Archive for ‘Economics’

01/06/2020

‘Lemon’ or not, Trump is stuck with Phase 1 China trade deal

WASHINGTON (Reuters) – U.S. President Donald Trump has little choice but to stick with his Phase 1 China trade deal despite his anger at Beijing over the coronavirus pandemic, new Hong Kong security rules, and dwindling hopes China can meet U.S. goods purchase targets, people familiar with his administration’s deliberations say.

The U.S.-China trade negotiations took more than two years, heaped tariffs on $370 billion of Chinese products, whipsawed financial markets and dimmed global growth prospects well before the coronavirus outbreak crushed them.

In recent weeks, suggestions that Trump may cancel the deal have emanated from the White House almost daily, and businesses, investors, and China trade watchers are hanging on to every word and tweet.

But on Friday, when Trump said the United States would start dismantling trade and travel privileges for Hong Kong, he did not mention the deal. Stock markets heaved a sigh of relief, with the S&P 500 .SPX reversing losses.

Talking tough on China and criticizing the Obama administration’s more measured approach is a key part of Trump’s re-election strategy. Sticking with the pact may mean accepting that China is likely to fall short of purchase commitments for U.S. agricultural goods, manufactured products, energy and services – goals that many said were unrealistic here even before the pandemic.

Canceling the deal, though, would reignite the nearly two-year U.S.-China trade war at a time U.S. unemployment is at its worst since the 1930s Great Depression.

The next U.S. step would likely be reviving previously planned but canceled tariffs on some $165 billion worth of Chinese consumer goods, including Apple (AAPL.O) cellphones and computers, toys and clothing – all ultimately paid by U.S. companies and passed on to consumers. Beijing would retaliate with tariffs on U.S. goods, fueling more market turmoil and delaying recovery.

“He’s stuck with a lemon. He gets an empty agreement if he sticks with it, and he gets more actions that create an economic drag and more volatility if he abandons it,” said one person briefed on the administration’s trade deliberations.

U.S. goods exports here to China in the first quarter were down $4 billion from the trade war-damaged levels a year earlier, according to U.S. Census Bureau data.

The Peterson Institute of International Economics estimates here that during the first quarter, China made only about 40% of the purchases it needed to stay on target for a first-year increase of $77 billion over 2017 levels, implying an extremely steep climb in the second half.

Leaving the deal now would not buy a lasting political bounce for Trump in manufacturing-heavy swing states with five months to go before the presidential election, analysts say.

COMPLEX RELATIONSHIP

Trump blames China for failing to contain the coronavirus and has repeatedly said the deal, including its pledges to boost U.S. exports to China by $200 billion over two years, no longer means as much to him with U.S. coronavirus deaths now over 100,000 and job losses piling up.

Trump said on Friday that China was “absolutely smothering Hong Kong’s freedom,” but refrained from harsh sanctions that could put the trade deal in jeopardy, taking milder steps to revoke the territory’s separate travel and customs benefits from China.

Claire Reade, a former U.S. trade negotiator, said Trump’s “peripheral steps” would not deter Beijing from proceeding with the security law, as it regards Hong Kong as a core national security issue.

“Probably the most significant thing from the trade perspective is that the Phase 1 trade deal is – for now anyway – unaffected,” said Reade, senior counsel with Arnold and Porter law firm in Washington.

White House Economic Adviser Larry Kudlow criticized Beijing last week, but on trade told CNBC: “It’s a complex relationship. The China Phase 1 trade deal does continue to go on for the moment and we may be making progress there.”

U.S. Trade Representative Robert Lighthizer has recently cited here “continuing progress” in the deal, after China welcomed U.S. blueberries, barley, beef and dairy products. He has touted the deal’s dispute settlement mechanism, which provides for regular consultations on compliance with Beijing’s commitments on intellectual property protections, financial services, agriculture standards and purchases.

U.S.-China flashpoints on Hong Kong, Taiwan and other issues did not derail negotiations that resulted in new concessions from China, said Jamieson Greer, who served as Lighthizer’s chief of staff until April.

“Some of these security and human rights challenges have certainly complicated the atmosphere, but the trade agreement can still provide a set of rules governing important aspects of the trade relationship,” said Greer, now an international trade partner at the King and Spalding law firm.

Another person familiar with USTR thinking said the agency “needs to make Phase 1 look good. They want to show that progress is being made. The president looks at the China relationship much more broadly.”

