses, because is just one example. heritage. One legacy the supported only by the Indian whirlwind influence, his which once produced huge the Modi administration So, how the Doklam British passed on to India’s ruling class and strategic Bharatiya Janata Party won a hopes for great development doesn’t believe China and standoff is ultimately solved ruling elites is the Buffer think-tanks. landslide victory in the between China and India. India can develop bilateral will likely present a possible Zone theory, which was Second, the situation is politically crucial northern Chinese Premier Li Keqiang ties and conduct strategic turning point for the Chinese developed during the 200 worsened by the Modi state of Uttar Pradesh, further scheduled his first state visit cooperation without first government’s South Asian years of colonial dominance administration’s consolidating the party’s to India two months after he settling their disputes, policy. that started with the Battle of overwhelming confidence. dominance of India politics. took office in 2013. The especially on the border issue. Plassey in 1757 and ended Since Indian Prime Minister In each of the past three years Chinese government even Furthermore, they with British evacuation from Narendra Modi took office in of the Modi administration, broke the tradition of misconstrue Chinese the Indian subcontinent in 2014, many achievements India has had an impressive ensuring that the Premier’s diplomatic reactions as The author is the director of the Institute of South Asian, Southeast Asian and 1947. According to the theory, have been made in both the macroeconomic performance. South-Asian trip included intending to check the rise of Oceanian Studies, China Institutes of Tibet should be the buffer domestic and foreign affairs Not only has its GDP growth both India and Pakistan. And India. The Modi Contemporary International Relations. 26 27 STRATEGY CHINA-INDIA DIALOGUE Asian subcontinent will be on Belt and Road cooperation Information Technology of further promoted, giving the with the governments of Afghanistan. The China region a more promising Pakistan and Nepal. The Development Bank signed outlook. National Development and dozens of financial First, during joint efforts to Reform Commission of China cooperation agreements on What Belt and Road construct the Belt and Road, signed the Memorandum of ports, electricity and China and countries in the Understanding on industrial parks with Forum for International South Asian subcontinent Implementation of Upgrade of relevant institutions of Sri have formulated many ML-1 and Establishment of Lanka and Pakistan. tangible cooperative projects Havelian Dry Port under CPEC These agreements have laid Cooperation Means which have created ideal with the Ministry of Planning, a solid foundation for the conditions for further work Development and Reform of Initiative to take off and on the Initiative on the South Pakistan. The National flourish on the South Asian for Chinese Cooperation Asian subcontinent and in the Railway Administration of subcontinent, making it better greater region around the China signed the Framework known to, and popular with, Indian Ocean. Agreement on Implementation of local governments, in South Asia China presented a list of Upgrade of ML-1 and enterprises and the public. major deliverables to the BRF, Establishment of Havelian Dry Secondly, the BRF clarified which included 76 items that Port in Pakistan with the a roadmap for cooperation have produced 270 concrete Ministry of Railways of between China and countries results in five key areas, Pakistan. The Ministry of on the South Asian By Ye Hailin namely policy, infrastructure, Industry and Information subcontinent that highlights trade, finance and people-to- Technology of China signed eastern, middle and western people connectivity. The the Memorandum of lines forging ahead together. The Belt and Road Forum for International Cooperation will promote bilateral South Asian subcontinent is Understanding on Cooperation in Over the years, multilateral and multilateral cooperation in South Asia and greater connectivity, giving high on the agenda. The Information Technology with cooperation between China Chinese government signed the Ministry of and eight countries (including the region a more promising outlook. memoranda of understanding Communications and Afghanistan) on the South

May 15, 2017: Chinese President Xi Jinping and other participants take a group photo in front of the venue at the Yanqi Lake International Convention and Exhibition Center after the first meeting of the Leaders’ Roundtable Summit at the Belt and Road Forum for International Cooperation. by Xu Xun/ China Pictorial rom May 14 to 15, continent connects to the Silk BRI framework. The BRF 2017, China hosted Road Economic Belt, and in boosted construction of the the Belt and Road the south to the 21st-Century Belt and Road and ensured Forum for Maritime Silk Road. Before that bilateral and multilateral FInternational Cooperation the Belt and Road Initiative cooperation between China (BRF) in Beijing to appeal for (BRI) was even proposed, the and countries on the South extensive consultation and China-Pakistan Economic joint contributions for shared Corridor (CPEC) and the benefits, creating a wider Bangladesh-China-India- platform for the promotion of Myanmar Economic Corridor international cooperation. A had already become platforms total of 29 foreign heads of for cooperation between state or government attended China and countries on the the Forum, including South Asian Sub-continent. Pakistani Prime Minister Thanks to its geographical Nawaz Sharif and Sri Lankan position, strong labor force Prime Minister Ranil and promising market Wickremesinghe. potential, the South Asian In the north of the region, Sub-continent has become an the South Asian Sub- important region under the 28 29 STRATEGY CHINA-INDIA DIALOGUE

Asian subcontinent has cooperation with South Asian outside the region had to sharp differences between featured eastern, middle and countries and helped the consider India first when China and India, but also western lines forging ahead Initiative gain traction on the dealing with South Asian because India has always together. The eastern line South Asian subcontinent. countries due to its considered China a primary refers to the Bay of The Forum only strengthened dominance of every field in threat to its leading position Rim centered along the the CPEC, which has become the region, not to mention its in South Asia, worrying about Bangladesh-China-India- the most spectacular market capacity compared to China’s economic and Myanmar Economic Corridor. bilateral cooperation project its small and medium military presence dominating Aung San Suu Kyi, State of the Initiative. neighbours. This diplomatic South Asia and the Indian Counselor of Myanmar, These three lines show that policy ensured stable Ocean region. When India attended the BRF. Although discusses bilateral relations no Bangladeshi head of state Since the BRF, China’s cooperative with Nepal, Sri Lanka and or government attended the even Bangladesh, these May 23, 2017: At Lianyungang Port in Jiangsu Province, a batch of buses BRF, China and Bangladesh potential with countries on the South countries’ relations with made by China’s Anhui Ankai Automobile Co., Ltd. boards a ship bound for launched many cooperative China are considered open Yangon City, Myanmar via the 21st-Century Maritime Silk Road. Anhui Ankai projects because of the Asian subcontinent was increased and concerns for India. Automobile Co., Ltd. signed a contract with Yangon Bus Limited Company to sell it 500 natural gas-fueled buses worth 200 million yuan. [VCG] Bangladesh-China-India- regional interaction along the Belt and If China, like other major Myanmar Economic Corridor. nations, focuses its South The Prime Minister of Sri Road has been enhanced. Asian diplomacy on India, to cooperate with China has own cooperation with small Lanka, an island nation in the small and medium countries been strengthened. Ongoing and medium countries in the Bay of Bengal, attended the the current cooperative relations with India, but gave in the region will suffer and cooperative projects can set region. These nations see BRF, which encouraged trends between China and it too much leverage over the lose confidence in their good examples and cause China’s willingness to bilateral and multilateral countries on the South Asian affairs of the region. This relationships with China. ripple effects. cooperate and its constant cooperation between China subcontinent are based on new model may make some These countries would think Before the BRF, India principle of equality and countries on the eastern bilateral cooperation. China’s in India unhappy, but its no matter how much declined to attend because regardless of a country’s size. bank of the Indian focus on small and medium focus is the well-being of the attention China gives them, the Initiative’s flagship These countries will see subcontinent. countries on the South Asian small and medium nations when push comes to shove, project, the CPEC, crosses the India’s “boycott” as a failed The middle line refers to subcontinent highlights its around it. India’s interests will always controversial Kashmir. move, forecasting that any construction of the southern practicality and refusal to let For the majority of big be prioritized over their own. Considering India’s position, attempt to stop China’s efforts passage between China and political or security issues countries outside of India’s This concern will greatly China patiently explained and in South Asia is bound to fail. Nepal. Since the Nepalese hinder economic cooperation neighborhood, the choice to affect the enthusiasm and tried persuasion through Small and medium countries earthquake, pragmatic and development. The give Indian relations the top determination for their channels such as the Chinese in the region will gain cooperation between China practice conforms to Chinese priority is quite rational. participation in a China- Embassy in India, but the confidence in working with and Nepal has continuously diplomatic tradition: Handle Current international rules sponsored regional program. Indian government stuck to China within the Initiative. increased. Nepal has easy and small cooperative tend to favor major nations, Before the BRF, media outlets its decision. In the view of If China’s cooperation with confidently embraced China’s plans expertly, and the hard and it is easy to see why and officials in several South some Indian media, India’s small and medium countries economic development tools and big ones will follow. friendship with India Asian countries voiced absence effectively achieves continuous fruits, as well as more independent China understands and outweighs relations with concern that aligning with symbolized a boycott of the India could someday be diplomacy. During the BRF, respects the geopolitical many small and medium China under the framework Initiative. persuaded to join the Initiative. cooperation between China patterns of the South Asian countries such as Pakistan or of the BRI could provoke a If a boycott is what the Of course, this largely depends and Nepal was further subcontinent. the Maldives. Of course, backlash from India. Indian government wants, the on India’s understanding and boosted by China’s proposals Finally, the BRF has theoretically, balanced Although such opinions were move’s results will be a judgement of China’s to build an important passage increased China’s diplomacy can be carried out never popular enough to disappointment. First, the intentions in constructing the to South Asia. This and the cooperative potential with in the region, but considering prevent these countries’ BRI is an open framework in Belt and Road. Trans-Himalaya Economic countries on the South Asian India’s strong dominance in participation in the Initiative, which no work can be Corridor were strongly subcontinent and enhanced the South Asian subcontinent, the concern has left a impeded by any country’s supported by Nepal. regional interaction along such a proposition is not easy. lingering cloud over China’s absence. Secondly, India’s The western line is the the Belt and Road. For China, achieving bilateral cooperation with “boycott” has provided a CPEC – a flagship project of As a result of the unique balanced diplomacy in South countries on the South Asian favorable environment for The author is director of the Editorial the BRI. It is well known that geopolitical structure of the Asia would be particularly subcontinent. After the BRF, China to solve traditional Department of South Asian Studies at the National Institute of International Strategy the CPEC has greatly South Asian subcontinent, for difficult, not only because of this voice died down and geopolitical problems in under the Chinese Academy of Social promoted China’s many years, any country the numerous major and even these countries’ willingness South Asia and promote its Sciences. 30 31 STRATEGY CHINA-INDIA DIALOGUE

May 15, 2017: The Leaders’ Roundtable Summit at the Belt and Road Forum for International Cooperation is held at the Yanqi Lake International Convention and Exhibition Center in Huairou District, Beijing. Chinese President Xi Jinping Is China-Pakistan presided over the summit. by Wan Quan Economic Corridor a Threat to India?

