[CA] Chinese President visit to India

Current Affairs

Chinese President Visit to India

(01) Strategic Ties

(02) Economic Pacts

(03) Transport

(04) Energy, Environment

(05) Tourism, People 2 People

(06) Overall

(07) India without Tibetan Leverage

(08) China's Presence in Sri Lanka

(09) India Vs China in defence

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(01) Strategic Ties:

·        “Inch towards miles” - Fancy term by Modi; Inch (India and China) towards Miles (Millennium of Exceptional Synergy)

·        “With every inch we cover, we can rewrite history of humanity”

·        “With every mile we cross will go a long way in making this planet a better place”

Border issues

·        2013: Both the countries have signed a Border Defence Cooperation Agreement (BDCA) in 2013 to ensure peace and tranquility at the LAC.

·        2014, Aug: National Security Advisor Ajit Doval went to China to finalise the arrangements for Chinese President Xi Jinping’s visit to India.

·        Next stage: Exchanging maps Line of Actual Control (LAC).

·        During Modi-Xi Meeting: Lot of talks: will resolve differences through the same ‘old Panchsheel’, a climate of mutual trust and confidence is made; we respect each other’s sensitivities and concerns; and, peace and stability etc.

Narendra Modi

·        Requested Xi to resume the stalled process of clarifying the LAC and an early settlement of the boundary question.

·        Discussed China’s stapled visa policy for Arunachal Pradesh and Trans Border Rivers.

·        Agreed that he’ll not allow Anti-China activities in India (e.g. Tibet militant groups)

·        Until we find out final solution to border problem, both sides will maintain peace and tranquility in the border areas.

Chumar Standoff

·        Where? Himachal Pradesh =>Chumar village near Ladakh area. China says its their land, they keep coming there on foot and through helicopters. Even constructing a road, though Indian army destroyed it recently.

·        Why in News? Because the Chinese soldiers entered this area during Xi’s visit.

·        But 72 hours after the Joint statement of Modi and Xi, the Chinese troops began withdrawal.

·        Recent reports say, Chinese also ceased the road construction work there.

UN reforms

·        Will strengthen the central role of United Nations. This goes along with Modi’s stand that we need to get out the G4, G20 etc. mentality.

·        China supports India’s wish for UN reforms and UNSC reform.

·        Developing countries need to be given greater voice in UN Decision Making. We’ll work closely @BRICS, G20 etc to achieve this.

Joint Exercises

·        Fourth joint army training at a mutually convenient time,

·        Will hold navy/air force joint exercise

·        Area of cooperation: peace-keeping, counter-terrorism, naval escort, maritime security, humanitarian rescue, disaster mitigation, personnel training, and think tank communication.

Routine lip-service

·        Terrorism - Both Agreed for zero tolerance against terrorism

·        Smuggling - Will share information about cross border illegal trade in narcotics, weapons, wildlife.

·        Maritime - cooperation for security, anti-piracy, freedom of navigation

·        Nuke weapons - yes we’ll work for disarmament and arms control.

·        Turmoil countries - Bilateral consultations on Afghanistan, West Asia, Africa, Central Asia and Counter-terrorism.

(02) Economy Pacts:

Import export

·        China will take steps to facilitate entry of Indian products in China, thereby balancing the bilateral trade. (Right now India has large trade-deficit with China, ~35 billion USD).

·        For above purpose, China will establish strong links between Indian IT companies and Chinese enterprises, smooth registration of Indian drugs, releasing Indian movies in Chinese cinema, selling Indian tour packages to Chinese and so on.

·        Commercial Bank of China will give loan to IndiGO for new aircrafts.

·        MoUs signed between China’s Export Import bank and SBI, ICICI, for giving billions USD in loans and importing Chinese products in India.

·        MoU between Reliance and Huwei

Infra / Industries

·        China to set up two industrial parks

Ø     Gujarat (Power Equipment)

Ø     Maharashtra (Automobile Parts)

·        These two industrial parks will be similar to the Chinese manufacturing hub Shenzen.