Source: Reuters

31/05/2020

Is Beijing preparing to decouple from the US?

  • China’s leadership has made it clear to its people that the world will become more dangerous and they must be prepared for hard times
  • Beijing’s relatively small stimulus response to Covid-19 suggests it wants to save its economic policy ammunition for a bigger battle China opted not to set a GDP target for 2020. Photo: Xinhua
China opted not to set a GDP target for 2020. Photo: Xinhua
Beijing’s decision not to set an annual GDP target for 2020 – for the first time since 2002 – is a sign it is putting stability ahead of growth as part of its preparations for an escalating conflict with the United States.
Economic development has always been the central theme for Beijing since it established diplomatic relations with the US in 1979. But this year it has given priority to job creation and tackling poverty. The coronavirus outbreak might appear to have been the reason for the shift, but the underlying factor is the tension with the US.
Covid-19 offered a preview of what a decoupling of China and US might look like: aircraft grounded, cargo flows disrupted, value chains broken, goodwill and cooperation lost, blame games started.
Both countries have suffered heavy human and economic losses from the coronavirus, yet that did not inspire them to work together. Instead, hostility and rivalry has thrived, and neither wants to blink first.

The Chinese leadership has made it clear to its people that the world will become more dangerous and they must be prepared for hard times. As such, the government is saving its economic policy ammunition.

While the stimulus plans introduced in the US, Germany, Japan and France exceed 10 per cent of their national GDP and interest rates have been cut to the bone, Beijing stopped at just 1 trillion yuan (US$140 billion) worth of special treasury bonds and 1.6 trillion yuan of additional local government bonds. In total, about 2.6 per cent of GDP.

Interest rates in China – 2.7 per cent on 10-year bonds – are some of the highest among major economies.

China’s 6.6 per cent defence spending boost lowest in three decades

23 May 2020

China’s budget fiscal deficit has increased to 3.6 per cent of GDP for 2020, but the larger deficit is mainly from tax and fee cuts instead of increased fiscal expenses, except for an increased military spending.

Beijing is calling on provincial and local authorities to tighten their belts, which is unusual for a government that has huge assets and can increase spending at any time through quantitative easing.

So why is the government, which is known for intervening in the economy, being so restrained?

It is bracing itself for a perceived period of turbulence and hardship as its relationship with the US turns sour. It is putting jobs and social stability on top of its agenda, instead of growth.

Beijing is refraining from excessive spending, eliminating sources of potential instability, making appeals to the most vulnerable social groups, and saving its power for a bigger test.

Against that backdrop, the National People’s Congress passed the national security legislation on Hong Kong. Beijing knew the bill would anger the US, but did it anyway.

Hong Kong is known as China’s gateway to the international capital market and the largest offshore yuan market, but Beijing is ready to trade losses on the financial and economic front for potential gain on a fortified national security fence.

All this points to the suggestion that Beijing is preparing for the possibility of decoupling from the US, even if it doesn’t necessarily want to.

The threat of a new Cold War is clouding the world. The theme of life for one or two generations of people on both sides of the Pacific may shift from growth and prosperity to struggle and confrontation.

China and the US have yet to collide totally, but that moment is drawing near.

Source: SCMP

31/05/2020

India coronavirus: Why is India reopening amid a spike in cases?

A rush of people and motorists in a marketplace area as shops start opening in the city under specific guidelines, on May 20, 2020 in Jammu, IndiaImage copyright GETTY IMAGES
Image caption Within a week of reopening, India has seen a sharp spike in cases

India is roaring – rather than inching – back to life amid a record spike in Covid-19 infections. The BBC’s Aparna Alluri finds out why.

On Saturday, India’s government announced plans to end a national lockdown that began on 25 March.

This was expected – the roads, and even the skies, have been busy for the last 10 days since restrictions started to ease for the first time in two months. Many businesses and workplaces are already open, construction has re-started, markets are crowded and parks are filling up. Soon, hotels, restaurants, malls, places of worship, schools and colleges will also reopen.

But the pandemic continues to rage. When India went into lockdown, it had reported 519 confirmed cases and 10 deaths. Now, its case tally has crossed 173,000, with 4,971 deaths. It added nearly 8,000 new cases on Saturday alone – the latest in a slew of record single-day spikes.