By Lu Yang

The economic development of Pakistan will boost regional stability and mitigate the threat of cross-border terrorism, which is conducive to the prosperity and development of India.

f the six major that the CPEC will benefit the stability throughout the over China’s BRI. attend the Forum, so there is restrain India and is now economic whole of Pakistan and region, including the western Furthermore, India doesn’t still a long way to go before eyeing broader security and corridors under accelerate its economic border of China. endorse China’s pattern of India joins the BRI. interests. In a recent speech the China- growth, which would However, to India, the improving its relations with Of every piece of the at the United Service Oproposed Belt and Road enhance the region’s stability CPEC exerts massive neighboring countries and Initiative, the CPEC remains Institution of India, Chinese Initiative (BRI), the most and security. China believes strategic pressure. In the eyes claims that the trend is the most insurmountable Ambassador to India Luo noticeable is the China- that security collaboration of Indian leaders, both China primarily rooted in creating obstacle for India. In fact, Zhaohui clarified that China Pakistan Economic Corridor and economic cooperation are and Pakistan are India’s major closer economic contact to China and India have would prioritize its national (CPEC). A flagship project two closely related aspects rivals. They argue that the foster interdependence. different understandings of interests when handling under the Initiative, it and that any improvements in project shifts the focus from However, China has received the CPEC. From China’s foreign affairs concerning extends more than 3,000 either will certainly boost the strategic cooperation to overwhelmingly positive perspective, the project South Asia, and make sure kilometers from China’s other. Security and economic economic cooperation, feedback from many South transcends the triangular every effort is conducive to Kashgar to Pakistan’s Gwadar development are like two making the China-Pakistan Asian nations, which is relationship between China, the development of China Port, in a region inhabited by wheels of a bicycle: Progress bilateral relationship tighter. reducing India’s influence in India and Pakistan and aims and the stability of the billions of people. The screeches to a halt if either India is unwilling to accept the region. On May 13, a day at enhancing regional whole region. project’s launch was a major wheel is lost. China believes such a situation. The most before the two-day Belt and development and stability by As a major regional power, boon to Pakistan’s that economic development glaring problem to India is Road Forum for International strengthening economic India understands the CPEC infrastructure development. can help improve Pakistan’s that the CPEC runs through Cooperation opened in cooperation and connectivity, and the Belt and Road security and that the the disputed area of Pakistan- Beijing, a spokesman from which in turn safeguards Initiative in terms of South CPEC EYES REGIONAL rejuvenation of its economy controlled Kashmir. For this India’s Ministry of External China’s interests. China long Asia’s geopolitical situation. STABILITY will not only enhance the reason, India considers the Affairs explicitly declared ago abandoned the strategy In its understanding, if the Both the Chinese and stability of the South Asian CPEC a threat, which has cast that India wouldn’t send any of keeping a special strategic CPEC succeeds, Pakistan will Pakistani governments hope country, but also promote a cloud of persisting doubt high-ranking officials to relationship with Pakistan to be strengthened, which 32 33 STRATEGY CHINA-INDIA DIALOGUE would tilt the balance of Pakistan have become part of power that way. In India’s India’s national identity. Old eyes, the CPEC strengthens mindsets are hard to change. the anti-India alliance in No matter how much the South Asia. Moreover, other connectivity and further South Asian countries’ openness of South Asia have positive response to the already enhanced India’s Initiative has only increased national strength, the India’s concern that China country’s security concerns will threaten its leading role and the national pride of its in South Asia. For this leaders make the government reason, India has invested inclined to take diplomatic greater resources in approaches towards China dulling China’s influence in from geopolitical and security the region. perspectives. India remains But if India develops more reluctant to cooperate with quickly and healthily, a fast- China, and such an attitude growing Pakistan won’t May 15, 2017: The Leaders’ Roundtable Summit at the Belt and Road Forum for cooperative mechanisms and deficiencies in mutual puts any constructive attempt necessarily diminish India’s International Cooperation is held in Beijing. When addressing the roundtable concerning the Initiative. To understanding between the in rough waters. strength. Conversely, would a summit, Chinese President Xi Jinping stressed that the Belt and Road Initiative promote construction of the two countries remain. China The core values of the Silk poor, terrorism-plagued “involves countries in different regions, at different development stages and with Belt and Road, involved is attaching greater and Road Spirit are “peace and different cultures” and “is a platform of open and inclusive cooperation and a Pakistan be in India’s best public good we jointly provide to the world.” by Wan Quan parties should put greater importance to its cooperation, openness and interest? The economic disagreements such as relations with neighboring inclusiveness, mutual development of Pakistan will territorial disputes on hold countries. In fact, China learning and mutual benefits.” boost regional stability and As a major regional power, India and seek opportunities that would highly value India’s China needs to consider mitigate the threat of cross- understands the CPEC and the Belt and could end up solving them. To role in implementing the India’s concerns and show border terrorism, which is achieve optimal development, Initiative. Whether and how greater tolerance and only conducive to the Road Initiative in terms of South Asia’s India should utilize the India will participate are patience when dealing with prosperity and development resources of other countries popular topics for the its South Asian neighbor, but of India. Unfortunately, geopolitical situation. and international Chinese media, public and India should try to look at spillover effect from the organizations rather than academia. However, India’s China’s diplomatic moves security dilemma has stubbornly relying only on its indifference and doubt from beyond strategic and significantly decimated prerequisite of “extensive cooperation mechanisms. own power. Because most of towards the Initiative and security perspectives. China India’s willingness to engage consultation, joint The CPEC can be considered its South Asian neighbors are absence from the Belt and and India can effectively in economic cooperation with contribution and shared a pilot project for bilateral even less developed than Road Forum for International eliminate their differences Pakistan and China. benefits.” The BRI is not just a connectivity between India, they lack the funds, Cooperation disappointed only by enhancing mutual Chinese program, but a China and its neighbors, talent and technologies to China. Still, India’s attitude understanding on respective ENHANCING MUTUAL symphony performed by all which is expected to expand support their development reflects an undeniable fact: policy, philosophy and logic. UNDERSTANDING IS KEY participants. All participating into a multilateral and turn to India for support. China must overcome other Disputes can be controlled if China’s BRI has already countries and regions are cooperation project when For this reason, the Indian countries’ distrust and doubt addressed head on. For now, become a global plan with encouraged to pool their conditions are ripe. government formulated and arising from geopolitical perhaps the only path focus on international wisdom and seek consensus, China, just like all other enacted the “Look East” concerns to promote the BRI. forward for China and India consensus, common opportunity and new participants, must maintain policy. Unfortunately, the Pinpointing the best way to is deepening understanding development and shared development by working an open attitude toward policy focuses on strategic effectively implement the through greater interaction. benefits. Throughout the together. For China’s cooperation under the BRI. balance in the Asia-Pacific Initiative and have it be implementation of the neighbors, priority should be The principles of “seeing the region and doesn’t consider accepted by others remains a Initiative, China has never set placed on promoting bilateral big picture and seeking China, the largest and most challenge for China. The author is a post-doctoral researcher at a fixed list of participants and dynamic economy Due to historical factors the One Belt-One Road Strategy Institute connectivity and building mutual benefits, win-win of Tsinghua University and a research has continuously followed the mutually beneficial cooperation and common neighboring India. such as the India-Pakistan associate at the South Asia Institute of principle of remaining open cooperation networks with development” create great India has yet to release a wars and the China-India Heidelberg University. Her publications include China-India Relations in the to all who are willing to China, before gradually space for stakeholders to positive response to the BRI, border war of 1962, security Contemporary World: Dynamics of National cooperate under the consolidating multilateral discuss specific projects and signifying that differences concerns related to China and Interest and Identity (Routledge 2016). 34 35 TREND CHINA-INDIA DIALOGUE China now wants to place other mobile instant communications company bets on India’s growth. messaging apps. Miteno Communication Chinese tech giants have These initial investments Technology acquired Indian invested more in Indian by Alibaba and Tencent adtech company Media.net startups in the last two years started a veritable chain for US$900 million. Started Chinese Investments in than they did in the entire reaction of funding that has by serial entrepreneur preceding decade. Is this since carried over to other Divyank Thurakhia, Media. Indian Startups Skyrocket sudden interest an anomaly industries as well. net is a popular display ad or a trend? Chinese cab-sharing network that competes with company Didi Chuxing, the likes of Google, AOL, TRACKING THE DEALS known best for beating Uber Yahoo and many others in the Barring a few exceptions, in China, invested US$900 online advertising space. most of the funding coming million in Indian cab-sharing So far, though, the biggest By Vishveshwar Jatain from Chinese tech giants into company Ola, in an attempt to completed deal has come technology-based Indian further break Uber’s from Shanghai Fosun startups in the past two years monopoly and extend its own Pharmaceuticals, who put in Chinese tech giants have invested more in Indian startups in the last two has been in the mobile, global dominance by teaming an unprecedented US$1.27 years than they did in the entire preceding decade, and the numbers are transportation, e-commerce, up with Lyft and GrabTaxi. billion to acquire a majority adtech, pharma, and Then last year, stake in Indian only poised to get bigger. energy sectors. In September 2015, Alibaba invested US$680 million in One97, the parent company of One of the main reasons for this surge Paytm, a popular Indian mobile payment app that in interest is attributed to Chinese n Sino-Indian trade, consumers can use to pay giants wanting to replicate their own India is most utility bills, book movie conspicuously known tickets, flights and hotels, and models of success in the nascent for being a huge market even do shopping. Later, in forI electronic goods collaboration with Taiwan- Indian market, where things are just manufactured by China. Of based Foxconn and Japan’s course, that’s not all that Softbank, Alibaba also beginning to gain traction in the world China exports to India – there invested US$500 million in of startups. are also organic chemicals, Snapdeal, a popular online boilers, milk, fuel, oil, and shopping portal that even nuclear reactors. competes with Amazon India In 2014, China edged out and local competitor Flipkart. the UAE to become India’s Tencent is the other tech largest trade partner. By 2015, giant that has made multiple China already accounted for strategic investments, starting 15.8 percent of all Indian Founded in 2010, Snapdeal is an Indian e-commerce platform similar to Tmall, with US$120 million in imports, adding up to a total Alibaba’s B2C marketplace, and Amazon in the U.S. In 2015, Snapdeal raised Practo, an app that aggregates of US$61.5 billion. This means US$500 million from investors including China’s Alibaba Group and Foxconn information about doctors Technology Group as well as Japan’s SoftBank Group Corp. Since April of this year, that bilateral political climate Snapdeal has started negotiations with another Indian e-commerce platform to and diagnostic labs in India – aside, the Chinese and Indian merge into an even stronger local e-commerce company. much like a search engine for economies are inextricably medical services. The second linked to, and dependent on, second route that’s been billion into Indian startups. investment by Tencent in each other. gaining momentum This period marks an partnership with Foxconn Trade is only one of the of late: private equity and inflection point in economic was worth US$175 million, for ways money moves between venture capital. relations between China and Hike, an Indian messenger countries in the modern In 2015, Chinese companies India. No longer content app that competes with world though, and it’s the collectively invested US$3.38 supplying goods to India, WhatsApp, Telegram, and 36 37 TREND CHINA-INDIA DIALOGUE

