Belt and Road Initiative: Why Is FDI Keeping Solutions for India- Its Distance from Pakistan Security ‘Make in India’?

VOL.7 NO .2 | MARCH 2017

Europe Russia

Mediterranean Sea

South East Asia

Belt & Road Belt & Road BetterBetter Connections Connections for the Connected for Era the Connected Era

Africa

Central Asia

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CONTENTS CHINA-INDIA DIALOGUE Administrative Agency: 主管： China International 中国外文出版发行事业局 CHINDIA NEWS / p.02 Publishing Group （中国国际出版集团） Publisher: 主办： China Pictorial 人民画报社 Address: 地址： OPENING Belt and Road Initiative: 33 Chegongzhuang Xilu, Haidian, 北京市海淀区 ESSAY New Cooperation and Development Beijing 100048, China 车公庄西路33号 Email: India-China Relations: 04 [email protected] Careful Climb to Normalization / p.10 President: Yu Tao 社长：于涛 Editorial Board: 编委会： Yu Tao, Li Xia, 于 涛 、李 霞 、 Dialogue Over Doubt for China He Peng, Wang Lei , 贺 鹏 、王 磊 、 INTERVIEW Yu Jia, Yan Ying 于 佳 、闫颖 and India Executive Editor-in-Chief: Li Xia 执行总编：李霞 13 Editorial Directors: 编辑部主任： Wen Zhihong, Qiao Zhenqi 温 志 宏 、乔 振 祺 COMMENT English Editor: 英文定稿： Belt and Road Initiative: India’s Dilemma / p.18 Xu Mingqiang 徐明强 Editorial Consultants: 语言顾问： Cooperation in Prosperity: What China and India Should Do / p.20 Scott Huntsman, Nicholas Lanigan 苏 格 、丁 文 Editors and Translators: 编辑、翻译： Gong Haiying, Hu Zhoumeng, 龚海莹、胡周萌、 Liu Haile, Li Zhuoxi, 刘 海 乐 、李 卓 希 、 Li Yiqi, Mithila Phadke, 李 艺 琦 、弥 萨 罗 、 STRATEGY 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 BELT AND ROAD INITIATIVE: Editor-Visuals & Photographs: 视觉编辑： SOLUTIONS FOR INDIA-PAKISTAN SECURITY Li Zhuoxi 李卓希 22 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： Andrey Maleev 安德烈 Remittance to: Publishing and 邮购收款人： Distribution Department, 人民画报社 China Pictorial 出版发行部 Legal Adviser: Yue Cheng 法律顾问：岳成 Printing: 印刷： Toppan Leefung Changcheng 北京利丰雅高长城 Printing (Beijing) Co., Ltd. 印刷有限公司

Overseas Distribution: China International Book Trading Corporation (Guoji Shudian), 35 Chegongzhuang Xilu, Mapping India’s Lost Roots: P.O. Box 399, Beijing 100048, China Project Mausam and the Spice Route / p.29 In China, subscriptions are available at any post office. Subscription and distribution agency in Hong Kong, Macao, and Taiwan: TREND DATA Hong Kong Peace Book Company, Ltd. 17/F., Paramount Building, 12 Ka Yip Street, A Sunnier India / p.32 Belt and Road Initiative: Chai Wan, Hong Kong

Three Years of Progress / p.50 China standard periodical number: ISSN 2096-2592 CASE STUDY CN10-1433/D Baogang Group in India / p.35 YOUNG VOICES China and India on the Silver Pan-Asia Rail Network: Screen / p.56 Challenges of the Southern Route under the Belt and Road COLUMN Initiative / p.38 Crossing Cultures: Indians in China / p.60 DISCUSSION VOL.7 NO.2 | MARCH 2017 Belt and Road Initiative and Chai Break / p.62 “Make in India” / p.42 Visit China-India Dialogue on the Internet: www.chinaindiadialogue.com Why Is FDI Keeping Its BOOKS Follow us on: Distance from ‘Make in Upside Down in India: Wu’s India’? / p.46 Headstands in the West / p.64

Consultants of the China-India Dialogue Advisory Board

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

Chinese Veteran Returns Home Fu Ying on China- In 1963, 24-year-old soldier Wang Qi got lost India Relations in a forest on the China-India border and ended up jailed in India for 7 years. After serving his Responding to a question from sentence, Wang settled in a rural area in India Indian media about relations and married, but always longed to return home. between the two countries, Fu Decades later, he finally arrived home on Ying, spokesperson for the fifth February 11 this year. session of China’s 12th National People’s Congress (NPC), remarked that relations have improved thanks to the two countries’ efforts to increase cooperation and resolve problems. Fu added that projects under China’s Belt and Road Initiative are designed to promote economic development. Chinese Air Force Attends “Ultimately, India will also benefit from it,” she said. “We Aero-India Air Show must remember the bigger The 2017 Aero-India Air Show was held in picture when looking at such Bangalore. It is reported that a 5-member issues.” delegation in February from the Chinese air force attended this show but didn’t exhibit anything.

China-India Strategic Dialogue India and Pakistan to Held in Beijing Join SCO Chinese Vice Foreign Minister Zhang Yesui Leaders from member states of and Indian Foreign Secretary Subrahmanyam the Shanghai Cooperation Jaishankar co-chaired a strategic dialogue in Organization (SCO) will gather at Beijing on February 22. They concurred that a summit in the Kazakh capital of China and India had similar national conditions Astana in June, at which time and shared common interests, creating huge India and Pakistan will become potential for bilateral cooperation. The two full member states of the SCO. sides agreed to cement coordination of China will assume the rotating international and regional affairs and properly presidency after the summit. address differences and sensitive issues.

02 CHINA-INDIA DIALOGUE

India-China Media OPPO Industrial Park in India Forum in New Delhi Chinese smartphone producer OPPO is set to build a new industrial park in Noida, Uttar On March 10, a media forum Pradesh state. Targeted production volume is was held in New Delhi. Over 20 one hundred million units per year. OPPO isn’t representatives from People’s the only Chinese smartphone manufacturer to Daily, Xinhua News Agency, set up assembly lines in India, where Chinese Wenhui Daily, Phoenix TV, The smartphones are already popular. They held a Hindu, NDTV and think tanks market share of 46 percent in the country in the attended the forum and last quarter of 2016. discussed media communication and potential for cooperation.

Smart Urbanization Convention in New Delhi The Smart Urbanization Convention & Exposition was held in New Delhi from March 15 to 17. Attendees included representatives from industry, government and academics in China and India, who exchanged views on the construction and future development of 100 smart cities in India.

Chindia TMT Dialogue Kung Fu Yoga in Beijing The Embassy of the People’s Republic of China in the Republic of India, the Indian The China Go Global and Council for Cultural Relations, and the movie Second Chindia TMT Dialogue festival committee of the India Ministry of Conference was held in Beijing Information and Broadcasting jointly on March 16. Teams from sponsored a screening of the movie Kung Fu companies including Xiaomi, Yoga in New Delhi on March 16. Starring both Alibaba, Instamojo, Tripoto and Chinese and Indian actors, this movie follows Blume Ventures discussed the an archeologist searching for a diamond entrepreneurial landscapes in artifact in China and India. India and China.

03 OPENING ESSAY

Belt and Road Initiative New Cooperation and Development

By Zhang Yunling

The Belt and Road Initiative proposed by China, which aims for open cooperation and mutual development, is conducive to strengthening awareness of a community of common destiny and further promoting regional and international peace and cooperation.

ince the Belt and yielded tangible early results. European and African Road Initiative was Today, the Initiative has continents and their adjacent proposed by China in become far more than just a seas, the Initiative of building 2013, it has proposal calling for regional the Silk Road Economic Scontinued to attract cooperation. In a broader Belt and the 21st-Century increasing attention both context, it is an innovative Maritime Silk Road (“Belt and domestically and cooperation concept and a Road”) places special focus internationally for two major platform embracing the on infrastructure, industrial reasons: First, the Initiative whole world. parks, port economic zones, introduced a new concept for and port logistics networks. It development and cooperation OVERCOMING THE aims to connect several major that has been widely GEOGRAPHICAL RESTRICTIONS continents and promote accepted. Second, it OF WESTERN CHINA the free flow of investment, emphasizes action rather By promoting the commodities, services, capital, than empty talk and has connectivity of the Asian, technology, and personnel 04 CHINA-INDIA DIALOGUE to create new development strategy went into effect, and connects China directly momentum. the western part of the to Southeast and South Asia Of course, China has its country still hadn’t witnessed to construct a new and open own strategic considerations impressive progress in terms development belt. At sea, in proposing the Initiative. of competitive strength, the 21st-Century Maritime Among them, the most and unbalanced regional Silk Road is designed to important is the exploration development hadn’t seen stretch from China’s coast to of new development space substantial change. It became Europe through Southeast for China’s economic clear that a major reason for Asia, the Indian Ocean, and transformation. Since China the slow progress was the Africa. It also connects China began to implement the geographical restrictions of and Oceania to establish reform and opening-up western China. cooperation zones across policy in the late 1970s, its Compared with the more seas and realize mutual eastern coastal areas have domestically-focused Western development. Connecting experienced the majority China Development Strategy, China with countries along of the country’s economic the Belt and Road Initiative the Belt and Road will development due to their emphasizes that participation help create new space for geographical advantages. from both domestic and economic development, While eastern China has international players will which will benefit not only attracted increasing inflow create an even more open western China, but also the of resources and labor, market for the western China whole country. western China remains in region. On land, the Silk Road Today, global economic stark contrast, with its vitality Economic Belt focuses on development is undergoing dwindling, exacerbating linking China, Central Asia, adjustments that call for China’s regional disparities. West Asia, Russia and Europe new ideas and initiatives. In turn, unbalanced regional development has become September 7, 2013: Chinese President Xi Jinping proposes the construction of a key roadblock hindering the Silk Road Economic Belt during a speech titled “Promote People-to-People China’s social and economic Friendship and Create a Better Future” at Kazakhstan’s Nazarbayev University. [by Wang Ye/Xinhua] stability and sustainable development. The Chinese government has been making major efforts to alleviate this imbalance. The biggest and most influential policy is the Western China Development Strategy, which was launched in the early 21st Century. Covering a total of 12 provinces, autonomous regions, and municipalities, the strategy provides substantial support for infrastructure construction including highways, railways, power grids and natural gas projects and encourages resources to flow from eastern to western China through preferential policies. However, years after the 05 OPENING ESSAY

The Belt and Road Initiative achieving connectivity the New Development proposes cooperation and among countries along Bank (NDB), and the development through the Belt and Road through Interbank Consortium of innovation, construction building a wide-reaching the Shanghai Cooperation of a new environment for infrastructure network Organization (SCO). Fifth, comprehensive development that includes both planned the Initiative promotes and the fostering of new infrastructure projects cultural and academic economic growth engines and relevant technical exchanges, personnel driven by shared experiences, standards. The third priority exchanges and cooperation, resources, and interests, to is improving investment media cooperation, youth realize sustainable, inclusive, and trade conditions and and women exchanges and and balanced development. removing investment and volunteer services to win The Belt and Road Initiative trade barriers to create a public support and deepen is one of the most influential sound business environment bilateral and multilateral programs in the world today. within the region and in all cooperation. As a large affected countries. Fourth, developing country, China, BIRTH OF AN INTEGRATED the construction of a currency the designer and key driver MARKET stability system, investment of the Initiative, will provide The Belt and Road Initiative and financing system and key capital input and places top priority on credit information system technical support for the coordination. Countries along aims to expand the scope and aforementioned cooperation the Belt and Road are urged scale of bilateral currency and development. to coordinate their economic swap and settlement with Facility connectivity development strategies and other countries along the is a priority area for policies and design plans and Belt and Road, develop a implementing the Initiative. measures to enhance regional bond market and found new Connectivity involves cooperation to provide policy financial institutions such infrastructure construction, support for implementation. as the Asian Infrastructure legal alignment, rules and The second priority is Investment Bank (AIIB), technical standards, as well

November 22, 2015: Chinese Premier Li Keqiang attends a ceremony held to release the Joint Statement on the Regional Comprehensive Economic Partnership Negotiations in Kuala Lumpur. [by Liu Weibing/Xinhua]

06 CHINA-INDIA DIALOGUE By participating within the region and private funds to participate in all related countries. in the construction of key in construction of The Initiative advocates projects of the Initiative. the Belt and Road, cooperation that will expand Close people-to-people ties trade and investment and will facilitate public support these countries can upgrade related structures. for implementation of the merge their own Via various measures like Initiative. Building the Belt improving infrastructure, and Road not only involves development into founding industrial parks economic cooperation, the bigger regional and port networks, raising but also features extensive funds and increasing cultural and academic cooperation network. capacity, the Initiative aims exchanges, personnel to create greater space for exchanges and cooperation, development. media cooperation, youth as personnel exchanges and Financial integration is and women exchanges and flow among countries along an important backing for volunteer services, all of the Belt and Road. Focus the implementation of the which will help win public on infrastructure demands Belt and Road Initiative. support for deepening the construction of modern Financial integration covers bilateral and multilateral transportation networks. a long international financial cooperation. Through various The key aim of enacted agenda including monetary cooperation mechanisms, policies, rules and technical stability, project financing, the Initiative aims to standards on connectivity bilateral currency swap and promote personnel, tourism, is to significantly reduce or settlement, bond market, and and sports exchanges, eliminate restrictions on RMB-denominated bonds. epidemic information transportation, trade, and Various financial agencies sharing, exchanges of investment. Focus is placed including AIIB, NDB, Silk prevention and treatment on personnel flow to facilitate Road Fund, China-ASEAN technologies and training engineering technology Interbank Association and of medical professionals. exchange, corporate SCO Interbank Consortium Additionally, the Initiative cooperation, educational and should play supportive roles will integrate existing cultural personnel exchange, in multilateral financial resources to expand and and cross-border tourism. cooperation. Cooperation advance practical cooperation China has accumulated on financial regulation between countries along abundant management and supervision will be the Belt and Road on experience on infrastructure strengthened under the science and technology, network construction and Initiative. An efficient youth employment, possesses the necessary regulation coordination entrepreneurship training, equipment as well as technical mechanism will be established vocational skill development, skills, enabling it to play an to improve the risk response social security management, important role in improving and crisis management non-governmental exchanges, infrastructure in countries systems. A regional financial and city-to-city cooperation. along the Belt and Road. risk early-warning system will Considering countries along Investment and trade emerge, and a communication the Belt and Road feature cooperation is a major and cooperation mechanism contrasting development pillar of the Belt and Road. to address cross-border risk levels, the Belt and Road The Initiative strives to will be created. These joint Initiative would be impossible improve investment and efforts will help promote to implement if it adopted trade facilitation and currency stability, enhance the a unified plan. China’s remove investment and capability of the credit system construction in various trade barriers to create a and encourage commercial fields should coordinate the sound business environment equity investment funds and development strategies of 07 OPENING ESSAY other countries along the Belt and Road for win-win results that benefit every participating party. The economic development of many countries along the Belt and Road lags behind due to a lack of infrastructure investment. By participating in construction of the Belt and Road, these countries can merge their own development into the bigger regional cooperation network and break through their own limitations on transnational links and logistics networks. In the future, construction of the Belt and Road will gradually improve the connectivity of Asia, Europe and Africa. By constructing an July 27, 2016: Three core modules for liquefied natural gas, constructed infrastructure network, the by Wuchang Shipbuilding Industry Group and with a total weight of 7,000 Belt and Road will provide tons, set off for Russia’s Yamal Peninsula from China’s Qingdao. [by Wan Houde/Xinhua] a new environment for developing new industrial zones, financial centers, free active participation and close will integrate the massive trade zones, and investment cooperation from all relevant space for development zones as well as some other parties. The Initiative always and cost advantages of comprehensive projects such follows the principle of developing countries in Asia as oil and gas pipelines, power mutual consultation with and Africa, but contrast grids, internet infrastructure, all affected parties before previous practices such as power lines, and any joint construction relocating outdated and high- telecommunication networks. commences. Great efforts will polluting productions to These moves are bound to be made to coordinate the other countries. The Initiative create a huge market fusing development strategies of all emphasizes that investors Asia, Europe and Africa. participating countries. need to design and build new After more than three industries alongside locals “OPEN REGIONALISM” decades of rapid economic through mutual consultation. In contrast with growth, China has reached From this perspective, it helps traditional development aid, a “new normal” in terms expand and upgrade industry. construction of the Belt and of economic development. Most countries and regions Road will adopt cooperation The country is now along the Belt and Road are requiring joint participation, experiencing slower but developing economies with planning and construction, higher quality growth. per capita GDP measuring after which any fruits will China’s manufacturing less than half of the world’s be shared by all participants. industry needs to find new average. No single country Every participant is an equal places with lower costs can establish a quality partner. Geopolitically, since and improve technology to infrastructure network on the construction of the Belt maintain its competitiveness. its own. Since infrastructure and Road involves more The cooperation mechanism development requires long- than 60 countries, it requires proposed by the Initiative term investment, support 08 CHINA-INDIA DIALOGUE

