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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The richest man in China opened his own Twitter account last month, in the middle of the Covid-19 outbreak. So far, every one of his posts has been devoted to his unrivalled campaign to deliver medical supplies to almost every country around the world.
“One world, one fight!” Jack Ma enthused in one of his first messages. “Together, we can do this!” he cheered in another.
The billionaire entrepreneur is the driving force behind a widespread operation to ship medical supplies to more than 150 countries so far, sending face masks and ventilators to many places that have been elbowed out of the global brawl over life-saving equipment.
But Ma’s critics and even some of his supporters aren’t sure what he’s getting himself into. Has this bold venture into global philanthropy unveiled him as the friendly face of China’s Communist Party? Or is he an independent player who is being used by the Party for propaganda purposes? He appears to be following China’s diplomatic rules, particularly when choosing which countries should benefit from his donations, but his growing clout might put him in the crosshairs of the jealous leaders at the top of China’s political pyramid.
Other tech billionaires have pledged more money to fight the effects of the virus – Twitter’s Jack Dorsey is giving $1bn (£0.8bn) to the cause. Candid, a US-based philanthropy watchdog that tracks private charitable donations, puts Alibaba 12th on a list of private Covid-19 donors. But that list doesn’t include shipments of vital supplies, which some countries might consider to be more important than money at this stage in the global outbreak.
The world’s top coronavirus financial donors
How Alibaba compares to the top five. No one else other than the effervescent Ma is capable of dispatching supplies directly to those who need them. Starting in March, the Jack Ma foundation and the related Alibaba foundation began airlifting supplies to Africa, Asia, Europe, Latin America and even to politically sensitive areas including Iran, Israel, Russia and the US.
Ma has also donated millions to coronavirus vaccine research and a handbook of medical expertise from doctors in his native Zhejiang province has been translated from Chinese into 16 languages. But it’s the medical shipments that have been making headlines, setting Ma apart.
“He has the ability and the money and the lifting power to get a Chinese supply plane out of Hangzhou to land in Addis Ababa, or wherever it needs to go,” explains Ma’s biographer, Duncan Clark. “This is logistics; this is what his company, his people and his province are all about.”
A friendly face
Jack Ma is famous for being the charismatic English teacher who went on to create China’s biggest technology company. Alibaba is now known as the “Amazon of the East”. Ma started the company inside his tiny apartment in the Chinese coastal city of Hangzhou, in the centre of China’s factory belt, back in 1999. Alibaba has since grown to become one of the dominant players in the world’s second largest economy, with key stakes in China’s online, banking and entertainment worlds. Ma himself is worth more than $40bn.
Officially, he stepped down as Alibaba’s chairman in 2018. He said he was going to focus on philanthropy. But Ma retained a permanent seat on Alibaba’s board. Coupled with his wealth and fame, he remains one of the most powerful men in China.
Media caption The BBC’s Secunder Kermani and Anne Soy compare how prepared Asian and African countries are
It appears that Ma’s donations are following Party guidelines: there is no evidence that any of the Jack Ma and Alibaba Foundation donations have gone to countries that have formal ties with Taiwan, China’s neighbour and diplomatic rival. Ma announced on Twitter that he was donating to 22 countries in Latin America. States that side with Taiwan but who have also called for medical supplies – from Honduras to Haiti – are among the few dozen countries that do not appear to be on the list of 150 countries. The foundations repeatedly refused to provide a detailed list of countries that have received donations, explaining that “at this moment in time, we are not sharing this level of detail”.
However, the donations that have been delivered have certainly generated a lot of goodwill. With the exception of problematic deliveries to Cuba and Eritrea, all of the foundations’ shipments dispatched from China appear to have been gratefully received. That success is giving Ma even more positive attention than usual. China’s state media has been mentioning Ma almost as often as the country’s autocratic leader, Xi Jinping.