A worker cleans the mascot of fast-food company McDonald's for the reopening of the outlet in Hyderabad on May 20.Image copyright GETTY IMAGES
Image caption Fast food chains like McDonald’s have begun reopening outlets in parts of India.

So, why the rush to reopen?

The lockdown is simply unaffordable

“It’s certainly time to lift the lockdown,” says Gautam Menon, a professor and researcher on models of infectious diseases.

“Beyond a point, it’s hard to sustain a lockdown that has gone on for so long – economically, socially and psychologically.”

From day one, India’s lockdown came at a huge cost, especially since so many of its people live on a daily wage or close to it. It put food supply chains at risk, cost millions their livelihood, and throttled every kind of business – from car manufacturers to high-end fashion to the corner shop selling tobacco. As the economy sputtered and unemployment rose, India’s growth forecast tumbled to a 30-year-low.

Raghuram Rajan, an economist and former central bank governor, said at the end of April that the country needed to open up quickly, and any further lockdowns would be “devastating”.

The opinion is shared by global consultant Mckinsey, whose report from earlier this month said India’s economy must be “managed alongside persistent infection risks”.

Passengers maintaining social distance as they are on board in a DTC Bus after government eased lockdown restriction, at AIIMS on May 20, 2020 in New Delhi, India.Image copyright GETTY IMAGES
Image caption As restrictions ease, Indians are slowly getting used to the new normal

“The original purpose of the lockdowns was to delay the spike so we can put health services and systems in place, so we are able handle the spike [when it comes],” says Dr N Devadasan, a public health expert. “That objective, to a large extent, has been met.”

In the last two months, India has turned stadia, schools and even train coaches into quarantine centres, added and expanded Covid-19 wards in hospitals, and ramped up testing as well as production of protective gear. While grave challenges remain and shortages persist, the consensus seems to be that the government has bought as much time as possible.

“We have used the lockdown period to prepare ourselves… Now is the time to revive the economy,” Delhi Chief Minister Arvind Kejriwal said last week.

The silver lining

For weeks, India’s relatively low Covid-19 numbers baffled experts everywhere. Despite the dense population, disease burden and underfunded public hospitals, there was no deluge of infections or fatalities. Low testing rates explain the former, but not the latter.

In fact, India made global headlines not for its caseload but for its botched handling of the lockdown – millions of informal workers, largely migrants, were left jobless overnight. Scared and unsure, many tried to return home, often desperate enough to walk, cycle or hitchhike across hundreds of kilometres.

Perhaps the choice – between a virus that didn’t appear to be wreaking havoc yet, and a lockdown that certainly was – seemed obvious to the government.

But that is changing quickly as cases shoot up. “I suspect we will keep finding more and more cases, but they will mostly be asymptomatic or will have mild symptoms,” Dr Devadasan says.

The hope – which is also encouraging the government to reopen – is that most of India’s undetected infections are not severe enough to require hospitalisation. And so far, except in Mumbai city, there has been no dearth of hospital beds.

India’s Covid-19 data is spotty and sparse, but what it does have suggests that it hasn’t been as badly hit by the virus as some other countries.

The government, for instance, has been touting India’s mortality rate as a silver lining – at nearly 3%, it’s among the lowest in the world.

But some are unconvinced by that. Dr Jacob John, a prominent virologist, says India has never had, and still doesn’t have, a robust system for recording deaths – in his view, the government is certainly missing Covid-19 deaths because they have no way of knowing of every fatality.

A woman jogs at Lodhi Garden after the local government eased restrictions imposed as a preventive measure against the spread of the COVID-19 coronavirus in New Delhi on May 21, 2020.Image copyright GETTY IMAGES
Image caption Indians are venturing out again but it’s unclear how many of them are asymptomatic.

And, he says, “what we must aim for is flattening the mortality curve, not necessarily the epidemic curve”.

Dr John, like several other experts, also predicts a peak in July or August, and believes the country is reopening so quickly because the “government realised the futility of such leaky lockdowns”.

A shift in strategy

So is the government gearing up for another lockdown when the peak comes?

While Dr Menon believes the lockdown was well-timed, he says it was too focused on cases coming from abroad.

“There was a hope that by controlling that, we could prevent epidemic spread, but how effective was our screening [at airports]?”

Now, he adds, is the time for “localised lockdowns”.

Media caption Coronavirus: Death and despair for migrants on Indian roads

The federal government has left it to states to decide where, how and to what extent to lift the lockdown as the virus’ progression varies wildly across India.

