19/08/2019
LONDON (Reuters) – Crude oil prices rose on Monday following a weekend attack on a Saudi oil facility by Yemeni separatists and as traders looked for signs that U.S.-China trade tensions could ease.
Price gains were, however, capped to some degree by an unusually downbeat OPEC report that stoked concerns about growth in oil demand.
Brent crude LCOc1, the international benchmark for oil prices, was up 65 cents, or about 1.1%, at $59.29 a barrel at 1024 GMT,
U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 61 cents, or 1.1%, at $55.48 a barrel.
A drone attack by Yemen’s Houthi group on an oilfield in eastern Saudi Arabia on Saturday caused a fire at a gas plant, adding to Middle East tensions, but state-run Saudi Aramco said oil production was not affected.
“The oil market seems to be pricing in again a geopolitical risk premium following the weekend drone attacks on Saudi Arabia, but the premium might not sustain if it does not result in any supply disruptions,” said Giovanni Staunovo, oil analyst for UBS.
Tensions around Iran appeared to ease after Gibraltar released an Iranian tanker it seized in July though Tehran warned the United States against any new attempt to seize the tanker in open seas.
Concerns about a recession also limited crude price gains, as traders looked for signs of progress in U.S.-China trade talks.
Meanwhile, China’s announcement of key interest rate reforms over the weekend has fueled expectations of an imminent reduction in corporate borrowing costs in the struggling economy, boosting share prices on Monday.
U.S. energy firms this week increased the number of oil rigs operating for the first time in seven weeks despite plans by most producers to cut spending on new drilling this year.
“WTI in recent weeks has performed relatively better than Brent… Pipeline start ups in the United States have been supportive for WTI, while the ongoing trade war has had more of an impact on Brent,” said Warren Patterson, head of commodities strategy at Dutch bank ING.
The Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for global oil demand growth in 2019 by 40,000 barrels per day (bpd) to 1.10 million bpd and indicated the market would be in slight surplus in 2020.
It is rare for OPEC to give a bearish forward view on the market outlook.
“Such a bearish prognosis will heap more pressure on OPEC to take further measures to support the market,” said Stephen Brennock of oil broker PVM.
Source: Reuters
Posted in Brent Crude, China alert, drone attack, Gibraltar, Houthi group, Iranian tanker, Middle East tensions, Oil, oil facility, OPEC report, Organization of the Petroleum Exporting Countries (OPEC), rises, Saudi Arabia, Saudi Aramco, Saudi field, Tehran, U.S. West Texas Intermediate (WTI), U.S.-China trade tensions, UBS AG., Uncategorized, United States, Yemeni separatists |
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17/08/2019
- Chinese government advisers say Beijing has not reached direct intervention point but that could change if the violence continues
- Military action would trigger international backlash, observers say, as US expresses concern over reported paramilitary movements and ‘erosion of Hong Kong’s autonomy’
Footage of trucks from the paramilitary People’s Armed Police in Shenzhen has circulated online. Photo: Handout
The unrest in Hong Kong does not yet warrant direct intervention by Beijing despite hardening public sentiment and calls for tougher action in mainland China, according to Chinese government advisers.
Shi Yinhong, an international relations expert at Renmin University and an adviser to the State Council – China’s cabinet – said China would risk damaging its ties with the United States and other major foreign powers, upsetting its own development and losing Hong Kong’s special status if it took the matter directly into its hands.
“I don’t think we need to use troops. Hong Kong police will gradually escalate their action and they haven’t exhausted their means,” Shi said, expressing a view shared by other mainland government advisers and academics.
But he warned that if the violence and chaos continued, it “won’t be too far away from reaching that point”.
A US State Department spokeswoman said the United States was “deeply concerned” about reports of paramilitary movements along the Hong Kong border and reiterated a US call for all sides to refrain from violence.
She said it was important for the Hong Kong government to respect “freedoms of speech and peaceful assembly” and for Beijing to adhere to its commitments to allow a high degree of autonomy for Hong Kong.
She said the protests reflected “broad and legitimate concerns about the erosion of Hong Kong’s autonomy”.
brought the city’s air traffic to a halt and triggered
a huge backlash on the mainland
, where the public feel they have been wrongly targeted by the increasingly violent protesters. Many demanded the central government take action to end the chaos.
The tension deepened after US President Donald Trump, citing intelligence sources,
to the border with Hong Kong. Trump described the situation in the city as “tricky” and called on all sides to remain “calm and safe”.
Footage of trucks from the paramilitary People’s Armed Police rolling into Shenzhen began circulating online on Saturday.
Beijing ‘unlikely to intervene’ in Hong Kong as pressure mounts on police
But Shi and others said direct intervention would be too costly to China and would only be used when all other methods had been exhausted.
“As the trade war with the US goes on, Hong Kong’s importance to our financial system is getting bigger,” Shi said. “If Beijing intervenes with too much assertiveness, the US might revoke the preferential status of Hong Kong.”
He was referring to the US’ 1992 Hong Kong Policy Act which gives the city a special status. In June, American lawmakers introduced a bipartisan bill requiring the US government to examine Hong Kong’s autonomy annually to decide whether to extend the arrangement.
Losing that status could cripple the operations of many businesses based in Hong Kong, said Shen Dingli, a Shanghai-based international affairs expert.
A satellite image appears to show a close-up of Chinese military vehicles at Shenzhen Bay Sports Centre in Shenzhen. Photo: Maxar Technologies
Wang Yong, another specialist on international political economy with Peking University, agreed.
“There would be a lot of opposition from interest groups in the US. Hong Kong is the bridgehead for many multinational corporations and investors from Wall Street to get into the Chinese market,” said Wang, who also teaches at an academy affiliated with China’s Ministry of Foreign Affairs.
“Hong Kong and the Chinese government will need to handle this with extra care, so as not to give any ammunition to hawks in the United States.
“If Hong Kong is not handled properly, it could add tensions to the bilateral ties and ruin any prospect of a trade deal.”
China rejects requests for US warships to visit Hong Kong amid protests Pang Zhongying, an international relations specialist at Ocean University of China in Qingdao, said direct intervention could also damage China’s ties with other countries.
“The whole world is watching. Beijing has exercised restraint for two months and still hasn’t taken any clear action because this is not an easy choice,” said Pang, who is also a member of the Beijing-based Pangoal Institution, a think tank that advises several ministerial offices.
While some observers said Beijing was under political pressure to end the protests in Hong Kong before October 1 – the 70th anniversary of the founding of the People’s Republic, Shi said the central government would not lose patience so easily.
