Tag Archives: china

The Obama Visit and U.S.-India Relations

During those remarkable years when Indian students were flocking to U.S. colleges, acquiring skills and reputations that eventually made them the highest earning ethnic group in the U.S, the two governments were doing their damnest to destroy the relationship. Many in both governments still don’t know any better, although it is the government in Delhi that is drifting closer into dangerous waters, led by a captain without the strength to curb odd ministers running their own foreign policy. The reasons the U.S. government didn’t like Delhi in those years lay chiefly in Indira Gandhi’s bizarre attempt to enter the nuclear club in 1974, and of course the CIA’s mischievous assessment that India was a Soviet ‘ally’. The end of the cold war and George Bush’s nuclear deal should have flattened those hurdles, once and for all. The hurdles are gone, but ending a bad relationship is not the same as getting into a new one. Manmohan Singh’s courageous and tenacious performance in Parliament on the nuclear deal saw Indian political leadership at its best. The U.S. government’s worldwide arm twisting to get India the NSG waiver, demonstrated what a super power can do, when it stretches itself for a friend. Since then it’s been all downhill.

France and Russia have got the civil nuclear contracts, after the U.S. did the heavy lifting. Russia has been given the fifth generation fighter contract after the U.S. promised 100 GE 414 jet engines for India’s collapsed jet fighter project. Despite the government’s directive to all ministries to crank up the agenda for President Obama’s visit, a huge hole was created by Antony’s Ministry of Defense which is facing in a different direction. The Ministry believes that the Communications Security Agreement (CISMOA) is a devious and deliberate American plot to eavesdrop on Indian communications, as if the National Security Agency in Washington has no other means to achieve the same objective. The Logistics Agreement would have been hugely beneficial to the navy and air force to extend their reach, using U.S. assets worldwide. It was an agreement that the PLA would have paid billions for. Reciprocal facilities for unpopular U.S. wars could always have been turned down in special circumstances as Turkey did in 2002.The Indian MOD has shut the Indian armed forces off from advanced world technology by refusing to consider both. The U.S. President’s visit was eventually carried off by President Obama and Michelle Obama’s hugely effective public posturing, and some heroic behind the scene actions by corporate India and the U.S.-India CEO’s forum. Even so, the French and the Chinese signed an equal if not larger clutch of business deals with India. The President of the U.S. has a limited charter, unlike New Delhi, where there are Ministers for Coal, steel, petroleum, water, fertilizer, shipping, airlines, roads etc. So New Delhi has not yet grasped the essentials of the new world that it has to live in.

China has overtaken Japan as the world’s second wealthiest nation. Its GDP is $ 5 trillion against India’s $1.3 trillion. By 2020 both GDPs could quadruple, thereby increasing the gap from $ 3.7 to 14.8 trillion (India $ 5.2 trillion vs. China $ 20 trillion). From dams on the Brahmaputra to the Tibetan border, to the Indian Ocean – China’s power and arrogance is something India will have to live with. But how?

Will we see another Krishna Menon cozying upto China, our great Asian ‘brother’, when eventually Nehru had to write to JFK for 12 squadrons of fighter bombers, ‘flown by U.S. pilots’? There are even more unanswered questions. Will the Indian Air Force and Indian Navy sit out a Himalayan war, as they did in 1962 in the collective belief that their contribution to help the army could only make things worse? We don’t need an alliance with the US. We don’t need to get into a fight with China- not now, not ever. But how do we avoid one? Only by playing to China’s belief in Real Politik. To do that, India needs the U.S’ world class defense technology. Israel, France and Russia are alright for the middle level stuff. To get the world class stuff from the U.S. we need a relationship run by governments. The U.S.-India business councils, the Indian-Americans and the CEO’s forum can only do so much. India’s MOD cannot run its own foreign policy either.

How long will India play to maintain status quo?

It was like just another formality in the Sino-Indian relationship being fulfilled, as the Chinese Prime Minister Wen Jiabao concluded his “significant” “trust-building” India visit on Friday. The Chinese Premier brought along a huge entourage of 400 business leaders to India, signaling the only purpose of his visit – more business. India and China signed six business deals, announced plans to increase business to $100 billion by 2015 and established a Strategic Economic Dialogue. PM Wen Jiabao also announced that Indian and Chinese companies would be signing deals worth $16 billion. But at the end of three day tour, the fact remains that there is a huge trade deficit and imbalance between India and China, and no concrete announcements to reduce or eliminate it were made.

