Chindia Alert: You’ll be Living in their World Very Soon
aims to alert you to the threats and opportunities that China and India present. China and India require serious attention; case of ‘hidden dragon and crouching tiger’.
Without this attention, governments, businesses and, indeed, individuals may find themselves at a great disadvantage sooner rather than later.
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Image copyright PRESS INFORMATION BUREAUImage caption The area has become a hotspot in part because of a road India has built
The armies of the world’s two most populous nations are locked in a tense face-off high in the Himalayas, which has the potential to escalate as they seek to further their strategic goals.
Officials quoted by the Indian media say thousands of Chinese troops have forced their way into the Galwan valley in Ladakh, in the disputed Kashmir region.
Indian leaders and military strategists have clearly been left stunned.
The reports say that in early May, Chinese forces put up tents, dug trenches and moved heavy equipment several kilometres inside what had been regarded by India as its territory. The move came after India built a road several hundred kilometres long connecting to a high-altitude forward air base which it reactivated in 2008.
The message from China appears clear to observers in Delhi – this is not a routine incursion.
“The situation is serious. The Chinese have come into territory which they themselves accepted as part of India. It has completely changed the status quo,” says Ajai Shukla, an Indian military expert who served as a colonel in the army.
China takes a different view, saying it’s India which has changed facts on the ground.
Reports in the Indian media said soldiers from the two sides clashed on at least two occasions in Ladakh. Stand-offs are reported in at least three locations: the Galwan valley; Hot Springs; and Pangong lake to the south.
India and China share a border more than 3,440km (2,100 miles) long and have overlapping territorial claims. Their border patrols often bump into each other, resulting in occasional scuffles but both sides insist no bullet has been fired in four decades.
Their armies – two of the world’s largest – come face to face at many points. The poorly demarcated Line of Actual Control (LAC) separates the two sides. Rivers, lakes and snowcaps mean the line separating soldiers can shift and they often come close to confrontation.
The current military tension is not limited to Ladakh. Soldiers from the two sides are also eyeball-to-eyeball in Naku La, on the border between China and the north-eastern Indian state of Sikkim. Earlier this month they reportedly came to blows.
And there’s a row over a new map put out by Nepal, too, which accuses India of encroaching on its territory by building a road connecting with China.
Why are tensions rising now?
There are several reasons – but competing strategic goals lie at the root, and both sides blame each other.
“The traditionally peaceful Galwan River has now become a hotspot because it is where the LAC is closest to the new road India has built along the Shyok River to Daulet Beg Oldi (DBO) – the most remote and vulnerable area along the LAC in Ladakh,” Mr Shukla says.
India’s decision to ramp up infrastructure seems to have infuriated Beijing.
Image copyright AFPImage caption There have been protests in Nepal against Indi’s new road link
“According to the Chinese military, India is the one which has forced its way into the Galwan valley. So, India is changing the status quo along the LAC – that has angered the Chinese,” says Dr Long Xingchun, president of the Chengdu Institute of World Affairs (CIWA), a think tank.
Michael Kugelman, deputy director of the Asia programme at the Wilson Center, another think tank, says this face-off is not routine. He adds China’s “massive deployment of soldiers is a show of strength”.
The road could boost Delhi’s capability to move men and material rapidly in case of a conflict.
Differences have been growing in the past year over other areas of policy too.
The new federally-administered Ladakh included Aksai Chin, an area India claims but China controls.
Senior leaders of India’s Hindu-nationalist BJP government have also been talking about recapturing Pakistan-administered Kashmir. A strategic road, the Karakoram highway, passes through this area that connects China with its long-term ally Pakistan. Beijing has invested about $60bn (£48bn) in Pakistan’s infrastructure – the so-called China Pakistan Economic corridor (CPEC) – as part of its Belt and Road Initiative and the highway is key to transporting goods to and from the southern Pakistani port of Gwadar. The port gives China a foothold in the Arabian Sea.
In addition, China was unhappy when India initially banned all exports of medical and protective equipment to shore up its stocks soon after the coronavirus pandemic started earlier this year.
How dangerous could this get?
“We routinely see both armies crossing the LAC – it’s fairly common and such incidents are resolved at the local military level. But this time, the build-up is the largest we have ever seen,” says former Indian diplomat P Stobdan, an expert in Ladakh and India-China affairs.