AFP
So far…
Over 150 countries have received donations from Jack Ma, including about:
120.4mface masks
4,105,000testing kits
3,704ventilators
Source: Alizila
It’s an uncomfortable comparison. As Ma soaks up praise, Xi faces persistent questions about how he handled the early stages of the virus and where, exactly, the outbreak began.
The Chinese government has dispatched medical teams and donations of supplies to a large number of hard-hit countries, particularly in Europe and South-East Asia.
However, those efforts have sometimes fallen flat. China’s been accused of sending faulty supplies to several countries. In some cases, the tests it sent were being misused but in others, low-quality supplies went unused and the donations backfired.
In contrast, Jack Ma’s shipments have only boosted his reputation.
“It’s fair to say that Ma’s donation was universally celebrated across Africa,” says Eric Olander, managing editor of the China Africa Project website and podcast. Ma pledged to visit all countries in Africa and has been a frequent visitor since his retirement.
“What happens to the materials once they land in a country is up to the host government, so any complaints about how Nigeria’s materials were distributed are indeed a domestic Nigerian issue,” Olander adds. “But with respect to the donation itself, the Rwandan leader, Paul Kagame, called it a “shot in the arm” and pretty much everyone saw it for what it was which was: delivering badly-needed materials to a region of the world that nobody else is either willing or capable of helping at that scale.”
Walking the tightrope
But is Ma risking a backlash from Beijing? Xi Jinping isn’t known as someone who likes to share the spotlight and his government has certainly targeted famous faces before. In recent years, the country’s top actress, a celebrated news anchor and several other billionaire entrepreneurs have all “disappeared” for long periods. Some, including the news anchor, end up serving prison sentences. Others re-emerge from detention, chastened and pledging their allegiance to the Party.
“There’s a rumour that [Jack Ma] stepped down in 2018 from being the chairman of the Alibaba Group because he was seen as a homegrown entrepreneur whose popularity would eclipse that of the Communist Party,” explains Ashley Feng, research associate at the Centre for New American Security in Washington DC. Indeed, Ma surprised many when he suddenly announced his retirement in 2018. He has denied persistent rumours that Beijing forced him out of his position.
Image copyright GETTY IMAGESImage caption Ma discussed trade with then-President-elect Donald Trump in January 2017
Duncan Clark, Ma’s biographer, is also aware of reports that Ma was nudged away from Alibaba following a key incident in January 2017. The Chinese billionaire met with then-President-elect Donald Trump in Trump Tower, ostensibly to discuss Sino-US trade. The Chinese president didn’t meet with Trump until months later.
“There was a lot of speculation of time that Jack Ma had moved too fast,” Clark says. “So, I think there’s lessons learned from both sides on the need to try to coordinate.”
“Jack Ma represents a sort of entrepreneurial soft power,” Clark adds. “That also creates challenges though, because the government is quite jealous or nervous of non-Party actors taking that kind of role.”
Technically, Ma isn’t a Communist outsider: China’s wealthiest capitalist has actually been a member of the Communist Party since the 1980s, when he was a university student.
But Ma’s always had a tricky relationship with the Party, famously saying that Alibaba’s attitude towards the Party was to “be in love with it but not to marry it”.
Even if Ma and the foundations connected to him are making decisions without Beijing’s advance blessing, the Chinese government has certainly done what it can to capitalise on Ma’s generosity. Chinese ambassadors are frequently on hand at airport ceremonies to receive the medical supplies shipped over by Ma, from Sierra Leone to Cambodia.
China has also used Ma’s largesse in its critiques of the United States. “The State Department said Taiwan is a true friend as it donated 2 million masks,” the Chinese Foreign Ministry tweeted in early April. “Wonder if @StateDept has any comment on Jack Ma’s donation of 1 million masks and 500k testing kits as well as Chinese companies’ and provinces’ assistance?”
Perhaps Ma can rise above what’s happened to so many others who ran afoul of the Party. China might just need a popular global Chinese figure so much that Ma has done what no one else can: make himself indispensable.