Maharashtra alone accounts for more than a third of India’s active cases. Add Tamil Nadu, Gujarat and Delhi, and that makes up 67% of the national total.

But other states – such as Bihar – are already seeing a sharp uptick as migrant workers return home.

“Initially, most of your cases were in the cities,” Dr Devadasan says. “But we kept the migrant workers in cities and didn’t allow them to go home. Now, we are sending them back. We have facilitated transporting the virus from urban areas to rural areas.”

While the government has said how many infections have been avoided – up to 300,000 – and lives saved – up to 71,000 – by the lockdown, there is no indication of what lies ahead.

There is only advice: The day the government began to ease restrictions, Mr Kejriwal tweeted, urging people to “follow discipline and control the coronavirus disease” as it was their “responsibility”.

The famous Paranthe wali gali (bylane of fried bread) in Chandni Chowk, on August 20, 2014 in New Delhi, India.Image copyright GETTY IMAGES
Image caption Social distancing will prove to be India’s biggest post-lockdown challenge

Because the alternative – of curfews and constant policing – is unsustainable.

“My worry is more the circumstances of people – it’s not as though they have an option to practise social distancing,” Dr Menon says.

And they don’t – not in joint family homes or one-room hovels packed together in slums, not in crowded markets or busy streets where jostling is second nature, or in temples, mosques, weddings or religious processions where more is always merrier.

The overwhelming message is that the virus is here to stay, and we have to learn to live with it – and the only way to do that, it appears, is to let people live with it.

Source: The BBC

30/05/2020

US-China tensions set to worsen as moderates lose out to hardliners, observers say

  • Chinese groups calling for more ‘fighting spirit’ are getting the upper hand on those who favour calm and cooperation, government adviser says
  • From Hong Kong to Covid-19, trade to the South China Sea, Beijing and Washington are clashing on a growing number of fronts and in an increasingly aggressive way
Efforts to promote dialogue and cooperation between the US and China are failing, observers say. Photo: AFP
Efforts to promote dialogue and cooperation between the US and China are failing, observers say. Photo: AFP
Moderates who favour dialogue and cooperation as a way to resolve China’s disputes with the United States are losing ground to hardline groups bent on taking the fight to Washington, according to political insiders and observers.
“There are two camps in China,” said a former state official who now serves as a government adviser and asked not to be named.
“One is stressing the combat spirit, the other is trying to relieve tensions. And the former has the upper hand.”
Relations between China and the US are under intense pressure. After Beijing moved to introduce a national security law for Hong Kong, US President Donald Trump said on Friday that Washington would begin eliminating the special policy exemptions it grants the city, as it no longer considers it autonomous from mainland China.
Beijing’s decision to enact a national security law for Hong Kong was met with anger from the US and other Western countries. Photo: Sam Tsang
Beijing’s decision to enact a national security law for Hong Kong was met with anger from the US and other Western countries. Photo: Sam Tsang
The two nations have also clashed over trade, Xinjiang, Taiwan and the South China Sea, with the US passing several acts denouncing Beijing and sanctioning Chinese officials.
China has also experienced turbulence in its relations with other countries, including Australia and members of the European Union, mostly related to the Covid-19 pandemic
 and Beijing’s efforts to position itself as a leader in the fight against the disease with its policy of “mask diplomacy”.

After Canberra appealed for an independent investigation to be carried out to determine the origins of the coronavirus, Beijing responded by imposing tariffs on imports of Australian barley, showing it is prepared to do more than just trade insults and accusations with its adversaries.

Pang Zhongying, a professor of international relations at Ocean University of China in Qingdao, said there was a worrying trend in China’s relations with other nations.

“We need political and diplomatic means to resolve the challenges we are facing, but … diplomatic methods have become undiplomatic,” he said.

“There are some who believe that problems can be solved through tough gestures, but this will never work. Without diplomacy, problems become confrontations.”

Chinese Foreign Minister Wang Yi

said during his annual press conference on the sidelines of the National People’s Congress last weekend that China and the United States must work together to prevent a new Cold War.

His words were echoed by Chinese Premier Li Keqiang, who said during a press conference after the closure of the legislative session on Thursday that the many challenges facing the China-US relations could only be resolved through cooperation.

However, the government adviser said there was often quite a chasm between what China’s leaders said and what happened in reality.