“The stand-off is happening at some strategic areas that are important for India. If Pangong lake is taken, Ladakh can’t be defended. If the Chinese military is allowed to settle in the strategic valley of Shyok, then the Nubra valley and even Siachen can be reached.”
In what seems to be an intelligence failure, India seems to have been caught off guard again. According to Indian media accounts, the country’s soldiers were outnumbered and surrounded when China swiftly diverted men and machines from a military exercise to the border region.
This triggered alarm in Delhi – and India has limited room for manoeuvre. It can either seek to persuade Beijing to withdraw its troops through dialogue or try to remove them by force. Neither is an easy option.
“China is the world’s second-largest military power. Technologically it’s superior to India. Infrastructure on the other side is very advanced. Financially, China can divert its resources to achieve its military goals, whereas the Indian economy has been struggling in recent years, and the coronavirus crisis has worsened the situation,” says Ajai Shukla.
What next?
History holds difficult lessons for India. It suffered a humiliating defeat during the 1962 border conflict with China. India says China occupies 38,000km of its territory. Several rounds of talks in the last three decades have failed to resolve the boundary issues.
China already controls the Aksai Chin area further east of Ladakh and this region, claimed by India, is strategically important for Beijing as it connect its Xinjiang province with western Tibet.
Image copyright GETTY IMAGESImage caption India and China have a long history of border disputes
In 2017 India and China were engaged in a similar stand-off lasting more than two months in Doklam plateau, a tri-junction between India, China and Bhutan.
This time, too, talks are seen as the only way forward – both countries have so much to lose in a military conflict.
“China has no intention to escalate tensions and I think India also doesn’t want a conflict. But the situation depends on both sides. The Indian government should not be guided by the nationalistic media comments,” says Dr Long Xingchun of the CIWA in Chengdu. “Both countries have the ability to solve the dispute through high-level talks.”
Chinese media have given hardly any coverage to the border issue, which is being interpreted as a possible signal that a route to talks will be sought.
Pratyush Rao, associate director for South Asia at Control Risks consultancy, says both sides have “a clear interest in prioritising their economic recovery” and avoiding military escalation.
“It is important to recognise that both sides have a creditable record of maintaining relative peace and stability along their disputed border.”
Xie Haifeng’s story is one of luck and resilience and he has made it his mission to help others through adversity
Professional dancer owes part of his success to the city of Hong Kong and one of its doctors who helped survivors through recovery
Xie Haifeng was 15 when he lost his leg in one of modern China’s most devastating disasters. Photo: Handout
When the rumbling began, Xie Haifeng thought someone was shaking his bed. Perhaps one of the other 800 children in the school dormitory was being naughty. Or maybe it was a small quake. Then came the unmistakable sound of screams.
Xie, then a 15-year-old pupil at Muyi Town Middle School in the southwestern Chinese province of Sichuan, started running. He fell as the dorm building collapsed around him. When he tried to stand up, he realised something was missing. His left leg was gone.
What Xie thought was a small quake turned out to be one of the most devastating disasters in modern Chinese history.
The Sichuan earthquake of May 2008 left at least 87,000 people dead and shook the country to its core. It was less than three month before Beijing would host its first Olympic Games, an opportunity to show the world its strength and ambition.
Instead, 7,444 schools had crumbled like tofu in an area known to be seismically active. Their rubble was a stark demonstration of the weak foundation of China’s progress and its tragic consequences. At Xie’s school, the shoddily built walls and ceilings crushed 600 children. Only 300 survived.
It still frightens me to recall the earthquake.Xie Haifeng, dancer
Xie considers himself lucky. “If I had run just one second more slowly, I would have been dead. If I had run one second faster, I would have been completely fine. But anyway, I am lucky to be alive,” he said. A dozen years later, his story is also one of resilience. Defying all the odds, Xie is now a professional dancer for a troupe in Sichuan and has made it his mission to help others through adversity.
The journey from his hospital bed to the stage was long and difficult and even though many years have passed, “it still frightens me to recall the earthquake”. But, he said: “I have forgiven fate and accepted the reality that I have only one leg.”
Xie’s trauma was a particularly difficult blow to his family. His older sister was already handicapped, after injuring her arm in an accident. When his mother, a migrant worker in the northwestern province of Gansu, arrived at the hospital a few days after the earthquake, she had no idea of the extent of Xie’s condition.