India has a huge and growing inroads here.” Tech 2.0, with the aim of agencies, ground investor base of data-connected Traditionally, language has helping Chinese investors to initiatives are also picking up mobile users. In addition, been one barrier that has fund Indian technology-based the pace. In March this year, services that already have impeded business startups. the Chindia TMT Dialogue some traction are only collaboration between the The platform will help with Conference organized by expected to grow in size and two countries, but that seems decentralizing information, Chinese accelerator and revenue in the future. to matter less and less now as and will more seamlessly venture-fund ZDream saw 40 Didi Chuxing has its own both sides understand the connect Indian startups with Indian investors and reasons, and the investment scope of business and private equity and venture entrepreneurs travel to China works for them on so many opportunities. capital investors in China. and visit companies like levels: They gain a slice of the There are platforms such as Alibaba, Baidu, Xiaomi, Indian private transportation NO SIGNS OF SLOWING Let’s Venture and Equity Tencent, and Huawei in order market, they can assist Ola DOWN Crust in India that enable to better understand the with the technology they’ve It’s not just that the money venture funding, but they’re country’s business climate. built and the business is coming in; that’s only half outside the purview of As the two largest Paytm is the Indian version of Alipay, which gets its name from “Pay through Mobile”. Its founder Vijay Sharma, inspired by China’s Alibaba and Japan’s SoftBank, practices they’ve learnt in the story. The other half is exchange and regulatory developing economies in the aimed to promote mobile payments among ordinary people in India to keep their China – and, last but not least, about the increasing authorities. Asia-Pacific region, there is hard-earned money safer. Furthermore, the platform enables people to transfer the arrangement helps Didi acknowledgment of and Back in 2014, the Securities immense potential for money to their families anywhere and anytime. Thanks to the platform, the QR Chuxing build a network support for exchange and and Exchange Board of India strategic collaboration outside codes are now seen even at vegetable stands in Delhi. courtesy of Ant Financial strong enough to rival Uber. regulatory agencies, and new (SEBI) proposed a platform of trade for China and India. Another reason behind the initiatives aimed at making it similar to the Shenzhen Stock For decades, Chinese investors pharmaceutical company know-how, customer analysis, general trend of increased easier for Chinese investors to Exchange, but it failed to take seeking to invest in the Grand Pharma. use cases and digital funding is that traditional fund Indian startups. off due to a lack of takers and information technology, infrastructural support, the means of investment just The Shenzhen Stock traction. The landscape has agriculture and IT’S ABOUT MORE THAN JUST big Chinese players can don’t promise the same kind Exchange (SZSE) is the obviously changed in the last pharmaceutical sectors in MONEY accelerate the growth of much of returns as a successful largest stock exchange in few years, and Shenzhen is India have been thwarted by All these deals, completed smaller Indian firms,” he says. startup venture – at least in China, according to trade now even open to partnering the political barriers that exist between 2015 and now, One of the main reasons for theory. The idea is to catch volume. This April, it with Indian exchanges. between the two nations. represent the larger chunk of this surge in interest is that them young and capitalize on announced that it was In addition to support from Fortunately, the last two years investments that have rolled Chinese giants want to the exponential growth. creating a platform called The exchanges and regulatory have gone some distance in in. All of those that have replicate their own models of There are, of course, no showing that market received the most media success in the nascent Indian guarantees, and the risk is economics in a capitalist On March 8, 2017, He Xiaopeng, president of Alibaba Mobile Business Group, attention, have a minimum market, where things are just higher, but so is the reward. announced at a press conference in New Delhi that Alibaba Group would make world does not necessarily deal size of US$100 million. beginning to gain traction in A prominent Singapore- massive investments in India to boost business development. [IC] subjugate itself to politics. Needless to say, there are the world of startups. based investor says, “A lot of Increasing interest from many other, smaller deals For instance, Alibaba is not Chinese investors that I know Chinese investors, the happening much more only bringing in its money believe that the tech market growing startup culture in frequently. when it invests in Paytm and in China is overvalued, and India, and support from “It’s not just about big Snapdeal, but also its they’re already exposed to exchange and regulatory Chinese players hedging their expertise from its Silicon Valley too, whereas in agencies are factors that are bets on the biggest firms in e-commerce operations in India you still have the scale now finally coming together the Indian ecosystem. While China, where it handles but not the valuation. Another to ensure that this trend is Paytm and Ola are solid business for over 25 million reason for this inflow is that, only moving upwards. examples, things like Fenqile unique visitors each day on its historically, Chinese firms funding KrazyBee for micro- website. So, in a sense, both have never really made a lot credit operations slip under these startups operate in of money in India, and the radar,” adds Anmol Soin, spaces that are familiar generally, tech has a cleaner founder of the Initiative for territory for Alibaba. image in terms of less Policy Research and Analysis. For Tencent too, the corruption and more efficient The author is a writer and marketer, “It’s not just about how the reasons for investing are dealings with the currently working for AdPushup, a series A-funded tech startup. He tracks startup money can help them move somewhat similar. The government, so this may be culture and how startups disrupt markets ahead. With technological landscape is familiar, and the best place to start making and industries. 38 39 CASE STUDY CHINA-INDIA DIALOGUE Empowering India

By Zhang Xue

One Chinese company saw an opportunity in India’s power shortages. Its sharp performance record has won the company a sterling reputation abroad, and made it the largest foreign SEPCOIII has contracted India’s largest foreign-funded power plant, Jhajjar Power Plant, which power station contractor in India. began operation in 2012.

