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.”
Image copyright JEN SMITHImage caption Jen Smith lives in Shenzhen, where it’s compulsory to wear a mask outside at all times
My Money is a series looking at how people spend their money – and the sometimes tough decisions they have to make. Here, Jen Smith, a children’s TV presenter from Shenzhen in southern China, takes us through a week in her life, as the country slowly emerges from the coronavirus pandemic.
Over to Jen…
Since being in lockdown I’ve been bingeing on Keeping Up With the Kardashians. It starts with one episode after dinner, blink, and suddenly it’s 3am. YouTube, Facebook, Google and Instagram are all banned here, so you’d think I’d be a binge-free socialite after a year and a half living in China. Well, those sites are banned unless you have a VPN – I pay $120 (£97) a year for mine, so Sunday was a late night, with a lie-in until 10.30 this morning.
I go for a run – mask and all, as it’s currently illegal to be outside without one. I make my coffee (bought in the UK), fruit smoothie (about 20 yuan, $2.82, £2.27) and cereal (80 yuan a packet) before cycling to work.
Today is a bit of a crazy day in the studio. I work as a children’s TV presenter. My company has profited from the lockdown as more children are watching the shows non-stop – meaning a rapid turnaround for us.
We shoot two shows from 2-6pm then “break” for a meeting. We discuss tomorrow’s shoot while I eat dinner – homemade aubergine curry. It is normal for the Chinese to eat breakfast, lunch and dinner at work. Normally the company gives all staff 25 yuan through a food-ordering app, and the whole company would eat together. However, because of the current social distancing, that social time is in the far distant past!
I make it home for 8pm, order some deep-fried cauliflower as a snack (45 yuan) and start the inevitable Kardashian binge.
Total spend: 65 yuan ($9.10, £7.37)
Image copyright JEN SMITHImage caption Workers often have a midday nap in the office
It’s a much earlier start (7.30am), but the same morning routine. On my cycle to work I notice that the traffic is almost back to normal – Shenzhen is inhabited by well over 12 million people, so as you can imagine rush hour is intense. This doesn’t change the fact that everywhere you go you have to scan a QR code – leaving my apartment, using the walkway by the river, and getting into the building I work in.
After a morning of shooting I eat homemade potato curry and settle down for a nap. Naptime is such a commonality in China that people store camp beds at the office. I order a coffee and banana chips (20 yuan) for a pick-me-up before the afternoon’s shooting.
It’s St Paddy’s Day so I head to the local pubs area, catch dinner at a French restaurant (222 yuan), then a few drinks (25 yuan – mainly bought by men at the bar for us) before a very tipsy cycle home.
Total spend: 242 yuan ($34, £25)
Image copyright JEN SMITHImage caption A disposable cover reduces the risk of transmitting the virus by touching lift buttons
The morning’s shoot (thankfully) was cancelled, so I nursed a hangover in bed until around 11am, at which point I had a phone meeting for a company that I do “plus-size” modelling for (for context I’m a UK size 12). I eat a bowl of cereal and order more cauliflower (45 yuan) while I watch a film.
At 2.30pm an intern picks me up, and we head to the government building to apply for a new work visa. Ironically, the image taken for my visa is Photoshopped to remove wrinkles, freckles and my frizzy hair. When I ask why this is being done for an identification document, the intern replies that the government wants it to be neat, and “the Chinese way” is to have altered photos.
I don’t argue, and have an interview before I hand in my passport. The whole process takes around two hours, so I order food to my house while on the way home (150 yuan for burger, salad and cake!) I take a taxi across town which ends up being 39.05 yuan.
The day starts at 8.30am with coffee and reading, before I get a manicure (280 yuan). My nail lady has been very worried about the state of my hands during the virus, so she spends a whopping two and a half hours treating them while I watch a film (0.99 yuan – bought by her). Because the manicure was so long I don’t have time to eat lunch before our fitness shoot, which runs from 2-5.30pm. I then have an appointment to sign into a building which I’ll shoot in tomorrow.
The building is near a supermarket called Ole (one of the only western supermarkets), and I pick up groceries for 183 yuan before heading home to cook, listen to podcasts and prep for the big day of shooting on Friday.
Total spend: 463 yuan ($64, £52.5)
Image copyright JEN SMITHImage caption Jen filming in front of a green screen – a more colourful digital background will be added later in post-production
Fridays are generally my busiest day. The way the Chinese seem to function, is a boss will say “I want this done now” and then employees rush to finish it. Generally, they will write scripts on Monday and Tuesday, discuss Wednesday, then we shoot later in the week. The poor editors, despite mandatory office hours during the week, then have to work tirelessly through the weekend to achieve a Sunday evening deadline.
I start with mashed avocado and a hard-boiled egg before work. The morning shoot runs from 9.30-11.40am, and I have an early lunch – homemade curry again, before my regular nap time. The afternoon shoot is three hours, so I have time to pop home and shower before a live stream at 6pm. I take a taxi to and from the live stream which ends up being 28 yuan.