The trade between the two countries has almost tripled since 2005 and today stands at $60 billion. But India’s trade deficit with China is about $19 billion this year alone. This is explained by the two fold increase in Indian exports to China between 2005 and 2010($11.6 billion) and three-fold increase in Chinese exports to India ($30.8 billion). India has been largely exporting raw materials to China, and importing finished goods made mostly from the same raw materials. This pattern of trade, even if it results in large numbers for cumulative trade, is not good for Indian interests and business. Not to mention the large dumping of Chinese goods into India that damages local manufacturing, and against which India has launched various complaints with the WTO. Further, Chinese FDIs in India are only $52 million, whereas since 2005 Indian FDIs into China have been $879 million.

In the backdrop of this trade imbalance it would have been expected that the Indian side would demand and negotiate constructive mechanisms to reduce the trade deficit and balance out the balance sheet. However, the joint statement by the two leaders only made ambiguous references to working towards improving trade. Neither were there any signs of China conceding ground or supporting Indian in case of some of the other contentious issues such as the stapled visa for Kashmiri residents, terrorism emanating from Pakistan, China-Pak nuclear deal and dam on the Brahmaputra. Even during the Foreign Secretary’s Press Briefing her answers to these questions were full of diplomatic jargon and ambiguity, leaving one to conclude that India could not squeeze out even one favorable comment on contentious issues from China.

Wen Jaibao’s visit was symbolic of the ‘cordial’ imbalanced relationship between the two countries. The Indian government’s reactions and remarks showed more a willingness and desire on its part to not antagonize the Chinese and maintain status quo, rather than stand up for its rightful claims and risk retaliatory actions by the Chinese in international forums or along the borders. It is unfortunate that in spite of the much touted personal rapport between Manmohan Singh and Wen Jiabao, home-ground benefit, India’s growing clout in the world, and two recent successful visits by President Obama and President Sarkozy, India could not stand up for its demands and make its  presence felt during this Chinese visit. It is time, after 60 years of being together, that India steps up its game, and works towards not improving relations, but developing a mature relationship with China where it does not play second fiddle and pussyfoot around it.

(This post originally appeared at the FPA’s India blog.)

Continuing Instability in South Asia Hampering Development

Though this past year has been relatively peaceful in South Asia, the unstable regional security environment, India’s unresolved territorial and boundary disputes with China and Pakistan, and the continuing internal security challenges are a cause for concern. After West Asia, this region is perhaps the most trouble prone region in the world. With a history of four conflicts in 60 years and three nuclear-armed adversaries continuing to face off, South Asia has often been described as a nuclear flash-point.

The regional security environment in South Asia continues to be marred by Afghanistan’s endless civil war despite the induction of additional troops in 2010 by the U.S.-led NATO-ISAF coalition forces. Pakistan’s halfhearted struggle against the remnants of the Al Qaeda and the Taliban, fissiparous tendencies in Baluchistan and the Pushtun heartland, continuing radical extremism and creeping Talibanisation, the unstable civilian government, the floundering economy and, consequently, the nation’s gradual slide towards becoming a ‘failed state’, pose a major security threat to India. The collusive nuclear weapons-cum-missile development programme of China, North Korea and Pakistan as also Iran’s quest for nuclear weapons are serious issues of concern.

Sri Lanka’s inability to find a lasting solution to its ethnic problems despite the comprehensive defeat of the LTTE (Liberation Tigers of Tamil Eelam) has serious repercussions for stability in the island nation. Bangladesh’s emergence as the new hub of Islamist fundamentalist terrorism, even as it struggles for economic upliftment to subsistence levels, could trigger a new wave of terrorism if left unchecked. The Maoist ascendancy in Nepal and its adverse impact on Nepal’s fledgling democracy, as also Nepal’s new found inclination to seek neutrality between India and China, are a blow to what has historically been a stable India-Nepal relationship. Simmering discontentment in Tibet and Xinjiang against China’s repressive regime is gathering momentum and could result in an open revolt. The peoples’ nascent movement for democracy in Myanmar and several long festering insurgencies may destabilize the military Junta despite its post-election confidence. The spillover of religious extremism and terrorism from Afghanistan and political instability in the CARs are undermining development and governance.