“When I woke up in the evening, I saw my mother weeping beside my bed. I told myself I should be strong,” Xie said, adding that his mother initially thought he had suffered only bruises. He was sent for treatment to a hospital in the prosperous southern city of Shenzhen, along with other survivors who had been left with disabilities by the earthquake.
Defying all the odds, Xie Haifeng is now a professional dancer. Photo: Handout
It was there that Xie was inspired to make the most of his life. A team of athletes visited the hospital and he was shocked to see one of them, a volleyball player, walking on a prosthetic leg.
Xie began to wear a prosthesis and after rehabilitation training returned to his hometown in 2009 where he was admitted to Qingchuan High School. At first, he was self-conscious and felt inferior to his peers. He did not dare to wear shorts in summer and said he seldom talked to the other students.
The following year he was introduced to members of the Chengdu Disabled People’s Art Troupe, where he found a new and welcoming home. Xie quit school and joined the troupe, despite his parents’ opposition. They were convinced study was the only way for rural students like their son to get out of poverty.
Xie learned Sichuan opera and was soon performing its art of bian lian, or
– a skill that requires rapid mask changes in a dazzling sleight of hand – on stage until the troupe was disbanded in 2011, leaving him unemployed for six months.
China marks 10-year anniversary of Sichuan earthquake
But the misfortune led to an improbable opportunity when he was hired by the Sichuan Provincial Disabled People’s Art Troupe and trained to dance. At 19, and with no experience, Xie found the training far more difficult than those who had started at the more usual age of five or six.
His body was too stiff, he said, and in the first months he spent 10 hours each day just stretching and building flexibility. It was just the beginning of a long and often arduous process.
“That agony is too much to be described,” Xie said about the pain of dancing on a prosthetic leg. “During the first six months’ training, I broke three artificial legs.”
More than once, he wondered whether he had chosen the right path. But, ultimately, his gruelling effort paid off and Xie has performed in Singapore, Hong Kong and Macau. In 2013, he won a gold medal at a national dancing competition for people with disabilities.
“My dances won me applause and recognition from the audience. I feel relieved and I think my heart belongs to the stage,” he said.
Xie broke three artificial legs during his first six months of dance training. Photo: Handout
Xie said he owed part of his success to Hong Kong which in 2008 donated HK$20 billion (US$2.5 billion) in aid to Sichuan and sent doctors to treat the injured. Among the volunteers was Poon Tak-lun, a Hong Kong orthopaedist who flew to Sichuan every two weeks from 2008 to 2013 to treat patients.
At a gala show in 2013 to express gratitude from the people of Sichuan to Hong Kong, Xie met Poon and the two became good friends, thanks to their common interest in the arts.
“Dr Poon promised to pay for all the costs of installing and repairing my artificial leg in the future. He told me to focus on dancing without worrying about the leg’s costs,” Xie said.
Xie Haifeng (pictured left with friend Poon Tak-lun) gives a speech to students in Hong Kong. Photo: Handout
Grateful for the help he received from Poon and Hong Kong, Xie has sought to return the favour by doing what he does best.
“I have no other skills except dancing and performing. So I thought of sharing my experience to encourage young students in Hong Kong,” he said.
Xie travels to Hong Kong about twice a year to perform and visit schools. In 2019, he visited the city four times, performing dances and Sichuan opera, and giving speeches at more than 10 primary and secondary schools.
“I encourage them to study hard. I said there are many people in this world who have more difficulties than them but still insist on pursuing their dreams, so they should not give up their dreams,” Xie said.
When he is not dancing and giving inspirational speeches, Xie said he lived a life like everyone else – climbing mountains, swimming and proudly walking on the leg he gained after almost losing everything in Sichuan’s deadly earthquake.
Test in Xiong’an, the new city being built south of Beijing, will focus on everyday goods and services for the first time
American food outlets to be included in the digital currency tests, conducting small transactions with local firms
American chains Starbucks, McDonald’s and Subway were named on the People’s Bank of China’s list of firms that will test the digital currency in small transactions with 19 local businesses. Photo: Bloomberg
China’s central bank has accelerated the testing of its new sovereign digital currency and, for the first time, will include some foreign consumer brands in the programme.