·        China will invest US$ 20 billion in next five years in Indian infra. (Japan pledged 35 billion$ in investment + 50 billion Yen as loan)

Sister Pacts

·        Will cooperate for trade, environment, education, health, science and tourism

Ø     Sister States - Gujarat and Guangdong

Ø     Sister Cities - Ahmedabad and Guangzhou

Miscellaneous

·        WTO - have common interests in Doha round. So will cooperate to ensure treaties are made in our favour.

·        Strategic Economic Dialogue (SED) - to explore new areas for economic cooperation, joint projects, smart cities.

·        Joint Economic Group - to facilitate bilateral trade and economic cooperation.

(03) Transport:

Chinese Cooperation in Indian Railways

·        Training 100 people for heavy haul transport

·        Chennai-Bangalore-Mysore section: it’s speed will be increased to 160 kmph

·        Redevelop two rail stations on pilot basis.

·        High speed rail project- feasibility studies + financing part.

·        Setup Railway University.

BCIM corridor

·        Will connect Kunming (SW China)- Kolkata (India) – Mandalay (Myanmar) –Dhaka|Chittagong (Bangladesh)

·        Southwest China = landlocked, poor, Uyghur extremism.

·        China hopes, BCIM corridor will boost trade-tourism, thereby reducing poverty and extremism in its Southwest region.

·        December 2013 - had official talk with India in this regard.

·        2014 - Modi and Xi too discussed BCIM corridor and agreed that it’ll bring collective prosperity

Maritime Silk Road (MSR)

·        Xi invited India to join Maritime Silk Road (MSR) initiative. [Click me]

·        But Modi remained non-committal, saying it requires mutual trust, stability, respect, free flow of commerce and ideas.

·        In other words, if China opens up its economy to Indian goods and services, helps reducing India’s trade deficit, maintains peace @border region, then India will consider joining MSR

(04) Energy, Environment:

 ·        Nuclear Energy Pact: Will start consultations between the Department of Atomic Energy of India and the China Atomic Energy Authority.

·        Will promote clean energy.

·        Common stand on climate change CBDR i.e. first world should spend more money and efforts. We’ll work together @UN Framework Convention on Climate Change in 2015 to ensure this.

·        Disaster Management: Better sharing of flood-season hydrological data, and emergency management

(05) Tourism, People 2 People:

Tourism years

·        2015 - Visit India year (in China)

·        2016 - Visit China year (in India)

·        During these phase, both sides will do tourism promotion to increase no. of visitors.

·        China will help India promote its tourism products in China, particularly the routes associated with Chinese monk-scholar Xuan Zang (Hiuen Tsang)’s India journey of 7th century.

Kailash Mansarovar

·        The existing route goes through Uttarakhand.

·        China agreed to open a new route through Nathu-La to Kailash Mansarovar. It’ll give following Benefits:

v     Road quality is better. Less bumpy rides for older pilgrims.

v     Route is safe even in rainy season. Less danger of landslides and blockades.

v     Will help more pilgrims to travel at shorter duration.

·        Counterview: North Indians will first have to travel to Sikkim and from there to Mt. Kailash so journey expense will increase.

Exchanges

·        2015-19: we’ll exchange 200 youth per year.

·        Exchanges between the museums and other cultural institutions.

·        China will host Indian Buddhist art exhibitions.

·        China will partner in Delhi International Book Fair 2016.

·        Will mutually support teaching national languages in each other’s countries- Chinese in India and Hindi in China.

Miscellaneous

·        MoU for joint production of movies.

·        China will be a guest in Indian International Film Festival 2014.

(06) Overall:

India became more assertive

·        During Japan visit Modi indirectly refereed “countries with an 18th century expansionist mind-set: encroaching on other countries, intruding in others’ waters, invading other countries and capturing territory.”

·        Same way, Pranab signed Oil exploration and defence deals with Vietnam.

·        Thus, India became more assertive, pursuing its course without worrying about Chinese reaction.

·        During Xi’s visit- positive outcomes on border, economy and culture.

·        Chumar resolved tacitly, without creating lot of media bravado.

China stopped worrying

·        After Modi’s US visit, Chinese official newspaper concluded following:

Ø     India will pursue non-aligned yet all-round foreign policy.

Ø     Therefore, India will not develop ties with USA, at expense of China.

Ø     Although border issues unsorted but it’ll not hamper cooperation in trade and Development between India-China.