long the western the company’s Indian firm foothold here with better tightening the standards for nearly-zero-discharge value Not only can localization bank of the Bay of business and manages the plans for cost performance power plants’ emissions makes it the first minimize the company’s Bengal, 25 coal-fired power plant in and stronger executive force treatments, especially environmentally friendly costs, it also creates plentiful kilometers south Cuddalore. than our rivals,” he asserts. desulfuration, denitration, power plant in the country. job opportunities for locals. ofA Cuddalore in southern Duan first visited India in Duan was very proud when and dust-extraction. The project turned out to be a “Our company’s ratio of Tamil Nadu, India, is a coal- 2006 as project manager of a the Cuddalore project began In 2012, the company built major milestone in overseas Indian versus Chinese fired power plant built by 1x135MW circulating- operation. “Usually after the India’s Jhajjar Power Plant in thermal power projects by employees has grown from SEPCOIII Electric Power fluidized-bed power station in design is completed, we’ll do compliance with all emissions Chinese companies and won the original 1:1 to 3:1,” Construction Corporation the city of Bikaner, Rajasthan, a pilot run of the unit to test numerous honors including a illustrates Duan. To help local (hereinafter referred to as in northwestern India. “I was its reliability,” he explains. “Going global” 2012 Outstanding employees get up to speed SEPCOIII) from China. in the middle of nowhere in a “We’ll shut it down and check Infrastructure Award, the top more quickly, the company Completed on schedule, the totally new culture,” he recalls. for any technical faults. cannot succeed honor for infrastructure has implemented the “master- project has greatly alleviated Born near the sea, he had Fortunately, everything ran construction in India, the 2013 apprentice” mode, a power shortages in the states never experienced such dry, smoothly during the entire without localization, Lu Ban Award for Chinese traditional Chinese method of of Andhra Pradesh and hot desert weather. “In 2002, test, which impressed the especially in terms Construction Projects training new employees. A Telangana. our company took its first Indian proprietor (“Overseas Projects” Category) Chinese “master” guides Since entering the Indian overseas order from Nigeria, tremendously. He said, ‘I’ve of human resources. in 2013, the China Power three local employees in a market in 2005, SEPCOIII followed by many other witnessed these tests many Not only can Excellent Engineering Project certain task until they are has constructed six large places around the world,” times, and they always have Award, and China’s National each able to perform it power stations in five states, Duan grins. “We arrived in problems. I’ve never seen a localization minimize Excellent Welding Project. independently. creating total installed the Indian market in 2005.” plant pass on the first try.’” At construction sites, dual capacity of more than 10,770 He soon accepted that the Such a sharp performance the company’s NEED FOR LOCALIZATION cafeterias frequently deliver megawatts, about 5.7 percent only way to secure work record has won the company costs, it also creates Duan Liandou is only one of both Chinese and Indian food of India’s total market. With a overseas was to adapt to the a sterling reputation abroad. many Chinese engineers with an eye on respecting contracted value of over climate. He has worked in SEPCOIII signed a contract plentiful job working overseas. His local dietary habits and US$7.3 billion, these projects India for the past 11 years, in to build the second phase of company’s “going global” letting the local employees have offered more than regions ranging from the the same project, worth opportunities policy has fostered a wealth feel equally treated. But the 40,000 jobs, making it the desert hinterlands in the US$2.4 billion. for locals. of talented personnel with two are far from segregated: largest foreign power station northwest to the Bay of The Indian government international vision. “Many Indian employees contractor in the country. Bengal in the northeast. The amended its environmental However, “going global” frequently dine in the company now considers him protection law at the end of standards. As the first coal- cannot succeed without Chinese dining hall and vice POWERFUL RESULTS an “India hand.” 2015, lowering its emission fired power generation project localization, especially in versa,” grins Duan. Duan Liandou presides over “We have reinforced our limit significantly and with desulfurizer in India, its terms of human resources. “More and more Indian 40 41 CASE STUDY CHINA-INDIA DIALOGUE employees have gained a supply, making it one of the sense of belonging in our few regions in the country to company,” continues Duan. avert blackouts. His “We now have many Indian performance in this realm employees who volunteer to specifically inspired great Battling the Imbalance work on other projects in expectations from the public diverse locations. Moreover, when he assumed the role of we promote from within and prime minister. India’s rapid India’s Growing Trade offer plenty of opportunities development in recent years to move up: Some Indian has resulted in high demand employees now work in our for energy. headquarters in Qingdao, “I’m going to explore the Deficit with China Shandong Province. Others Indian market more deeply,” have been dispatched to the says Duan. “The country has Middle East to help with our suffered a downturn in power projects there.” construction over the past four times its current supply By Chaitanya Mallapur few years, ostensibly due to of energy, and five to six times PROMISING PROSPECTS an underdeveloped power more if its annual economic As an emerging economy grid, incapable of handling growth stays at 8 percent. enjoying high-speed current levels of production In recent years, guided by With India’s imports from China far outstripping its exports, economic development, India and still leaving many places the framework of the Belt and the trade deficit has become a cause for concern. has endured severe power without access to power. The Road Initiative, greater shortages. Analysts predict country’s inefficient delivery numbers of Chinese that the Modi system is glaring.” enterprises have explored administration’s “Make in Reports by India’s overseas business ndia skipped the Belt India” program will lead to Economic Times support opportunities, so SEPCOIII and Road Initiative explosive growth of demand Duan’s opinion. Per the can’t rest on its laurels. “We (BRI) forum hosted for electricity in the years to publication, more than 300 just signed a contract to build by China in May this come. The possibility of million Indians in rural areas the second phase of the Iyear, which was attended by unexpected power cuts survive without electricity. Cuddalore project,” Duan leaders of 29 countries and severely damages foreign Surveys completed a year beams. “Along with delegations from over 100 investors’ faith in India-based after Prime Minister Modi construction, we have nations. The project aims to production. took office showed that more invested in several additional connect Asia, Europe and During his tenure as chief than 18,000 villages had no projects in the hope of staying Africa through rail, road and minister of Gujarat, Narendra access to power. involved in the post- sea links for the purpose of Modi went to great lengths to As estimated by India’s completion operation and trade across regions. China ensure the state had a 24- Planning Commission, by administration of power plans to invest US$800 hour uninterrupted power 2031, India will need three to stations to expand our billion over the next five company’s business scope.” years in the Initiative. During his visit to Shanghai The question that emerges on May 16, 2015, Prime in the minds of many is: Has Minister Modi held a India missed out on the roundtable meeting with 25 opportunity to recover its entrepreneurs from Chinese trade deficit with China by energy companies including refraining from participating TBEA Co., Ltd., Harbin in the BRI? Electric Corporation, China’s economy got a In many Indian cities, advertisements and stores for Chinese mobile phone brands Dongfang Electric, Hareon tremendous boost since its like Lenovo, Xiaomi, OPPO and Huawei can be seen almost anywhere. And Chinese Solar and Trina Solar Limited, economic reforms in the early mobile phones have been warmly welcomed by most Indian customers, especially the Xiaomi brand. Not only has the company established factories in India, but also outlining his vision for future 1980s, overtaking Japan in invested in expanding distribution channels and building a complete ecological energy-sector cooperation 2010-11 to become the second industrial chain in India. It has made major gains in the country as evidenced by its between China and India. largest economy in the world. increasing market share. [VCG] 42 43 CASE STUDY CHINA-INDIA DIALOGUE