American chains Starbucks, McDonald’s and Subway were named on the People’s Bank of China (PBOC)’s list of firms that will test the digital currency in small transactions with 19 local businesses.
The global names will be joined by local hotels, convenience stores, a stuffed bun shop, a bakery, a bookstore and a gym, according to details revealed at a promotional event in the Xiong’an New Area, a city being built south of Beijing, news portal Sina.com reported.
The inclusion of businesses providing everyday goods and services marks an expansion of the PBOC’s testing. It follows a previous disclosure that last week in Suzhou the digital currency was used to pay half public sector workers’ travel subsidies for May.
Is China a currency manipulator?
Wednesday’s promotional event was organised by the local branch of the National Development and Reform Commission, the powerful planning agency, and attended by representatives of the Big Four state-owned banks and two of the country’s internet giants – Alibaba and Tencent.
China has not released a timetable for launching the digital yuan, but last week’s reports on new testing have fanned speculation that it could be imminent.
The tests were reportedly accelerated after Facebook launched its Libra project in June last year, an attempt to create a global digital currency pegged to a basket of currencies and backed by global commercial giants.
The Libra Association, the consortium managing the project, announced changes last week in an attempt to win regulatory approval and pave the way for an official launch sometime later this year. The consortium said it would create multiple digital units tied to existing currencies such as the US dollar or the euro, rather than a single token based on a basket of currencies.
China’s official digital currency, known as Digital Currency Electronic Payment (DCEP), came into the public spotlight last week when a screenshot of a test version of an app developed by the Agricultural Bank of China circulated online.
The digital currency app has several basic functions, similarly to other Chinese online payment platforms such as Alipay and WeChat Pay – the country’s two most popular online payment tools – allowing users to make and receive payments, and transfer money.
“It’s certain that the DCEP is now in its final testing stage and should be officially launched,” BlockVC, an investment firm, said in a research note.
The PBOC’s digital currency research institute confirmed last Friday that testing was being conducted in four cities: Shenzhen, Suzhou, Xiong’an and Chengdu. In addition, venues for the 2022 Winter Olympics in Beijing and Zhangjiakou will join the testing programme in the future.
What is the Hong Kong Dollar Peg?
The institute, which was inaugurated in 2017, said that the test versions and applications of the currency had not been finalised.
The project testing is based on two principles: the central bank issues the virtual money to commercial banks who then pass it on to consumers, and that is aimed at replacing cash in all transactions.
China is the first major economy to publicly announce plans for a sovereign digital currency, aiming to better control the rapid rise of digital payments worldwide.
The PBOC has, however, cracked down on the trading of other digital currencies and banned banks from accepting cryptocurrencies, which it views as a risk to financial stability.
China’s official CCTV broadcaster has been hosting livestreams so people can watch the hospitals being built in real-time – and they have proved an unlikely hit.
The popularity of the footage has led to the construction vehicles earning unusual fame.
Cement mixers have found themselves with nicknames like “The Cement King”, “Big White Rabbit” and “The White Roller”.
Image copyright GETTY IMAGES
Huoshenshan Hospital is based on Xiaotangshan Hospital, set up in Beijing to help tackle the Sars virus in 2003.
Image copyright GETTY IMAGES
Xiaotangshan Hospital was built in seven days, allegedly breaking the world record for the fastest construction of a hospital.
Image copyright GETTY IMAGES
“China has a record of getting things done fast even for monumental projects like this,” says Yanzhong Huang, a senior fellow for global health at the Council on Foreign Relations.
Image copyright ALAMYImage copyright ALAMY
Just like the hospital in Beijing, Huoshenshan Hospital will consist of prefabricated buildings.
Image copyright GETTY IMAGES
Mr Huang said that engineers would be brought in from across the country in order to complete construction in time.
“Engineering work is what China is good at. They have records of building skyscrapers at speed. This is very hard for Westerners to imagine. It can be done,” he added.
Photo taken on Sept. 28, 2019 shows a flowerbed titled “Story of Spring” in Beijing, capital of China. Flowerbeds were built along the Chang’an Avenue to celebrate the 70th anniversary of the founding of the People’s Republic of China. (Xinhua/Wang Quanchao)
Image copyright PRESS INFORMATION BUREAU
Image copyright AFP
Image copyright GETTY IMAGES
CHINDIA ALERT: You'll be living in their world, very soon 