Ø     India will not be in the picture frame of USA’s “Trans-pacific partnership (TPP)”. Hence USA (And not India) will act as an obstacle to China’s economic rise.

Ø     China should worry more about USA’s “Pivot to Asia” strategy, under which:

Japan - ~40,000 American soldiers to be stationed

South Korea - ~30,000

Australia - 2500

Negative

·        Earlier reports indicated, Xi would announce 100 billon$ investment.

·        During Xi visit, 16 agreements yet just 20 billion investment. (Japanese giving 35).

·        MSR did not materialize.

·        Hard to believe that Chumar incident happened without Xi’s knowledge and approval. Perhaps it was Xi’s way of showing displeasure over Pranab signing oil deals with Vietnam.

(07) India without Tibetan Leverage:

·        Chinese and Tibet issue. So in long term, India may not have Tibet issue to arm-twist China to get things done.

China Vs Dalai Lama

Before	Now
Chinese official would call him “Splittists” and his followers as “terrorists”	Making polite references to Dalai lama in their Government newspapers. Acknowledging Dalai Lama’s religious status. Talking with his envoys- on how to bring him back to Tibet.
Tibetan protests and self-immolations increasing in 2008 because of Beijing Olympic and media attention. Security was tight.	Migrant Han Chinese controlling Tibetan economy. Government pumped billions in infrastructure. Tibetan economy growing at 12%, Junta back to business and jobs. Hence protests declined. Security is reduced.
China looked at Tibet as a ‘trouble’ region.	China portraying Tibet as a Buddhist tourist destination.

India’s position on Tibet

·        India diplomats sheltered Dalai Lama and Tibetan refugees as some sort “leverage” against China.

·        But India has already recognized to “One China” and does not recognize a “Free Tibet”. So most of the leverage is gone.

·        And once Dalai Lama returns to Tibet, the leverage will vanish entirely.

·        Benefit - If Dalai Lama returns to China, then it may lead to clearing of some historical burden of misunderstandings, China may stop cozying with Pakis and the secessionist leaders in North East. (Because Chinese use that as leverage against India)

(08)Xi’s Sri Lanka visit:

Xi visited Sri Lanka, while on his way to India:

·        Called Sri-Lanka a “Pearl in the Indian Ocean”. But maintained that China has no plans of “containing” India through any so called “strings of pearl strategy”.

·        Opposed foreign intervention in Sri Lanka’s internal affairs. (e.g. India and UNHRC)

·        Invited Sri-Lanka (And Maldives) to join Maritime silk road (MSR)

·        Began FTA negotiation with Sri Lanka.

·        30 agreements

·        Since 2009: China invested ~4 billion in Sri Lankan infrastructure. Additional $1.4-billion port city development project + several infrastructure projects. (China entered Sri Lanka only after LTTE destroyed by India and Sri Lanka)

·        Final phase of power plant in Noracholai, in Shri Lanka’s North-west.

Will Sri Lanka really benefit from sitting in China’s lap?

·        Chinese gives loans at expensive interest rate to Sri Lanka. While India spend truckload of money in grants. (i.e. no need to repay).

·        Sri Lanka owns ~200 billion loan money to China.

·        FTA with China will ruin Sri-Lankan economy. Because Cheap Chinese goods will flood their market. And in return, Sri Lanka doesn’t have much to export to Chinese consumers!

·        On the contrary, Sri-Lanka gained immensely with CEPA with India.

·        Sri Lanka tried to play “China card” against India, but they should remember, that during natural and man-made disasters, only the immediate neighbor will come to rescue.

(09) Defence - India Vs China:

Sector	China	India
Defence Budget	> 130 billion USD	Approx 38 billion USD
Troops	2.2 million	1.3 million
Submarines	56 (5 nuclear powered)	14 (1 nuclear powered)
Warships	75 (2 aircraft carriers)	>30 (1 aircraft carrier)
Fighter jets	>1600	>550
Battle Tanks	> 7000	> 320
Missiles	Large Arsenal ICBM (Inter Continental Ballistic Missiles) and SLBM (Submarine Launch Ballistic Missiles)	No ICBM and SLBM (Agni V – still under testing)

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