Today, it stands as a global will have to improve upon its manufacturing powerhouse ‘Ease of Doing Business’ to and the largest exporter of facilitate more Chinese goods in the world. On the investments in other sectors. contrary, India is an emerging In addition, India will need to economy which is a strong dive deep into Chinese competitor for China, but still markets, understanding their is a net importer of goods, domestic needs and catering despite liberalizing its to household consumer economy in the 1990s. demands in China. Indian markets are flooded with ‘Made in China’ MANUFACTURING products, ranging from cell REVOLUTION – THE WAY phones, laptops, apparels, December 2016. to China consist of primary India needs to tap into this opportunity, AHEAD FOR INDIA toys, home appliances, solar and intermediate products. The manufacturing sector cells to Ganesh idols. China is INDIA’S TRADE DEFICIT WITH India’s major imports from which will help transform it into a global in China is said to be facing India’s largest global trading CHINA SPIKES OVER THE LAST China consist of telecom some changes in the coming partner, with bilateral trade FIVE YEARS instruments, computer manufacturing hub, joining the global years with rising labor costs. valued at US$70.72 billion in India’s trade deficit with hardware and peripherals, This has made manufacturing 2015-16. China has increased by 42 fertilizers, electronic supply chain. companies in China shift India’s import from China percent from US$37.23 billion components, organic towards low labor cost was over six times its export in 2011-12 to US$52.7 billion chemicals and drug percent import duty on On the domestic front, it will countries like Bangladesh, that year, and there has been in 2015-16, according to the intermediates, consumer Indian exports. heavily impact the local Laos and Africa. growing concern over this data of the Ministry of electronics, electrical Another important aspect is manufacturers and sellers in India needs to tap into this persistent trade imbalance. Commerce of the machinery, iron, steel, etc. the competitive prices of India, disturbing the opportunity, which will help The Indian government is Government of India. Exports include cotton, Chinese products in the economic cycle with no transform it into a global trying to address this issue India’s exports to China copper and articles, organic Indian market. For instance, buyers left for Indian manufacturing hub, joining at various levels with its registered a 50 percent chemicals, mineral fuels and Chinese solar panels are products in the market. the global supply chain. This Chinese counterparts. “India decline from US$18.08 billion oil, salt, plastering materials, 10-20 percent cheaper will address India’s growing is seeking greater market in 2011-12 to US$9.01 billion in plastic and articles, animal/ compared to domestically EYEING CHINESE FDI consumer demands, generate access for its exports in the 2015-16, while imports grew vegetable oils and fats, etc. manufactured modules. Over India will have to pull in jobs, ensure competitiveness Chinese market for products by 12 percent from US$55.31 the last five years, India’s more Chinese investments and most importantly, bridge such as pharmaceuticals, IT billion in 2011-12 to US$61.71 PRICING AND COMPETITION import of solar panels (solar into Indian markets. The trade deficit gap by reducing services, agriculture – fruits, billion in 2015-16, adding to INTENSIFY IMBALANCE and photovoltaic cells) from share of China’s FDI equity imports and boosting exports. vegetables, buffalo meat, the trade imbalance. Cotton is the largest China have increased by 240 inflows to India’s overall FDI To bring this distant dream non-basmati rice, etc,” said The trade deficit is exported commodity to China percent from US$577 million inflows was just 0.51 percent into reality, the ‘Make in Minister of State for attributed to increased but there has been 58 percent in 2011-12 to US$1.96 billion from April 2000 to September India’ call by Prime Minister Commerce and Industry, dependency on manufactured decline over the last five in 2015-16. 2016. The cumulative FDI Modi will have to be Nirmala Sitharaman, during goods and products from years, from US$4.02 billion in India does not have enough equity inflows from China to effectively transformed into a a parliamentary session in China, while India’s exports 2011-12 to US$1.69 billion in manufacturing capacity India stood at US $ 1.59 brand: ‘Made in India’. For 2015-16. This slowdown is currently for solar cells and billion over the same period, this, the government will have attributed to a drop in modules to cover full demand. of which 77 percent came in to channelize policies India’s import from China was over six times demand from China and the We are dependent on imports, post April 2014. focusing on quality-led impact of abolishing cotton and China is our biggest The sectors which receive manufacturing, its export that year, and there has been stockpiling scheme by the supplier of solar cells and most investment from China competitiveness, innovation Chinese government, modules, said Minister include the automobile and technology driven growing concern over this persistent trade announced in 2014. Also, Sitharaman in a March 2017 industry (59 percent), equipment and machinery. imbalance. The Indian government is trying Indian cotton faces tougher parliamentary session. metallurgical industries (11 competition from Vietnam, as If not addressed in time, the percent), services (7 percent), China allows zero import duty rising trade imbalance electrical equipment (5 to address this issue at various levels with The author is a Mumbai-based foreign from its Southeast Asian between the two nations will percent) and industrial policy analyst, and writes on trade, its Chinese counterparts. neighbor, compared to 3.5 increase India’s debt burden. machinery (4 percent). India maritime security and energy. 44 45 DISCUSSION CHINA-INDIA DIALOGUE formally proposed the idea of the second half of 2015. By made at that time. constructing the BCIM then, a joint research report Scholars and officials from Economic Corridor. Both by the four nations was to be India, Myanmar and sides agreed to cooperate on released and discussions held Bangladesh have shed big projects involving on establishing an significant light on the infrastructure and industrial intergovernmental reasons that the BCIM What Are India’s parks and advocated cooperative mechanism. Economic Corridor hasn’t promoting the linkage of However, only recently was progressed substantially. Chinese and Indian markets the third meeting held in Most Indian scholars say that through construction of the Kolkata, on April 25. During problems like the unstable Concerns about the BCIM BCIM Economic Corridor. the meeting, each of the political situation in The then Prime Minister of nations submitted their Myanmar, inactive attitude of India, , respective reports on the goal, the Myanmar government, Economic Corridor? responded positively to the mode, general principles, border disputes between idea of building the economic enforcement mechanisms for Myanmar and Bangladesh corridor. India’s Ministry of the construction of the BCIM and refugee issues have External Affairs quickly set Economic Corridor. They hindered the construction of up a special workshop to agreed to schedule a fourth the BCIM Economic By Liu Zongyi coordinate the proposed meeting in Myanmar in 2018 Corridor. Representatives of initiative. to complete the final research Myanmar and Bangladesh The First BCIM Economic report on the Corridor. China tend to agree in general Corridor Meeting was held in had hoped to complete the terms. They all point out, For the BCIM Economic Corridor, India has clearly adopted a “delay , capital of final report at the Kolkata either directly or indirectly, Province, in December 2013. meeting and had drawn up a that India’s reluctance and & replace” policy. It aims to strengthen its domestic infrastructure During the meeting, the four proposal on the establishment delay is the major roadblock and connectivity as well as such construction with neighbouring nations reached consensus on of an intergovernmental hindering the construction of common development, joint cooperative mechanism for the BCIM Economic countries, and will only talk with China on connectivity construction, and setting up the Corridor. But the draft Corridor. The problems in cooperation after it cements its influence in the region. development and cooperation was never discussed at the Myanmar and Bangladesh platforms for under- Kolkata meeting, and no cited by India are real, but developed areas within substantial progress was Bangladesh has been active BCIM. In December 2014, the Second BCIM Economic Corridor Meeting was held in he Bangladesh- Myanmar, and Bangladesh development of South Cox’s Bazar, Bangladesh. The China-India- are economically Asia, Southeast Asia, and four nations discussed and Myanmar (BCIM) undeveloped compared to East Asia. envisioned cooperation and Economic many other places in the related mechanisms to CorridorT is an initiative area. Construction of an THE THIRD BCIM ECONOMIC promote cooperation in major conceptualized to enhance economic corridor at the CORRIDOR MEETING AS A fields including connectivity, cooperation in transport, national level is conducive LATECOMER energy, investment and infrastructure, economy, to complementing the The idea of economic finance, trade facilitation, and trade within a certain advantages of various cooperation within the BCIM sustainable development, zone. The proposed corridor parties, forming a region was first proposed by poverty reduction, people-to- starts in the southwestern reasonable international academic circles in China’s people exchange and human Chinese province of Yunnan division of labor and Yunnan Province in the late resources. During the and traverses Myanmar, promoting industrial 1990s. The pioneering ideas meeting, the countries May 16, 2017: Oil transported through the China-Myanmar crude oil pipeline northeastern India and restructuring to accelerate received a positive response pledged to accelerate enters China via Ruili City in Yunnan Province. In the days that followed, the Bangladesh before finally sub-regional economic from academic circles of the construction of the BCIM oil traveled through China at a speed of 50 kilometers per day before arriving in Anning City, Yunnan Province. Formal operation of the China-Myanmar reaching Kolkata in India. development. Completion other three countries. In May Economic Corridor and crude oil pipeline project began in April 2017. The project will not only bring Southwestern China, of the economic corridor 2013, during Chinese Premier decided to convene the third tangible economic and social benefits to Myanmar, but also boost the economic northeastern India, will facilitate the joint Li Keqiang’s visit to India, he meeting in India’s Kolkata in development of southwestern China. by Yao Bing/Xinhua 46 47 DISCUSSION CHINA-INDIA DIALOGUE The fundamental reason for the “land bridge.” During the realize peace and mutual meeting, the Indian benefits. The border disputes Indian government’s lack of support delegation raised the should be solved anyway to questions about equal market enhance strategic mutual for China’s Belt and Road Initiative, openness and the trust between the two underdevelopment of countries. including the BCIM Economic Corridor, Bangladesh and Myanmar. It However, in the past few continued delaying and even years, senior advisors of the is that India doesn’t trust China. damaged the BCIM Economic Modi government have focused Corridor, and related on geopolitical competition multilateral cooperation with between China and the U.S., in terms of promoting BCIM BCIM Economic Corridor has problems concerning the between China and Japan, and Economic Corridor’s changed. The Modi bilateral trade relations between China and India, construction. As for government’s attitude between China and India. which severely mangled India’s Myanmar, since Aung San towards the different parts of foreign policy. They looked at Suu Kyi took office in 2016, BRI takes on three different CONNECTIVITY BASED ON the China-proposed BRI and the country’s attitude looks: First, conditional TRUST the BCIM Economic Corridor towards China and the BCIM participation; Second, The fundamental reason for as moves to gain spheres of Economic Corridor has opposition and hedging; the Indian central influence. They decided that changed drastically. Now, the Third, delay and replacement. government’s nonsupport of the Belt and Road would China-Myanmar Oil and Gas For the BCIM Economic BRI, including the BCIM greatly enhance China’s Pipelines are operating, and Corridor, India clearly Economic Corridor, is that influence on neighboring Myanmar hopes to expand practices the “delay & India doesn’t trust China. In countries’ economics, politics cooperation with China. replace” policy. Because of fact, various states in and security, and worried the Neither Bangladesh nor India’s delays, the second northeastern India and the Initiative would diminish Myanmar wants to see the BCIM meeting was eastern Indian state of West India’s advantages in the construction of the postponed from early 2014 to Bengal are very active in region. Their proposed South Asia Communication Satellite was launched from the Satish Dhawan Space BCIM Economic Corridor late 2014, and the third promoting the Corridor. solutions include enhancing Centre in Sriharikota on May 5, 2017. This satellite will provide services including communication, weather forecast and disaster warning to some South Asian slow down. meeting from 2015 to 2017. However, since the border cooperation with Japan, Association for Regional Cooperation (SAARC) countries. [IC] However, during the same issue between China and strengthening domestic NEGATIVE ATTITUDE OF THE period, India actively India has yet to be solved and infrastructure and enhancing MODI GOVERNMENT promoted the Bangladesh, separatism still exists in connectivity with neighbouring Ocean through Yunnan trade and economic During the Manmohan Bhutan, India, Nepal (BBIN) northeastern India, India countries. India will only talk Province and Myanmar alone cooperation and connectivity Singh administration (2004- Initiative, a sub-regional cannot ignore the strategic with China on connectivity if it really wanted. Last April, under the framework of Belt 2014), India held a generally program involving countries and security significance of cooperation after it cements its the China-Myanmar crude oil and Road. Some local positive attitude towards the in South Asia, and the Bay of the BCIM Economic influence in the region. pipeline project began formal governments in India have BCIM Economic Corridor Bengal Initiative for Multi- Corridor, even just as an In fact, scholars from operation and was soon always been supportive of and even the Belt and Road Sectoral Technical and initiative on sub-regional Bangladesh proposed praised as an exemplary BRI China-India cooperation and Initiative(BRI) as a whole. On Economic Cooperation economic cooperation. India’s “multiple paths” long ago. project that set a good welcome Chinese investment February 11, 2014, during a (BIMSTEC), an international former Foreign Secretary They are quite discontented foundation for further in their regions. Under the meeting with China’s State organization involving a Shyam Saran once with the slow progress of the cooperation between the two frameworks of AIIB and the Councilor Yang Jiechi, group of countries in South commented that the BCIM BCIM Economic Corridor at countries. Silk Road Fund, some Manmohan Singh, then Prime Asia and Southeast Asia. Also, Economic Corridor could present. They hope to India, Bangladesh and infrastructure projects and Minister of India, said that alongside the U.S. and Japan, provide China with direct promote construction of the Myanmar are all founding industrial projects related to India would actively India is promoting the Indo- access to the Indian Ocean. BCIM Economic Corridor members of the Asian the BCIM Economic Corridor participate in the Pacific Economic Corridor. Thus, it actually is a part of through fast-track measures Infrastructure Investment are still possible. construction of the BCIM India originally offered to the Maritime Silk Road. If and open up the “southern Bank (AIIB). Bangladesh and Economic Corridor and the host the third BCIM meeting China wants to jointly build route” without the missing Myanmar have also Silk Road Economic Belt. in Kolkata to promote its the BCIM Economic Corridor routes to connect deepwater participated in the Silk Road However, since Narendra Look East Policy and enhance with India, it should hold ports in Bangladesh through Fund, a fund founded by The author is an associate research Modi took office in 2014, connectivity with Southeast talks with India on an equal Myanmar’s Rakhine State. China to provide investment fellow with the Shanghai Institutes for India’s attitude towards the Asia by using Bangladesh as a footing and find avenues to China could access the Indian and financial support for International Studies. 48 49 DISCUSSION CHINA-INDIA DIALOGUE