“Here’s the one key takeaway from all that happened with Jack Ma and Africa: he said he would do something and it got done,” explains Eric Olander. “That is an incredibly powerful optic in a place where foreigners often come, make big promises and often fail to deliver. So, the huge Covid-19 donation that he did fit within that pattern. He said he would do it and mere weeks later, those masks were in the hands of healthcare workers.”
Image copyright GETTY IMAGESImage caption Ma at an Electronic World Trade Platform event with Ethiopian Prime Minister Abiy Ahmed last year
Duncan Clark argues that Ma already had a seat at China’s high table because of Alibaba’s economic heft. However, his first-name familiarity with world leaders makes him even more valuable to Beijing as China tries to repair its battered image.
“He has demonstrated the ability, with multiple IPOs under his belt, and multiple friendships overseas, to win friends and influence people. He’s the Dale Carnegie of China and that certainly, we’ve seen that that’s irritated some in the Chinese government but now it’s almost an all hands on deck situation,” Clark says.
There’s no doubt that China’s wider reputation is benefiting from the charitable work of Ma and other wealthy Chinese entrepreneurs. Andrew Grabois from Candid, the philanthropic watchdog that’s been measuring global donations in relation to Covid-19, says that the private donations coming from China are impossible to ignore.
“They’re taking a leadership role, the kind of thing that used to be done by the United States,” he says. “The most obvious past example is the response to Ebola, the Ebola outbreak in 2014. The US sent in doctors and everything to West Africa to help contain that virus before it left West Africa.”
Chinese donors are taking on that role with this virus.
“They are projecting soft power beyond their borders, going into areas, providing aid, monetary aid and expertise,” Grabois adds.
So, it’s not the right time for Beijing to stand in Jack Ma’s way.
“You know, this is a major crisis for the world right now,” Duncan Clark concludes. “But obviously, it’s also a crisis for China’s relationship with the rest of the world. So they need anybody who can help dampen down some of these those pressures.”
NEW DELHI/MUMBAI (Reuters) – The Indian government ordered mobile carriers on Friday to immediately pay billions of dollars in dues after the Supreme Court threatened the companies and officials with contempt proceedings for failing to implement an earlier ruling.
The court, which had ordered companies including Vodafone Idea (VODA.NS) and Bharti Airtel (BRTI.NS) to pay 920 billion Indian rupees ($13 billion) in overdue levies and interest by Jan. 23, last month rejected petitions seeking a review of the order it issued back in October.
“This is pure contempt, 100% contempt,” Justice Arun Mishra told lawyers for the companies and the government on Friday.
Later in the day, the Department of Telecommunications called for “immediate payments” from the telcos. A second order instructed relevant offices to stay open on Saturday to “facilitate the Telecom Licensees to make payments or contact them with respect to any matter related to that.”
The companies had contested the government’s definition of revenues subject to tax and Vodafone Idea and Bharti Airtel both flagged risks to their ability to continue as ongoing concerns following the October order. They did not immediately respond to calls seeking comment on the new ruling.
The companies, along with Reliance Jio, which is backed by Asia’s richest man, Mukesh Ambani, control more than 90% of India’s mobile market.
Jio, a relatively new entrant which has disrupted the market with its cut-price offerings, has paid its dues.
Shares in Vodafone Idea, in which Britain’s Vodafone Group (VOD.L) owns a sizable stake, closed down 24.4% after the order. The company’s future is in doubt, with Vodafone Group having said it has no plans to commit any more equity into India.
Shares in Bharti Airtel rose 4.64%, as many investors expect it will be able to survive the payment, leaving it and Jio with a potential opportunity to win market share and enjoy an effective duopoly in the sector. In a letter to the government, Bharti Airtel said it would deposit 100 billion rupees by Thursday and pay the balance “well before” the next hearing on March 17.
Justice Mishra rebuked the government for having failed to implement the court order on collecting the dues. “A desk officer in the government stays a Supreme Court order … Is there any law left in the country?,” he said.
“We will draw up contempt against everyone,” he added, implying that both company and government officials could be fined or jailed if the dues are not paid by March 17.