With governmental support implementing the Initiative, and the participation of an effective coordination international organizations, mechanism is necessary to the Initiative is sure to attract ensure that first things happen abundant public and private first, the interests of different capital, which will help countries are balanced and improve both the internal every participant benefits. and external environment The Belt and Road Initiative for trade and investment, and will help establish a new, unleash further potential for cooperative and win-win economic development. regional and international Of course, because order. In particular, against countries along the Belt and the backdrop of profound Road feature diverse national global economic changes, conditions and interests, the Initiative provides a pulling them together to new concept and path to build the Belt and Road is not improving the comprehensive an easy task. Various risks development environment including political instability, for developing economies investment barriers and the and creates new development threat of terrorism threaten momentum by unleashing and cooperation from the process. Avoiding participation enthusiasm public funds and financial them requires in-depth and mobilizing resource institutions are tremendously research, comprehensive input. The Initiative will important. AIIB created a understanding of the help the world economy get new model for infrastructure situation, and a balance of rid of recession and enter a development and cooperation benefits with risks. At the new phase of development. financing, which will help same time, the construction Today, a variety of answers break bottlenecks restricting of the Belt and Road aims and solutions should be ready long-term investments. AIIB for long-term development to address development membership is open to all rather than short-term problems. While the Trump countries that are willing gains. Priorities must be administration advocates an to contribute to Asian defined when promoting “America first” protectionist development and global construction, and proceeding doctrine, China’s Belt and economic development. too quickly should be avoided. Road Initiative aims for open Operation of the institution China, as the advocate of cooperation and common strictly follows international the Belt and Road Initiative, development, making it even rules, and decisions are jointly must coordinate the interests more important today. A call made by all members. of various parties, assess the for cooperation rather than The global economy is risk of various commercial strategic competition, the facing great challenges projects, strengthen Initiative promotes awareness and undergoing painful bilateral economic and trade of a community of shared adjustments. Because of the agreements and regulations, destiny and fosters regional widening income gap and the promote successful modes and international peace and exacerbation of unbalanced of cooperation, establish cooperation. development, trade and key entrepreneurial projects investment growth has and seek aligning interests slowed, and protectionism is on economic development, prevailing. Construction of political cooperation, security, the Belt and Road will foster and personnel exchanges The author is Member of the Chinese Academy of Social Sciences (CASS) and a new mode of openness, among the countries. In director of the Academic Division of cooperation and development. terms of the priorities in International Studies, CASS. 09 OPENING ESSAY

India-China Relations Careful Climb to Normalization

By Sreemati Chakrabarti

As the world’s two fastest-growing major economies, China and India can only reach their highest potential together by putting aside past issues.

hen Prime political level, visits by top still not completely Minister leaders, including heads of normalized. In both India and Rajiv Gandhi states and governments of China, the public perception visited China each country, began occurring of the other tends to still be inW 1988, ties between India regularly. Since 1976, the flavored by suspicion and and China finally began to border has been peaceful, and mistrust. The free media of improve after twenty-six not a single shot has been India and popular social years of strain. During the fired by either side. media platforms in China play 1990s and the first decade of Governments on both sides major roles in preserving the the 21st century, visible consider relations cordial and negative perceptions. Large transformation in the peaceful, aside from a handful numbers of Indians still interactions between the two of minor hitches. believe that China betrayed countries was seen. Several Although no one refutes the their trust in 1962 and will confidence-building measures clear advancement of the likely do so again. Because were implemented, trade bilateral relationship, a strong China has grown expanded phenomenally and trust deficit continues to economically into a major educational exchange and plague the two nations, power and now commands tourism began to grow. At the evidencing that relations have the second-largest military in 10 CHINA-INDIA DIALOGUE

November 26, 2014: Xia Baolong (left), the Provincial Party committee of secretary of Zhejiang Province, shakes hands with Sidharth Kumar Birla, chairman of Xpro India Ltd. and president of the Federation of Indian Chambers of Commerce & Industry (FICCI), during the India-China Business Cooperation Conference in New Delhi, India. [CFP] the world, apprehensions three issues need to be settled territory that India claims is about the nation are greater. before relations can unrightfully occupied by Conversely, the Chinese normalize: the border Pakistan. fear that India is waiting to dispute, China’s silence and The CPEC is considered play the Tibet card. With the support of Pakistan on the part of China’s big policy Dalai Lama residing in India Kashmir issue, and the Tibet drive called the Belt and Road and a few hundred thousand issue. None of these are likely Initiative. The Chinese Tibetan refugees taking to see resolution any time government aims for shelter there, China is soon. They are not, however, increased connectivity, trade continually wary of the problems necessitating the and tourism by developing possibility of India using the abatement of engagement infrastructure in the region Tibet issue to manipulate with China. China. Chinese Recently, China’s apprehensions about India obstruction of India’s bid to A strong trust have increased since the join the NSG and refusal to deficit continues nuclear deal between India label Masood Azhar a and the United States in 2008. terrorist have exacerbated the to plague the China perceives the deal as an trust deficit, but many still two nations, attempt to contain it. India’s hope that the situation will efforts to strengthen ties with soon change. India’s evidencing that Japan also threaten the reservations about the China- Chinese because of the Pakistan Economic Corridor relations have still history of bitter relations (CPEC) must also be not completely between those two countries. addressed by China because From India’s perspective, the project goes through normalized. 11 OPENING ESSAY

March 3, 2016: Hugo Barra, vice president of Xiaomi Global, unveils the Redmi Note 3 phone in New Delhi, India. [CFP] around China, primarily along 14,000 Indian students are millennia. A wall has never the traditional routes of the pursuing higher education in divided the two civilizations. Silk Road. Several countries China, thousands of small and Only after both India and in the region have shown medium businesses have China emerged from enthusiasm for the massive boomed thanks to Chinese development as major global initiative. trade, and Indian films are nation-states was an explicit India, however, is still making inroads into the border – a narrow line apprehensive about certain Chinese entertainment sector. dividing people – even parts. It is primarily The popularity of both yoga necessary. The nation-state concerned that the project is and Ayurvedic medicines are syndrome is rooted in the more than just an economic on the rise in China. An colonial experiences of both policy – it also plays to impressive volume of Chinese India and China. As long as China’s strategic objectives. officials, academics and the two countries pursue only As I understand it, China’s business delegations visit nationalist agendas, relations recent economic downturn is India each month to work will remain static. However, the primary inspiration for with their counterparts in despite all the constraints, this initiative, and it will India. With the Indian better and greater people-to- certainly help stabilize the government’s decision to people contact is still Chinese economy while grant e-visas to Chinese possible. We can only hope promoting growth in other tourists making short visits, that one day such contact will participating countries. If even greater cross-border melt feelings of mistrust and India does not seize exchange is being promoted. help both countries reach opportunity that others do, The personal bond between their highest potential, who loses? In the end, many Chinese and Indian together. everyone does. India has a individuals who do business robust security and with one another is often very intelligence apparatus and visible. does not need to worry about We must not forget that The author is head of the Department China as a threat. India and China are two of East Asian Studies and dean (Social Sciences) at Delhi University. She is also There is another side to the ancient civilizations that have vice-chairperson and honorary fellow at story. Today, approximately existed in harmony for the Institute of Chinese Studies, Delhi. 12 INTERVIEW CHINA-INDIA DIALOGUE Dialogue Over Doubt for China and India Interview with Professor B. R. Deepak from the Center of Chinese & Southeast Asian Studies, Jawaharlal Nehru University

Text by staff reporter Wen Zhihong Photographs courtesy of B. R. Deepak

India needs to think outside the box, change old mindsets and mentalities and overcome fears about China through dialogue, connectivity and communication.

n the autumn of 1991, stay in Beijing, Deepak fell in soon after receiving a love with Wang Yao, a master’s degree from Chinese girl attending Peking the Center of Chinese University. Several years later, &I Southeast Asian Studies at they got married. Jawaharlal Nehru University, At the time, no direct flights B. R. Deepak boarded a plane connected India and the to Hong Kong and then Chinese mainland, and only a Beijing, where he spent two few Indian students studied years at Peking University as in China. Transnational marriages between the two In the early 1990s, while studying at a visiting scholar. During his Peking University, B. R. Deepak met countries were even rarer. his future wife, Wang Yao. Today, however, Chinese and B. R. Deepak, a famous Indian Indian people in many cities stresses that although China- sinologist, believes that disseminating Chinese classical can fly directly to each other’s India relations remain a tiny culture in India will help Indians countries, and the volume of slice of international better understand China. Indian students studying in exchange in the world, the China exceeds 13,000. Mixed bilateral relationship has seen marriages between Chinese a tremendous transformation and Indians have become compared to what it was 26 commonplace. years ago. After decades of academic During his most recent trip work as a Professor of to Beijing, Professor Deepak Chinese at Jawaharlal Nehru sat down with China-India University, Deepak is now a Dialogue to talk about issues renowned sinologist, including China-India translator and expert on relations and cultural China-India relations. He exchange. He spoke Chinese 13 INTERVIEW throughout the interview and organizations along the Belt Gujarat would likely facilitate directly addressed old and and Road have signed trust between India and new problems that the two cooperation agreements with Pakistan. In terms of energy countries face. As an expert China. However, India, the cooperation, although the on Chinese culture and biggest southwestern Turkmenistan-Afghanistan- civilization, he has a deep neighbor of China, isn’t Pakistan-India gas pipeline insight into the national among them. According to project was already launched personality of Chinese people Deepak, India has shown a at the end of 2015, instability and China’s diplomacy. He reluctant attitude towards the in some areas through which believes that the solution to Initiative because many the pipeline passes needs to the normalization of China- Indians think “China is be addressed. In this context, India relations is dialogue indifferent to India’s “India could discuss building over doubt. sensitivities.” For instance, another economic corridor the China-Pakistan Economic that expands the “BELT AND ROAD” TO INDIA? Corridor, a landmark project infrastructure connectivity On November 5, 2016, along the Belt and Road, between China’s Xinjiang Deepak gave a lecture on the involves areas disputed by Uygur Autonomous Region, China-proposed Belt and India and Pakistan, and Central Asia and a region in Road Initiative at Doon opposition forces in northern India, like Ladakh. University in Uttarakhand, northeastern Indian states are Border disputes can be India. The northern Indian a major security concern for suspended and shelved and state of Uttarakhand borders the Indian government. It shouldn’t hinder cooperation China’s Tibet Autonomous would be difficult for China on infrastructure and Region on the western route and India to cooperate in economic exchange.” of the Belt and Road. As such areas. According to the founder of the Department of However, Deepak doesn’t construction plan for the Chinese at Doon University, agree with the Indian southern railway network Deepak hopes that more government’s attitude under the Belt and Road Indians, especially young towards the Belt and Road Initiative, the rails linking people, will become familiar Initiative because he believes China’s Xigazê to the China- with China and the Belt and that missing the opportunity Nepal border are under Road Initiative. So far, outside won’t benefit India’s security construction and scheduled of academic circles, most interests. “Negotiation is the to be completed in 2020. Indians have no idea about it. best way to solve bilateral After that, the railway will China introduced the Belt problems,” he remarked. further expand to reach and Road Initiative in 2013, “India should communicate Kathmandu and other aiming to optimize its with China and Pakistan to Nepalese cities. “India’s advantages in transportation explore the possibilities of border areas are some of its engineering, promote in- expanding western branch poorest,” Deepak noted. “If depth connectivity with routes of China’s economic Chinese and Indian railway neighboring countries corridors to India, not networks can connect to each through infrastructure, necessarily through the other through the China- connect “growing Asia” to disputed territories between Nepal railroad, not only will “developed Europe” and India and Pakistan but, say, local residents benefit, but accelerate regional and global via Afghanistan and China’s also the threats to regional development. Xinjiang, which would security will be minimized Over the past three years, promote trust between all the and economic cooperation more than 100 countries and three parties.” enhanced. All three countries international organizations Deepak suggests that will benefit. Why aren’t we have voiced support for the expanding the China-Pakistan doing this?” Initiative, and over 40 Economic Corridor to Many Indians believe that countries and international western Indian states such as cooperation with China 14 CHINA-INDIA DIALOGUE would compromise India’s results of the economic administration have caused security. However, Deepak miracle China created. India minor disputes to become big suggested that Indians think will also be able to invest problems,” Deepak explained. outside the box, change old greater funds in national “This isn’t a smart way to mindsets and mentalities and defense if its overall strength operate, and China-India overcome fears about China is remarkably enhanced.” relations shouldn’t be through dialogue, Since the beginning of 2016, hijacked by such problems. connectivity and China-India relations have Neither anti-terrorism efforts communication. “Doubt will continuously deteriorated nor India’s entry into the NSG only worsen the situation,” he due to disagreements on should top the agenda of added. issues like fighting terrorism, bilateral ties. The savvy India’s entry into the Nuclear strategy is to tackle bilateral “INDIA NEEDS CHINA” Suppliers Group (NSG), the relations from a broader In Deepak’s eyes, a rising Belt and Road Initiative, perspective with the changes China has become an border disputes and issues in the global political power important factor in China- concerning the Dalai Lama. structure considered. A India relations. “China’s rise During last year’s Diwali narrow view benefits neither is changing international festival, a campaign against party, undermines bilateral political and economic Chinese imports swept across relations and exacerbates landscapes and global power Indian social media mutual distrust.” structures, and India should platforms. Deepak believes Despite the constant twists be aware of this fact,” he that such phenomena reflect and turns in China-India noted. “Many Indian scholars the nationalist ideology relations, the two countries envy China’s achievements in advocated by the Modi share many commonalities in development, namely lifting administration and the economic development more than 700 million people Bharatiya Janata Party, which strategies. India’s domestic out of poverty in only a few is becoming another major connectivity plans are in sync decades, but they are now factor impeding the with the Belt and Road afraid of a rising China. India improvement of China-India Initiative, and China’s pays close attention to China’s ties. economic transformation may increases in defense spending. “The ‘nationalist’ benefit from the “Make in In fact, the increases are tendencies of the Modi India” plan. A promising future for economic and trade cooperation between the two June 15, 2016: During a visit to Beijing Language and Culture University, B. R. Deepak participates in several activities with students, introduces the cultures countries awaits. More than of various countries, shares reading experiences and makes traditional 500 Chinese companies have handicrafts. already registered to do business in India. Of the world’s major economies, India has become the destination where China’s overseas investment has seen the fastest growth. In 2016, Chinese investments in India totaled US$1.06 billion, six times that of the previous year. “Although India has never publicly expressed its willingness to join the Belt and Road Initiative, the Modi administration has taken wise steps to promote practical 15 INTERVIEW cooperation,” remarked We’ll see better India had already launched a Deepak. “The agreements program on Chinese language signed by leaders of the two results if the two training in the 19th Century countries during their mutual sides find more while the country was under visits involved cooperation British colonial rule. between enterprises from ways to cooperate in However, the program was both sides.” economic and social suspended due to a lack of Deepak pointed out that in students. In 1921, Indian the field of energy, especially development and Nobel Laureate Rabindranath electricity, Chinese and dock their respective Tagore founded Visva-Bharati Indian enterprises have University in Santiniketan worked closely with each development and invited several sinologists other. About 80 percent of strategies. to teach Chinese culture. Tan India’s power equipment Yunshan, hailed as a “great comes from China, and many conference on future India- scholar” by former Indian Indian industrial giants, U.S. relations, which caused a Prime Minister Indira including Reliance Industries, buzz. According to Deepak, Gandhi, was among them. He emerged with the assistance the security gap between founded the magazine Sino- of Chinese companies. China and India will further Indian Studies and established Similarly, India is known as widen as New Delhi cozies up the Cheena Bhavana the “pharmacy of the world,” to the U.S. and Japan. (Institute of Chinese but the low cost of Indian “However, India will Language and Culture) in medicine can largely be definitely not become a 1937. Many old books in the attributed to the fact that 90 sidekick of the U.S. because it university’s library were percent of their raw materials considers itself a big power brought there by Tan from are imported from China. and hopes to play an the Chinese mainland during India’s pharmaceutical independent role in the Republic of China period industry would be severely international affairs,” he (1912-1949). impacted if China stopped added. But Deepak expressed exporting raw materials. regret about India’s minimal “China has played an USING LITERATURE TO efforts to teach the Chinese important role in India’s UNDERSTAND CHINA language and translate economic development,” Serampore is a small town Chinese works over the past commented Deepak. in Calcutta, capital of the decades, calling them “Although bilateral trade eastern Indian state of West “disappointing,” especially volume remains less than Bengal. Its name is obscure to considering that translated ideal, the two countries are the vast majority of Chinese versions of Chinese classics already good partners. We’ll people. In 1809, the earliest had already appeared in India see better results if the two English version of China’s two centuries ago and ancient sides find more ways to Confucian classic The Analects generations of Chinese and cooperate in economic and was printed there. British Indian scholars were social development and dock missionary Joshua Marshman committed to promoting their respective development translated the first nine cultural exchange between strategies.” chapters of The Analects into the two countries. Currently, In early March of this year, English. Thirteen years later, the two sides lack formal scholars from the New in 1822, he published the first dialogue mechanisms in areas Delhi-based Vivekananda Chinese version of the Bible like university cooperation, International Foundation in the Indian town. media communication and and the U.S.-based Hudson This episode of history tourism. Language barriers Institute called for enhanced drew Deepak’s attention and insufficient collaboration between India, when he studied China-India communication are directly Japan, and the U.S. at a relations. He explained that hindering mutual trust and 16 CHINA-INDIA DIALOGUE the development of economic relations. As well as The Analects, the Hindi Deepak showed deep versions of the other interest in Chinese literature, three of the Four especially ancient works. He Confucian Classics, became the first Indian to namely The Great Learning, The translate an anthology of Doctrine of the Mean classical Chinese poems into and The Mencius, Hindi. In 2009, he published are also about to hit the shelves. The Chinese Poetry, which featured translation of two 88 ancient poems dating from classical Chinese the Spring and Autumn novels—Dream of Period (770-476 BC) to the the Red Chamber and Romance of the Yuan Dynasty (1271-1368), Three Kingdoms— translated into modern Hindi. is ongoing. In He has a profound addition, the book understanding of Chinese on classical Chinese literature compiled literary classics. In his eyes, Li by Professor Deepak Sao by poet Qu Yuan (340-278 has been used as BC) of the Warring States a textbook by M.A. Period (475-221 BC) has an students of Chinese language and elegant writing style, poems literature in India. of the late Tang Dynasty (618-907) resemble ci, a form given cultural differences literary works that had never of classical Chinese poetry between the two countries. been translated into Hindi, popular in the Song Dynasty Furthermore, those books such as Dream of the Red (960-1279), and classical were written in ancient Chamber and White Deer Plain, prose before the Qin Dynasty Chinese, which is hard to read were also included. The final (221-206 BC) is immersed in even for well-educated Hindi manuscripts of Chinese populist ideology. “Those modern Chinese people. Based books such as Rickshaw Boy, To literary works demonstrate on what he learned from an Live, and Little Red Flowers the many aspects of Chinese ancient Chinese class during have reached the desks of society,” concluded Deepak. his stay at Peking University, publishers and are expected “They mirror Chinese Deepak eventually finished to hit shelves soon. civilization and culture.” the translation project with Many of Deepak’s Indian Deepak believes both China the help of dictionaries, the students have shown great and India have long been internet and references from interest in classical Chinese neglecting cooperation in other foreign versions. culture of the Tang and Song publishing. Within the nearly Finally, in 2013, the two dynasties, but fail to deeply two hundred years after countries launched a high- understand them due to Marshman translated the first level project on translation limited Chinese language nine chapters of The Analects and publication of Chinese abilities. Even so, Deepak still into English, Indians haven’t and Indian classics and considers it meaningful to translated many other modern works. As the head of spread classical Chinese Chinese classics into Hindi. the Indian side, Deepak was a culture in India because it is About a dozen years ago, central voice in the selection the “gene of Chinese Deepak began translating the of Chinese works to be civilization.” “If Indians can four Confucian classics—The translated, and the four touch Chinese culture, they Great Learning, The Doctrine of Confucian classics he can better understand China, the Mean, The Analects, and The completed were included in which will enhance mutual Mencius—into Hindi. The the project. Another 24 understanding and translation proceeded slowly, classical and modern Chinese friendship.” 17 COMMENT