of development”, thereby concentration of poverty and 14 percent to general requiring awareness of persists. Following the cargo, transported from “different domestic BCIM’s upgrade to economic Kolkata to the northeast. It is circumstances and corridor status, however, reasonable to imagine similar BCIM-EC developmental aspirations”. attention seems to have handicaps in the mountainous India’s failure to participate shifted from overland frontier areas of Bangladesh, in the Belt and Road Forum connectivity to maritime China and Myanmar. summit, which was attended routes. This ignores the fact The feasibility of overland Reviving the Traditional by over 130 countries and 29 that land transport accounts connectivity has been foreign heads of state and for at least 65 to 70 percent of explored through the BCIM government leaders, sends freight transportation in Car Rally. A recent survey worrying signals about the South Asia. along the road between Roads country’s commitment to On top of this, the distance Moreh (an Indian town on the BCIM project. between northeastern Indian the India-Myanmar border), The inertia surrounding the states and India’s trade Mandalay (the second-largest BCIM-EC is rooted in centres like Mumbai, is over a city in Myanmar) and Ruili (a By Rajen Singh Laishram distrust, despite the thousand kilometres. Thus, Chinese city on the China- countries’ rhetoric about the states in India’s northeast Myanmar border) records a good neighbourliness. pay an additional 5.6 percent two-way movement of 4,000 Despite efforts, the ambitious initiative aimed at boosting trade Different political traditions for shipping and as much as trucks every day. Of these, and systems, trade deficits, 63 percent extra for freight only about 10 to 15 trucks find and investment between Bangladesh, China, India and Myanmar unbalanced security and insurance for the same their way to Tamu in remains in a state of inertia. situations, unsettled goods. The cost of logistics Myanmar or Moreh in India. boundary questions, cross- and damages adds 60 percent After experiencing the road border migration and to the cost of a bag of cement, conditions in the Indian cities competing strategies for he Bangladesh- meeting of the Joint Study inconclusively. Commenting advancing political ambition India’s failure to participate in the Belt and China-India- Group of academics and on the matter, Rajeet Mitter, are all contrary to the spirit of Myanmar officials, held in Kolkata in head of the Indian the Kunming Initiative – Road Forum summit, which was attended Economic April 2017 to finalize a road delegation, said that the precursor to the BCIM-EC. CorridorT (BCIM-EC) is in a map for the economic BCIM countries are However, significant strides by over 130 countries and 29 foreign state of limbo. The third corridor, ended “currently at different levels have been made in the form of the BCIM meeting, organized heads of state and government leaders, almost every year, which has On June 12, 2017, the 2017 South & Southeast Asia Commodity Expo and Investment Fair opened in Kunming, rotated among the four sends worrying signals about the country’s capital of the southwestern Chinese province of Yunnan. [VCG] member countries since 1999, commitment to the BCIM project. and the completion of the Kunming to Kolkata (K2K) Car Rally in February 2013. Besides, the BCIM Forum was upgraded into an economic corridor project in May 2013.

INTENT AND REALITY The stated focus of the Kunming Initiative and its off-shoot, the BCIM-EC, is the land-locked area of southwest China, , northeast Myanmar and Bangladesh, where a high 50 51 DISCUSSION CHINA-INDIA DIALOGUE

Myanmar is chalking out new handicrafts. The festival participation in initiatives process. development agenda, a draws participants from such as the Ganga-Mekong Northeast India has large foreign policy with a focus on Bangladesh, China, Japan, Subregion, Greater Mekong market potential, with a regional cooperation, and Thailand, the U.K., and the Subregion, BIMSTEC, and population of almost 50 new industrial and foreign U.S. Similarly, in the annual BBIN, appear innocuous and million. Information investment policies. Hornbill Festival, the well-intentioned against the technology, computer Myanmar shares a Nagaland government hosts background of almost 700 hardware and housing 1,648-kilometer border with people from India’s Regional Trade Agreements materials are increasingly five Indian states. Estimates neighbouring nations, as well around the globe. But many of sourced from China, all by the Indian Institute of as the U.S. and the U.K. The India’s policy through grey areas of trade. Foreign Trade put the number of Myanmar students pronouncements are often The huge market potential of informal trade through the and citizens visiting Manipur interpreted as strategies to the region is yet to be January 28, 2015: The ceremony of the pre-production of the China-Myanmar border points at 20 billion Central University by road, counter China’s Belt and explored, as it opens up and crude oil pipeline is held in Rangoon. Through the pipeline, the oil that China rupees annually. Myanmar for academic exchange and Road Initiative. links to the market for the imported from the Middle East, can be transported to China’s southwest through has also begun prospecting medical treatment in the At the same time, India first time in half a century. Myanmar, instead of being transported through the Strait of Malacca, cutting the transportation time by half. [VCG] for opportunities in India’s hospitals at Imphal, is often questions the political Formalizing these trades will northeast. The mutual visits increasing. loyalty of the people in its open up many other avenues of Silchar, Imphal and Moreh, and people-to-people ties from respective provincial Nagaland State also northeast. Diplomat Ashok of opportunity. many non-official visiting along the South Silk Road. political leaders have paved inaugurated an international Sajjanhar has observed that Geographically, almost 70 delegations of academics, Chinese enterprises and the way for the continual trade road from Myanmar, “given China’s greater percent of northeast India is policymakers and entrepreneurs were presence of a delegation from connecting Longwa in the economic and strategic mountainous, and the same entrepreneurs from encouraged to adapt to local Myanmar in the annual Mon district of Nagaland via might,” it is likely that the can be said of north and Cambodia, the European conditions while undertaking Sangai International Festival Lahe in Myanmar, in April BCIM-EC “will bring India’s northeast Myanmar. Chinese Union, Indonesia, Japan and projects along the BCIM-EC, in Manipur and International 2013. For the first time, the northeastern states under the expertise in connecting Myanmar have drawn the to dispel locals’ groundless Hornbill Tourism Festival in Chairman of the Naga Self- increasing influence of China, mountainous provinces conclusion that the Indian fears about Chinese Nagaland. Administrative Zone of further weakening their through tunnelling for high- government is not serious domination. In the context of Myanmar, U Ru San Kyu, physical, economic, social and speed trains could be used to about surface connectivity. the rise of Asia in the global PROVINCIAL INITIATIVE visited Longwa from emotional chord with bring much-needed Surprisingly though, in political-economic process, it Former Manipur Chief Myanmar, thus signalling the mainland India.” With such a connectivity to this region. rhetoric, the state of Manipur was stressed that working Minister Okram Ibobi Singh interests of Myanmar. trust deficit existing within Nurturing relationships in India’s northeast has been jointly within the sub-region did explore possible areas of the country, meaningful between participating projected as the ‘Gateway’ to could lead to a win-win cooperation and investment A BETTER WAY sub-regionalism is a distant countries is a great challenge Southeast Asia. situation. with Myanmar, China and Perceived frictions between dream. Experimenting with or, as the Chinese adage goes, Japan as a part of the Look China and India have put the “participatory regionalism” as is like joining a broken mirror. PEARL RIVER CONSENSUS MYANMAR AS A PIVOT East policy, which began in brakes on the BCIM-EC. in Southeast Asia may But no statesman can ignore Provinces in China are Situated at the strategic 2013. Singh also sought India’s Act East policy and strengthen the Kunming the wishes of the people, and collaborating to make the junction of East Asia, South investment from both China to that end, we all have social BCIM-EC a part of the Belt Asia and Southeast Asia, and Japan for infrastructure responsibilities. It is not a April 15, 2015: A floating crane leaves for Bangladesh from Qingdao. It will and Road Initiative. The Myanmar stands exactly development in Manipur, and join in the construction of Padma Bridge, contracted to build by China Railway case of building new roads, possibility of strengthening midway between Delhi, discussed bilateral trade and Major Bridge Engineering Group. As a crucial channel of the Pan-Asia network, but reviving traditional roads policy coordination, achieving Mumbai and Shanghai. It is commerce, investment, the bridge is the biggest international bridge project constructed by a Chinese instead. As Lu Xun put it, pragmatic cooperation, and indispensable for any tourism and city enterprise. [VCG] “For actually the earth had no ensuring political stability emerging economic corridor development. roads to begin with, but when and continuity under a legal due to its strategic location On November 21, 2013, the many men pass one way, a framework were deliberated and rich natural endowments. first flight from Myanmar road is made”. This overland as part of the Consensus. To On top of this, Myanmar’s arrived in Manipur, connectivity has the potential facilitate these processes, participation in the BCIM has coinciding with the Sangai to become the road of the land ports and main cities been exemplary, and this, Festival. It is Manipur’s BCIM-EC. were identified, and methods coupled with a disciplined biggest annual tourism fair, were proposed to expedite workforce, makes Myanmar showcasing cultural heritage, The author is a faculty member in connectivity, as well as an asset to the continuation of eco-adventure activities, local the Department of Political Science at promote scholarly exchange the BCIM-EC. An assertive food, handlooms and Manipur Central University. 52 53 DATA CHINA-INDIA DIALOGUE