“National Day [on October 1] is an important time, but the Chinese government is not naive to believe there has to be peace under all heaven then,” he said.
“It’s only a bit more than a month from now, we can almost say for sure the trade war will still be on by then and a major turning point in Hong Kong is not likely to happen. But the celebration must go on.”
Source: SCMP
Posted in 70th anniversary, American, autonomy, backlash, Beijing, bipartisan bill, celebration, China alert, China's cabinet, China-US trade war, China’s State Council, concern, direct intervention, financial system, foreign powers, Hong Kong, international, lawmakers, Mainland China, military action, Ministry of Foreign Affairs, Ministry of Foreign Affairs (MFA), National Day, Ocean University of China, Pangoal Institution, paramilitary, peace under all heaven, People's Armed Police, People’s Republic, preferential status, Qingdao, quell, Renmin University, Risks, Risks still too big, send in troops, Shenzhen, Shenzhen Bay Sports Centre, trade war, trigger, Uncategorized, United States, unrest, US, US President Donald Trump, US warships, US’ 1992 Hong Kong Policy Act |
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07/08/2019
- 46 countries agree protocol aimed at using mediation instead of legal action
- Singapore set to capitalise on the naming of the convention, at Hong Kong’s expense
Singapore Prime Minister Lee Hsien Loong attends the signing ceremony of the Singapore Convention on Mediation. Photo: Handout
China and the United States have briefly put aside their escalating trade war and joined 44 other countries in signing a new global protocol on mediation aimed at settling cross-border trade and commercial disputes.
The
Singapore Convention, under the United Nations framework, will allow mediation agreements to be recognised and enforced in the courts of all 46 signatories, which include South Korea and India. European Union nations are expected to sign in the next phase.
It was agreed against a backdrop of ongoing tensions between China and the US over tariffs and currency manipulation, and a trade dispute between South Korea and Japan
Singapore Prime Minister Lee Hsien Loong addresses delegates at the Singapore Convention on Mediation event. Photo: Handout
Speaking at the signing ceremony, Singapore Prime Minister Lee Hsien Loong said the protocol demonstrated that countries are capable of achieving consensus through effort and creativity, and are open to binding commitments.
He also observed that the established world order of multilateralism is “under pressure”.
“Existing multilateral institutions are not perfect, many are in need of urgent reform, suffer from a loss of confidence, or have practices and structures that are no longer fit for purpose,” Lee said, without elaborating which bodies he was referring to.
He added that the solution would not be to abandon these bodies, but to improve them through reform and bringing them up to date.
“We must make sure they reflect current economic and political realities, and ready them to deal with the new issues created by the progress of technology and globalisation.”
Stephen Mathias, the UN’s assistant secretary-general for legal affairs, said the agreement helped unify mediation rules and remove uncertainty in enforcing mediation agreements.
Delegates attend the signing ceremony of the Singapore Convention. Photo: Handout
The protocol contains standardised terms to apply mediation agreements across jurisdictions, and is expected to bolster the use of mediation rather than legal action to resolve trade disputes.
This rare example of international cooperation can be likened to the New York Convention on arbitration, which was adopted by the UN 60 years ago and is now applied by 160 countries.
Singapore has also capitalised on the naming of the convention, positioning itself as the legal hub in the region, in competition with Hong Kong.
The UN’s Commission on International Trade Law, for instance, has signed a memorandum to establish an academy in international dispute resolution in Singapore.
Hong Kong or Singapore: who to trust on belt and road disputes?
Mediators in Hong Kong said the convention only served to promote their rival city, as Hong Kong professionals remain competitive in the market.
“Lots of cases with a ‘Chinese element’ would pick Hong Kong,” said lawyer Christopher To Wing. “For instance, a US or British firm runs into a dispute with a Chinese firm, they will choose Hong Kong, as the city is close to China.”
But he conceded that more support and funding from the Hong Kong government is needed to catch up with similar promotion efforts by the Singapore government.
Source: SCMP
Posted in belt and road disputes, China alert, Commission on International Trade Law, Cross-border, European Union, Hong Kong, India alert, Lee Hsien Loong, mediation, sign, signing ceremony, Singapore Convention, Singapore Prime Minister, South Korea, tariffs and currency manipulation, trade and commercial disputes, trade dispute, UN protocol, UN’s assistant secretary-general for legal affairs, Uncategorized, United States, US |
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01/08/2019
- Fears are growing in the city that the military could be called in to quell unrest
- But the costs and complexities of doing so mean Beijing is highly unlikely to give the orders, observers say
PLA soldiers show their skills during a naval base open day in Hong Kong. The PLA has had a presence in Hong Kong since the city’s return to Chinese sovereignty. Photo: K.Y. Cheng
It is a prospect dreaded by many in Hong Kong, but debate is growing in mainland China about whether the central government should end weeks of upheaval in the city by sending in the People’s Liberation Army (PLA).
The PLA has had a presence in Hong Kong since the city’s return to Chinese sovereignty but – unlike in mainland China – memories of the military’s bloody suppression of pro-democracy students and activists in Beijing in 1989 are still strong in the city three decades on.
Still, images of protesters vandalising Beijing’s liaison office in downtown Hong Kong on Sunday have fanned nationalist anger across the mainland, prompting calls for PLA intervention.
Concerns only deepened on Wednesday when defence ministry spokesman Wu Qian commented on the recent clashes and protests in Hong Kong. Without suggesting any action or plans by the PLA, Wu made clear that the Garrison Law, which governs the operations of PLA troops in Hong Kong, already stipulates that the PLA is legally allowed to help the city maintain law and order at the request of Hong Kong’s government.
“We are closely following the developments in Hong Kong, especially the violent attack against the central government’s liaison office by radicals on July 21,” Wu said.
“Some behaviour of the radical protesters is challenging the authority of the central government and the bottom line of ‘one country, two systems’,” he warned, referring to the formula that grants Hong Kong a high degree of autonomy for 50 years. “This is intolerable.”
Both Article 14 and Article 18 of the Basic Law – the city’s mini-constitution – spell out how and under what circumstances the PLA troops in Hong Kong can be used.
While the legality is clear, analysts still believe that given the exorbitant political cost and complexities involved, using the military would remain an unlikely last resort.
Even Hu Xijin, editor-in-chief of China’s nationalist tabloid Global Times, has spoken out against the idea, citing its “huge political cost” and the “severe uncertainty” it might bring to the situation.