Belt and Road Initiative India’s Dilemma

By Lin Minwang

Whether to join the Belt and Road Initiative has become a thorny, awkward situation for India.

n February 22, Jaishankar revealed that the Road Initiative meets the 2017, Chinese Vice Indian government was still needs of the Modi Foreign Minister considering it a possibility. administration’s “Make in Zhang Yesui and Considering India’s India” plan and its ambition OIndian Foreign Secretary diplomatic rhetoric history, if to expand international Subrahmanyam Jaishankar they say they’re “considering economic collaboration. The held the first China-India it,” usually it is a quite situation, however, looks Strategic Dialogue since negative answer. At present, different when New Delhi Prime Minister Narendra India is the only country considers the Belt and Road Modi took office. The meeting among China’s neighbors not Initiative from a geopolitical marked the resurrection of yet to officially voice support angle. another important for the Belt and Road In his speech at the first communication mechanism Initiative. According to India, Raisina Dialogue in 2016, between the two countries the reason is that the China- Jaishankar offered a after the fourth China-India Pakistan Economic Corridor, systematic description of strategic economic dialogue a flagship project under the India’s view on regional held in October 2016. Initiative, passes through connectivity, which reflected Although no significant Pakistan-controlled Kashmir. the country’s geopolitical breakthroughs were made on In early 2015, Indian worries over the Belt and disputes between the two strategic researcher Raja Road Initiative. He said that countries, the resumption of Mohan wrote that from the “connectivity initiatives based the strategic dialogue Chinese perspective, it was a on different strategic interests mechanism itself signified smart move to invite India to were emerging on the Asian that China-India relations are join the maritime Silk Road continent,” by which he was stabilizing and returning to a project, but New Delhi was in referring to Russia’s Eurasian track of sound development a dilemma: working together Union, China’s Belt and Road rather than constant with China in the maritime Initiative, Japan’s plan to deterioration. domain or limiting Beijing’s expand Asian infrastructure As to whether India would influence in the Indian Ocean investment, and the New Silk attend the Belt and Road region. However, from the Road initiative proposed by Forum for International perspective of economic the United States. Cooperation in May this year, cooperation, the Belt and Jaishankar stressed that 18 CHINA-INDIA DIALOGUE

India can’t turn a blind eye to the endeavors of other countries to improve connectivity which will impact the future and evoke unnecessary competition without accepted security architecture in Asia. He added that connectivity was intended to reduce competition between countries in the region instead of intensifying it. “If April 22, 2014: The 14th Western Pacific Naval Symposium opened in Qingdao, we intend to create a China. Seven warships from India, Brunei, Singapore, Malaysia, Pakistan, multipolar world, the right Bangladesh and Indonesia joined exercises with the Chinese navy. This picture thing to do now is to create a shows an Indian officer aboard a Shivalik-class frigate. [CFP] multipolar Asia,” he opined. “Only open consultation on build the China-Russia- progress in the construction future connectivity can help Mongolia Economic Corridor. of the Bangladesh-China- achieve this goal.” From the perspectives of both India-Myanmar (BCIM) In the eyes of the Indian history and public opinion, Economic Corridor, but government, regional Russia is an intimate friend of hasn’t yet dared take assertive connectivity inherently has India. However, Russia joined action due to India’s geopolitical connotations, and hands with Pakistan, India’s reluctance towards the security concerns should take top rival, to hold a joint project. Nepal hopes to break priority over economic military drill in 2016. Since its geographical barriers to cooperation initiatives. From the beginning of 2017, rumors become a “bridge” or India’s perspective, forming a have swirled that Russia and “passage” between China and “multipolar Asia” must offset Iran are seeking to join the India via a China-Nepal-India China’s advantage in overall China-Pakistan Economic Economic Corridor built as strength. Thus, supporting Corridor. If this becomes part of the Belt and Road China’s Belt and Road reality, India will fall into an Initiative. However, India’s Initiative would deviate from even worse bind. As negative posture towards the India’s overall diplomatic goal. Jaishankar noted at the idea has tied the country’s However, India will have a China-India Strategic hands. If India continues to difficult time enhancing the Dialogue, India’s territorial distance itself from economic connectivity of South Asia and claims in the disputed areas cooperation projects checking China’s influence will be directly impacted if involving China and South through its own efforts. the China-Pakistan Economic Asian countries, all of the Consequently, India has Corridor becomes a participants will certainly turned to Japan for assistance multilateral project. move further from India, in promoting connectivity Another sticky situation for which is not in its best projects such as domestic India is that most small South interests. high-speed railways and the Asian countries welcome Whether to join the Belt Chabahar Port project in Iran. China’s economic presence in and Road Initiative has An awkward situation India the region and have publicly become a thorny, awkward faces is that Russia, one of its expressed enthusiasm and situation for India. traditional strategic partners, support for the Belt and Road has chosen to embrace the Initiative. For instance, Belt and Road Initiative. Bangladesh has expressed The author is deputy director of the Moreover, Russia is working excitement about the Center for South Asian Studies at Fudan with China and Mongolia to prospects of substantive University. 19 COMMENT

face pale in comparison to those of the heavy engineering and construction industries. With so much Cooperation in Prosperity excess capacity, new plants will not be needed for some time, leading to fears for the What China and labor force. India, on the other hand, has been suffering for India Should Do decades from an infrastructure famine. Its road network is in terrible condition; it experiences By Prem Shankar Jha frequent power shortages (especially at peak load times), its railway system is The Belt and Road Initiative will create a antiquated, and its ports get jammed with cargo they mutually beneficial framework for the world’s cannot handle. The Hyundai two fastest-growing major economies. automobile plant in Chennai, for instance, ships vehicles all the way around the Indian hina and India are complementary capacity. peninsula instead of taking now the fastest- China has become an the much shorter land route growing major industrial giant, but its by road or rail. economies in the uncoordinated growth has The complementary world,C a situation that has caused extreme overcapacity, characteristics of the two inspired journalists around especially in heavy industry. economies are clear. China the globe to speculate about Today, China has an estimated needs to keep its machinists competition between the two. 200 million tons of surplus and heavy industry working Some have likened China to steel production capacity and while it rebalances its the Hare and India to the has pledged to retire 150 economy. India needs to Tortoise in the classic fable. million tons of it in the attract foreign investors and Indeed, Chinese speed could coming years. to persuade Indian give way to Indian steadiness, The situation is similar for corporations to invest in given the latter’s much China’s coal mining and India. To do this, India must younger population and its thermal power generation. A improve the ease of doing smoother growth trajectory. total of 300,000 MW of business, for which first-class But ultimately, such generating capacity has been infrastructure is paramount. comparisons only serve to added since 2013, more than In 2011, then-Prime divert attention from the India’s entire power Minister Manmohan Singh opportunity the two countries generation capacity, but estimated that India would now have to contribute to demand for power has barely need to invest one trillion each other’s prosperity and increased. As a result, existing dollars in infrastructure mitigate threats to world plants are working at just between 2012 and 2017, peace brought about by over 50 percent of capacity. almost three times the prolonged global economic Cement, non-ferrous metals, amount spent between 2006 stagnation. plate glass, oil refineries, and and 2011, to maintain its The competitive angle to even the garments industry growth rate. Barely half of the bilateral relationship has are in a similar plight. But the that investment has been been overtaken by a growing problems these industries achieved. In order for India 20 to build infrastructure the AIIB, it has so far shied comparable even to that of away from joining the Southeast Asian countries, it Initiative, despite several needs considerably greater hints by Chinese leaders that investment in the coming they would welcome India’s five years. participation. China has the resources to India’s wariness is born of make major contributions to uncertainty about China’s meeting Indian demand. It intentions. Indian analysts can work with India not only emphasize the security and at a lower cost, but at a much strategic challenges the Belt faster speed than Western and Road Initiative could companies. Proof of China’s pose to India’s pre-eminence capabilities includes the in South Asia. Viewed on a completion of the colossal map, its two strands, the Silk Three Gorges project on the Road Economic Belt and the Yangtze River in less than 12 Maritime Silk Road, appear years and the 19,000 km 21st Century intended to loop network of tracks traveled by around India to its north, east 2,000 bullet trains in only 11 and south, isolating it from its along these routes. years. Chinese companies neighbors and severely New Delhi was aware of could give Indian enterprises restricting its sphere of this development during the unique insights into China’s influence. Singh administration, so it methods of executing mass- But this interpretation of steadily promoted bilateral production infrastructure China’s intentions is too economic and political projects on a national scale, India-centric, and is almost relations with Beijing. That something no other certainly residue of the administration regarded the developing country has yet trauma inflicted on the Indian Belt and Road Initiative as an been able to do. psyche by the border war of opportunity, and did not The framework for the two 1962. There is little consider the passage of countries to cooperate appreciation in India of the China’s economic corridor already exists in China’s Belt challenges Beijing has faced through Gilgit a challenge to and Road Initiative, which from the economic slowdown India’s national sovereignty will mostly be financed by the since its fiscal stimulus over Pakistan-administered Asian Infrastructure program ended in 2011. Kashmir. That position, Investment Bank. Although Through the Belt and Road regrettably, has been reversed India was the second largest Initiative, Beijing will gain by the Modi administration. contributor of seed money to alternate routes to many What was a potential win-win countries. New situation for both China and overland routes India has become a potential will cross conflict in which both through central countries could lose. People Asia and Russia in both nations should hope to Europe; the that the reversal is temporary, China-Pakistan and that better sense will Economic soon prevail. Corridor will link to the Arabian Sea, Africa and The author is a senior journalist and the Middle East, author of Twilight of the Nation State: Globalisation, Chaos and War and bringing benefits Crouching Dragon, Hidden Tiger: Can for all the nations China and India Dominate the West? 21 STRATEGY

Belt and Road Initiative Solutions for India- Pakistan Security

By Hu Shisheng

Only cooperation and win-win development will lead to long-lasting security. A new day of friction-free geopolitical relations between China, India and Pakistan will arrive when China and India merge their respective regional cooperation strategies.