E-Commerce Electrifies the Online Silk Road

Edited by Hu Zhoumeng Designed by Andrey Maleev

lobal economic trade can be conducted. and other countries along growth has been Strengthened cross-border the Belt and Road routes. It tepid since the e-commerce facilitates will minimize the digital 2008 financial international trade and gap between countries, Gcrisis, but e-commerce, new benefits local people. regions and peoples, and business infrastructure based The Online Silk Road is an unleash data dividends. The on digital technology, has information economy belt growth of e-commerce boomed around the globe, based on the idea of boosts the construction of continuously expanding the ‘Internet Plus’ with an aim the Online Silk Road, which ‘new economy.’ Thriving to strengthen connectivity also promotes other e-commerce platforms and information internet realms in improve the foundation on communication through countries along the Belt and which universally beneficial joint efforts between China Road routes.

54 55 DATA CHINA-INDIA DIALOGUE

56 57 YOUNG VOICES CHINA-INDIA DIALOGUE I really appreciate that. I also I have travelled and explored my wedding, not hers! I really enjoy learning Chinese day many places around it. I have have never felt so special in by day with them as it gives been to Tianjin using the bullet my life, not even on any of my me a necessary buffer from train which was an amazing birthdays. the complex mathematical experience. I have been to I am still trying to taste Learning in and out of Class equations and jargon of the wedding of my Chinese every famous dish from every engineering. So practicing colleague in Yingxian of Shanxi province but this task seems Chinese is the most fun part Province. It was wonderful to so overwhelming given the of my day and everybody gets meet her family and watch enormous variety and variations a good laugh or two when I them up close during this in each of those delicacies. So Studying in China slip up a word or a sentence momentous occasion. Not far Sichuan province’s Malatang while speaking. I don’t think so only my friend’s family but has a sweet, or may I say, a I would have been bestowed the guests at the wedding spicy spot in my heart. I cannot and India with such an amazing were also affectionate and live without it for more than a environment anywhere else convivial towards me. Almost week. Ten months ago, I was a in the world for my growth everyone at the wedding took stranger in a strange land and not only as an engineer but an a photo with me as I was one now, I feel like I am at ease and individual. of the two foreigners there can happily assert that China is Concept by China-India Dialogue Since my arrival in Beijing and sometimes I felt like it was my home away from home.

My Home Away I came to China last year in in my lab are fun to work with An Adventure That I wanted to take a year The semester for the September as a Ph.D. student and always help me in every off after the completion of language programmes From Home at Peking University. This was possible way. We are delighted Broadened My my master’s degree and do commences in September Tushar Sachdev my first time visiting China to share experiences of growing Horizons something wildly different and but BFA also permits late Age: 24 and I was amazed by the up in different cultures and have to really challenge myself. I enrolment. I arrived in early Occupation: Doctorate student infrastructure of Beijing. I had a good laugh about the absurd Apurupa Vatsalya grew up in Mumbai, the home October and did not find it Birth place: Mumbai other options for pursuing a customs that are followed Age: 24 of Bollywood, and therefore difficult to catch up as the Current residence: Beijing Ph.D. but I chose to do it in regularly. We have found that Occupation: Student of Chinese cinema has always been an language courses are taught in Language and Film in Beijing Film China because I wanted to barring language, both Indian integral part of my ethos. I small classes, often under 10 Academy experience the kind of cultural and Chinese societies have Birth place: Andhra Pradesh had heard of the Beijing Film students per class which allows diversity that one could barely analogous ethics like primarily Current residence: Beijing Academy through a friend who for better student engagement fathom in a lifetime. And since focusing on higher education is pursuing their International and personal attention. The the day of my arrival to this and hard work while trying to Programme. On doing some teachers are specifically day, my fascination with this grapple with the influence of research about the institution qualified to teach Mandarin to country has grown every single Western culture on its youth. and the programmes they foreigners and therefore their moment! My research work and studies offered, I discovered that not approach is different from the I am really lucky to be at the University are conducted only is BFA the largest film stereotypical Asian pedagogies. studying in PKU which is one of in English, though I find learning academy in Asia, but is also a However, the programmes the premier research hubs not Chinese would significantly force to be reckoned with in are not rigorous and if one only in China but all over the help me in discussing my ideas the film industry world over. is solely looking to gain world. On top of that, I could with my colleagues. It’s really But I did not have the kind command over the language, not thank my stars enough heartwarming to see all of of time that a full-fledged the Beijing Language and for being a student under an my lab-mates try to articulate programme would require Culture University might be a amazing, down-to-earth and their thoughts to me in English and therefore opted for a better alternative. Most people welcoming professor. Also, my every day. They do a lot to shorter programme in Chinese who pursue the language classmates and my colleagues make me feel comfortable and Language and Film. programmes at BFA are looking 58 59 YOUNG VOICES CHINA-INDIA DIALOGUE to do a longer programme my interactions with students Shangrao, a city in Jiangxi have gone on to become CEOs world’s top talent. The software China and India becomes later on or are there for the from different countries in my province in the southeast of of global companies including engineering industry plays a closer and closer, the volume environment focused on films dormitory, I was exposed to China. I also got to participate McKinsey, United Airlines, and central role in the economic of both Chinese and Indian and conducive to creative various styles and nuances in the International Student Vodafone as well as other elites development of India. At exchange students is increasing collaboration. of filmmaking consequently Film and Video Festival of such as the director of Alcatel- present, more than half of every year. It is my steadfast The tuition fee for the broadening my horizons. I Beijing Film Academy and Lucent Bell Labs and chief India’s GDP comes from the IT belief that as contact increases language programmes is recently worked in a short meet with filmmakers from economist of the International sector, real estate and financial between the countries, affordable though the lodging, film with an all-female cast across the globe. Monetary Fund. The Indian industry. Because of this, IIT has education in China and India and boarding facilities are and crew hailing from India, Being an Indian student Institute of Technology has become my dream school. will begin progressing together on the pricier end and it is Pakistan, China, Kazakhstan, in Beijing is not particularly become an incubator for the As the relationship between very soon. definitely cheaper to live off Costa Rica, Korea and Denmark. easy with having to adapt to campus. Also, the international The school also organizes the food and climate among students are housed in a several cultural trips and other things, but it is definitely separate dormitory from film screenings throughout something I would cherish. the Chinese students. This is the year. This helped me to When I first arrived in Beijing, Recording Studies in of Indian education is its I have completed my studies disadvantageous as it limits develop a better understanding I thought I had merely signed India diversity. Schools are funded at Central School of Hindi, but if the interaction with the locals, of Chinese culture and cinema. up for an adventure but little by multiple sources, and half I find another chance to study especially when one is pursuing I had the opportunity to attend did I realize that I would find a Tang Song the educational institutions are in India or participate in a short- the language programme like the World College Students second home here and this is Age: 20 private or individually funded. term exchange program, I will myself. Nonetheless, through Photography Exhibition in largely owing to BFA. Occupation: Student at School of Countless after-school courses jump at the chance to learn Foreign Languages of Peking University offer channels of different more about the history of Indian Birth place: Beijing studies, vitalizing the education institutions of higher education. Current residence: Beijing sector. Another important India has a long and complex characteristic is the relatively history. Across thousands of equal distribution of educational years, its rulers hailed from a resources. Whether they study wide variety of regions and Dream School: At five in the morning of colorful. in the capital city of Delhi, the ethnic groups and spoke myriad November 14, 2015, my car Nearly half of children in India major southern metropolis Indian Institute of languages, which colored India’s arrived at the Central Institute of do not have access to normal of Mumbai, Trivandrum, or rich and diverse literature. Technology Indian Languages in Agra. After education, and the admission an underprivileged state like Learning local opinions on the eight-hour flight and three- rate to universities is very low. Uttarakhand, students all enjoy Liao Baoru India history, understanding hour drive to the school, I was The conditions for the education basic education resources. India Age: 22 research methods and getting ready to pass out. However, as of girls in India are even more has not enacted compulsory Occupation: Student at Xi’an Interna- first-hand information are very tional Studies University the car slowly approached the terrible. In Khaled Hosseini’s education, and many children helpful tools for understanding Birth place: Shenzhen, Guangdong college, my exhaustion soon novel A Thousand Splendid choose to inherit the family the history of India. I also Province vanished. I was finally standing Suns, the father says to his As an undergraduate majoring business rather than attend want to explore India’s attitude Current residence: Xi’an, Shaanxi at the starting line of my daughter Laila: “Marriage can in Hindi, I joined several other school, especially in rural towards China’s history and Province journey of studying abroad. wait, but education cannot.” students from Peking University areas. Vocational education the present situation, so I look Every year, the Institute Influenced by factors including studying Hindi to participate in sources are still scarce in India, forward to studying at East enrolls sixty or seventy foreign secular concepts, dowries, the a government funded overseas but continuing education Asian institutions in India such Hindi learners tuition free. Their purdah system and other social study program at the Central and adult education have as the Department of East Asian expenses are covered by a factors, many girls in India are Institute of Indian Languages in improved somewhat. Vital Studies at Delhi University and scholarship fund provided by forced to end education at a New Delhi. During those nine fundamental education offered the Centre for Chinese and Indian government. A wide young age and get married. months, I became immersed by primary and secondary South East Asian Studies at variety of courses are taught Although India’s education in the diverse student body of schools continues to develop Jawaharlal Nehru University. I there. In addition to high-level system still has many flaws, India. steadily due to school diversity. believe that these well-known Hindi courses, the Institute its software engineering During our stay, we made Universities enhance their research institutions optimally also teaches yoga, astrology, sector is tops in the world. In extensive contact with capabilities by connecting with use their rich literature traditional Indian music and particular, the Indian Institute various Indian educational foreign countries, which helps reserves and conduct in-depth dance. The curriculum diversity of Technology (IIT) is renowned institutions ranging from them attract foreign students regional cultural research and and rich social activities kept for research and development grade schools to colleges. and conduct international comparative study. my foreign visit constantly and numerous graduates that One stand-out characteristic academic research. 60 61 COLUMN CHINA-INDIA DIALOGUE texts of Indian Buddhist sutras. The namesakes of the Three- As the ancestral shrine of the Zen Sect of Chinese Buddhism, Sutra Sect are three Indian the world-renowned Shaolin Temple occupies a significant Buddhist classics with key position in the history of Chinese Buddhism and is reputed to Chinese Take on doctrines originating from the be the “No.1 Buddhist Temple under Heaven.” [VCG] philosophy of Mādhyamaka, a major school of Indian Mahayana Buddhism which holds that Indian Buddhism all things, including people’s thoughts and Buddhist doctrine, are correlated and dependent on each other. The representatives By Yao Weiqun of this sect also added personal views when interpreting the The major sects of Chinese Buddhism three Indian Buddhist sutras, but originated in India before incorporating the essential doctrine of the sect remains consistent with that of traditional Chinese culture. Mādhyamaka. The Zen, Pure Land, Tiantai and Huayan sects of Buddhism uddhism originated Most Buddhist sects with are among those most in ancient India obvious Chinese characteristics deeply impacted by Chinese before spreading to emerged after the Sui (581-618) culture, and the Zen Sect is the B many Asian countries and Tang (618-907) dynasties. Of most influential Buddhist by his disciple Fahai). Such scriptures and traditional enlightenment through everyday including China and becoming the eight major sects of Chinese school in China. doctrine not only aligns with Chinese culture – an important behavior such as walking, a globally influential religion. Buddhism, the Dharmalaksana, Despite its evident Chinese Chinese tradition emphasizing factor is how easily its doctrine sitting, transporting water and The formation of major sects of Three-Sutra, Vinaya and Esoteric flavor, the Zen Sect maintains secular life, but also has roots and practices are accepted by cutting firewood. Such dogma Chinese Buddhism was a result sects are comparatively richer in a close relationship with Indian in Indian Buddhist theory. For believers. For instance, the is easily embraced by people of cultural exchange between Indian culture and incorporate Buddhism. Some of its doctrine this reason, the Zen Sect is doctrines of the Dharmalaksana rooted in traditional Chinese China and India. Given that basic more Indian Buddhist doctrine. draws directly from the Diamond considered a school of Buddhism Sect are highly dialectical, culture. Secondly, the Zen Sect Buddhist sutras and doctrines The doctrine of the Sutra. The Zen Sect believes that perfectly combines Chinese making them difficult to doesn’t emphasize education of were imported from India, Dharmalaksana Sect was that everyone has a pure and Indian cultures. understand without extensive believers or require the study of sects would always have been established by renowned Tang soul and that all living beings The Zen Sect advocates education. This has made the obtuse Buddhist concepts or the influenced by Indian culture. Dynasty monk Xuanzang (602- have the possibility to attain practice in everyday life by sect exclusive in the eyes of practice of rigorous meditation. However, when the religion 664) after he returned from enlightenment through self- infusing one’s daily routine ordinary people. Although it These characteristics lower the spread to China, practitioners India in 643. The sect claims roots control and meditation, without with understanding of Buddhist advocates original Buddhist threshold to join, which has inevitably incorporated elements in the philosophy of Yogachara outside help. It holds that once a doctrine. It also stresses that scriptures from India, the Pure led to an increase in both the of traditional Chinese culture (literally, “yoga practitioners,” person understands the internal Buddhism should benefit the Land Sect doesn’t promote numbers of practitioners as well because the representative one of the two major schools nature of Buddha, he or she will people and help create a happy, many dialectical theories, which as its influence in China. figures were Chinese. To secure of Mahayana Buddhism). When find enlightenment immediately. merciful world. Chinese Buddhist means it is more easily accepted Every sect of Chinese a foothold in China when translating and interpreting The sect opposes the pursuit temples adjusted practices and by ordinary people. Despite a Buddhism was born of China- Buddhism was first being Buddhist sutras from India, of nirvana beyond the secular monks’ routines based on China’s heavier Indian influence, it is India cultural exchange. A introduced, preachers adapted Xuanzang and Kuiji (632-682) — world. On the contrary, it actual conditions and created widespread in China. Buddhist sect’s influence in practices to suit indigenous a renowned monk of the Tang emphasizes that “the truth monastic rules and practices Acceptance of the most China is determined by how situations while reforming and Dynasty and popularly known as of Buddhism is found within unique to China. Such norms influential Buddhist school in it balances the relationship upgrading the original Indian Master Ci’en — as the founders the secular world and can be for monks are inspired by both China, the Zen Sect, can be between Chinese and Indian doctrine. It is also noteworthy of the Dharmalaksana or obtained only through practice Chinese and Indian Buddhist attributed to two major factors: cultures and how accessible its that different sects of Chinese Vijnanavada Sect, incorporated in the secular world” (as written practices. Firstly, its development path is doctrine is. Buddhism vary in their ratio their own understandings of in the Platform Sutra of the Sixth Of course, a Buddhist sect’s roughly consistent with that of of Chinese and Indian cultural the sutras. But in general, their Patriarch, a Buddhist scripture influence in China isn’t totally traditional Chinese culture, and elements as well as in their translations and interpretations based on speeches by the sixth determined by its attitude it requires believers to practice The author is a philosophy professor at influence on Chinese history. remained close to the original Zen patriarch Huineng, compiled towards Indian Buddhist Buddhism in daily life and attain Peking University. 62 63 BOOKS