Crowds hold candles at a vigil in Victoria Park in Hong Kong in June to mark the 30th anniversary of the Tiananmen Square crackdown. Photo: James Wendlinger
“Once the PLA has taken charge of the situation in Hong Kong and quelled the riots, what’s next?” Hu said in a social media post on Monday.
Hu said there were no governance procedures in place that would allow the PLA to operate in Hong Kong and return things to normal. He also warned that any such action would be followed by international condemnation and a severe backlash among the Hong Kong public.
“The [PLA’s] Hong Kong garrison is the symbol of national sovereignty. It is not a fire brigade for law and order in Hong Kong,” he said.
Any move to use the Chinese troops will create a furore in the US Congress … They will re-examine the Hong Kong Policy Act very carefully Larry Wortzel, senior fellow at American Foreign Policy Council
The South China Morning Post reported last week that military force was not an option for mainland leaders working on a strategy to resolve the city’s biggest political crisis in decades.
And in June Major General Chen Daoxiang, commander of the Hong Kong garrison, assured David Helvey, US principal deputy assistant secretary of defence for Indo-Pacific security affairs, that Chinese troops would not interfere in the city’s affairs, according to Reuters.
The comments support analysts’ assessments that deploying the PLA is not a viable solution to Hong Kong’s crisis.
“Will the mobilisation of PLA troops further inflame the situation? There might be people who will resist or even revolt against the PLA, and that may lead to bloodshed,” said Lau Siu-kai, vice-chairman of the Chinese Association of Hong Kong and Macau Studies, a semi-official think tank.
The last time Beijing sent in troops to quell pro-democracy protests was during the Tiananmen Square crackdown on June 4, 1989 – bloodshed that has stained the PLA and the Communist Party to this day, despite decades of efforts to wipe it from public memory.
The last time Beijing sent in troops to quell pro-democracy protests was during the Tiananmen Square crackdown in 1989. Photo: Reuters
“Although they don’t like to admit it, they know they made a mistake in the way they used the PLA [in 1989],” said Larry Wortzel, a long-time PLA watcher, who witnessed the crackdown as an assistant military attache at the US embassy in Beijing 30 years ago.
“In subsequent years, when there were major demonstrations, they managed to handle them with either the People’s Armed Police [PAP] or the Public Security Bureau [PSB], or in some cases a combination of both,” said Wortzel, now a senior fellow in Asian security at the American Foreign Policy Council in Washington.
If the military was deployed [in Hong Kong], it would mean China was ready to shut its doors completely Chen Daoyin, a Shanghai-based political analyst
The PAP is a 1.5 million-strong paramilitary police force tasked with maintaining domestic security and order, while the PSB is the country’s police force.
The June 4 crackdown is still widely remembered in Hong Kong, where tens of thousands gather every year on its anniversary for a candlelight vigil in the heart of the city.
“The activities in Hong Kong and the Chinese Communist Party’s conduct there have really had a profound impact on thinking in Taiwan. It has killed any chance with any political party of [supporting] the one country, two systems,” Wortzel said.
Chinese military can be deployed at Hong Kong’s request to contain protests, Beijing says
“The last thing President Xi Jinping and the Politburo Standing Committee would want to do, if they can avoid it, is to use the PLA [in Hong Kong].”
The situation in Hong Kong is also being closely watched in the West, with many international firms basing regional headquarters in the Asian financial hub, thanks to its capitalist system and rule of law.
Deploying the PLA to Hong Kong would certainly spark an international outcry and draw huge pressure from Western countries, said Liang Yunxiang, an international affairs expert at Peking University.
“Britain, of course, would have the harshest criticism since it governed Hong Kong for a long time and signed treaties with China to ensure Beijing would keep its commitment to one country, two systems,” Liang said.
In the United States, the repercussions could go beyond verbal condemnation to a shift in policy that might fundamentally change Hong Kong’s status as an international financial centre and prompt an exodus of businesses, according to Wortzel.
“Any move to use the Chinese troops will create a furore in the US Congress … They will re-examine the Hong Kong Policy Act very carefully,” he said, referring to the bill passed in 1992 that allows Hong Kong to be treated as a non-sovereign entity distinct from mainland China on trade and economic matters.
Hong Kong head blasts violence, amid further extradition bill unrest
“They will simply treat Hong Kong like another Chinese city, which affects export controls and how the financial industry operates.”
Just last month, members of Congress reintroduced the bipartisan Hong Kong Human Rights and Democracy Act. If the legislation is passed, the US could revoke Hong Kong’s special status under American law if Beijing fails to ensure the city has “sufficient autonomy”.
The crisis comes as Beijing’s ties with Washington are already strained by a year-long trade war that has spilled into other areas of bilateral relations.
PLA troops go through their paces for the public at their Hong Kong barracks during an open day. Photo: Edward Wong
There is also mounting international pressure on China over issues such as its mass internment and political indoctrination of an estimated million or more members of Muslim minorities in Xinjiang, despite the Chinese government’s repeated denials of ill-treatment of the inmates and attempts to defend its policies.
Chen Daoyin, a Shanghai-based political analyst, said the increasing scrutiny China faced from Western countries – whether in the form of punitive tariffs or restrictions on technology – made it all the more important for China to keep Hong Kong as an open channel to connect with the world.
“If the military was deployed [in Hong Kong], it would mean China was ready to shut its doors completely,” Chen said.
Lau, from the Chinese Association of Hong Kong and Macau Studies, said the PLA should only be deployed as a last resort.
Two calls per second ‘jammed emergency lines’ during Hong Kong violence
“It would be a huge blow to the principle of ‘letting Hong Kong people govern Hong Kong with a high degree of autonomy’, since it will prove that Hong Kong people are not up to the task of governing themselves,” he said.
Hu, from Global Times, said the PLA troops could be used only if the authorities lost control of the city or an armed rebellion broke out.
Short of that, he said, the central government should let the chaos in Hong Kong run its course and wait for the public mood to flip.
This strategy of sitting it out hinges on the city’s police force holding the line and stopping Hong Kong’s slide into total anarchy.
Wortzel also warned that there were lines protesters should not cross – or risk provoking the use of military force.
“For instance, to this point, demonstrators have not gone up against the PLA garrison or any of its outposts. If they did that, I think it’s possible – actually it is very likely – that there will be a limited mobilised response [to defend the facilities],” he said.
While most analysts said the chance of Beijing resorting to military force was slim, the very idea – ludicrous to even discuss three months ago – has become a popular topic on social media on the mainland, where the discussion is not censored and many commenters support it.
The official media have been careful not to touch the subject but they too have stepped up rhetoric against the protests in Hong Kong.