“Even though we say we do not want a Cold War, what is happening at the working level seems to be different.” he said. “The implementation of policies is not properly coordinated and often chaotic.”

Tensions between China and the US have been in a poor state since the start of a trade war almost two years ago. After multiple rounds of negotiations, the sides in January signed a phase one deal, but the positivity that created was short-lived.

In February, Beijing expelled three reporters from The Wall Street Journal over an article it deemed racist, while Washington has ramped up its military activity in the South China Sea and Taiwan Strait, and threatened to revoke the visas of Chinese students studying science and technology in the US over concerns they might be engaged in espionage.

Beijing has also used its state media and army of “Wolf Warrior” diplomats to promote its narrative, though many Chinese scholars and foreign policy advisers have said the latter’s nationalistic fervour has done more harm than good and appealed to Beijing to adopt a more conciliatory tone.
However, Hu Xijin, editor-in-chief of Chinese tabloid Global Times, said China had no option but to stare down the US, which regarded the world’s most populous nation as its main rival.
“Being contained by the US is too high a price for China to pay,” he said. “I think the best thing people can do is forget the old days of China-US ties”.

Jin Canrong, a professor of international relations at Renmin University in Beijing, wrote in a recent newspaper article that Beijing’s actions – notably enacting a national security law for Hong Kong – showed it was uncompromising and ready to stand its ground against the US.

Wu Xinbo, dean of international studies at Fudan University in Shanghai, agreed, saying relations between the two countries were likely to worsen in the run-up to the US presidential election in November and that Beijing should be prepared for a fight.

But Adam Ni, director of China Policy Centre, a think tank in Canberra, said the issue was not that the moderate camp had been sidelined, but rather Beijing’s perception of the US had changed.

“Beijing has woken up to the idea that America’s tough policy on China will continue and it is expecting an escalation of the tensions,” he said.

“The centre of gravity in terms of Beijing’s perception of the US has shifted, in the same way the US perception of China has shifted towards a more negative image”.

Beijing was simply responding in kind to the hardline, assertive manner of the US, he said.

Source: SCMP

30/05/2020

China-India border: Why tensions are rising between the neighbours

'Col Chewang Rinchen Setu', a bridge built by Border Roads Organisation (BRO) over River Shyok, connecting Durbuk and Daulat Beg Oldie in Eastern LadakhImage copyright PRESS INFORMATION BUREAU
Image 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.

A map showing the disputed area

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.

Human rights activists hold placards during a protest against India"s newly inaugurated link road to the Chinese border, near Indian embassy in Kathmandu on May 12, 2020.Image copyright AFP
Image caption There have been protests in Nepal against Indi’s new road link

Chinese state-run media outlet Global Times said categorically: “The Galwan Valley region is Chinese territory, and the local border control situation was very clear.”

“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.

When India controversially decided to end Jammu and Kashmir’s limited autonomy in August last year, it also redrew the region’s map.

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.

map
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.

File photo of an Indian and Chinese soldier on the borderImage copyright GETTY IMAGES
Image 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.

India objected to China building a road in a region claimed by Bhutan. The Chinese stood firm. Within six months, Indian media reported that Beijing had built a permanent all-weather military complex there.

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.”

Source: The BBC

29/05/2020

Covid-19 plunges Indians’ study abroad dreams into turmoil

Representatives of 17 American educational institutions participate in a U.S. University Fair Organized by the United States-India Educational Foundation (USIEF)Image copyright GETTY IMAGES
Image caption International students are uncertain of the future in the wake of Covid-19

Two years ago, 29-year-old Raunaq Singh started working towards his dream of pursuing an MBA from one of the world’s top business schools.

In January 2020, he was waitlisted by UC Berkeley’s Haas School of Business in California, and was asked to send more information to bolster his case for admission.

“So, I quit my stable job of five years and started working with a mental wellness start-up as a consultant,” Mr Singh says.

“I’m on a major pay cut because the purpose of joining this company wasn’t to earn money, but to add value to my application.”

Fortunately, he was accepted at Berkeley, and was due to start his course in September.

But then the world changed as Covid-19 spread, plunging the immediate future into uncertainty.

Mr Singh is one of hundreds of thousands of Indian students who were planning to study abroad. But now they are not quite sure what will happen given international travel restrictions, new social distancing norms and the sheer uncertainty of what the next few months will bring.