multitude of conflict in Kashmir, the Tibet central issue for China, India geopolitical issue, and the China-India and Pakistan. It will expand factors have long boundary question, are results the three countries’ maintained the of British colonization of the consensus and cooperation in A“zero-sum game” model in South Asian subcontinent. At a wide variety of terms of the complicated the same time, the current developmental realms. Such a relations between China, security dilemma is an program stands in stark Pakistan and India. Since the extension of Cold-War-era contrast with the security- three established diplomatic zero-sum maneuvering by the centered practices that other relations with each other, United States and the Soviet countries, especially major virtually every interaction Union in their respective powers, usually take towards between any two of the three strategies towards India and India and Pakistan. For China, has been marred by the Pakistan, and was India and Pakistan, the Belt geopolitical security dilemma exacerbated by the “pivot to and Road Initiative will foster in which the countries remain Asia” strategy promoted by friendship and cooperation, trapped. The core of the the Obama administration, of build trust and also improve dilemma has been zero-sum which an important security. conflict between India and ingredient was “wooing India Pakistan that has lasted for to contain China.” ZERO-SUM DILEMMA IN INDIA- centuries and only festered Following the principles of PAKISTAN RELATIONS over time. Many issues that extensive consultation, joint Since both countries gained have substantially impeded construction and guarantees independence from British the healthy development of of shared benefits, China’s colonization, relations India-Pakistan and China- Belt and Road Initiative between India and Pakistan India relations, including the focuses on development, a have been consistently 22 CHINA-INDIA DIALOGUE presented as zero-sum games and conflict. Both countries began seeing each other as the biggest threat to their respective national security. During the Cold War period, three wars broke out between the two. Even after the Cold War, India and Pakistan have frequently fallen into diplomatic conflicts arising from cross-border armed infiltration attempts and terrorist attacks. Bloody skirmishes have persisted along the Line of Actual Control (LAC) in the region of Kashmir and the India- Pakistan boundary. In 1999, May 12, 2015: The launch ceremony for a container cargo transport ship the military conflict in the is held at Gwadar Port, the southern start of the China–Pakistan Economic Kargil area nearly caused yet Corridor. [XINHUA] another war between India and Pakistan. Over the past India, and eventually the To solidify its anti- six decades, the two countries Soviet Union lured India to its Communist and anti-Soviet made efforts to achieve side, primarily by keeping a alliance, the United States reconciliation several times. A distance from Pakistan: Not took a different approach series of bilateral dialogues only had it supported India in than the Soviet Union. It launched in 2002 failed to the wars against Pakistan, but helped Pakistan get admitted produce tangible results. it also aided Afghanistan to the Southeast Asia Treaty During the Pervez Musharraf during the Pakistan- Organization (SEATO) and administration (1999-2008), Afghanistan conflict. the Central Treaty the two countries nearly However, every time the Organization (CENTO) and ended the Kashmir dispute Soviet Union and India urged India to “show a via “backdoor diplomacy.” inched closer together, window of democracy.” However, the inter- Pakistan’s ruling elites felt an However, the strategy of government effort ultimately existential crisis that motivated attempting to win over both failed due to the extremely more countermeasures India and Pakistan didn’t conservative political against India. work well because it failed to environment in both countries. Meanwhile, intervention by (The Kargil conflict was an armed conflict in 1999 between countries with close relations India and Pakistan in the Kargil area of India-controlled Kashmir. with India and Pakistan has It is considered the worst military conflict between the two aggravated conflict rather countries since the three India-Pakistan wars of 1947, 1965 and than abating it. 1971. Under pressure from the U.S. government, Pakistan The United States and the attempted to offer compromises to resolve the conflict, but the Soviet Union’s diplomatic maneuver triggered a military coup that ousted the civilian policies towards India and government. The Kargil conflict occurred just after both countries Pakistan during the Cold War completed nuclear tests in 1998, and the international community encouraged the zero-sum feared it could lead to a nuclear war. For this reason, the regional model that persists. Both conflict stirred wide global concern.) countries attempted to woo 23 STRATEGY resolve the countries’ military and the Communist bloc. hypernationalism continued rivalry. Ultimately, the policy Relations between China and impeding Indian and Pakistani alienated both countries from Pakistan became so good after governmental efforts to the United States. When the 1962 that the two countries improve bilateral ties. Cold Soviet Union invaded nearly forged an alliance. War wounds have constantly Afghanistan in 1979, the China-India relations never been reopened and enlarged. United States abandoned its normalized until the end of Despite China’s former policy on India and the Cold War. comparatively strengthened Pakistan in favor of a more Even today, the engagement in South Asia by robust alliance with Pakistan consequences of long-term that time, it still focused on the to fight the Soviet Union by confrontation still hinder normalization of its proxy, a typical Cold War mutual trust on security relationship with India and situation in which the United issues. For a long time after maintaining military and States, Pakistan (and China) the end of the Cold War, political cooperation with faced off against the Soviet Russia focused on domestic Pakistan, lacking the influence Union and India via healing and could barely to promote reconciliation Afghanistan. attend to its interests in South between the two countries. China’s foreign policies Asia. Meanwhile, the United After the 1999 Kargil conflict, towards India and Pakistan States shifted its focus to China adopted a also experienced substantial NATO’s eastward expansion comparatively neutral stance change during the Cold War, and Middle Eastern affairs, on the Kashmir issue to avoid shifting from friendlier leaving South Asia neglected. taking the side of either India towards India to supportive When the region ceased to be or Pakistan, as the Cold War of Pakistan in the wake of the the focus of superpowers’ era required. However, China 1962 Sino-Indian border war. attention, domestic struggles still lacked resources and the Prior to the war, India between various political capacity to facilitate healthy enjoyed a warm relationship powers exploded in India and interaction between itself, with China, while Pakistan Pakistan. Political India and Pakistan. was a piece of the United conservatism, religious After the 9/11 terrorist States’ encirclement of China extremism and attacks, the United States began placing greater Since 2007, the Indian Army has conducted joint military exercises with the importance on its relations People’s Liberation Army of China every year. This picture is from the “Hand with India and Pakistan. in Hand 2008” China-India army joint anti-terrorism training. [CFP] Although it took a policy of “decoupling India and Pakistan” in its strategic circulations, the U.S. government still leaned towards Islamabad due to its more robust role in the anti- terrorism war in Afghanistan. As a result, U.S.-India relations remained tepid. During the period, the United States realized that the tension between India and Pakistan was a major factor hindering U.S.-Pakistan joint anti-terrorist efforts, so the first U.S. special envoy to Pakistan and Afghanistan, Richard Holbrook, once 24 CHINA-INDIA DIALOGUE declared that he was ready to U.S.-Pakistan relations have long plagued India- mediate the Kashmir dispute continued deteriorating and Pakistan relations, the between India and Pakistan, have not seen noticeable Kashmir conflict and cross- to remove the “powder keg of improvement to this day. border terrorism, seem South Asia” (using the words irreconcilable. If a third party supports one side on issues concerning those two The Indian and Pakistani problems, it stands against the other. Pakistan has governments once nearly ended the adamantly demanded third- Kashmir dispute through “backdoor party mediation on the Kashmir conflict, but India diplomacy.” However, the effort firmly opposes any outside intervention. Consequently, ultimately failed due to extremely anyone who attempts to intervene in the situation will conservative political environments inherently upset India, and in both countries. countries maintaining relations with both India and Pakistan would have to be in a of former U.S. President Bill COMPLICATED CHINA-INDIA- dilemma over choosing sides Clinton). However, because of PAKISTAN RELATIONS on the Kashmir conflict. The fierce objections from New Multilateral ties between same is true of anti-terrorism Delhi, Holbrook never set the Soviet Union (now efforts. Indians constantly foot in India his entire life. Russia), the United States, blame Pakistan for terrorist U.S.-India ties didn’t have China, India and Pakistan attacks that occur in their significant breakthroughs have never been able to avoid country, and any non-neutral until the invasion of Iraq the curse of zero-sum games. policies taken by a third party during the George W. Bush Considering the complicated towards terrorism-related administration, and then this ties between India and disputes concerning India was followed by a severe Pakistan, any trilateral or and Pakistan could offend one deterioration of U.S.-Pakistan multilateral interactions side or the other. relations. After Osama bin concerning the two countries Compared to the United Laden was killed in 2011, the inevitably present some States and Russia, China faces Obama administration version of the zero-sum game. an even more complicated announced that the global war India and Pakistan cannot situation when handling its on terrorism was over and resolve the security dilemma, relations with India and began to shift its strategic nor can multilateral ties Pakistan. Both countries are focus to addressing threats to involving the two countries neighbors of China, and the U.S. global control arising from achieve sound development, Kashmir conflict and the rise of traditional big until security disputes are terrorism problems are powers, particularly China. resolved. During the Cold directly related to China. In Moreover, the Obama War, big powers including the the post-Cold War era, such government enhanced its Soviet Union, the United geopolitical reality makes it efforts to woo India because it States and even China lacked hard for China to take the believed India’s support was a strong will to increase side of either India or crucial to its “pivot to Asia” consensus between India and Pakistan, as the United States strategy, and its dependence Pakistan and instead focused and Russia did. For a long on Pakistan to fight terrorism on the security sector and time, the biggest obstacle abated considerably after the issues that inevitably led to hindering the advancement of death of Osama bin Laden. zero-sum games. China-India relations has Late in Obama’s last term, The two biggest issues that been China’s relationship 25 STRATEGY with Pakistan. Its importance suppressing Pakistan. inclined to expand its military has surpassed the Tibet issue, Currently, the United States cooperation with the United boundary question and trade and India are “close allies” States and Japan, which has imbalance. China’s relations (per former U.S. Defense only increased China and with India and Pakistan seem Secretary Ash Carter), at least Pakistan’s strategic doubt to have become trapped in a in terms of defense about India and forced them more complicated situation in cooperation. Furthermore, the to take countermeasures. To recent years. Not only do United States is actively some extent, China, India and India and Pakistan still have supporting Japan’s efforts to Pakistan are trapped in a constant friction, but strengthen strategic security and military dilemma geopolitical competition cooperation with India. from which no party can between China and the Consequently, India has benefit. To address their United States is becoming begun to expect China to act respective security concerns, increasingly fierce. China’s the same as the United States all three countries have policies towards India and and Japan. It wants China to accelerated their paces of Pakistan face severe place persistent pressure on military modernization. The disturbances from major Pakistan like the United greater its security imbalance powers outside the region, States has done. However, for with India, the more Pakistan especially the United States. the sake of the stability of values security and military With the continual South Asia and border safety, cooperation with China. The expansion of its overseas China refuses to give up on same thing happens to India: interests and mounting Pakistan, especially With its expanding security dependence on overseas considering its long-term imbalance with China, India markets, resources and friendship with its South becomes more inclined to capital, China cannot and will Asian neighbor. Moreover, strengthen its defense not “choose sides” between considering its increasing cooperation and promote India and Pakistan because no overall national strength, strategic alignment with the matter which side it chooses, China will invest greater United States, Japan and other its security and development resources in promoting its countries that have strategic interests could be threatened. development cooperation and concerns about China. Moreover, the space for China economic ties with Pakistan Consequently, strategic to seek a balance between to shift the focus of their distrust between China, India and Pakistan is bilateral relationship from Pakistan and India is growing. constantly shrinking. As geopolitical security to strategic games between economic cooperation. To BELT AND ROAD INITIATIVE: China and the United States this end, China has joined ALL IN THE SAME BOAT become fiercer, more hands with Pakistan to build How can the involved American elites now consider the China-Pakistan Economic parties eliminate the a stronger India a strategic Corridor and promote the geopolitical curse plaguing asset to pin down China’s rise, Belt and Road Initiative. China-India-Pakistan as former U.S. Secretary of However, in the eyes of New interaction? Perhaps China’s State Hillary Clinton once Delhi, China’s efforts aim to Belt and Road Initiative, described. The Obama trap India in the “bathtub” of which aims for win-win administration dubbed India South Asia. India even views cooperation and common the “linchpin” (in the words of construction of the China- development, is the best former U.S. Defense Secretary Pakistan Economic Corridor solution. Leon Panetta) of its “pivot to as an attempt to forge an In simple terms, the Asia” strategy. In recent years, anti-India alliance and Initiative emphasizes the the United States risked enhance Pakistan’s capacity promotion of “a new idea of crossing “red lines” to give to counter India. security, two developments, preferential treatment to India In this context, India is and three stabilities.” The while continuously becoming more and more “new idea of security” refers 26 CHINA-INDIA DIALOGUE

thus forging a sound relationship in which all sail towards the same goals. It is noteworthy that a key reason the Chinese government launched the Belt and Road Initiative was to break through the geopolitical and security curse impeding the peaceful coexistence of various countries. China is striving to transform the old geopolitical mindset that placed greater emphasis on competition into a philosophy-fostering geopolitical cooperation, as June 13, 2015: A meeting on Belt and Road Initiative security and cooperation well as aiming for shared between China and Pakistani is held in Shanghai, China. Pictured is Mr. Hayat, the military attaché of the Pakistan Embassy in Beijing. [IC] development. A country can make use of its neighbors to to the Initiative’s aim for benefits” and seeks to expand accelerate development, lasting peace through cooperation for mutual instead of treating them as inclusive development of all benefits and win-win obstacles. Amid increasing parties involved, rather than development. With this spirit anti-globalization sentiment, exclusive security via military in mind, all involved parties protectionism and extreme alliances. In fact, the latter is should keep in mind the nationalism have been a major reason behind the Golden Rule. prevailing over free trade. As security dilemma now U.S.-India-Pakistan and two major powers in the East, plaguing India, Pakistan and Russia-India-Pakistan China and India are justified other involved countries. relations can easily become and obligated to actively fill “Two developments” refers to zero-sum games largely the void in global governance the inclusive development of because trilateral interaction caused by the withdrawal of China’s border areas that increases strategic distrust some Western countries benefits China’s neighbors. and even confrontations including the United States, Such inclusive development is between India and Pakistan and provide more public an important prerequisite for instead of defusing hostility. products and resources for lasting social stability as well China’s Belt and Road the region’s development. as an effective shield against Initiative aims to enhance It is reassuring that China extremism and a solution to consensus on development and India have appropriately terrorism-related problems through building a concrete fulfilled their duties as big plaguing India-Pakistan foundation for common powers in promoting sub- relations. “Three stabilities” development that forges a regional integration, which refers to the role that the Belt community of shared benefits has laid the foundation for and Road Initiative will play and even a community of future regional cooperation, in maintaining the stability of shared future. Pursuing such at least in South Asia. China’s border areas, its a goal within the framework Currently, both the China- neighboring regions and of the Belt and Road Initiative, Pakistan Economic Corridor relations with neighbors. The China, India and Pakistan will and India’s Bangladesh, Belt and Road Initiative definitely expand their Bhutan, India, Nepal (BBIN) follows the principle of “wide common interests and Initiative and Bay of Bengal consultation, joint constantly reduce their Initiative on Multi-Sectoral contribution and shared disagreements and disputes, Technical and Economic 27 STRATEGY

launched. These factors have facilitated construction of the BCIM Economic Corridor. The “China-Nepal-India Economic Corridor” initiative currently being negotiated is inspiring optimism, along with the stabilization of Nepal’s political situation and the improvement of Nepal- India relations. Experts predict that the sub-regional cooperation platforms that China and India are striving to build together with their neighbors will become a bigger platform integrating development consensus and common prosperity. Only cooperation and win- Indian soldiers and onlookers at Wagah, a border crossing between India and Pakistan. Each evening during the flag lowering ceremony, soldiers of each win development will foster country scowl at each other as they lower the national flags. [CFP] long-lasting security. China, India and Pakistan will break Cooperation (BIMSTEC) are aligns with the Initiative. through the geopolitical progressing smoothly. The More importantly, although dilemma when China and Ports of Hambantota, Pakistan was excluded from India connect their respective Kyaukpyu, Colombo and India’s regional integration regional cooperation Gwadar, all constructed by agenda, the construction of strategies. If China and India, Chinese companies, are the China-Pakistan Economic the world’s two most witnessing tremendous Corridor is expected to shore populous developing changes, while India- up weak links of regional countries and key emerging constructed port projects integration between China, major powers, discard including Chah Bahar, India and their neighboring Western geopolitical Chittagong and Sittwe are on regions, especially Central, perspectives involving zero- their way to modernization. West and South Asia. The Belt sum games when handling Construction of the Pan-Asia and Road will lay a solid regional issues, the region Railway Network linking foundation for China and will welcome an era of win- China and Southeast Asia is India to merge their win cooperation, shared gaining steam, and India is respective sub-regional development and lasting increasing promotion of its cooperation strategies in the peace. The progress of “Look East” policy. future. Despite the slow human civilization doesn’t Despite the Indian construction progress of the require exacerbating government’s persisting Bangladesh-China-India- geopolitical competition – skepticism of the Belt and Myanmar (BCIM) Economic shared development and Road Initiative and Corridor, major better lives for all must be opposition to the construction advancements have been our aim for the future. of the China-Pakistan made in the construction of Economic Corridor, BBIN and BIMSTEC. breakthroughs are still likely Moreover, many Chinese to come considering that the projects aiming to promote The author is director of the Institute of South and Southeast Asian and Modi administration’s sub- connectivity of the Southeast Oceanian Studies at the China Institutes regional cooperation plan Asia region have been of Contemporary International Relations. 28 CHINA-INDIA DIALOGUE

Mapping India’s Lost Roots Project Mausam and the Spice Route

By Chaitanya Mallapur

Once implemented, these initiatives will open new gateways for India on the economic and trade fronts, as well as building people-to-people connections with surrounding nations.