In a rare move, state-run China Central Television has run commentaries and reports about protests in Hong Kong during its main evening news for five days in a row.
Only the most politically important issues receive such unusual treatment.
Source: SCMP
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31/07/2019
- Some of those weeded out had been recruited under programme to use immigrants’ vital skills
- New vetting process has delayed enlistments by years, turning more than 1,000 recruits into unlawful immigrants with expired credentials
The Pentagon needs recruits with foreign language skills. Photo: Washington Post
In the past month, the Pentagon booted two Chinese recruits from the enlistment process because of their dead grandfathers, who had lived very different lives.
One recruit’s grandfather, whom he never met, served in China’s Communist Party military. Another recruit was removed from the programme after drilling for three years because of the polar opposite – Zicheng Li’s grandfather fought against, and was tortured by, Communist Party agents, defence officials wrote.
Screening documents obtained by The Washington Post detailing reasons that these and other foreign recruits were removed from the military reveal a pattern of cancelled enlistments and failed screenings for rather innocuous fact-of-life events and, often, simply for existing as foreigners.
Immigrant enlistees have been cut loose for being the children of foreign parents or for having family ties to their native country’s government or military.
I’m shocked and numb. They use anything they can to kick us outZicheng Li, US Army recruit
In some cases, they have relatives who served in militaries closely allied with the United States. Those removals raise questions about the Pentagon’s screening process and why it has weeded out precisely the recruits defence officials said they needed.
The Pentagon programme they were recruited under embraced a simple idea: the military would enlist immigrants to make use of strategic language and medical abilities in short supply among US-born troops, designating the skills of immigrants a national security imperative.
The programme was even named in that fashion – Military Accessions Vital to the National Interest, or Mavni, which enlisted more than 10,400 foreign-born troops in the past decade, with the promise of fast-tracked naturalisation that would take weeks. Speakers of Mandarin, Russian, Arabic and other languages have been in demand by defence officials.
But then denials began to quicken since stricter screening was instituted in late 2016, a lawyer for immigrant recruits said, pointing to family ties as a common reason.
He’s an illegal Chinese immigrant – and a US soldier on Mexico border
Li, who arrived in Minnesota from China in 2012 to study aerospace engineering, said that his US Army enlistment processing had crawled since February 2016. In that time, he attended drills as a selected reservist and received his uniform and an ID card that grants him access to army installations.
Then this month, after three years of waiting, an enlistment denial justification letter arrived in his postbox, containing two sentences about family history.
Li told investigators that his since-deceased grandfather’s torture decades ago by Chinese Communists prompted worry of reprisals if the Chinese government learned of Li’s enlistment.
“You revealed that you fear for your family’s safety,” officials wrote in a letter, saying his suitability for enlistment was adverse, documents show.
A new citizen pledging allegiance to the United States at a naturalisation ceremony in Los Angeles. Photo: AFP
“I’m shocked and numb,” Li said. “They use anything they can to kick us out.”
The new vetting process has delayed enlistments by years, and the wait has turned more than 1,000 recruits – who enlisted as legal immigrants with visas – into unlawful immigrants whose credentials expired as their screenings tumbled into bureaucratic limbo.
The Pentagon has acknowledged in court filings that none of the thousands of recruits who later naturalised from the programme have been charged with espionage-related crimes, though one Chinese recruit has been accused of failing to register as a foreign agent. The new vetting procedures did not play a role in his detection, court filings said.
It is unclear how many immigrant recruits have been turned away as recruits or discharged as soldiers in recent months. In a spate of lawsuits alleging misconduct and violation of equal protection laws, the Pentagon has reversed decisions and halted discharges.
Chinese women join US Army to obtain green cards
Defence officials have not offered public insight into how the vetting works or what kind of oversight exists. The results are typically explained in one or two sentences.
Another Chinese-born recruit, who declined to provide his name out of fear of reprisal to his family by the Chinese government, said he was denied enlistment last month because his father and grandfather served in the Communist military, though the report about his relatives’ positions was inaccurate, he said.
His grandfather died before the recruit was born.
“I don’t know what’s the harm for me to finish my contract and gain my citizenship,” he said.
The US has recruited more than 10,000 foreign-born troops in the last decade. Photo: US Army via Reuters
Mavni screening can be “time-consuming due to our limited ability” to verify information from home countries, said Jessica Maxwell, a Pentagon spokeswoman. She declined to address questions about the process itself and whether screeners adjust expectations of foreign ties if they are screening foreign-born recruits.
She also declined to say how many Mavni recruits are still waiting for their screening to finish, citing litigation and privacy limitations.
Margaret Stock, an immigration lawyer who has represented Mavni recruits, including Li, said the Pentagon has scuttled millions of dollars and years of time to produce unclear reasons why it separates immigrants the Defence Department itself determined it needed.
“This is what they come up with? Your grandfather served in a foreign army before you were born?” Stock asked. “What is the threat to national security? They can’t articulate it here.”
New Pentagon chief’s mission: confront foreign threats, manage Trump
Other rejections point to speculative or seemingly benign information for immigrants living typical lives.
“You revealed that you maintain routine contact with your father and mother who are citizens of and reside in China,” said one document.
An Indian-born recruit was cut loose after an investigation determined that family members “work for or have worked for the Indian army”, according to one document, even thought India and the United States share a defence relationship.
Recruits from South Korea, a key US defence ally, have been penalised because their fathers are required by conscription to serve, Stock said.
Maxwell declined to say why a family member’s involvement in a friendly military would raise suspicions.
Zicheng Li is hoping to become a Hercules pilot. Photo: EPA
Another enlistee was rejected for “multiple wire transfers” through US banks, though the screening review did not describe the nature of the transfers or whether they were unlawful.
One recruit, a Chinese doctoral student, was turned away because a screener with no medical experience said that the recruit had Asperger syndrome – on the basis that the screener once observed a family member with autism, The Post previously reported.
Potential persecution of Li’s family could be aided by the US military itself. US Army recruiters inadvertently exposed the private information of hundreds of Chinese-born recruits, heightening the risk that Chinese government officials would target their families, a lawmaker said.
Pentagon poised to report on US military’s dependence on China
Those disclosures and enlistment delays have forced several recruits to apply for US asylum protection, including Li while he fights the army’s determination that he is unsuitable for service.
Li said he wants to bring his family to the United States. Until then, he has taken a rather American path: he helps design grain enclosures and spreaders for a farm equipment company in Minnesota, with an eye to eventually transitioning from the US Army to the Air Force.