After China, India sends more students abroad to study than any other country – more than one million Indians were pursuing higher education programs overseas as of July 2019, according to India’s foreign ministry.

Meehika BarukaImage copyright MEEHIKA BARUA
Image caption Ms Barua is one of the hundreds of thousands of Indians who wants to study abroad

Every year, in June and July, students flood visa centres and consulates to start the paperwork to travel and study abroad. But things look different this year.

“There’s a lot of stress and anxiety and tension at this time but not enough clarity,” says Meehika Barua, 23, who wants to study journalism in the UK.

“We don’t know when international travel restrictions will be lifted or whether we’d be able to get our visas in time. We may also have to take classes online.”

Some universities across the UK and the US are giving international students the option to defer their courses to the next semester or year, while others have mandated online classes until the situation improves.

The University of Cambridge recently announced that lectures will be online only until next year. Others, like Greenwich University, will have a mix of online and face-to-face approaches while its international students can defer to the next semester.

“It feels a little unfair, especially after spending a year-and-half to get admission in one of these schools,” Mr Singh says. “Now, a part of the experience is compromised.”

Like him, many others are disappointed at the prospect of virtual classes.

Cambridge UniversityImage copyright PA MEDIA
Image caption Cambridge University has announced that all lectures will be online

“The main reason we apply to these universities is to be able to get the experience of studying on campus or because we want to work in these countries. We want to absorb the culture there,” Ms Barua says.

Studying abroad is also expensive. Many US and UK universities charge international students a higher fee. And then there’s the additional cost of applications or standardised tests.

Virtual classes mean they don’t have to pay for a visa, air tickets or living expenses. But many students are hesitant about spending their savings or borrowing money to pay for attending college in their living room.

Even if, months later, the situation improves to some extent, and students could travel abroad and enrol on campus, they say that brings its own challenges.

For one, Mr Singh points out, there is the steep cost of healthcare, and questions over access to it, as countries like the US are experiencing a deluge of infections and deaths.

A student wears a protective face mask, graduation cap and graduation gown in Washington Square Park during the coronavirus pandemic on May 15, 2020Image copyright GETTY IMAGES
Image caption Students are also unsure of finding jobs overseas after graduation

And then there are the dimming job prospects. The pandemic has squeezed the global economy, so employers are less likely to hire, or sponsor visas for foreign workers.

“For international students, the roller coaster has been more intense because there is increased uncertainty about their ability to get jobs in the US after graduation, and for some, in their ability to get to the US at all,” says Taya Carothers, who works in Northwestern University’s international student office.

The idea of returning to India with an expensive degree and the looming unemployment is scaring students – especially since for many of them, the decision to study abroad is tied to a desire to find a well-paying job there.

“The risk we take when we leave our home country and move to another country – that risk has increased manifold,” Mr Singh adds.

The current crisis – and its economic impact – has affected the decision of nearly half the Indians who wanted to study abroad, according to a recent report by the QS, a global education network.

Experts say universities are in a tough spot too.

International students add as much as $45bn (£37bn) a year to the American economy. In the UK, universities receive almost £7bn in fees from overseas students. So their finances will take a hit if too many foreign students rethink going abroad.

And logistics will also pose a challenge – colleges have to enforce social distancing across campuses, including dormitories, and accommodate students from multiple time zones in virtual classes.

“Regardless of how good your technology is, you’re still going to face problems like internet issues,” says Sadiq Basha, who heads a study abroad consultancy.

He adds that there might be a knee-jerk reaction as a large number of international students consider deferring their admission to 2021. But he’s positive that “in the long term, the ambitions of Indian students are not going to go down.”

Mr Singh is still waiting to see how things will unfold in the next few months, but he’s almost certain he will enrol and start his first semester of the two-year program online.

“Since I’ve been preparing for over a year now, I think mentally I’m already there,” he says.

Source: The BBC

28/05/2020

China’s Civil Code adopted at national legislature

BEIJING, May 28 (Xinhua) — Chinese lawmakers Thursday voted to adopt the country’s long-expected Civil Code at the third session of the 13th National People’s Congress, the top legislature.

The Civil Code will take effect on Jan. 1, 2021.

In addition to general provisions and supplementary provisions, the Civil Code, the world’s latest modern-day civil law, has six parts on real rights, contracts, personality rights, marriage and family, succession, and tort liabilities.

