Posts tagged ‘Daulat Beg Oldi’

17/09/2014

Is China’s promised $100 billion India investment more dangerous than its border policy?

Experts believe that China deliberately uses trade as part of its geo-strategic arsenal.

The script is almost predictable. Right before meetings of Indian and Chinese heads of state, something happens on the border to remind everyone that sentiment between the two countries is not exactly neighbourly. Last year it was a standoff in Daulat Beg Oldi about infiltration by the Chinese army. This year, with everyone excited at China’s promise to pump $100 billion into India, there’s another incursion by the Chinese into Demchok in Ladhak.

Chinese President Xi Jinping arrives in India today and will visit Ahmedabad on Prime Minister Narendra Modi’s birthday. But Chinese troops have also been reported to have moved 500 meters into Indian territory.

Beijing’s approach seems to be sweet-talking – this time taking the form of foreign direct investment – coupled with regular pinpricks that remind India that they have the stronger position on the border.

But could the proposed investment be as much of a threat to India as the border dispute?

Trading places

India’s total trade with China was around $65 billion in 2013-’14. Of that, only $14 billion were Indian exports heading into China, leaving India with a trade deficit of $36 billion. If oil imports are included, Chinese imports are responsible for nearly half of India’s overall trade deficit. This is a great many Indian eggs in one Chinese basket.

For many economists, this isn’t a problem. It’s simply the way efficient markets ought to function, with India buying the goods it needs from the most competitive seller. “The more competitive the trading partner, the more India should buy from it, and the bigger should be the bilateral trade deficit,” wrote commentator Swaminathan Aiyar last year. “China is the most competitive exporter of all, so India should run its biggest trade deficit with this country.”

Yet India does feel the need to reduce the trade deficit with China. Answering a question in the Lok Sabha earlier this year, minister of state for commerce Nirmala Sitharaman admitted that the balance of trade was heavily in China’s favour and that India was taking steps to address this.

“With a view to reducing the trade deficit with China, efforts are being made to diversify the export basket,” Sitharaman said.

via Scroll.in – News. Politics. Culture..

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26/07/2013

India, China trying to develop mechanism to prevent face-off: AK Antony

Daulat Beg Oldi is in northernmost Ladakh.

Daulat Beg Oldi is in northernmost Ladakh. (Photo credit: Wikipedia)

Times of India: “NEW DELHI: India and China are trying to develop effective mechanisms to prevent the “embarrassing” face-offs between their troops along the “disputed” points of the Line of Actual Control, defence minister AK Antony said here on Friday.

 

Terming the 21-day stand-off between the two sides in Depsang valley in Daulat Beg Oldi area as an “unusual” incident, the defence minister said the two countries will meet soon in Beijing to discuss issues and try to find a solution for such “unpleasant incidents”.

“Till the final settlement of the border issue, we are trying to find out more effective mechanisms to prevent occasional incidents. There are many points in the LAC that are disputed and they are patrolled by both sides. So, sometimes it leads to some face-off,” he told reporters on the 14th anniversary of Kargil Vijay Diwas.”

via India, China trying to develop mechanism to prevent face-off: AK Antony – The Times of India.

11/05/2013

* India, China working on Border Cooperation Agreement: Khurshid

The Hindu: “Mr. Khurshid visited China in the backdrop of the Chinese incursion in Daulat Beg Oldi.

External Affairs Minister Salman Khurshid speaking to the reporters after after meeting former Railways Minister Pawan Kumar Bansal at his residence in New Delhi on Saturday. Photo: PTI

Against the backdrop of China’s recent incursion in Ladakh, External Affairs Minister Salman Khurshid on Saturday said the two countries are working on a new Border Defence Cooperation Agreement.

Mr. Khurshid, just back from his visit to Beijing, said the two sides had underlined that the incidents like the recent incursion in Daulat Beg Oldi should not happen and agreed that this issue should not come in way of improving ties.

Mr. Khurshid told reporters here that special representatives of India and China will meet in a couple of months to discuss in detail the issues related to boundary. “China has proposed sometime back a proposal for Border Defence Cooperation Agreement… We have also given our suggestions,” he said.

On the recent incursion of 19 km into India’s territory by Chinese troops, he said, “we did not do any post-mortem or aportion blame.” He expressed satisfaction that the mechanisms in place worked well to resolve the stand off.

On the contentious issues which could be raised during the visit of Chinese premier Li Keqiang, Mr. Khurshid said, “there are no prickly issues, issues of major differences which can be seen as obstacles.” He said MoUs would be signed during the Chinese premier’s visit and some during Prime Minister Manmohan Singh’s subsequent visit to Beijing later this year.

“This is for the first time since 1954 that a two way visit by the two Prime Ministers of the two countries in the same year,” he said.”

via India, China working on Border Cooperation Agreement: Khurshid – The Hindu.

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