Li said he hopes to become a pilot, perhaps for the C-130 Hercules transport aircraft.
Fighters can be flashy, he said. But the Hercules can get him more time in the cockpit on missions across the world.
Source: SCMP
Posted in aerospace engineering, C-130 Hercules transport aircraft, Chinese relatives, Chinese women, Communist Party agents, Communist Party military, despite, Fighters, foreign language skills, foreign ties, green card, Hercules pilot, indian army, Indian-born recruit, Mexico border, Military Accessions Vital to the National Interest, or Mavni, Minnesota, need, Pentagon, recruits, rejecting, South Korea, The Washington Post, Uncategorized, United States, US Army |
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31/07/2019
- China suggests good progress made in Regional Comprehensive Economic Partnership talks after marathon 10-day negotiations in Zhengzhou
- Indian Commerce Minister Piyush Goyal has opted to skip the upcoming high-level meetings, adding fuel to rumours that the country could be removed
The Association of Southeast Asian Nations (Asean) has overtaken the US to become China’s second-largest trading partner in the first half of 2019. Photo: AP
China has claimed “positive progress” towards finalising the world’s largest free-trade agreement by the end of 2019 after hosting 10 days of talks, but insiders have suggested there was “never a chance” of concluding the deal in Zhengzhou.
The 27th round of the Regional Comprehensive Economic Partnership (RCEP) negotiations closed on Wednesday in the central Chinese city.
working level conference brought over 700 negotiators from all 16 member countries to Henan province, with China keen to push through a deal which has proven extremely difficult to close.
If finalised, the agreement, which involves the 10 Asean nations, as well as China, Japan, South Korea, Australia, New Zealand, and India, would cover around one-third of the global gross domestic product, about 40 per cent of world trade and almost half the world’s population.
“This round of talks has made positive progress in various fields,” said assistant minister of commerce Li Chenggang, adding that all parties had reaffirmed the goal of concluding the deal this year. “China will work together with the RCEP countries to proactively push forward the negotiation, strive to resolve the remaining issues as soon as possible, and to end the negotiations as soon as possible.”
China’s Foreign Minister Wang Yi (fifth left) poses with foreign ministers from the Association of Southeast Asian Nations (Asean) countries during the ASEAN-China Ministerial Meeting in Bangkok. Photo: AFP
China is keen to complete a deal which would offer it a buffer against the United States in Asia, and which would allow it to champion its free trade position, while the US pursues protectionist trade policy.
The RCEP talks took place as Chinese and American trade negotiators resumed face-to-face discussions in Shanghai, which also ended on Wednesday, although there was little sign of similar progress.
As the rivalry between Beijing and Washington has intensified and bilateral trade waned, the Association of Southeast Asian Nations (Asean) overtook the US to become China’s second-largest trading partner in the first half of 2019. From January to June, the trade volume between China and the 10-member bloc reached US$291.85 billion, up by 4.2 per cent from a year ago, according to government data.
The Asean bloc is made up of Indonesia, Thailand, Malaysia, Singapore, Philippines, Vietnam, Myanmar, Cambodia, Brunei and Laos.
China will work together with the RCEP countries to proactively push forward the negotiation, strive to resolve the remaining issues as soon as possible, and to end the negotiations as soon as possible. Li Chenggang
RCEP talks will now move to a higher level ministerial meeting in Beijing on Friday and Saturday, but trade experts have warned that if material progress is not made, it is likely that the RCEP talks will continue into 2020, prolonging a saga which has already dragged on longer than many expected. It is the first time China has hosted the ministerial level talks.
But complicating matters is the fact that India’s Commerce Minister, Piyush Goyal, will not attend the ministerial level talks, with an Indian government official saying that he has to participate in an extended parliamentary session.
India is widely viewed as the biggest roadblock to concluding RCEP, the first negotiations for which were held in May 2013 in Brunei. Delhi has allegedly opposed opening its domestic markets to tariff-free goods and services, particularly from China, and has also had issues with the rules of origin chapter of RCEP.
China is understood to be “egging on” other members to move forward without India, but this could be politically explosive, particularly for smaller Asean nations, a source familiar with talks said.
Deborah Elms, executive director of the Asian Trade Centre, a Singapore-based lobby group, said that after the last round of negotiations in Melbourne between June 22 to July 3 – which she attended – there was “frustration” at India’s reluctance to move forward.
She suggested that in India’s absence, ministers in China could decide to move forward through a “pathfinder” agreement, which would remove India, but also potentially Australia and New Zealand.
India’s Commerce Minister, Piyush Goyal, will not attend the ministerial level talks this week in Beijing. Photo: Bloomberg
This “Asean-plus three” deal would be designed to encourage India to come on board, Elms said, but would surely not go down well in Australia and New Zealand, which have been two of the agreement’s biggest supporters.
New Zealand has had objections to the investor protections sections of RCEP, and both countries have historically been pushing for a more comprehensive deal than many members are comfortable with, since both already have free trade agreements with many of the other member nations.
However, their exclusion would be due to “an unfortunate geographical problem, which is if you’re going to kick out India, there has always been an Asean-plus three concept to start with”. Therefore it is easier to exclude Australia and New Zealand, rather than India alone, which would politically difficult.
A source close to the negotiating teams described the prospect of being cut out of the deal at this late stage as a “frustrating rumour”, adding that “as far as I know [it] has no real basis other than a scare tactic against India”.
There was “never a chance of concluding [the deal during] this round, but good progress is being made is what I understand. The key issues remain India and China”, said the source, who wished to remain anonymous.
Replacing bilateral cooperation with regional collaborations is a means of resolving the disputesTong Jiadong
However, Tong Jiadong, a professor of international trade at the Nankai University of Tianjin, said Washington’s refusal to recognise India as a developing country at the World Trade Organisation could nudge the world’s second most populous nation closer to signing RCEP.
“That might push India to the RCEP, accelerating the pace of RCEP,” Tong said, adding that ongoing trade tensions between Japan and South Korea could also be soothed by RCEP’s passage.
“Replacing bilateral cooperation with regional collaborations is a means of resolving the disputes between the two countries,” Tong said.
Although the plan was first proposed by the Southeast Asian countries, China has been playing an increasingly active role, first as a response to the now defunct US-backed Trans-Pacific Partnership (TPP), and more recently as a means of containing the impact of the trade war.
China’s vice-commerce Minister, Wang Shouwen, told delegates last week that RCEP was “the most important free trade deal in East Asia”. He called on all participants to “take full advantage of the good momentum and accelerating progress at the moment” to conclude a deal by the end of the year.