The personal rights, property rights and other lawful rights and interests of the parties to civil legal relations shall be protected by law and shall not be infringed upon by any organization or individual, reads the Civil Code in its opening chapter.

Lawmakers say the codification is not about formulating a new civil law but rather systematically incorporating existing civil laws and regulations, modifying and improving them to adapt to new situations while maintaining their consistency.

A major innovation of China’s Civil Code, jurists say, is embodied in the personality rights part. While some countries have related law provisions, few have a specific law book in civil code dedicated to protecting personality rights.

The personality rights part covers stipulations on a civil subject’s rights to his or her life, body, health, name, portrait, reputation and privacy, among others.

The personality rights part shows that China has reached a new height in protecting the dignity of people, said Chen Jingying, a national lawmaker and vice president of East China University of Political Science and Law.

The Civil Code is a milestone in developing the socialist legal system with Chinese characteristics, and will greatly boost the modernization of China’s system and capacity for governance, said Wang Yi, dean of the law school at Renmin University of China.

Source: Xinhua

28/05/2020

Trump offers to mediate ‘raging’ India-China border dispute

WASHINGTON/NEW DELHI (Reuters) – U.S. President Donald Trump said on Wednesday he had offered to mediate a standoff between India and China at the Himalayan border, where soldiers camped out in a high-altitude region have accused each other of trespassing over the disputed border.

“We have informed both India and China that the United States is ready, willing and able to mediate or arbitrate their now raging border dispute,” Trump said in a Twitter post.

The standoff was triggered by India’s construction of roads and air strips in the region as it competes with China’s spreading Belt and Road initiative, involving infrastructure development and investment in dozens of countries, Indian observers said on Tuesday.

Both were digging defences and Chinese trucks have been moving equipment into the area, the officials said, raising concerns about an extended standoff.

There was no immediate response from either India or China to Trump’s offer. Both countries have traditionally opposed any outside involvement in their matters and are unlikely to accept any U.S. mediation, experts said.

China’s ambassador to India, Sun Weidong, struck a conciliatory note, saying the two Asian countries should not let their differences overshadow the broader bilateral relationship.

“We should adhere to the basic judgment that China and India are each other’s opportunities and pose no threat to each other. We need to see each other’s development in a correct way and enhance strategic mutual trust,” he said, speaking in a webinar on China’s experience of fighting COVID-19.

“We should correctly view our differences and never let the differences shadow the overall situation of bilateral cooperation.”

The two countries are engaged in talks to defuse the border crisis, an Indian government source said. “These things take time, but efforts are on at various levels, military commanders as well as diplomats,” the source said.

The Chinese side has been insisting that India stop construction near the Line of Actual Control or the de facto border. India says all the work is being done on its side of the border and that China must pull back its troops.

Trump in January offered to “help” in another Himalayan trouble spot, the disputed region of Kashmir that is at the center of a decades-long quarrel between India and Pakistan.

But the U.S. offer triggered a political storm in India, which has long bristled at any suggestion of third-party involvement in tackling Kashmir which it considers an integral part of the country.

Source: Reuters

27/05/2020

New Indian roads, air strips sparked border standoff with China, India observers say

NEW DELHI/SRINAGAR (Reuters) – A Himalayan border standoff between old foes India and China was triggered by India’s construction of roads and air strips in the region as it competes with China’s spreading Belt and Road initiative, Indian observers said on Tuesday.

Soldiers from both sides have been camped out in the Galwan Valley in the high-altitude Ladakh region, accusing each other of trespassing over the disputed border, the trigger of a brief but bloody war in 1962.

About 80 to 100 tents have sprung up on the Chinese side and about 60 on the Indian side where soldiers are billeted, Indian officials briefed on the matter in New Delhi and in Ladakh’s capital, Leh, said.

Both were digging defences and Chinese trucks have been moving equipment into the area, the officials said, raising concerns of a long faceoff.

“China is committed to safeguarding the security of its national territorial sovereignty, as well as safeguarding peace and stability in the China-India border areas,” the Chinese Foreign Ministry spokesperson’s office said in a statement.

“At present, the overall situation in the border areas is stable and controllable. There are sound mechanisms and channels of communication for border-related affairs, and the two sides are capable of properly resolving relevant issues through dialogue and consultation.”

There was no immediate Indian foreign ministry comment. It said last week Chinese troops had hindered regular Indian patrols along the Line of Actual Control (LAC).