Analysts said the court’s move could harm the government more broadly, as well as the companies.
“It can’t be in anybody’s interest if a company as high profile as Vodafone Idea shuts shop. Also, the government’s own dues from the sector are at risk,” said Mahesh Uppal, director at ComFirst, a telecom consultancy firm.
BANKS BURDENED
Indian banks are burdened with nearly $140 billion of bad loans and face another huge hit if Vodafone Idea is forced into bankruptcy.
Banks in India are owed roughly 300 billion rupees by Vodafone Idea, according to a Macquarie report from last year.
“Banks were yet to make additional provisioning for these loans as they were expecting some sort of a relief from the court,” said Siddharth Purohit, an analyst at SMC Institutional Equities.
Banks that have the highest exposure to Vodafone Idea include State Bank of India (SBI.NS), Punjab National Bank (PNBK.NS), Canara Bank (CNBK.NS) and Bank of India (BOI.NS), among others, the Macquarie report said.
Vodafone Idea, which owes the government about $4 billion in dues related to the ruling, has seen its shares slide more than 40% since the court ruling in October.
The broader Indian stock market also reversed early gains to trade lower after the ruling as investors worried about the fallout.
Still, some analysts remained hopeful the government could appeal to the court to review its decision.
“Let’s see how the government reacts and what they do. If the government appeals to the court they could still settle it out, and we may see some positives emerge for everyone,” said a senior industry analyst, who asked not to be named.
Image copyright GETTY IMAGESImage caption Mir Osman Ali Khan was once the world’s richest man
A London court has ruled that £35m ($42m) held in a UK bank account must go to the descendants of an Indian royal, and not to Pakistan.
The dispute began in 1948 when the last Nizam (king) of Hyderabad deposited £1m in the UK account, held by the then Pakistan high commissioner. With interest, the sum has grown to £35m.
The judge ruled there was no evidence to back Pakistan’s claims to the money.
The origins of the dispute go back to the 1947 partitioning of British India.
Hyderabad, which was a princely state, was annexed by India in 1948 in a military operation – the cash transfer had been made shortly before that.
The Nizam, Mir Osman Ali Khan, had not been able to decide whether his state should be in Pakistan or India.
His descendants alleged that he had asked for the money to be returned weeks after the annexation by India took place, but then Pakistan refused to give it back.
The court case had been fought by his family together with the Indian state.
National Westminster Bank, in which the money had been deposited, refused to release the funds to either party until the case was resolved by the courts.
The interest on the original deposit saw the money grow to £35m by 2019.
Pakistan argued it had been given the money in order to procure arms but the court determined it had the right to rule in the case, given that the money had been deposited in a British bank account.
“The court today made it clear that it did not think the money was handed to Pakistan outright. There is overwhelming evidence that Pakistan only held the money as a trustee and it actually belonged to the Nizam,” Paul Hewitt, the lawyer for one of the grandsons, told the BBC’s Gaggan Sabherwal.
Mr Hewitt said the case, which had begun when his client was a child, was finally being resolved when he was in his 80s.
“We welcome the judgment of Justice Marcus Smith,” Najaf Ali Khan, one of the Nizam’s grandsons, told BBC Telugu.
“The High Court has rightly rejected Pakistan’s claim. The family has long awaited this judgement.”
India’s foreign ministry also welcomed the verdict in a press statement.
Pakistan could seek to appeal, but otherwise the money will be given to the Nizam’s grandsons and the state of India.
Image copyrightGETTY IMAGESImage caption: Mukesh Ambani, left, sits next to his wife Nita Ambani, and Anil Ambani on the right
India’s richest man Mukesh Ambani has paid a debt payment owed by his brother, saving him from spending time in prison.
Anil Ambani faced a prison sentence after a deal between his firm Reliance Communications (RCom) and telecoms giant Ericsson collapsed.
That left his firm owing Ericsson 5.5bn rupees ($80m; £60m), which it failed to pay by a court deadline.