Source: SCMP
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31/07/2019
- China’s Wang Yi and US’ Mike Pompeo at summit in Thailand to sell their visions of future for Southeast Asia
- Analysts expect pragmatism from Asean as world’s two biggest economic powers play diplomatic game
Chinese Foreign Minister Wang Yi (right) greets his Philippine counterpart Teodoro Locsin at the Asean meeting in Bangkok, Thailand. Photo: Xinhua
China and the United States are on a mission to strengthen ties with allies and expand their influence in Southeast Asia this week as their trade war enters a second year.
US Secretary of State Mike Pompeo arrived for a meeting of the Association of Southeast Asian Nations (Asean) in Bangkok on Wednesday to promote the US-led Indo-Pacific strategy, while Chinese Foreign Minister Wang Yi touched down a day earlier to advance Beijing’s Belt and Road Initiative.
The US Department of State said Pompeo’s trip was aimed at deepening Washington’s “long-standing alliances and vibrant bilateral relations with these countries, and [to] reaffirm our commitment to Asean, which is central to our vision for the Indo-Pacific region”.
In Beijing on Wednesday, Chinese foreign ministry spokeswoman Hua Chunying said that while their meeting was yet to be set, Wang and Pompeo were expected to meet and talk “frankly” about bilateral relations.
“I think that it is indeed necessary for China and the United States to maintain communication, as the two countries face many situations,” Hua said. “The issues would be communicated frankly”.
The Indo-Pacific strategy is a military and economic framework to contain China’s expansion into the Pacific and Indian oceans, and give an alternative to Beijing’s flagship belt and road development programme.
En route to Thailand, Pompeo said that after a stalled start to US Indo-Pacific policy during the Barack Obama administration, Washington’s strategy was well on its way to bearing fruit for the US and its allies.
South China Sea tensions, US-China trade war loom over Asean summit
“We have watched these coalitions build out,” he said.
Pompeo dismissed claims that China’s sphere of influence among Asean members was growing, saying such speculation was “not factually accurate”.
“[Asean countries] are looking for partners that are going to help them build out their economies and to take good care of their people,” he said, pledging greater engagement from President Donald Trump’s administration.
Pompeo was expected to sit down on Friday with his South Korean and Japanese counterparts to consolidate their trilateral alliance in the region.
He was also expected to hold talks with Thai Foreign Minister Don Pramudwinai that day.
US Secretary of State Mike Pompeo is expected to meet Chinese Foreign Minister Wang Yi at Asean in Thailand. Photo: EPA-EFE
Meanwhile, Wang launched his belt and road pitch to his Cambodian, Philippine and Indonesian counterparts after he arrived in Thailand for the gathering, which ends on Saturday.
The belt and road projects are largely commercial and aimed at strengthening land and sea infrastructure linking Asia, Europe and Africa. But they raised suspicion in the West that they are aimed at eroding the US-led world order.
During his meeting with Philippine Foreign Affairs Secretary Teodoro Locsin, Wang said: “China is willing to have high-level exchanges with the Philippines, to deepen the mutual trust, and promote the Belt and Road Initiative [in the Philippines] … to accelerate the development of regional infrastructure.”
Can China’s trade boost with Asean help get the Regional Comprehensive Economic Partnership over the line?
This year’s Asean forum was taking place as countries were more receptive to Chinese initiatives, in part due to the unpredictability of the US administration, according to Rajeev Ranjan Charturvedy, a visiting fellow at the S. Rajaratnam School of International Studies at Nanyang Technological University in Singapore.
“Policy uncertainties under the Trump administration have already pushed some Asean countries towards China in ways that would have seemed unlikely a few years ago,” Charturvedy said.
Analysts said Trump’s “America first” approach shaped his Asean policy. The president had vowed to apply “punishments” to countries – including Asean member states – for contributing to the US trade deficit.
Chinese Foreign Minister Wang Yi is talking to Asean counterparts at a time when they are receptive to China’s proposals, an analyst says. Photo: AFP
Trump was absent at the Asean summit in Singapore last year, leading to concerns that Washington’s commitment to Asia was declining.
Charturvedy said the Asean forum’s focus was about building constructive regionalism, but China’s attitudes to security could pose a challenge.
“[However] Asean countries clearly hope not to be forced to choose between the US and Chinese offers. Rather, they would like more freedom of choice while accommodating for a larger role for China in the region,” he said.
Clarita Carlos, a professor of political science at the University of the Philippines, suggested that Asean members would be pragmatic during the forum.
Robert Lighthizer warns Vietnam over trade deficit with US
They would try to find their own balance between the two major powers – as countries rather than a bloc – to try to maximise each state’s interests and advantages, Carlos said.
“Vietnam has a love-hate relationship with China, especially as a winner in the ongoing US-China trade war,” she said. “Singapore has close relations with China. There are also ups and downs in the relationship with China for Brunei, Malaysia and Indonesia.”
Source: SCMP
Posted in africa, Asia, Association of Southeast Asian Nations (ASEAN), Bangkok, Barack Obama administration, Beijing, belt and road development programme, Belt and Road Initiative (BRI), belt and road projects, Brunei, Cambodian, China alert, China court Asean members, Chinese foreign minister Wang Yi, diplomatic game, Don Pramudwinai, enters second year, Europe, Indo-Pacific strategy, Indonesia, Indonesian, land infrastructure, Malaysia, Mike Pompeo, Philippine, Philippine Foreign Affairs Secretary, pragmatism, President Donald Trump, Regional Comprehensive Economic Partnership, Regional Comprehensive Economic Partnership (RCEP), S. Rajaratnam School of International Studies, sea infrastructure, Singapore, Singapore’s Nanyang Technological University, Southeast Asia, strengthen Indo-Pacific ties, summit, Teodoro Locsin, Thai Foreign Minister, Thailand, trade war, Trump administration, Uncategorized, United States, University of the Philippines, US court Asean members, visions of future, Washington |
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30/07/2019
BEIJING, July 29 (Xinhua) — The principle of special and differential treatment for developing members in the World Trade Organization (WTO) should be safeguarded, a Foreign Ministry spokesperson said Monday.
The United States issued a memorandum on Friday that required the WTO to change how it designates developing countries, singling out China multiple times.
In response, spokesperson Hua Chunying said the WTO must respect the general will of all members, and the principle of special and differential treatment for developing members reflects the core value and basic principle of the WTO.
Most WTO members believe these core values and basic principles should be upheld regardless of how the WTO is reformed, Hua said, adding that the United States should realize its claims would not gain support from other WTO members.