Other vitiating factors impacting regional stability in South Asia include the unchecked proliferation of small arms, nurtured and encouraged by large-scale narcotics trafficking. India’s standing as a regional power with global power ambitions, and one that aspires to a seat on the UN Security Council has been seriously compromised by its inability to successfully manage ongoing conflicts in its neighborhood, singly or in concert with its strategic partners.

These conflicts are undermining South Asia’s efforts towards socio-economic development and poverty alleviation by hampering governance and vitiating the investment climate. Here’s hoping that the new year will bring in better opportunities to reduce tensions in the region, and improve the socio-economic conditions.

(Gurmeet Kanwal is Director, Centre for Land Warfare Studies, New Delhi.)

India China Economic Union – An open letter

Dear PM Wen Jiabao and PM Manmohan Singh,

Only a sixth sense of mutuality and common sense can help China-India relations today. While the realities are being resolved and negotiated, we simultaneously and urgently need a powerful new idea of joint interest to both countries.

Economic entanglements are the surest guarantor of peace and development. India and China must start exploratory discussions of any variation of an economic union between the two countries. Working towards such a framework will ensure peace and economic development between both countries.

* The reality of the India China Economic Union may happen in 50 years or 100 years, but by progressing towards such an objective both countries will accelerate friendship and socio-economic development of one-third of global population.
* It is but obvious that in 20-30 years or by 50-100 years the relationship and economics will be so different that we cannot even imagine today. But one thing will be sure – the two countries and our people will be far deeply integrated and inter-connected in their economies, cultural understanding, people-to-people linkages, and global challenges.
* Sirs, you can see the future – kindly seize the moment and take a bold step.
* In advance of this summit in Delhi, we had been researching and modeling various thoughts to protect and advance the national interest of each country, as well to make a generational change towards friendship, peace, socio-economic and cultural relations between both countries.
* Our research shows that the first thing both our countries need today, is a sixth sense. The current and historic issues are too deep and will take time to resolve. While these issues are being resolved, it is now time to introduce, in parallel, a sixth sense in our relationship and to create a vision for an India China Economic Union.
* Other research, including a small web-based sample, shows that the topmost problem in relations between China and India is of mutual images, and mutual trust. Apart from the government in each country, this is the top concern in the publics too.
* Therefore the top priority of our leaderships today must be to find a solution to these two problems. By promoting this sixth sense of the imminence of an economic union, our leaders will guide the policy and publics of both countries towards peace, people-to-people relationships, and socio-economic development.
* Such a vision will lay the foundations for harmonious growth for hundreds of years ahead. Both countries should set up a joint working group and think-tank, funded with US$ 10 million by each country, as first step. This economic union may be modeled after the example of European Union or any variation, and the working group should present reports of the progress on sidelines of annual PM level meetings.

Premier Wen Jiabao is visiting India along with a business delegation of over 300 businessmen. Geopolitics, business and people-to-people linkages are all on the agenda. In all these meetings and discussions, the key underlying dynamic will be mutual images and trust.

Mutual Imagery and Trust

To improve mutual imagery and trust, both countries need to take several urgent steps. Each country should take responsibility to take 3 specific steps to build trust and image. These steps should be reflected in the joint communiqué which shall be issued during the visit.

* India has already announced introduction of Mandarin as an optional subject in schools. China must similarly introduce Hindi language in its school system. Also, China must ramp up English speaking skills among its citizens. Lack of English is proving an obstacle to better understanding and business with China.
* Both countries must promote people-to-people linkages. Through tourism, even a weekly flight with free seats; through cultural exchanges, even promoting film shoots in each other; and through youth and business exchange programs. The expatriate communities in each country must be guided by embassies to engage more with the host society.
* India must encourage its communist parties to act as a bridge in building relations with China. U.S.-India relations improved in large part due to a unique presence of an over 3 million strong Indian-American community. Similarly, with China, the communists of India can play a unique role in building image and trust between both countries.
* Any delegation which travels to the other country must be provided a three hour orientation and cross-cultural understanding of the country they will visit. The embassies should provide this service to their host country government. The chambers of business must provide this service to the business delegations they take.
* More Chinese students must be given generous scholarships to come and study journalism and MBA in India, and similarly Chinese government must attract Indian students to China. These future businessmen and media leaders will help to promote understanding and economic activity between the two countries and many may settle down in host country.