he 21st century has THE NEED FOR REVIVING LOST timber, saffron, tools, become known as LINKS IN THE NEW AGE religious objects, art work, the Asian century, The two ancient trade and more. as the Indian routes were the Silk Route – a These routes functioned as OceanT Region (IOR) has land route linking China with bridges of cultural and gained prominence for its Europe through Central Asia religious exchange across the strategic location and the – and the Spice Route (also region. Islam and Sufism importance of maritime trade known as the Maritime Silk entered India through Central passing through its sea lanes. Route), a sea route linking Asia. With them came the The Indian Ocean carries half India with Southeast Asia in Arabic and Persian languages, of the world’s container ships, the east and connecting West art and architecture, while a third of its cargo and two Asia and the coast of East Buddhism travelled from thirds of the world’s oil Africa in the west. They India to Central and East Asia tankers. The region is rich in covered a distance of over via the Silk Route. energy resources, mineral 15,000 km and functioned as Similarly, Buddhism, wealth and marine arteries facilitating trade in Hinduism and Islam were biodiversity. the region. brought to Southeast Asia The two Asian giants – Silk was the principal from India by Arab and China and India – are trying commodity traded along the Indian traders using the sea to make their presence felt in land route, while spices were route. The influence of the region by carrying out the most traded and Dravidian architecture and various initiatives to enhance profitable goods along the the Sanskrit and Arabic and boost diplomatic and maritime route – supplying languages can be seen trade ties. Trade has been one cinnamon, pepper, ginger, strongly across many of the major factors in cloves and nutmeg. Other Southeast Asian nations, determining ties between goods traded across these even today. civilizations and establishing routes included textiles, wood These routes played a connectivity. work, metal work, incense, significant role in the 29 STRATEGY economic development and India signed a pact prosperity of civilizations and with Iran in May nations across the region, 2015 to develop the through exchanges of goods, Chahbahar port services, and knowledge. located on Iran’s Thus, both China and India south-eastern are trying to rejuvenate these coast, which will links due to their economic give India sea-land and strategic significance. route access to Central Asia and INTERCONNECTIVITY KEY TO Afghanistan, ECONOMIC TRIUMPH bypassing Pakistan. In 2013, China initiated the India is part of Belt and Road Initiative, the International comprising the ‘Silk Road North-South Economic Belt’ and the ‘21st- Transport Corridor – a Century Maritime Silk Road’ multimodal transportation couple of initiatives in this that focuses on system – that will connect direction have been initiated interconnectivity and India with Central Asia and by the Indian government and cooperation between China Russia via Iran. The project, state agencies. and Eurasia. The project aims once implemented, will India’s ambitious and multi- to build multilateral reduce cargo-transport time faceted Project Mausam was mechanisms through six to Russia from the current initiated by the Government economic corridors – the 45-60 days to 25-30 days. A of India (GOI) through the New Eurasian Land Bridge, successful dry-run was Ministry of Culture in 2014. the China-Mongolia-Russia conducted in 2014. The initiative is to be Corridor, the China-Central The Indian government is executed by the Indira Asia-West Asia Corridor, the also emphasizing port-led Gandhi National Centre for China-Indochina Peninsula development under the the Arts (IGNCA) as the nodal Corridor, the China-Pakistan ‘Sagarmala’ project. This agency, with the support of Economic Corridor (CPEC) initiative plans to set up a the Archaeological Survey of and the Bangladesh-China- series of ports, as well as India (ASI) and the National India-Myanmar Corridor – to coastal and inland shipping Museum as associate bodies. strengthen economic routes linked to road and rail The term ‘Mausam’ finds its development and prosperity. networks, which will not just roots in the Arabic word Of these, what worries move cargo but also reduce ‘Mawsim’ which refers to the India is the CPEC, as China is the cost of domestic season when ships could sail helping Pakistan develop a transportation. safely. This wind pattern deep-sea port at Gwadar (one The Sagarmala project is referred to as monsoon winds of the Pearls among China’s significant in this context, as follows a regular pattern, ‘String of Pearls’ encirclement these ports will act as drivers which facilitated the strategy against India) that of economic activity by movement of people, goods will serve as a transit for connecting India to the rest of and ideas across the IOR, Chinese goods through the the world via sea routes. enabling exchanges of transnational Karakoram culture, ethnicity and religion. Highway, and connecting TRACING BACK THEIR LOST To commemorate 60 years Pakistan and China through ROOTS of diplomatic relations the land route, one of the Like China, India also plans between India and Oman, a routes that traces the ancient to connect with its joint Sail Voyage was Silk Road. neighboring nations through conducted by the Indian Navy To counter the Chinese historical, cultural, and ship Tarangini and the Royal presence in the Arabian Sea, civilizational linkages. A Navy of Oman ship Shabab 30 CHINA-INDIA DIALOGUE from November 24 to the ‘Spice Route Project’ from the Pattanam site in response December 3, 2015, under the state government of to a complaint filed by a right- Project Mausam. Kerala, backed by the GOI to wing group. However, in “Project Mausam is not revive the ancient Spice December 2016, the ASI closed aimed at countering China’s Route under the Muziris its enquiry and renewed the Silk Route strategy. Instead it Heritage Project (MHP). The license. As a result the funds focuses on monsoon patterns, Spice Route Project aims to dried up and the research came cultural context, maritime re-establish maritime trade to a standstill. trade routes, and coastal ties with 31 countries along The project now faces an landscapes, and examines key the ancient spice route that unpredictable future due to processes and phenomena will help boost tourism and objections by certain groups, that link different countries revive cultural links. lack of funds and the along the Indian Ocean The project is centred on retirement of PJ Cherian, littoral as well as those that the ancient port of Muziris director of the KCHR, who connect the coastal centers to in Kerala, where had led the excavations since their hinterlands,” said the archaeological traces have its inception. Minister of Culture in Rajya been unearthed since the Sabha (India’s Upper House year 2000. MHP is also one THE SMART WAY FORWARD of Parliament) in a reply of the biggest conservation The idea is to connect India dated March 3, 2016. projects in India, initiated at with littoral states in the IOR India has identified 39 a cost of 940 million rupees, and re-establish its ancient countries, including China which aims to preserve a political, cultural, religious, and Pakistan, under Project culture of over 3,000 years and trade ties through Mausam, to obtain across an area of 150 square archaeological and historical transnational nomination for km. The first phase of the research along the Maritime World Heritage. An amount MHP was inaugurated by Routes, and revive India’s lost of 150 milllion rupees was Pranab Mukherjee, historical and cultural links approved by the government President of India, in with the world. These initiatives indicate India’s use of ‘soft power’ in a The two Asian giants – China and smart way. The government India – are trying to make their will have to take strong measures for the effective presence felt in the region by carrying implementation of these projects by minimizing multiple out various initiatives to enhance and and overlapping agencies with a single nodal agency. Once boost diplomatic and trade ties. successfully implemented, these will open new gateways for for Project Mausam for the February last year. India on the economic and period from April 2015 to Over the last decade, trade fronts as well as building March 2017. archaeologists have traced people-to-people contact across The project was to be 129,000 artefacts, some dating nations, adding an impetus for implemented by March 2017, back to the Iron Age, India’s ‘Look East’ and ‘Link but now finds itself in presenting proof of trade with West’ policies. troubled waters with respect the Mediterranean and the to meeting its deadline. The Arabian Peninsula during the reason attributed for this Roman era. delay is lack of coordination In September 2015, the ASI among multiple agencies, suspended the Kerala Council The author is a Mumbai-based foreign with a lot of work pending. for Historical Research’s policy analyst, who also writes on Another such initiative is (KCHR) licence to excavate at maritime security and energy. 31 TREND including the capital New Delhi, have faced frequent power outages. In 2012, 20 of India’s states and New Delhi simultaneously fell into A Sunnier India darkness when three of the country’s five power grids failed. Even cities and villages connected to the grid face By Deepa Nair frequent disruptions with per-capita electricity consumption in India at only Investment by the China-led Asian a fourth of the global average. In the 2012 incident, India’s Infrastructure Investment Bank is expected northern grid was the first to to give a huge boost to India’s fledgling fail, leaving an estimated 300 million people in the dark for solar sector. up to two days. Traffic lights went out, causing massive economies are plagued by n January 2016, jams, hospitals shut down and poor infrastructure, a lack of representatives from 57 several trains stopped regional connectivity and countries including running in major cities. It was minimal amenities in urban India attended the quickly followed by the launchI of what Chinese spaces. AIIB has been touted eastern grid, which covers as a major powerhouse to President Xi Jinping called a Kolkata, then the north address challenges that have “historic” initiative: the eastern grid. stunted the growth prospects US$100 billion Asian While massive power of several Asian economies. Infrastructure Investment outages of this scale are not Electricity is still a luxury in Bank (AIIB) in Beijing. With common, India has long been many places in India: China in the lead, the massive plagued by power problems, thousands of villages across project focuses on boosting and rolling power-cuts are various states still live in investment in infrastructure frequent across the country. darkness, so expanding the projects in Asia, rivalling the As the situation stands now, solar sector is critically World Bank. AIIB’s role is significant. The important. India, one of the member bank’s focus on funding countries, is the bank’s renewable energy projects POWER STRUGGLES second-biggest shareholder, like solar should help with a contribution of US$8 Several cities in India, billion, second only to China’s US$29.7 billion. A year on, India, one of the bank’s AIIB, led by Jin founding nations, is expected Liqun, is looked to be granted one of the first at as a major loans issued by AIIB as it powerhouse that will address works to raise US$500 infrastructure million for solar power challenges across projects. several Asian The AIIB investment is countries. [CFP] expected to bring a huge boost to the country’s fledgling solar sector. For the most part, Asian

32 CHINA-INDIA DIALOGUE alleviate fears that its relaxed lending criteria could lead to August 2, 2012: In New funding of dirty fuel and coal Delhi, India, people use small electrical projects in developing generators to maintain economies in Asia. With normal life. [CFP] many nations in a rush to increase their energy production to keep pace with growing demand, massive environmental damage remains a constant fear. Through its investments, the Asian lender will strive to promote interconnectivity and economic development in the region by developing one of the fastest-growing major difficulty for India in infrastructure and other economies in the world, supplying reliable electricity productive sectors. Indian competing with other to its vast population. states like Madhya Pradesh powerhouses like China, India’s power demand is have already approached quickly resolving its power estimated to grow at an AIIB for support for major issues is an urgent task. average rate of 5.2 percent rural water projects in the Acknowledging the during the ten years between state, and its involvement is urgency, the Indian 2014 and 2024, according to a expected to expand over time. government has moved fast to report by Tata Power. India’s solar power increase power generation Currently, India requires ambitions are growing as capacity. In 2015, India was 1,068,923 million units of well. Renewable-energy the third-largest producer electricity annually but the financing in India faces a (after China and the U.S.) and supply falls short by 3.6 multitude of challenges such fourth-largest consumer of percent. as high interest rates, electricity in the world, with Most of this demand cannot conservative risk-assessment the installed power capacity be met via traditional energy norms and lack of long-term reaching 306.36 GW by sources. India’s coal-fed debt instruments. September 2016. India also power plants, which Additionally, the country’s has the fifth-largest installed contribute to nearly 60 commercial banks have been capacity in the world. percent of total production, very slow to warm to the Narendra Modi, India’s have been grappling with sector. Funding from AIIB is prime minister, came to periodic fuel shortages. crucial for India to reach its power in 2014 on a promise of Domestic production of coal goals for its budding solar providing reliable power by hasn’t quite kept pace with sector. 2019. The price of electricity demand, which has India is also in talks with is heavily regulated in India, aggravated the situation, the World Bank, the Asian where states provide considering the expensive Development Bank, electricity far below market price of imported coal. Germany’s KfW and the New costs and take up huge losses. While Mr Modi has made Development Bank, a joint Despite increasing its power universal access to electricity project of big emerging generation capacity, the state a key platform of his economies of the BRICS bloc, discoms (distribution administration, he has also to raise more than US$3 companies) face financial promised to participate in billion in the financial year troubles, with an estimated international efforts to limit starting April 1. Frequent US$70 billion of accumulated climate change. power cuts impact economic debt and no way to pay India is currently one of the activity, and because India is generators; this has been a world’s largest emitters of 33 TREND

investors see more risks, India’s green ambitions could be jeopardized. The biggest issue hindering the development of renewable energy investment in India is the health of public electricity distribution utilities, a hurdle that has been identified as one of the most crucial to overcome for Modi’s climate pledge to meet the solar generation capacity carbon dioxide and other India could achieve grid target. greenhouse gases and hopes parity between solar and State-owned power to meet its electricity conventional energy sources. retailers in India absorbed demands without Geographically, India is combined losses of 3.84 dramatically increasing quite fit for solar – it receives trillion rupees as of March carbon emissions. The an average of almost 300 2015 per a report by KPMG. government’s focus on sunny days a year, the These losses evidence that renewable energy partially potential for 5,000 trillion discoms can’t supply reliable stems from the fact that India kilowatts of power. India is electricity of any form – imports 80 percent of its both densely populated and whether conventional or crude oil and 18 percent of its has high solar insolation, renewable – to satisfy natural gas needs, leaving the since it is conveniently expected demand, nor can country with an energy located near the equator. they add more customers. import bill of around US$150 India’s solar sector recently Reversing these trends will billion. turned a corner after a low require radical bid of 2.97 rupees per transformations in two main SOLAR SUNRISE kilowatt-hour (kWh) won the areas: how India produces The Modi government contract to build a 750 mega- electricity and how it recently approved an watt (MW) plant at Rewa in distributes it. extraordinarily ambitious Madhya Pradesh. For India, It is crucial for India’s plan for India’s solar sector. solar power could one day fast-growing economy to get Among other plans, the cost less than power from its solar power thrust right administration has promised conventional sources. and support its growing to increase India’s renewable- population with reliable energy capacity to 175 MAJOR CHALLENGES electricity without relying so gigawatts including 100 Despite efforts to increase heavily on coal. And with a gigawatts of solar by 2022, investment in the solar sector, boost from AIIB, India’s solar with a target of attracting a big challenges remain. India’s ambitions look significantly staggering US$100 billion biggest solar power project sunnier. into the sector over the next stalled when the state seven years. soliciting bids from This comes even alongside generators admitted it a steady decline in solar couldn’t buy energy at the The author is a freelance Indian power prices - thanks to prices it had agreed on. business journalist. She has covered cheaper solar panels and Several domestic and business and finance for Hindu Business financing costs - which has overseas clean-energy Line, reporting on topics such as made the sector increasingly companies have reported banking, insurance, education and healthcare. She currently also works as attractive to investors. By delayed payments for several a communications consultant for Bajaj 2019, according to estimates, months – when marquee Allianz General Insurance. 34 CASE STUDY CHINA-INDIA DIALOGUE Baogang Group in India

Text by Ni Juncheng Photographs courtesy of Baogang Group

Multi-level cooperation between Chinese companies and their Indian counterparts is a key feature of the Belt and Road Initiative, a new strategy to foster international cooperation.

ebruary 5, 2017, the Conference of the World Steel kilometers. About half of the 9th day of the first Association in October 2016, rail tracks were produced by month of China’s data provided by Baogang Baogang Group, whose lunar calendar, was Group caught the attention of quality is considered top Fthe first day off for employees participants from India’s globally. Jindal Group ended of most Chinese companies Jindal Group: the maximum up contacting Baogang Group after the week following the speed for Beijing-Shanghai with the help of the World Spring Festival holiday. But bullet trains in experiments Steel Association, and they Liu Xin was still on duty. He reached as high as 486.1 reached an agreement in is a steel rolling worker at the kilometers per hour; the trial which Baogang Group would rail beam factory of China’s run of Electric Multiple Units subcontract technology and Baotou Iron & Steel (Group) (China’s standard EMU) services to a company Co., Ltd. (“Baogang Group” between Zhengzhou in affiliated to Jindal Group. for short). He manages the Henan Province and Xuzhou Jindal Group’s problem was No. 2 Universal Steel Rolling in Jiangsu Province reached the lack of the technology Line via several computers in over 420 kilometers per hour adopted in the universal steel a small control room of about when two trains meet, the rolling production line that 20 square meters. equivalent of 117 meters a Liu Xin operated. Jindal Steel This production line was second; the Datong- & Power Ltd., a subsidiary of built in 2006 with CCS Qinhuangdao Railway, Jindal Group, produces rails universal stand and related China’s most important route with equipment similar to technology, both provided by for coal transportation, and Baogang Group’s. However, SMS Group. The 100-meter the Shanxi-Henan-Shandong due to a lack of new heavy rails produced there Railway were built with 75N technology, its output and represent the flagship product Bainitic Steel from Baogang quality of rails didn’t reach of the heavy industry hub in Group. As its newest product, design capacity, and even its northern China. Although the alloy features high German partner couldn’t China’s steel market has tenacity and abrasive bring the product up to par. experienced a significant resistance. They hoped to acquire the decline in recent years, this China is now home to the necessary expertise and production line has orders world’s longest high-speed instruction from Baogang booked through April. railway network, with tracks Group directly. At the 50th Annual stretching over 20,000 Baogang Group was

35 CASE STUDY established during China’s campaign to mass-produce steel during the mid-20th century. Its No. 1 blast furnace was dedicated by late Premier Zhou Enlai. As one of the three earliest major steel producers established after the founding of the People’s Republic of China in 1949, Baogang Group has gained Science and Technology) with efficiency in building two plenty of experience and a degree in steel rolling in 4,500-cubic-meter blast developed considerable 1983. He is an experienced furnaces within only one year, technological innovations expert in this field. Since as well as its good sense of during its long history. November of last year, Jing environmental protection. Exporting technology and and his team have visited Amid the changes in the soft power are concepts to India four times. In Raigarh, global economy, China which the group has attached Bihar State, Jing helped unveiled the Belt and Road great importance in recent Jindal correct rail passes and Initiative, which has reached years as it has been redesign their heater, which the phase of cooperative committed to industrial raised their monthly output implementation. From the upgrades and innovation. capacity to as high as 50,000 perspective of many insiders, The two steel producers tons. Their technology service the unprecedented have become perfect partners. concluded in April. technology cooperation The rail beam factory of People from both producers between Baogang Group and Baogang Group sent 57-year- have grown to know a lot Jindal Group will accumulate old Jing Yinong, deputy more about each other during specific experience for the director of its technology the exchanges. Personnel implementation of the Belt center, to cooperate with the from Jindal Group were and Road Initiative that aims Indian company. Jing amazed by Baogang’s spotless to foster international graduated from Baotou factory and advanced cooperation. University of Iron and Steel environmental protection Products from Baogang Technology (present-day systems, and Jing highly Group have gained a sterling Inner Mongolia University of praised Jindal for its reputation in India, which was another major reason October 15, 1959: Premier Zhou Enlai dedicates No. 1 blast furnace of why Jindal chose to cooperate Baogang Group. with Baogang Group. Baogang Group began exporting to India in 2010. At first, the majority of its exports were low-level products such as steel round bars, steel billets, and ordinary seamless steel pipes. High-level products have gradually taken a larger proportion, especially since last year. In early 2017, Baogang Group exported nearly 20,000 tons of medium steel plates, a sophisticated product to be used in oil pipeline projects 36 around New Delhi, to India he has worked in the steel United States to become the for the first time. industry for over three world’s third largest steel The World Steel decades. Liu agreed producer in 2015. It also sees Association held its Asian emphatically with the fierce domestic competition. market conference in assessment that although Compared to Indian Mumbai last November. The India’s steel consumption in companies, Baogang Group report from the conference recent years has measured offers a wide range of analyzed “whether India will only a tenth of China’s, the products and the precious propel global economic South Asian country has great rare earth elements in the growth.” The sluggish world potential. Even as India is steel are its biggest advantage economy has caused seeing high-speed growth, its in the market. Baogang Group development of the global per capita consumption of is headquartered in the steel market to slump, and steel remains relatively low, center of the Inner Mongolia many now believe that India and the Indian government is Autonomous Region, which is the best place to look for enacting many ambitious has the world’s largest rare growth. Although this report reforms. Analysis of the fluid earth reserves. Steel mentioned in particular that market environment inspired containing rare earth is “growth in various areas of Baogang Group to focus on noted for its greater tenacity India differs greatly” and the Indian market even and plasticity. Over 75 investment’s proportion of though most of its current percent of the heavy rail India’s GDP is shrinking, it overseas customers are from tracks on the Qinghai-Tibet still maintained that India’s Europe, the United States and Railway were produced by economy and steel market Southeast Asia. Baogang Group. had a good momentum. “India’s development is in a Logistics can bottleneck Even though it is located different but complementary inland companies’ exporting inland, Baogang Group phase compared to China,” power, and even Baogang has exports 10 to 15 percent of its explains Liu. “China has not been immune to this. Its total output. Its export begun to enter the ‘Industry products are usually shipped volume ranks among the top 4.0’ era and is seeing from the port of Tianjin. ten of China’s inland steel extensive urbanization, while Typically, shipments take 35 producers. Liu Yufeng, India’s industrialization has days to reach Dubai, a period general manager of the just started to gain steam. Just in which the market could International Trade Company as China’s steel industry is shift drastically. Liu Yufeng of Baogang Group, oversees tightening its belt, India is has great expectations for the the group’s overseas seeing rapidly increasing infrastructure network being marketing. Like Jing Yinong, demand.” India surpassed the promoted by the Belt and Road Initiative, which will February 2017: Jing Yinong (third right) discusses technical problems with connect Asia, Europe and Jindal staff in their steel plant. Africa. “If our exports to Central Asia and South Asia could be transported through Inner Mongolia to Kashgar in Xinjiang Uygur Autonomous Region and then to Gwadar port in Pakistan, it would cut our traditional route by half,” says Liu. “This would not only avert considerable market risk, but also facilitate exports of many more types of products over land versus sea.” 37 CASE STUDY