No single country or a few countries can designate developing members in the WTO. It should be determined through consultations among WTO members, especially by respecting the opinions of developing countries.
The U.S. side exaggerates the development level of some developing countries, which has been repeatedly opposed by most developing members, Hua said, noting that a recent report by the United Nations Conference on Trade and Development said the current classification of developing countries was reasonable.
As the largest developing country in the world, China insists on its status of developing country not because it shrinks from due responsibilities, but because it advocates the basic rights of developing countries and safeguards global justice and fairness, Hua said.
China would contribute to help other developing members achieve common development, safeguard the multilateral trade system and promote the WTO reform in the right direction, she said.
She said the U.S. move on developing country status within the WTO further exposed its arrogance and selfishness, and was not in line with its status as the world’s largest country.
Source: Xinhua
Posted in Chinese Foreign Ministry spokesperson, developing members, memorandum, safeguarded, Special treatmen, Uncategorized, United Nations Conference on Trade and Development, United States, World Trade Organisation (WTO) |
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30/07/2019
- Armed F-16 fighter jets simulate attack followed by medium and long-range missile launches into eastern waters
- People’s Liberation Army launched two large-scale drills close to Taiwan Strait on Sunday
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Taiwan has launched a military exercise including F-16 fighter jets in response to Beijing’s war games, which began on Sunday. Photo: AFP
Taiwan responded to Beijing’s military drill targeting the self-ruled island by deploying its most advanced fighter jets and firing 117 medium and long-range missiles on Monday and Tuesday.
Defence ministry spokesman Lee Chao-ming said the missiles were fired from the Jiupeng military base to waters off eastern Taiwan, with a range of 250km (155 miles), in an exercise covering five types of training for the island’s forces.
On Monday, Taiwan’s air force also dispatched two F-16 fighter jets armed with AGM-84 Harpoon missiles in a simulation of an attack off the island’s southeast coast.
Song Zhongping, a military commentator based in Hong Kong, said the Taiwan drill was aimed at the mainland Chinese exercise which began on Sunday. The location of the Taiwan drill meant its missiles’ electronic data could avoid detection by the People’s Liberation Army’s radar, he said.
Chinese military starts Taiwan Strait drills amid rising tension
“Taiwan is focusing on boosting self-defence, and building up a comprehensive air and sea defence network to counter military threats from the mainland,” Song said.
“The test firing of missiles is to boost the island’s self-defence capability. The military drill of the PLA has triggered a lot of concerns in Taiwan, and Taiwan is responding to it also through a strong military means.”
The PLA launched two large-scale military drills close to the Taiwan Strait on Sunday, after a notice issued by the Zhejiang Maritime Safety Administration prohibited ships from entering the waters off the coast of the eastern province between 6pm on Saturday and 6pm on Thursday.
The Guangdong Maritime Safety Administration said another set of military exercises would be held in the waters off Fujian province between Monday morning and Friday evening.
Observers said they expected PLA forces from the Southern and Eastern commands – whose area of responsibility includes Zhejiang and Fujian, which lie across the strait from Taiwan – to take part in the exercises.
Japan’s Ministry of Defence said on Monday that six Chinese warships had passed through the Miyako Strait – a waterway lying between Okinawa Island and Miyako Island – presumably in preparation for the drills.
Japanese military vessels said a Chinese class-three missile destroyer – a type 054A missile frigate – was sailing 240km north of Miyako Island on Saturday.
On Thursday, Japanese ships reported China’s type 052D destroyer Xining, type 054A missile frigate Daging, the guided missile frigate Rizhao, and the ocean comprehensive supply ship Hulun Lake, all entered the Pacific Ocean through the Miyako Strait.
This is China’s first war game to involve simultaneous exercises at two locations in waters near Taiwan since the 1995–96 Taiwan Strait Crisis, during which the PLA conducted a series of large-scale live-fire exercises in response to then-Taiwanese leader Lee Teng-hui’s visit to the United States, and ahead of the Taiwanese presidential election.
Source: SCMP
Posted in 054A missile frigate, AGM-84 Harpoon missiles, Armed F-16 fighter jets, Beijing’s military exercises, Chinese warships, class-three missile destroyer, Daging, defence ministry spokesman, drill, Fujian Province, Guangdong Maritime Safety Administration, guided-missile frigate, Hulun Lake, Japan’s Ministry of Defence, Japanese military vessels, Jiupeng military base, large-scale drills, medium and long-range missile launches, missile frigate, Miyako Island, Miyako Strait, ocean comprehensive supply ship, Okinawa Island, own, Pacific Ocean, People’s Liberation Army (PLA), PLA, responds, Rizhao, Taiwan, Taiwan Strait, Taiwan Strait Crisis, Taiwan’s air force, type 052D destroyer, Uncategorized, United States, Xining, Zhejiang Maritime Safety Administration, zhejiang province |
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29/07/2019
- China last year poured US$2.5 billion into firms in India, which is a healthy breeding ground for up-and-coming tech outfits
- Active cooperation between these investors and entrepreneurs holds a multitude of benefits for both sides, according to industry pundits
Chinese venture capitalists are injecting funds into a variety of cash-hungry Indian businesses. Photo: Shutterstock
C
hinese President Xi Jinping and
look set for another informal summit in October, and a key item on the agenda will be
.
Indian start-ups have become a major target for
, who have been looking to emulate their United States counterparts such as Tiger Global and Sequoia Capital that dominate the sector.
On top of this, a slowdown in start-up deals in China has nudged the country’s investors to look beyond their borders, and
’s affordable labour market and strong economic growth provide a healthy breeding ground for young tech outfits.
Can Bollywood be the bridge that binds India and China?
Led by heavyweights such as Shunwei Capital, Fosun International, Tencent Holdings, Xiaomi and Alibaba Group Holding – which owns the
South China Morning Post –
have been injecting funds into a variety of cash-hungry Indian businesses.
For many of these start-ups, the knowledge and technology of Chinese investors act as the backbone of their business Ntasha B, Venture Gurukool
Beneficiaries have included advertising firm Media.net, e-commerce operator Snapdeal, digital payment provider Paytm, online travel firm MakeMyTrip, messaging platform Hike, health tech start-up Practo and news aggregator Dailyhunt.
“For many of these
, the knowledge and technology of Chinese investors act as the backbone of their business, along with the operational expertise of Indians in the domestic market,” said Ntasha B, co-founder of Venture Gurukool, a mentoring platform for start-ups which works closely with Indian diplomatic missions in China.