But interviews with former Indian military officials and diplomats suggest the trigger for the flare-up is India’s construction of roads and air strips.

“Today, with our infrastructure reach slowly extending into areas along the LAC, the Chinese threat perception is raised,” said former Indian foreign secretary Nirupama Rao.

“Xi Jinping’s China is the proponent of a hard line on all matters of territory, sovereignty. India is no less when it comes to these matters either,” she said.

After years of neglect Prime Minister Narendra Modi’s government has pushed for improving connectivity and by 2022, 66 key roads along the Chinese border will have been built.

One of these roads is near the Galwan valley that connects to Daulat Beg Oldi air base, which was inaugurated last October.

“The road is very important because it runs parallel to the LAC and is linked at various points with the major supply bases inland,” said Shyam Saran, another former Indian foreign secretary.

“It remains within our side of the LAC. It is construction along this new alignment which appears to have been challenged by the Chinese.”

China’s Belt and Road is a string of ports, railways, roads and bridges connecting China to Europe via central and southern Asia and involving Pakistan, China’s close ally and India’s long-time foe.

Source: Reuters

24/05/2020

Xi Focus: “What is people first?” Xi points to how China saves lives at all costs

Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, takes part in a deliberation with his fellow deputies from the delegation of Inner Mongolia Autonomous Region at the third session of the 13th National People’s Congress (NPC) in Beijing, capital of China, May 22, 2020. (Xinhua/Ju Peng)

BEIJING, May 23 (Xinhua) — “What is people first?” Chinese President Xi Jinping asked, before offering his own answer when he was talking with lawmakers at the ongoing national legislative session.

“So many people worked together to save a single patient. This, in essence, embodies doing whatever it takes (to save lives),” he said.

Xi, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, is a deputy to the 13th National People’s Congress.

During his deliberations with fellow deputies from Inner Mongolia Autonomous Region on Friday, “people” was a keyword.

Xi referred to a story told by another deputy that morning. Luo Jie, from the COVID-19 hard-hit province of Hubei, told reporters at the session how medical workers in his hospital spent 47 days saving an 87-year-old COVID-19 patient.

“About 10 medical workers meticulously took care of the patient for dozens of days, and finally saved the patient’s life,” Xi said. “I am really impressed.”

In the COVID-19 pandemic, health workers around the world got to know the elderly are the most difficult to treat and require the most sophisticated medical resources. China has given every patient equal treatment irrespective of their age or wealth.

Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, takes part in a deliberation with his fellow deputies from the delegation of Inner Mongolia Autonomous Region at the third session of the 13th National People’s Congress (NPC) in Beijing, capital of China, May 22, 2020. (Xinhua/Huang Jingwen)

In Hubei alone, more than 3,600 COVID-19 patients over the age of 80 have been cured. In the provincial capital Wuhan, seven centenarian patients have been cured.

“We mobilized from around the nation the best doctors, the most advanced equipment and the most needed resources to Hubei and Wuhan, going all out to save lives,” Xi said during the deliberations, adding that the eldest patient cured is 108 years old.

“We are willing to save lives at all costs. No matter how old the patients are and how serious their conditions have become, we never give up,” Xi said.

Xi joined political advisors and lawmakers on Thursday and Friday in paying silent tribute to the lives lost to COVID-19 as the top political advisory body and the national legislature opened their annual sessions.

This year’s government work report said China’s economy posted negative growth in the first quarter of this year, but it was “a price worth paying” to contain COVID-19 as life is invaluable.

“As a developing country with 1.4 billion people, it is only by overcoming enormous difficulties that China has been able to contain COVID-19 in such a short time while also ensuring our people’s basic needs,” the report said.

Epidemic response is a reflection of China’s governing philosophy.

The fundamental goal for the Party to unite and lead the people in revolution, development and reform is “to ensure a better life for them,” Xi said.

The nation’s average life expectancy reached 77 years in 2018, more than double that in 1949, when the people’s republic was founded.

Chinese people are not just living longer but better lives, with more material wealth and broader choices to pursue individual dreams. All rural poor will bid farewell to poverty this year as part of the goal of building a moderately prosperous society in all respects.

The Party’s long-term governance, Xi said, rests on “always maintaining close bond with the people.”

“We must always remain true to the people’s aspiration and work in concert with them through thick and thin,” Xi said.

Source: Xinhua

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