Pan-Asia Rail Network Challenges of the Southern Route under the Belt and Road Initiative

By Ma Bin

Policy uncertainty, increased costs caused by instability in some countries in the network and changes in key bilateral relations have impeded construction of various lines of the Pan-Asia Rail Network.

ailway provinces. The two routes 15,000 kilometers, the Pan- construction is a are important underpinnings Asia Railway Network priority to enhance for constructing overland consists of three lines: the connectivity during international economic China-Vietnam-Cambodia- Rimplementation of the Belt cooperation corridors of the Thailand-Malaysia-Singapore and Road Initiative. Major Belt and Road Initiative. Such eastern line, the China-Laos- railways connecting China infrastructure would facilitate Thailand-Malaysia-Singapore and other countries along a greater flow of personnel, central line, and the China- the Belt and Road include commodities, and cultural Myanmar-Thailand-Malaysia- both northern and southern exchanges between China Singapore western line. routes. The northern route, and other countries along Construction of the Pan- which starts from Xinjiang the Belt and Road. However, Asia Railway Network Uygur Autonomous Region compared with the rapidly- within China has been going and northeastern Chinese progressing northern route smoothly, but construction provinces, connects China as seen in lines such as the of sections outside China, to Eurasian countries such China Railway Express to especially foreign sections as Russia and Central Asian Europe, the southern route, on the eastern and western countries. The southern represented by the Pan-Asia lines, will not see substantial route connects China to Railway Network, lags behind improvements in the short Southeast Asian countries in construction. term. Only the central via southwestern Chinese With a total length of line has witnessed some

38 CHINA-INDIA DIALOGUE progress over the past two years: Construction of the China-Laos Railway started in December 2016, and is expected to be completed by 2020. The first phase of construction of the China- Thailand Railway is expected to begin in 2017. Generally, various factors have resulted in slow construction of the southern railway corridor. Unsettled political situations in some countries and ballooning costs and cuts in funding, as well as outside influence from regional and global powers, can all November 3, 2015: Kunming South Railway Station under construction in be partially blamed for the Kunming, capital of Yunnan Province. Four major rail links, including the Lanzhou-Chengdu-Kunming Line, the Shanghai-Kunming Line, and lines situation. The following are running to coastal areas of southern China and to southwestern China, as the four key factors hindering well as the Pan-Asia Rail Network, converge at the station. [CFP] the construction of the railway network. some were not completed by is pressure from cost- The first factor is a a certain deadline, causing benefit analyses. The turbulent political situation some projects to be suspended general precondition for in several countries. indefinitely. Instability would countries to participate Construction of the Pan-Asia slow the construction process in the construction of the Railway Network not only anyway. Since domestic chaos Pan-Asia Railway Network requires abundant resource has already jeopardized the is the promise of benefits input from related parties safety of the employees and outweighing costs. Certainly, but also a comparatively property of the enterprises every Southeast Asian country stable social environment. building and operating would welcome a “free ride” However, in the past few the railway network in on a railway connecting them years, construction of several these countries, respective directly to China to share the key stations on the Pan-Asia governments must intervene. fruits of China’s economic Railway Network, including However, any simple fix, development. In fact, such an stops in Myanmar, Thailand, such as suspending projects idea is directly in line with the and Cambodia, has been until the situation gets sharing concept advocated by delayed by social unrest better or wasting the entire the Belt and Road Initiative, characterized by either budget on security, would and is meant to serve as the internal armed conflict or still hamper construction of fundamental motivation to social instability triggered by the railway network. Policy seek rail connectivity with elections. For such reasons, uncertainty and increased China. For China, the Pan- construction of the Pan-Asia costs brought by instability Asia Railway Network can Railway Network in these in some countries along the provide new passageways countries has been placed railway network, as well as between China and Southeast on the backburner. Some changes in some bilateral Asian countries, which would agreements and contracts relationships, have impeded not only facilitate greater on the construction of the the construction processes of bilateral trade and strengthen Pan-Asia Railway Network various lines in the railway bonds, but also consolidate signed by China and related network. the cooperation framework of countries became void and The second key factor the Belt and Road Initiative. 39 CASE STUDY

However, various parties freight from China, the line under the Belt and Road have produced differing would only have a limited Initiative framework aims assessments and calculations effect in driving local to promote economic on construction costs and economic development. And cooperation between benefits. While one project or passage via local roads and involved countries, some plan is deemed economically airways is quite affordable, so have expressed concern reasonable in the eyes of one cost pressure on introducing about the accompanying party, it may not appear so a railway has been mounting. political effects. Countries to another. If various parties For China, the China- along the Pan-Asia Railway cannot reach consensus on Thailand Railway would Network are more sensitive cost sharing and revenue represent a landmark project towards changes in relative distribution, it will be difficult and a big step in China’s high- gains. The postponement of for the Pan-Asia Railway speed rail going abroad. China the construction can also be Network to become a reality. places high value on such a attributed to financing and The Nong Khai-Nakhon line as a model for building management problems. Ratchasima line, the the Belt and Road, but it still Finally, the impact of fierce northern section of the must strike a balance between geopolitical competition China-Thailand Railway, strategic gains and economic cannot be ignored. The represents a key example costs. Pan-Asia Railway Network of this problem. Economic Thirdly, political worries will promote ties between considerations remain the choke momentum. Railway China and Southeast Asian major cause of Thailand’s connectivity, like other forms countries, elevate China’s inertia in constructing of economic cooperation, status and enhance its the section. Since areas will generate an additive influence in Southeast Asia. along the line feature effect in the political realm. During the geo-economic comparatively backward Sound operation of the Pan- structure remodeling economic development and Asia Railway Network will process, countries with major small populations, they don’t become a positive factor in influence in Southeast Asia foresee sufficient volume of consolidating and upgrading have been watching closely. passengers or goods to keep bilateral relations between In recent years, Japan has trains operating regularly China and the respective increased its investment in on this route. If most trains countries in the network. the railway infrastructure are moving passengers and Although railway connectivity of Southeast Asia. India has

December 15, 2016: A train passes the Dalihuaying Extra-large Bridge. The bridge is located along the Kunming-Yuxi section of the China-Vietnam and China-Laos international railways. [by Zhang Xiangtao/Xinhua]

40 CHINA-INDIA DIALOGUE proposed and promoted India, a long-time regional as well as deepening the Look East Policy. These power. Although India is not economic cooperation moves have influenced the major force hindering between China and various the expectations of some passageway construction, Southeast Asian countries, Southeast Asian countries on the railway passageways India would gradually the southern railway route under the Belt and Road become isolated from projects along the Belt and Road. Initiative and the China- surrounding the Belt and Some have consequently Pakistan Economic Corridor Road and marginalized become more reluctant to both include passages to the in the new regional participate and amended Indian Ocean. This move has economic cooperation their cooperation conditions, enhanced China’s capacity process. Compared with impeding the construction to influence the regions possible geopolitical process of the Pan-Asia surrounding India. As a challenges brought by the Railway Network. major force in the regional implementation of the Belt All these factors – environment around the and Road Initiative, regional unstable political situations, Indian Ocean, India’s attitude isolation is clearly a gloomier cost pressures, political and policies to address these choice for India. maneuvering and geopolitical changes will substantially But India has always competition – have been influence the construction of adopted a prudent attitude hindering construction of the southern railway route in its economic cooperation the southern railway route and other Belt and Road with China. Both China and along the Belt and Road. In projects. India should work together the future, specific challenges If India views the Belt to achieve progress via may change along with and Road Initiative with a construction of the southern developments to the situation, generally positive attitude, rail passageway along the Belt and some now minor participates in the regional and Road and other related factors could become more economic cooperation process projects. As India faces the influential. within the Initiative, fosters prospect of China expanding regional emerging markets its connections to the Indian and shares the regional Ocean economic rim, its best India’s attitude developmental fruits, it will path forward seems clear. and policies will promote its own domestic India should participate and regional development in related Belt and Road substantially while enhancing its regional projects and join the regional influence the and international influences. economic cooperation If this is the case, India will process, which will also construction of the likely support and even ensure that geopolitical promote construction of the competition with China southern railway southern rail passageway doesn’t strain the relations route and other along the Belt and Road between the two countries. and construction of the The path to progress is Belt and Road Bangladesh-China-India- earnest bilateral economic Myanmar (BCIM) Economic cooperation. projects. Corridor. If India views the Belt and Road Initiative Since construction of the negatively, the country could southern rail network along reject rail construction and the Belt and Road increases related Belt and Road projects. The author is an assistant researcher at China’s direct routes to With the advancement of the the Center for Russian and Central Asian Studies and the Center for Shanghai the Indian Ocean, special China-Pakistan Economic Cooperation Organization (SCO) Studies, attention should be placed Corridor and southern under the Institute of International on the policy choices of railway network construction Studies at Fudan University in Shanghai. 41 DISCUSSION

Belt and Road Initiative and “Make in India”

By Yue Zhaomin

New Delhi will certainly benefit from connecting its “Make in India” plan with the Belt and Road Initiative.

oon after he took growth for the first time. and new policies on foreign office in 2014, Prime Although some analysts investment. The plan not only Minister Narendra argued that the jump could be testifies to India’s ambition to Modi introduced the largely attributed to India’s rise comprehensively, but also S“Make in India” plan, with adjustment of the GDP its people’s dream of making the aim of building the South calculation method and their country one of the Asian country into a global benchmark year, India is world’s great powers. design and manufacturing undoubtedly striving to inject Since Jawaharlal Nehru center. When Modi took momentum into its economy vowed to make India a power, India had just endured by reviving its manufacturing. uniquely attractive great its lowest GDP growth rate in power, that goal has become a a decade and was facing a “MAKE IN INDIA” PLAN: beacon guiding Indians grim economic situation. In CONDUIT OF THE INDIAN forward. China’s tremendous this context, the “Make in DREAM achievements since its reform India” plan kindled new hope More than an encouraging and opening up in the late for a recovery of the Indian slogan, the “Make in India” 1970s astonished India and economy. A slew of reform plan essentially calls for even depressed Indian measures and commitments comprehensive, morale. Against the backdrop under the plan significantly unprecedented correction of a quickly rising China, enhanced India’s and renovation of the some Western scholars seized attractiveness for foreign country’s outdated the opportunity to pit the two investment. Consequently, procedures and policies and against each other with the India topped the list of signifies a transformation of theory of “competition destinations for green-field governance philosophy between dragon and investment in 2015, towards “small government elephant,” which has overtaking China for the first and efficient governance.” A implicitly influenced China- time to become the world’s massive economic reform India relations and even biggest foreign investment plan, “Make in India” is based flavored the central tone of destination. on four major cornerstones: bilateral relations between The same year, India new ideas, new management the two countries. surpassed China in economic modes, new infrastructure, Western scholars likened 42 CHINA-INDIA DIALOGUE

India to a docile, slow-moving BELT AND ROAD INITIATIVE: and the latter evidences elephant and China to a INDIA’S TEAMMATE OR RIVAL? China’s intention to play a ferocious, aggressive dragon, Since the inception of the greater role in the reflecting subconscious Belt and Road Initiative, the international arena. recognition of the “China plan has aroused worry, doubt India has supported China’s threat theory.” Consequently, and debate among people initiatives concerning the dragon-elephant competition from all walks of life in India. Asian Infrastructure has now become an Indian Indian scholars have Investment Bank (AIIB) and version of the “China threat interpreted the intentions of the New Development Bank, theory.” Research has shown a the Initiative from various but has voiced strong doubts correlation between the rise angles including economics, about the Belt and Road of China and a surge of strategy and security. Some of Initiative. Per Misha, this is nationalist mentality among their views have been echoed because New Delhi considers Indians in recent years. In his by the Indian government. the Initiative a serious threat recently-published India Rahul Misha, a researcher after a sense of crisis arose Rising: Fresh Hope, New Fears, with the Indian Council for from the China-Pakistan Ravi Velloor noted that one of World Affairs, believes that Economic Corridor. Even if the most significant benefits the Silk Road Economic Belt India is willing to suspend its China’s rapid rise would bring and the 21st Century boundary dispute with China to India would be “helping Maritime Silk Road and hitch a ride on China’s remove the roadblocks for (collectively known as the economic development, if India’s transformation.” It is Belt and Road Initiative) have Pakistan is involved, any becoming increasingly different strategic objectives: program between China and evident that China can The former emphasizes India will inevitably become provide “reminding signals” infrastructure construction problematic. for New Delhi. China’s Belt with a focus on the History has shown that and Road Initiative is the connectivity of Eurasia, manufacturing is usually the latest of such signals. Central Asia and West Asia, cornerstone of a big country’s rise. After the 2008 global financial crisis, At Phool Mandi, the biggest flower market in India, a young girl lays back on manufacturing became a the marigolds which are used for making garlands. [REUTERS] focus of competitions between various countries. Some developed countries have introduced “reindustrialization” or “return to manufacturing” policies, leading to a new round of industrial revolution and a reshaping of the global manufacturing landscape. Meanwhile, China’s manufacturing is shifting from a traditional development pattern, driven by low-cost factors, to a new development mode fueled by high-end intelligence and innovation. This has left certain space for developing countries with comparatively low levels of industrialization. 43 DISCUSSION

According to predictions by education. Conservative restrain the market’s Deloitte & Touche LLP, the estimates show that a third of consumption capacity. “MITI-V” (an acronym for the country’s population is Of the three major Malaysia, India, Thailand, illiterate, resulting in an roadblocks hindering India’s Indonesia and Vietnam) are overall poorly educated labor reform – the taxation system, expected to take over China’s force. Despite having the the labor act and the land role in manufacturing labor- world’s largest cheap and acquisition bill – only intensive products, with India young labor force, India still taxation reform has witnessed most likely becoming the lacks the skilled workers breakthroughs, and the other world hub for low-cost needed for modern two have not seen any manufacturing. manufacturing. India ranked substantive progress. Along Although India has the only 105th in the 2016 United with restrictions from its legal greatest probability of Nations Human Capital system, India also suffers becoming the world’s next Index. from factors such as a long- manufacturing powerhouse Second, India’s running irrational economic after China, the pressures underdeveloped structure, inefficient that the South Asian country infrastructure in areas like government, and religious, now faces are drastically transportation, electricity, social and cultural problems. different from those of China logistics and public services Moreover, the rising anti- three decades ago. Thus, it is has significantly undermined globalization trend is likely to impossible for India to simply its competitive advantages in become an external factor copy China’s successes. low-cost factors. restraining India’s First, India’s long elite- Third, India’s huge development. Another focused education policy has population should create an noteworthy factor is the fast resulted in an astonishing enormous market, but its growth of robotic technology polarization of education and large marginal labor forces as global manufacturing serious deficiencies in basic and low-quality employment experiences an upgrade. In

Indian manufacturing is imbued with the values of traditional culture. However, with decentralized organization and backward modes of production, coupled with the impact of modern industrial production and international competition, Indian manufacturing is in a grim situation and undergoing a painful transformation. [CFP]

44 CHINA-INDIA DIALOGUE the near future, robots will dividend. If India fails to exports. Everything is reduce the manufacturing capitalize on this small positioned for win-win industry’s dependence on window of opportunity, its results. human labor. This will demographic dividend could However, because India significantly offset the deteriorate into a dangerous sees China as the “driver” of the Belt and Road Initiative with a pivotal role in its India’s worries about the Belt and Road implementation, it seems to have become a matter of Initiative are rooted in its anxieties pride. Indeed, the logo of “Make in India” is a marching over its own disadvantages and its lion composed of gears, rather than a gentle elephant. lack of confidence about this future Whether or not that choice economic growth, rather than the intentionally flips competition with China to external “threat” of a rising China. that between a “lion” and a “dragon,” India’s recent moves to strengthen competitive advantages of “demographic bomb.” cooperation and contacts India’s low-cost labor force. with its neighboring countries Of course, low-cost COOPERATION VS. on both land and sea highlight manufacturing will hardly COMPETITION: INDIA’S not only its traditional eliminate its need for human DILEMMA interests and security labor over the next 15 to 20 New Delhi is clearly aware considerations, but also its years. India has time to of its own crisis. Its worries “great power” mentality in unleash its demographic about the Belt and Road the form of its own initiative Initiative are rooted in its to facilitate regional anxieties over its own dominance and a greater disadvantages and its lack of global voice. confidence about its future Although India has never economic growth, rather than explicitly supported or the external “threat” brought accepted the Belt and Road by a rising China. Initiative, possibilities remain The Belt and Road Initiative to merge pieces of the has erected a new framework Initiative conducive to India’s for international economic development with its own and trade cooperation. As an “Make in India” plan. important country along the However, the “Make in India” Belt and Road, India will end plan will not optimally help up a big beneficiary of the New Delhi realize its dream program if it can connect its of becoming a “great power” “Make in India” plan to the by sticking to outdated Initiative. The Belt and Road geopolitical and strategic Initiative is expected to mindsets. provide the very funds, technology and experience that the “Make in India” plan urgently needs to unleash its demographic dividend, The author is secretary general of improve infrastructure and the Center for India Studies under the expand the market for its Sichuan Academy of Social Sciences. 45 DISCUSSION

Why Is FDI Keeping Its Distance from ‘Make in India’?