The move marks a new twist a long-running feud between the brothers.
RCom failed to comply with an India Supreme Court order to pay Ericsson the money by 15 December last year.
The court found him guilty of contempt, giving him another four weeks to pay or go to prison.
On Monday, RCom said the debt had been paid.
“My sincere and heartfelt thanks to my respected elder brother, Mukesh, and (his wife) Nita, for standing by me during these trying times, and demonstrating the importance of staying true to our strong family values by extending this timely support,” Anil Ambani said.
The two brothers have long had an acrimonious relationship, fighting over their father’s businesses after he died in 2002 without a will.
The Reliance empire was divided between the two brothers in 2005 after a bitter seven-month feud.
The brothers have fought bruising court battles in the past over natural gas interests.
Mukesh Ambani is worth more than $54bn, according to Bloomberg.
His firm Reliance Industries, whose activities span from oil to telecommunications, is among India’s most valuable companies.
By contrast, Anil Ambani has an estimated net worth of around $300m, Bloomberg said.
The Ambani family made headlines last year with the lavish wedding of Mukesh Ambani’s daughter, Isha Ambani, which featured a performance from US singer Beyoncé
NEW DELHI (Reuters) – Dozens of chartered planes carrying celebrities, including former U.S. secretary of state Hillary Clinton, flew into a sleepy airport in western India for the lavish pre-wedding festivities for the daughter of India’s richest man.
Former U.S. Secretary of State Hillary Clinton poses with Mukesh Ambani, Chairman of Reliance Industries, and his wife Nita Ambani after her arrival in Udaipur to attend pre-wedding celebrations of their daughter Isha Ambani in the desert state of Rajasthan, India, December 8, 2018. Reliance Industries/Handout via REUTERS
Isha Ambani, 27, daughter of Reliance Industries chairman Mukesh Ambani, will marry Anand Piramal, 33, in the financial capital of Mumbai next Wednesday, but the celebrations began this weekend in the desert city of Udaipur, with feasts, singing and dancing, and other pre-wedding rituals.
Security was beefed up as the high-profile guests started arriving at Udaipur’s airport, said a source at the scene, who asked not to be identified. Outside, they were awaited by luxury sedans driven by chauffers wearing white uniforms and colourful Rajasthani turbans.
The Clintons and the Ambanis have an association that goes back more than 18 years and have met several times both in India and abroad, according to Indian media reports.
Then President Bill Clinton held meetings in India with the Ambanis, including deceased founder and Mukesh’s father Dhirubhai Ambani, just before and after he left the presidency in 2000-2001.
In March this year, when Hillary Clinton visited India to deliver a keynote speech at a conference in Mumbai, she dined with the Ambanis at their 27-floor Antilia residence – one of the world’s most expensive homes, according to local media.
Many other top industrialists, politicians, sports and Bollywood stars descended in Udaipur on Saturday to join what has been dubbed locally “the big, fat Indian wedding.”
Indian steel magnate Lakshmi Mittal, Maharashtra Chief Minister Devendra Fadnavis, cricket legend Sachin Tendulkar and newly-weds, actress Priyanka Chopra and singer Nick Jonas were among the guests joining the bash.
Former head of advertising giant WPP, Martin Sorrell, BP Group CEO Bob Dudley, Huffington Post founder Arianna Huffington, 21st Century Fox CEO James Murdoch and Saudi Energy Minister Khalid Al-Falih are also invited.
Guests for the celebrations, which will bring together two of India’s most influential families, have access to an app mapping out the activities, which include a private concert by Beyonce.
Many in India, where millions live in dire poverty, have closely followed the preparations, including the Ivy League-graduate couple’s engagement at the luxury Villa D’Este hotel on Italy’s Lake Como, attended by more than 600 guests, and featuring a private performance by singer John Legend.
Image copyright GETTY IMAGES
Image copyright GETTY IMAGES
Image copyright GETTY IMAGES
CHINDIA ALERT: You'll be living in their world, very soon 