"India: A Floating Subcontinent" Some Small Moments from My Trip

By Guo Jianlong I set off seeking to soak up Indian desperate for new avenues of growth culture more than relaxation. The aura after the disastrous crash. of antiquity persists strongly in India. In In 2010, a song in the Indian movie China, ancient traditional costumes are Peepli Live put the Indian people’s mostly already exhibits in museums, predicament to lyrics: whereas in India, more women still dress in the Sari than those in modern Friend, my husband earns good money clothes. Indian people still eat with but that witch Inflation eats it away. their hands, and their religious habits Every month petrol leaps, diesel rolls, never lost popularity with modern sugar soars and rice flies out of reach too. development. Hindu temples can still be That witch Inflation eats it all away. found both in cities and the countryside alike. And the invention of speakers Today, about 300 million Indian only helped the Quran be read louder in people still live in dire poverty, with little Islamic areas. other than the clothes on their backs. In China, disposable plastic is already Millions sleep on the roads and train ubiquitous. The same sorts of cups and stations and beg for food. During my dishes in India are made of pottery. stay, I always brought a few rupees to Bodhi leaves are used to hold food, distribute every day and bought some which also injects a local flavor. Though food and clothes for wandering children. the traffic may seem perpetually But the meager efforts of one person jammed, some motorcycles and cars are negligible – they only comforted manage to speed by, dodging cows myself. walking around leisurely and dogs India has endured many problems India: A Floating Subcontinent sleeping on the street, never concerned ranging from economics and religion to about being hit. secessionism for decades. The country Guo Jianlong has managed impressive achievements Zhejiang University Press When I was descending the in its rare stretches of calm. August 2013 mountain, I met three young Indian men No matter how messy things get in sitting on the same small motorcycle. As India, no one ever expects the country they passed, the two sitting at the back to collapse or break up. The country is greeted me warmly and reached to headed in the right direction towards Trudging across 20 thousand shake my hand. more cohesive long-term development. kilometers, 70 cities and hundreds I most completely stunned when they India’s real impact on the big picture of scenic spots in India, across past stopped a few meters away to offer me may not be seen for 10 or 20 years. and present, the author measured a lift. I couldn’t imagine adding a fourth But 100 years from now, India will have to such a small motorcycle. And I also a much more prominent place in the the land of India with firm steps and had a luggage. world. observant eyes, showed a varied “This is India,” he said. “In India, and colorful India through the lens of a motorcycle has a capacity of six.” I policy, economy, history and religion. grimaced and hopped on, and the bike The author is a tourist, literary worker, zigzagged and wobbled on down social observer, and former journalist the road. of 21st Century Business Herald and columnist for NetEase. He published A In 2008, the world financial crisis hit Farewell to Shangri-La, Across Hundreds India hard. The country experienced of Years to the Middle East , and Situation Depends on Human Element. a sharp inflation of more than 10 This book is the first of the series “Cultural percent during my travels. The Indian Travel”, and the follow-up works are rupee’s exchange rate to the U.S. dollar Half the India & Half the China and Ride dropped drastically. The country seemed to Yuan Dynasty. 64