Chinese President Xi Jinping and Indian Prime Minister Narendra Modi are set to meet again in October. Photo: Xinhua
She added that Chinese investors usually had a hands-on approach and were a bit inflexible, unlike their American counterparts, who gave some elbow room in hiring local teams.
A senior executive with an Indian start-up, who did not wish to be identified, said it was sometimes straightforward to convince Chinese investors as they could relate to Indian business models and requirements that were dissimilar to those from the Western world.
The world’s second-largest economy invested nearly US$2.5 billion in Indian start-ups last year, a figure that has touched almost US$1 billion so far this year, according to finance research firm Venture Intelligence. The number of such deals jumped from just one in 2013 to 27 last year.
What does Amazon’s China departure mean for its Indian e-commerce battle?
Indian start-ups are estimated to have raised US$3.9 billion from around the globe in the first six months of this year, and the inflow from Chinese behemoths played a key role in pushing them to turn east to source funding.
“What’s more interesting about [Chinese investors’] strategy is that they’re paying more attention to rural India. If you look at the companies they’ve invested in, a fair amount of their businesses target the rural segment,” said Sandeep Murthy, managing partner at venture capital firm Lightbox Ventures, which keeps a close watch on Chinese investments. He said the brisk economic activities in India’s tier two and tier three towns are more attractive to Chinese investors than India’s urban centres.
Ctrip, China’s largest online travel agency, is drawn to the size and rapid advancement of the Indian market. Photo: Bloomberg
For Ctrip – China’s largest online travel agency, which in April took a 49 per cent stake in MakeMyTrip – the appeal of India was its whirlwind technological advancement and the disposable income of its massive young population.
“[MakeMyTrip has] achieved fast growth in the online travel market and is becoming well recognised in the Indian market. Their comprehensive products and services, management team and the opportunities in India result in our confidence that they will continue to succeed,” said Wei Yuan Min, a member of Ctrip’s global team. Behind the US and China, India houses the world’s third-largest start-up ecosystem in terms of the number of companies. As for the number of unicorns – start-ups valued at over US$1 billion – India ranks third, offering a vibrant habitat for entrepreneurial ventures. The country is home to 32 such firms, with the addition of nearly half a dozen so far this year and 15 last year.
In India, one man took on Chinese firm ByteDance to shut down TikTok – and he wants to do it again
New Delhi expects there to be 12,000 tech start-ups in the country by next year, up from 7,200 last year. There were 1,200 new tech firms in the sector last year, according to industry body Nasscom.
One of those capitalising on this opportunity is the Beijing-headquartered technology company Xiaomi, which last year promised to pump US$1 billion into 100 Indian start-ups over the next five years. Most of these Indian firms are involved in businesses that are ancillary to Xiaomi’s key operations.
Chinese firm Xiaomi is banking on Indian start-ups to strengthen its own products. Photo: Reuters
“These start-ups help us in building a stronger product offering,” a Xiaomi spokesperson said. “The idea is to invest in start-ups which can further boost the mobile ecosystem in India. They could be into mobile gaming, service providers, value-added services or servicing the mobile industry.”
Xiaomi has been rapidly expanding its businesses in India, selling smartphones, television sets, security cameras, speakers, power banks, and more. India was the first market outside China where Xiaomi introduced its television sets.
Asked which sector would be Xiaomi’s focus for investment in the coming years, the spokesperson said the company was looking to focus on hardware-related start-ups in the ecosystem which could offer “robust solutions” to its Indian requirements.
Amazon, Uber and Google struggled in China, but Indian hotel chain Oyo is succeeding.
Here’s why
While hopes for India’s start-up sector are high, there have been some disappointments. There were reports this month that Alibaba, a major shareholder in Paytm, was unhappy with the Indian firm’s performance, pressuring it to realign its strategies and looking unlikely to provide fresh capital.
Paytm, a digital-payment-system unicorn, launched its own e-commerce Paytm Mall in 2016 when Walmart-backed Flipkart and Amazon were dominating the market.
However, the venture has yet to take off and is burning through cash.
Paytm refused to comment on the matter.
Paytm has attracted investment from Alibaba, but its Paytm Mall venture is struggling. Photo: Bloomberg
Chinese firms’ coordinated effort to enter the Indian start-up scene has made it easy for Indian ventures to access new sources of revenue. For instance, the state-run Industrial and Commercial Bank of China (ICBC), the country’s largest lender, launched an India-specific investment fund for Chinese investors in May last year.
Several Chinese venture capitalists are also providing platforms for entrepreneurs through fellowship schemes. Four Indian ventures – Zefo, Healthy Buddha, NowFloats and Grozip – took part in one such fellowship initiative run by Alibaba last year.
Gold, jewels, ‘Islamic’ finance: how India’s I Monetary Advisory built a US$365 million Ponzi scheme
India has warmly welcomed these initiatives. Amitabh Kant, chief executive of state-backed policy think tank Niti Aayog and a close aide of Modi, has publicly said China should become the topmost investor in its neighbour.
Vikram Misri, India’s ambassador to China, has also been pushing for increased economic cooperation and Chinese investment since he took charge in January, despite expressing concerns over New Delhi’s widening trade deficit with Beijing.
Vikram Misri, India’s ambassador to China, is looking for more economic cooperation between the two countries. Photo: Xiaomei Chen
The increased Chinese investment in Indian ventures has coincided with the Modi administration’s 2015 launch of the Startup India initiative, an umbrella scheme aimed at easing related activities through measures such as tax exemptions and simplified paperwork.
Industry pundits say active cooperation between Chinese investors and Indian entrepreneurs holds a multitude of benefits for both sides.
“The cooperation gives Chinese investors global scale and opportunity to diversify their investments,” said Neil Shah, partner and research director at the technology market research firm Counterpoint.
The cooperation gives Chinese investors global scale and opportunity to diversify their investmentsNeil Shah, Counterpoint
“For Indian start-ups, this gives cross-border learning, guidance from their global investors on dos and don’ts, tactical and long-term strategy, how to create value, run operations efficiently as well as expand beyond India.”
Nilaya Varma, partner and leader of markets enablement at KPMG India, said there was a cultural shift happening in the country where young Indians brimming with ideas wanted to pursue their dreams rather than work for someone else. This brought out the entrepreneurial spirit of this generation, he said.
“The knowledge, concepts, ideas and innovations of the small start-ups in India will have a global appeal. So it makes a lot of sense for Chinese big players to invest here,” he said.
Source: SCMP
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CHINDIA ALERT: You'll be living in their world, very soon 