By Ranjan Mukerjee

Although India’s rapidly-growing manufacturing industry has garnered global attention, foreign direct investment is still struggling to keep up.

uring the 2014 four months after being voted touch when it came to Indian general into power, the new Prime attracting FDI. Japanese elections, one of Minister flagged off the ‘Make companies in particular were Prime Ministerial in India’ initiative. It was met drawn towards investing in candidateD Narendra Modi’s with overwhelming Gujarat, especially in key campaign promises was enthusiasm among the Indian infrastructure projects. to turn India into a global public and business One has to remember that manufacturing hub. For community, as well as in terms of figures, Gujarat decades, Indian industries generating considerable didn’t exactly seem like a witnessed their Chinese interest in the international hotbed for FDI. According to counterparts rise rapidly as media. This was, after all, the the figures released by the China became the preferred game changer that had been Reserve Bank of India (RBI) destination for promised – a panacea that for the years 2000-2011, manufacturing, turning the would take the Indian Gujarat received only about country into an export manufacturing industry to the US$7.2 billion in FDI, behemoth. At the same time, land of plenty. Such high compared to US$45.8 billion India’s own attempts at luring hopes for “Make in India” for the neighboring state of international companies to seemed justified considering Maharashtra and over US$26 invest in the manufacturing the background of PM Modi billion for the Delhi National sector were mostly futile. and his relationship with Capital Region (NCR). Modi and the Bharatiya Foreign Direct Investment However, this was still a Janata Party (BJP) wanted to (FDI). substantial rise in FDI for a buck this trend and pushed As the Chief Minister of the state that was generally “Make in India” forward as Indian state of Gujarat, overlooked by foreign one of the critical mandates Narendra Modi built his business interests. Modi in their election manifesto. reputation as a pro-business brought the same zeal for FDI In September 2014, a mere leader who had the Midas growth to the national scale. 46 CHINA-INDIA DIALOGUE

June 29, 2016: An employee checks a tag on a new scooter at Honda Motorcycle & Scooter India’s manufacturing base in Narasapura, Gujarat, India. The total annual production of Narasapura in 2016 was 2.4 million. Honda Motor Company said that India has the biggest market for two-wheelers. Investment in the local factory has brought new opportunities to the company. [CFP]

In his first few months after FIGURES AREN’T EVERYTHING example, during the five being sworn in, PM Modi As it turns out, they don’t biannual Vibrant Gujarat embarked on a whirlwind paint a complete picture. Global Investors Summits tour across the continents. According to the most recent from 2003 to 2011, the state of Although he met many world Economic Survey conducted Gujarat – under the leaders, the primary goal of by the Indian government, stewardship of CM Modi his travels was to have tête-à- the annual rate of FDI inflow – signed memoranda of têtes with the captains of stands at US$75 billion – an understanding (MoUs) for industry, such as a closed- impressive figure that is FDI worth US$876 billion. door meeting with the heads around the same as what During the same period, of Silicon Valley’s biggest China received during its China attracted FDI worth companies. Every such trip growth boom in the period US$600 billion. In reality, was declared successful, with from the early to mid-2000s. rather than trying to draw in billions of U.S. dollars’ worth However, such statistics more FDI than China, Gujarat of FDI to India being usually only take into account struggled to keep up with its promised. what has been pledged; the own neighbors within India. But what effect – if any – amount of FDI that actually The same is now true for has it actually had on “Make does see the light of day is “Make in India”. While in India”? substantially lower. For multiple MoUs are being 47 DISCUSSION signed by PM Modi on every year. Apart from the and large domestic consumer state visit, the number of automobile industry (US$2.5 base were touted as its biggest projects coming to fruition is billion FDI in 2015-16) and plus points; after all, the same drastically lower. The low the pharmaceuticals sector had worked to China’s conversion rate is proving to (US$1.5 billion FDI in 2015- advantage before. be a massive spoke in the 16), “Make in India” has failed However, there are two wheels of the “Make in India” to excite foreign investors, factors that the “Make in initiative. Moreover, a look at and the consequences are India” initiative did not the breakdown of FDI by starting to be felt in the account for: 1. a substantial sector reveals that the manufacturing industry. lack of skilled labor, and 2. services sector remains by far bureaucratic red tape that the most lucrative area for TOO MUCH TOO SOON makes it very difficult to do FDI, leaving the core “Make There is no question that business. in India” sectors far behind. the time to launch “Make in Both these factors are In 2015-16, the services India” was the right one. As massive red flags for any sector attracted 53.6 percent China moves away from a international companies that of all FDI, registering 136.8 manufacturing-based would like to invest in Indian percent year-on-year growth. economy to a consumer- manufacturing. By comparison, the driven one, it has created a In the most recent ‘ease of manufacturing sector vacuum that is there for the doing business’ rankings, the attracted only 18.6 percent of taking. When initially wooing World Bank ranked India all FDI, managing to register FDI for “Make in India,” 130th globally. While many a drop of 31 percent year-on- India’s demographic dividend new schemes and policies

February 4, 2017: The inauguration of the second dealership of Jaguar Land Rover India iswas held in New Delhi, India. As early as March 2008, Tata Ggroup paid US$2.3 billion to buy Jaguar and Land Rover. Some experts say that India will become the global automobile manufacturing hub within ten years. [IC]

48 CHINA-INDIA DIALOGUE have been kicked off under the “Make in India” initiative to improve business conditions, India remains far from an ideal environment for a viable manufacturing hub. Elon Musk’s recent cool response to the Indian government’s overtures is seen as proof of the uphill road the manufacturing sector has had to take when converting FDI MoUs to realized projects. Despite laying out the proverbial red carpet for Tesla Motors, India has still not been earmarked as the manufacturing and export hub for the company’s April 11, 2017: In Mumbai, India, a Tata Ggroup company named TAL South and Southeast Asian Manufacturing Solutions unveils India’s first ever robot, BRABO. This is India’s markets. “Make in India” may first indigenous Industrial Articulated Robot. [CFP] have a dazzling logo and hopeful message, but when it flow in, a lot of it will trickle youth have the right skill-sets comes to FDI, it may have over to the “Make in India”’ that the manufacturing jumped the gun too soon for core sectors. sectors need. Simultaneously, its own good. It may not be happening at efforts are being made to cut the rate that was hoped for, bureaucratic red tape and STILL A HOPEFUL SCENARIO but even a “some progress is provide foreign companies It would be a folly to write better than no progress” with the peace of mind that off the “Make in India” scenario is a hopeful one. doing business in India will project as unsuccessful, There has been a massive be a hassle-free experience. though. As FDI continues to push to ensure that India’s Any notable effects of these efforts will still take a long time to pan out – time that the “Make in India” initiative cannot afford as it loses steam. For now though, it is safe to say that for “Make in India”, the greatest impact of FDI – or rather the lack thereof – has been setting off alarm bells that should bring about much-needed change.

The author is a Mumbai-based creator and curator of digital content. He writes on business and management, and his works have been published in DNA India, Indian Management, and India Now: Business and Economy. 49 DATA

Belt and Road Initiative Three Years of Progress

Edited by Hu Zhoumeng Designed by Andrey Maleev

An excerpt from Adhering to the Plan: Orderly and Pragmatic Construction of the “Belt and Road” – The Belt and Road Progress Report, released by Chongyang Institute for Financial Studies, Renmin University of China (RDCY)

ince it was first the countries along the routes development, accelerate announced three has exceeded US$50 billion regional integration, and years ago, the Belt over the past three years, achieve common growth and and Road Initiative spurring economic shared development between hasS received the backing of development and creating countries across the Eurasian over 100 countries and abundant job opportunities in continent and other relevant international organizations, these countries. regions. The means to this and more than 40 countries The initiative originated in end are policy coordination, and international China, but it has delivered connectivity of facilities, organizations have signed benefits far beyond the unimpeded trade, financial cooperation agreements with country’s borders. It aims to integration, and people-to- China. Chinese investment in reduce the gap in regional people communication.

50 CHINA-INDIA DIALOGUE

51 DATA

52 CHINA-INDIA DIALOGUE

53 DATA

54 CHINA-INDIA DIALOGUE

55 YOUNG VOICES

China and India on the Silver Screen

Concept by China-India Dialogue

Song of the Little a thrifty mother, the family Durga, it portrays both the Road: A Celebration lives a decent life. When the poverty and the small delights youngest child, Apu, is born, of daily life. In the film, poverty of Life the father is making a stable is a magnifying glass rather income, and promises his wife than a fig leaf, and magnifies that all will be well. A few the humbleness and frailness of Yang Jian years fly by. Apu has grown up, people more clearly. Age: 24 and his elder sister, Durga, is In the film, I also see the Occupation: Matte Painting to be married. The mother still awakening of the feminist Birth place: Chongqing works hard day after day, yet consciousness in India. The Current residence: Beijing the family’s situation has not mother used to murmur in improved. To pay off his debts, the night when her husband the father travels to the city to was asleep. “Sometimes I feel seek a better job, but then they depressed when you are away,” lose contact with him. During she said. “You will never know. his absence, the family sinks I have a dream, I can also do deeper into poverty and the everything.” mother, having to rely on help The mother, born to a noble from neighbors, is in despair. family, has to worry about Then one day, due to long-term their daily necessities, about malnutrition, Durga becomes quarrelling with neighbors over sick, and the house that has fruit stolen by the children, been passed down through over chilies with the door the family for generations is ladies day and night. She lives washed away by heavy rain. in dignity, but finally gives up When the father returns home her dowry as life becomes too and starts to show off the difficult, barely surviving in the My favorite Indian film is merchandise he has brought dilapidated house. Pather Panchali (Song of the from the city, he discovers Pather Panchali is a 1955 Little Road). Pather Panchali that he has lost his daughter. drama film. Even back then, is a drama film directed by Overcome with grief, the family Indians were able to focus their Satyajit Ray. The first film in the decides to leave their ancestral attention on the dream of a Apu trilogy, it depicts the harsh home. poor mother who was struck by village life of a poor Brahman What is worth noting in this poverty, and regarded the poor family. movie is that although it tells soul as a brave human being. The film tells the story of a the story of the poor, it does From this movie, I can see family living in a ramshackle not stress the suffering brought the love and understanding of house, with never enough about by poverty. Through the Indians, and their compassion food to eat. Fortunately, with eyes of the children, Apu and for their country.

56 CHINA-INDIA DIALOGUE

Not One Less: Why You she breaks down. Tears stream where Huike reads out the class easily from despair-ridden president’s diary, we learn that Should Care eyes as she chokingly asks her Gao, the teacher, has taught erstwhile student to come back. them to treasure every last Shibesh Mehrotra She doesn’t know why she piece of chalk because the Age: 24 Occupation: Writer cares, she just does. only way they can afford any Birth place: Nagpur When I watched this movie at is by skimping on the quality Current residence: New Delhi the age of 15, I had taken it as of tables. Chalk that Huike and a clear denunciation of the idea Minzhi had taken for granted. that things should always have In another sequence, we see “worthwhile reasons” for you to the entire class, riled up by the care about them. will to help get Huike back, Everything is a worthwhile entirely invested in learning reason for those who have the real-world mathematics not been allowed the luxury of a daily laborer’s job. Each of questioning. All throughout one of them is trying their the film, we see characters very best to answer how following the most meaningless many bricks they would have orders to a T, because to move over how many days questioning them would to earn enough for Huike and involve using time and energy Minzhi’s bus tickets, to and they don’t have, to break down from the city. It’s a remarkable concepts they don’t understand. sequence. One that doubles Where others see down on the core message of bureaucracy in assistants and the movie: wonderful things guards depicted in the film, I happen when you care. see people as clueless as the A little girl learns to treasure 13-year-old with no experience the piece of chalk that imparts who has been tasked with education of her when she teaching a class of 26 students. cares. A classroom full of not- There’s a moment in Zhang Two students for every year so-bright kids, who hate the Yimou’s ‘Not One Less’ when she’s been on this planet. idea of studying, do complex substitute teacher Wei Minzhi is Students who are there to gain math problems together when asked by a reporter why she’s no particular education, just an they care. The bureaucracy spent so much time looking idea of the most basic things turns around, looks at you in for Zhang Huike, a student of so they can have a marginally disbelief and makes space for hers who comes to the city for better future than their parents. you to come on primetime a job and ends up getting lost. No one in this film can afford television to look for your friend Why does she care so much? the luxury of asking, “Why?” when you care. A whole city Minzhi, in that moment, doesn’t And it is in that seemingly lends support to revamp a poor know what to say but when the desolate scenario that humanity school they’d never heard of reporter asks her to look into shines. We can learn to care when they care. the camera, imagine Huike is about anything. In a particularly ‘Not One Less’ taught me, as watching and send a message, heart-wrenching moment a teenager, why I should care.

57 YOUNG VOICES

Indian Films: we discuss their pent-up inner that lives in our dreams, which, desires, they illustrate how the when we wake up, leave us a Shockingly Sincere spiritual world of Indian people little disappointed, but brings us naturally forms, never departing back to the real competition in from the social environment; the world: how valuable it is for Wang Yini when the discussions settle into those who are driven by fear Age: 24 the seemingly hopeless reality, or disguise to live up to their Occupation: Student of the Beijing the films always lay out the true selves. Another example Obstetrics and Gynecology Hospital Birth place: Beijing facts, never blaming someone is Guzaarish, a rare rational Current resident: Beijing in what seems like silent irony, film that does not focus on just India. It expands into exploring understanding and loneliness, but is not out of touch, leaving the audience in empathy and inner peace, no longer feeling confused. The outcomes of Indian films are often comedic and do not stress the sufferings of lower- class people, the troubles of the middle class, or the boredom of the rich. Never say “never” is their eternal philosophy. Even the dances that show “sincerity” are not meaningless. It is in their nature to bring real pleasure to others, and the film wants more people to pursue happiness, even for a short period of time. Indian films, almost never conceptualized, When India is mentioned, or maybe, listing the few idealized or purposely pursuing scenes from Indian films are lifelong wishes they dream to profoundness, are mostly what first springs to my mind. achieve. simple with a single theme. Compared with the many I think it is precisely because They are like a real friend works of developed countries, of this, that Indian films shock with endless honest words to in which spiritual emptiness is me with their sincerity. In the say, and express what they hidden under artificiality, Indian film Parched, the shocking truly feel, which is more than films takes root in an ancient poverty, the experience of enough to resonate with and crowded land. They seem lower-class Indian women people. Perhaps we can only to have endless topics for and their desire for freedom, take a small glimpse at India discussion. The Indian films I as well as the swaying inertia through the films it makes, have seen so far focus mostly of consciousness under the but the always emotional and on the current psyche of the wakefulness of the mind, all inspirational Indian films are, people, generated from the arouse my fear, compassion step by step, giving a closer harsh reality: most of them are and reflection. Then there is view of India, and a better preoccupied, some careless, the Three Idiots, which carefully understanding and expectation but a little optimistic. When paints a perfect character image of the country.