Total spend: 28 yuan ($3.92, £3.18)
Image copyright JEN SMITHImage caption A taxi driver has improvised a screen to reduce the risk of picking up Covid-19 from a passenger
Finally the weekend! Although things are slowly getting better in China after the coronavirus outbreak, there’s still not too much to do. So I use this time to write, play my piano and generally chill inside. Around 3pm, I venture outside to the shops to pick up some snacks (159.60 yuan) before settling in to ring my family back in the UK with a homemade cocktail – a friend of mine in Canada is doing a daily live stream, “quarantinis” where he teaches you how to make cocktails!
What’s interesting is that a lot of people have started leaving their houses again, but it is still illegal to go outside without a mask on, and temperature checks are taken everywhere. I was even refused entry to a building due to being foreign. I imagine this is because recently the only new cases are being brought in by non-Chinese travelling back to China.
Total spend: 159.60 yuan ($22, £18)
Image copyright JEN SMITHImage caption Shenzhen’s Metro system is still very quiet
It’s another slow day for me as many foreigners have not yet returned to China, so most of my friends are out of the country. I start the day by reviewing potential scripts.
This takes me to 1.30pm without realising I haven’t eaten. I decide to go for a quick run and I return to eat mashed avocado and a hard-boiled egg.
I home-bleach my hair with products bought in the UK, then head back to editing again. About half way through the afternoon I take a little break to practice Chinese. I use an app which is fantastic and free! Definitely worth everyone downloading this during social distancing so you can learn new skills!
For dinner I order online again, a three-dish meal for 160 yuan.
BEIJING, May 21 (Xinhua) — China has unveiled a guideline to meet the goal of removing all expressway toll booths at provincial borders by the end of this year.
Local governments should work to improve toll collecting systems and promote the application of non-stop electronic toll collection systems, according to the guideline released by the General Office of the State Council.
Meanwhile, related laws and regulations should be optimized, said the guideline.
Through the move, China aims to help solve the issue of expressway traffic congestion, enhance traffic efficiency and reduce logistics costs.
The mainland government will also seek to create a level playing field for businesses, most of which are privately-owned, in terms of market entry and regulation
Small and medium-sized firms are vulnerable to trade disputes and an economic slowdown even though they contribute the majority of growth and employment
China plans to make it easier and cheaper for businesses to access credit through subsidies and certain bank loans, according to a comprehensive policy guidelines jointly released by the Central Committee and the State Council on Sunday. Photo: Alamy
China will “remove all sorts of unreasonable barriers and restrictions” to help small and medium-sized enterprises which are seen as vital to help employment and economic growth amid the trade war with the United States.
Beijing plans to make it easier and cheaper for businesses to access credit through subsidies and certain bank loans, according to a comprehensive policy guidelines jointly released by the Central Committee of the Communist Party of China and the State Council on Sunday.
The mainland government will also seek to create a level playing field for businesses, most of which are privately-owned, in terms of market entry and regulation.
“Small and medium-sized enterprises is an dynamic power for national economic and social important and is critical for expanding employment, improving people’s livelihood, and to foster innovation,” the guidelines said. “For now, they are facing problems of rising production costs, difficulty in obtaining credit and insufficient capabilities to innovate – these issues demand high attention.”
China will “remove all sorts of unreasonable barriers and restrictions, trying to ensure fair competition and provide sufficient market in terms of market entry, licensing, bidding and the military-civil infusion,” it added.
While most of the policies are not completely new, the move to pull them together into a larger policy document, which will serve as a guideline for local authorities, shows China’s intention to stabilise the domestic economic situation as its trade disputes with the US continues.
Beijing has also designed a variety of financial policy tools, including targeted required reserve ratio cuts and the use of small and medium-sized enterprise loans as collateral for medium-term lending facilities granted by the central bank, meaning banks will have more incentives to offer financing.
To further boost lending, it will also offer some exemptions for interest received from value added tax, while also providing tax breaks for small firms and start-ups, a lower social security contribution ratio and an increase in government procurement, according to the guidelines.
Small and medium-sized enterprises is an dynamic power for national economic and social important and is critical for expanding employment, improving people’s livelihood, and to foster innovation.New guidelines
The need for the Chinese government to support small businesses became even more obvious last summer when it began its trade was with the US. Small private businesses are more vulnerable to trade disputes and an economic slowdown than state-owned enterprises, which are often bigger and enjoy favourable treatments from the government and banks, even though they contribute the majority of growth and employment.
Employment is the top priority on the agenda of Premier Li Keqiang this year, as shown in his government work report revealed last month. China has vowed to create 11 million new urban jobs this year and cap the surveyed urban unemployment rate at 5.5 per cent.
Morgan Stanley economists noted that China’s real gross domestic product growth may slow to 6.2 per cent in the first quarter.
“The main drag is slower investment growth, led by property construction and manufacturing [capital expenditure] amid still-subdued export and business sentiment,” Morgan Stanley economists Robin Xing, Jenny Zheng and Zhipeng Cai said.
The National Bureau of Statistics is due to release the first quarter economic data on April 17.
Image copyright PRESS INFORMATION BUREAU
Image copyright AFP
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CHINDIA ALERT: You'll be living in their world, very soon 