58 CHINA-INDIA DIALOGUE

Hero: Pure Poetry in Daoming), whose attempts to But special mention must be unite China’s seven warring made of the battle between Motion kingdoms have earned him Nameless and Sky; the final many enemies, chief among seconds of Moon (Zhang Ziyi) whom are the deadly Zhao and Snow’s battle in red; and Freyan Patel assassins, Long Sky (Donnie Sword and Nameless’ duel Age: 28 Yen), Flying Snow (Maggie across a lake. But what of Occupation: Freelance Writer Cheung), and Broken Sword the actors themselves? Jet Li Birth place: Mumbai Current residence: Mumbai (Tony Leung). Claiming to have turns in a solid performance as killed all three, Nameless is Nameless. And despite being brought to sit within 100 paces onscreen for hardly 20 minutes, of the ruler – a rare honor – Donnie Yen leaves a lasting and tell his story. As a reward impression as only he can. for killing Sky, he is allowed The cast highlights for within 20 paces of the ruler. me were Chen Daoming’s As a reward for killing Sword Qin, who moves so deftly and Snow, he comes within 10 from the feared despot to paces. A step further and he’ll the vulnerable, lonely ruler be killed on the spot. that it was hard to pinpoint Each story that Nameless the moment I started tells is bathed in color – grey sympathizing with him. And for Sky’s demise; violent scarlet then there’s the incomparable for the tale of love and betrayal pairing of Maggie Cheung spun around Sword and Snow – and Tony Leung. The actors while the scenes at King of Qin’s have perfected the art of the court are stark in comparison. understated performance and The King of Qin listens carefully if, like me, you loved them in to Nameless’ stories, only to Wong Kar Wai’s In the Mood surmise he’s lying, accusing him for Love, you’ll love them Zhang Yimou’s martial arts of colluding with the assassins here. Hero is a work of art, film, Hero, is a study on the to get within ten paces and and the two have found a way relationship between art and make an attempt on his life. to not only blend in with it, fighting. It compares music to From here, we hear the story but stand out from it as well. martial arts (“martial arts and as imagined by the King of Qin. Every action and expression is music share the same principles: It unfolds in shades of blue. a carefully-thought-out step in both wrestle with complex What does it say about his story an elaborate dance between chords and rare melodies”) and that it’s draped in a color that Snow and Sword, the lovers links swordplay with calligraphy symbolises truth and wisdom? and, individually, the warriors. (“the truth of calligraphy has What follows is a back-and- Their story touched a nerve to be intuitively grasped. It is forth between the King of Qin for me more than Nameless’ the same with swordplay. Both and Nameless, as each adds to ever could. seek to return to a state of and alters the story until you’re I loved Hero and thought it simplicity”). But above all, the left wondering what’s real. Each was pure poetry in motion as Chinese movie is an exploration revelation comes with its own much as it was about the fight of truth and sacrifice. color palette. scenes. For me, the Chinese The movie opens with our Much is made of the film’s film is a celebration of beauty hero, Nameless (Jet Li), being superb visuals. I’d frame just and philosophy, and as veteran brought to the royal court of about any shot and hang it on film critic Roger Ebert put it, “it the tyrannical King of Qin (Chen my living room wall if I could. is violent only incidentally.”

59 COLUMN

Crossing Cultures Indians in China

Concept by China-India Dialogue

hat springs to mind when you think about China and India? Politics? Trade? The economy? Those are all crucial, but perhaps even more important are individual stories of relationships between ordinary people. What’s life like as an Indian in China? What are the biggest differences between the two countries, as experiencedW by people who have lived in both? What advice would ordinary Indians give to someone thinking of heading for China? To find out the answers, the team here at China-India Dialogue has been tracking down Indian expats in China to hear their stories.

miles, and forged a career in a keen to find out more. “As an A Culinary Adventure land with a language, culture Indian, people ask me so many Nitesh Kasana and customs totally unlike his questions,” he says. “Typically, own. But when asked what the questions include ‘do all Text by Nick Lanigan the biggest difference between Indians eat curry?’ and ‘why Photographs courtesy of Nitesh Kasana the two countries is, he doesn’t don’t Indian people eat beef?’” hesitate. “It’s definitely the “I try to answer as simply as food,” he says. “Chinese food I can,” says Nitesh. But those and Indian food are very are far from the only things different in terms of taste and that people in China are curious materials. Chinese people about. According to Nitesh, love meat, whereas Indian other common questions people prefer more vegetarian include, “Do all Indians dance dishes.” Of course, Nitesh has and sing?”, “Is India a hot managed to adapt to that too. country?”, and even “Why “After two years in Beijing, I’m don’t you have dark skin?” used to Chinese food and I love This curiosity hasn’t stopped Nitesh Kasana believes that China and it,” he says, “but I still crave him from making Chinese India have a communication gap. Indian food a lot, and that is friends, who have helped him one reason why I often cook at whenever he faced difficulties Nitesh Kasana, from New home.” in Beijing, but it is something Delhi, works as Head of In Nitesh’s experience, the he thinks the two countries Operations for the Indian market difference between the two could work on. at a company named DELSK countries’ cuisines is also “I think China and India in Beijing. He’s left his home something that Chinese people have a big communication behind, traveled thousands of are aware of, and they’re gap,” explains Nitesh. “Our 60 CHINA-INDIA DIALOGUE two countries have so many the organized approach of the is a complete surprise that can similarities and shared country’s people and its gigantic shock you, make you laugh, traditions, yet we don’t know infrastructure.” Back then, Anup make you frustrated, make each other so well.” He believes thought he was coming for a you happy, or make you doubt that many people in both short visit – but four years later, yourself,” he says. “In the end, countries have misconceptions he’s now working full-time for a life is always about getting to about each other, sometimes marketing company in Beijing. know yourself better, and being because they have never met a “I work with various Chinese completely out of my comfort person from the other country companies that are considering zone in China gives me a before. “Indians and Chinese going overseas, and global platform to do that.” need to travel a lot in each companies that want to move Anup accepts that not other’s countries and try to get to China,” he explains. “I handle everyone in India would move to know each other in real life, everything for them, from their to China as readily as he did. “I rather than just from reading or social media to finding relevant have been to 22 countries, and watching the news,” he says. business partners.” in my experience, China is the “I think that the more people For Anup, working in China most misunderstood country travel in India and China, the has been an unforgettable in the world,” he says. “When better they will understand experience. “It’s like a I talk with Indian people about them.” rollercoaster,” he says. “When China, they say things like, ‘Do And if you aren’t able to plan I was in India, I was at the you not know about the 1962 a trip yourself? “Movies can also bottom of the pile, and when I war?’, or ‘China is eating away be a great way to learn about am in China, I am at the top. It’s at the Indian market with cheap the cultures of both countries,” unique.” products,’ or even ‘How can says Nitesh. “India and China The experience has been as you live in such a country?’” are future powers; learning transformative personally as it After spending so much time in about each other’s cultures has professionally. “In my time China, these are viewpoints that will do no harm, but will only working in China, I have never Anup cannot agree with. “In my present more opportunities.” found or chased my comfort opinion, Indians have a lot more zone,” says Anup. “That’s the misconceptions about China beauty of this experience. than Chinese do about India,” I have been challenged to he tells us. “Yes, maybe bilateral A Rollercoaster Ride redefine my thought process, relations haven’t always been my way of working, my extremely positive in the past. Anup Mohan communication style – it has But the future for the two Text by Nick Lanigan made me so much more self- countries could be beyond our Photographs courtesy of Anup Mohan aware than I ever imagined.” wildest imaginations.” That may sound daunting, but The future for India and Anup has risen to the challenge. China is a subject of interest “In India, I always find my around the world. “Recently, comfort zone, since I can get I met a businessman in San around easily and always find Francisco,” Anup recalls, “and my way out of a situation,” he was telling me that I am he explains. “My Chinese at the center of the world experience has challenged me economy. He was referring to to doubt how strongly I even the Chinese and Indian markets For Anup Mohan, working in China has been an unforgettable experience. believe in my own beliefs. This and the positive future of both question itself is a greater gift countries.” This is a sentiment to me than anything else.” Anup shares. “For me, it’s not “I first arrived in China in Anup has learned that even about competition between 2013,” says Anup Mohan, the more difficult aspects of India and China,” he says, “on a trip sponsored by my life as an Indian in China can “but an approach of ‘evolution company. I was intrigued by be turned into positives. “China through collaboration.’” 61 COLUMN

the city, the buzz of traffic, the cacophony of cranes building metro stations, the yells of street vendors and every other Chai Break noise imaginable. Here chai pe charcha, or chatting over tea, is a sport practiced on street corners, in government By Poonam Surie offices and in college cafeterias. Chai addas have always been Chai isn’t just a steaming beverage but a meeting point, with many never-ending discussions on an entire culture around which life in life, politics and society taking India and China revolves. place; and where innumerable business deals and matrimonial alliances have been finalized over a cup of tea and a samosa. here’s nothing more Wang Xifeng says to Lin Daiyu, In crowded marketplaces, tea potent than a cup of chai “Since you have drunk our tea, is carried in aluminum kettles to bring cheer on a cold, why not be our sister-in-law?” and poured out in small glasses T foggy day. And nothing This is an example of ‘accepting’ for people to sip on the streets. more relaxing than sitting on tea. There are many fascinating It keeps us going, both in the a park bench with friends and stories of this kind. Many of scorching summer and in the holding a kullar, or earthen clay these teahouses still exist, freezing winter. cup, to warm the hands as well some providing entertainment Now, tea is becoming as the heart. to their customers with opera, popular with the young as Chai is not just a drink, but music and other performances. well. Chai Point, an app-based a whole culture, around which Tea is known for its anti- service delivering tea to your life in both China and India oxidant properties. In winter, tea doorstep, is a chain started by revolves. These are the world’s warms and in summer, it cools. young entrepreneurs. With 40 two largest tea-producing It is the perfect rejuvenating outlets across Bangalore and countries, although their teas elixir. Delhi National Capital Region, it are of different varieties. At the Bai Ma Si (White has plans to enter other states Dating back to ancient times, Horse Temple) in Luoyang, as well. especially the Tang (618-907) Henan Province in China, the Another tea room celebrating and Song (960-1279) dynasties, head priest performed a tea chai is Chaayos. Founded in teahouses dotted the streets ceremony for us. Similar tea 2012, the company was started and lanes of Chinese towns. ceremonies are performed in up by young professionals High-ranking officials and noble monasteries and temples all who recognized that tea was lords, as well as commoners over China. The deep connection overtaking coffee in popularity. and businessmen, gathered between Buddhist monasteries The focus is on meri wali chai at the teahouses. Scholars and tea is well known. In cities, (my kind of tea), catering to exchanged ideas and disputes lanes and hutongs, tea is very individual tastes in a variety of were mediated while drinking often carried in bottles and flavors such as ginger and basil, tea here. Teahouses were a flasks, constantly being refilled. cinnamon, kullar chai, desi chai microcosm of Chinese society, An important unifying factor (local tea), green tea, Earl Grey, as well as being political and binding a diverse India is the Orange Pekoe, chamomile, economic centers. People often roadside chaiwalla, or tea Darjeeling First Flush, Jasmine, used tea as a betrothal gift, and vendor. Colorful Delhi has its pahadi chai (Kashmiri Kahwa), in A Dream of Red Mansions, fair share of slums and shanty rose cardamom, aam papad written by Cao Xueqin in the towns, where thousands of chai (sun-dried mango tea) and Qing Dynasty (1644-1911), hearts beat to the music of so on. These are accompanied 62 CHINA-INDIA DIALOGUE with snacks such as samosas, Chan Buddhism to China, came butter chicken sandwiches and from southern India and settled vada. in the Songshan Mountains, Tea-making in China is where the Shaolin Monastery a special art which can be now stands. It is said that witnessed in tea-tasting he sat in meditation for nine parlors. There are hundreds years facing a wall and, on of varieties of tea. Some have one occasion, he fell asleep. In spices, flowers and dried fruits disgust, he cut off his eyelids added for medicinal purposes. and threw them away, only There is chrysanthemum tea, for them to sprout up as tea peony, rose and jasmine tea, bushes. Monks then started and tea with many other drinking tea to stay awake. Lu China is the origin of tea culture. flowers. Tourists can taste 12 Yu, who wrote The Book of Tea Its tea sets are always delicate and to 15 brews at a sitting, until in the Tang Dynasty, recorded exquisite. [CFP] they decide which ones they a detailed account of the ways like—but beware, because tea to cultivate and prepare tea, indigenous tea, a variation shops catering to tourists can different classifications of tea of the Chinese plant, was sometimes charge exorbitant and tea-drinking customs. already growing in Assam. amounts from gullible Whipped powdered tea, which Since the Chinese seedlings did customers, who realize they are was derived from compressed not survive in the Assamese being swindled only too late. cake, came into fashion in the climate, it was decided that the Tea drinking has a long history Song Dynasty. But after the Yuan Indian leaf should be grown in China. Legend has it that tea Dynasty (1279-1368), due to instead. was discovered in ancient China foreign influence, it disappeared In 1835, when Darjeeling by Emperor Shennong. The completely. People then started was transferred to the East emperor, considered the father drinking tea made from leaves, India Company, it was found of agriculture and whose name a practice that has continued that the Chinese seeds were means Divine Farmer, was until today. In the 17th Century, suitable for growing in that area. resting under a camellia tree. new methods of tea production Commercial plantation started He had just boiled some water were discovered, such as using in the 1850s. The success of to drink when a leaf from the tea leaves which were sun-dried Assam and Darjeeling was soon tree floated down, fell into the and half-fermented to produce followed by tea cultivation across cup and colored the water. The oolong tea. the foothills of the Himalayas emperor found the added taste The earliest recorded history and in other parts of India. Tea of the infusion to be refreshing. of tea-drinking in India dates production continued to flourish From that point on, it was back to 750 BC. But it was the after 1947, and it is now grown known as tea, was grown British who, given to buying in many regions of India. widely and eventually gave large quantities of Chinese Across the two countries, rise to the habit of drinking tea to meet the demands of people go about their lives, tea, which has spread across Britain’s tea drinkers, paved each with their own problems, continents. the way for tea cultivation joys, trials and tribulations - In China, tea was used as on a large scale in India. In finding themselves relaxed and a ritual offering as well as 1774, Warren Hastings (the invigorated at every step by this for medicinal purposes. The first de facto Governor-General wonderful brew. preparing of tea took on social of India from 1773 to 1785) meaning when it became a tea sent tea seedlings from China The author, who has lived in China, is ceremony, and it was closely to northeastern India and the a research fellow of the Institute of associated with Buddhist noted botanist, Sir John Banks, Chinese Studies in New Delhi. Her book of poetry, Dancing on a Moonbeam, monasteries. The story goes suggested that tea be grown was followed by China: A Search for that the Buddhist monk, in India. However, in 1823, its Soul and China: Confucius in the Bodhidharma, who brought it was discovered that some Shadows. 63 BOOKS

Upside Down in India Wu’s Headstands in the West

I Learned to Headstand in India: Wu's Journey to the West By Wu Sumei Wu Sumei Jiangsu People's Press September 2012

Like China, India is a country with a vast area, afternoon, wondering whether I was India. I would be angered at someone a massive population and diverse cultures. really in India. The lawn looked like a laughing at pictures of corpses in the However, many Chinese people hardly know green carpet and the Delonix regia was Ganges River. This is prejudice against anything about their neighbor. Freelance as red and brilliant as fire. And yet the another civilization. writer Wu Sumei traveled throughout South fresh air was wet due to a downpour Chinese visitors tend to choose the previous night. routes through northern India and Asia for two years, alone. While in India, she Those who call India dirty have places like Varanasi, Delhi, Agra and experienced the lives of everyday Indian not seen the real India. Talking like Jaipur. They will also visit Amritsar and people, visited many sacred religious places that is meant to make themselves Calcutta if time permits. Those cities and learned about Zen Buddhism and Yoga. feel superior. In their eyes, the city are still all in northern India. Those who In her book I Learned to Headstand in India: of Varanasi is the dirtiest place in only visit these places may conclude Wu’s Journey to the West, Wu vividly captures that the whole country is like that. the things she saw and experienced, including However, many places in Southern Hawa Mahal is a palace in Jaipur instruction in Zen Buddhism and Yoga. Her India are elegant and graceful, like the which is essentially a high screen former Dutch colony Cochin, former book helps introduce the real India to Chinese wall. A total of 953 small and French colony Pondicherry, former people – a country that is interesting, beautiful delicate windows dot the orange Portuguese colony Goa and many and welcoming. The following paragraphs are building like a honeycomb. [CFP] others. Acknowledging the damage excerpted from the book. colonists wrought on this country, I was drawn to sophisticated architecture left by Europeans. India is tolerant Old Goa is the most beautiful and and generous. I’ve hardly met a single the cleanest area in the state. It was Indian who resents British colonization. once the capital of the Portuguese The sentiment is quite the opposite: colony and was built to imitate Lisbon. Thanks to the immense success of the A severe plague in the 16th Century Satyagraha Movement led by Gandhi left it a ghost town. What was once and the reparative attitude of the a city of two hundred thousand is British people, India and Britain have now a community of hollow and now reached a sort of subtle harmony. beautiful churches, of which the most Today, India is certainly a top magnificent is the Baroco style Basilica exporter of “value” globally. In a broad of Bom Jesus built 400 years ago. sense, there are only two religions This church is renowned as one on the planet, Judaism and Hinduism. of the best examples of Baroque Islam and Christianity are offshoots of architecture in India and for housing Judaism, while Buddhism, Jainism, and the remains of renowned missionary St. Sikhism are branches of Hinduism. I Francis Xavier. once heard an experienced traveler say Old Goa is gentle and glorious. I once that “Israel and India will survive the sat on a bench at the square in front of Earth’s ruin.” the Basilica of Bom Jesus for an entire I agree with her. 64