India China Economic Union

Improvement in mutual images and trust shall further pave the way for reducing fears and concerns of each country, and for creation of the India China Economic Union. India fears China’s “string of pearls” strategy, and China fears India is ganging up with the U.S. to restrain its growth. China is troubled by India’s stance on Tibet and Taiwan, and India is concerned with China’s behavior on its Western and Eastern borders.

Both countries also need to take fresh confidence building measures. China must vacate the portion of Kashmir which Pakistan ceded to it. India must clarify and settle the Tibet and Taiwan issue with China.

Thus a sixth sense of Indo-China relations will need a troika approach – all in parallel:

* Improvement of mutual imagery and trust,
* Fresh confidence building measures, and,
* A vision for creating the India China Economic Union.

Much of these may not happen in our lifetimes, or even for several generations. But some such framework will be a reality 100-200 years from today. By taking this visionary step, Sirs, you will leave an imprint on history for ever.

Sincerely,

Robinder Sachdev

How will Wikileaks affect the U.S.-India dynamic?

Last week began with a bang as Wikileaks snuck out its latest offering of classified government cables and documents causing a stir in diplomatic circles. The leaked documents provide a glimpse into the U.S. State Department’s dealings with and impressions of various countries and global leaders. While the veracity of these documents will continue to remain suspect, there is little to suggest that all of the contents of the documents are doctored. Assuming that the information contained in these documents is partially true, there are some interesting and disturbing revelations for India, particularly with regard to Pakistan and China.

Image credit www.skuggen.comProbably the most disparaging of comments about India is a poor assessment of the Cold Start strategy, a military strategy to be implemented in retaliation of terrorist attacks in India. The exposed document revels U.S’ doubts about the deterrent capability of Cold Start for Pakistan, and India’s intentions of every using it given that it did not do so after the 26/11 attacks in Mumbai. It also says that several senior government officials have neither “supported, endorsed or advocated” for Cold Start.

Other documents reveal how China blocked a UN Security Council vote on sanctions against Jamaat-ud-Dawa (JuD) and its leader Hafiz Saeed at the behest of Pakistan before the 26/11 attacks in Mumbai.  JuD and Hafiz Saeed have been accused by India of having planned terrorist attacks on India. Since then JuD has been put under sanctions and the Pakistan government is tasked with implementing the freeze on assets. However, JuD and Saeed continue to be operational even today.

Another set of documents show the Lashkar-e-Taiba’s annual budget, raised through private funds and charitable networks of JuD, is $ 5.2 million. Hafiz Saeed and LeT’s Zakir-ul-Rehman Lakhvi are said to continue operating and generating funds in spite of having been detained by Pakistani agencies for their involvement in the Mumbai attacks. Still other documents talk of how Pakistan would not stop supporting terrorists against India no matter how much aid poured in from the U.S.  The documents shows a Pakistan obsessed with animosity with India and no amount of money would not make a difference to its intentions about India.

These and other documents from Wikileaks vindicate India’s allegations about Pakistan sponsored terrorism against India, and their role particularly in the 26/11 attacks. While the contents of these documents might not be particularly surprising, it brings a mixed bag of emotions as far as its relations with the U.S. are concerned. On the one hand the leaked cables show how the U.S. is concerned about terrorism emanating from Pakistan, the security of Pakistan’s nuclear weapons and a circumstance necessitated relationship filled with suspicion and distrust. On the other it raises questions about what the U.S was doing sitting on such extensive information about Hafiz Saeed and other terrorist activities in Pakistan? Why did it not act against terrorism in Pakistan with the same speed and determination as it did against the Taliban and Al Qaeda in Afghanistan or against Iraq? Is the U.S. genuinely concerned about terrorism as a whole, or only when it lands on its shores? Is India good only as a trading partner for America, or does it appreciate its strategic importance in South Asia? How true is the ‘natural allies’ rhetoric, or would short term strategic considerations continue to override long-term gains that the U.S-India partnership can provide each country?

India has so far chosen to maintain a stoic silence on the Wikileaks and refrained from criticizing the U.S for the leaking of classified conversations. Irrespective of how damaging the leaks are to security interests or bilateral relations, the sheer number of documents leaked (over 90000) is enough to raise concerns about the confidentiality and privacy of future interactions with the U.S. Though the revelations might not have been too startling, diplomatic bridges have been damaged as is evident from the U.S’ hurried damage control response, including plans to charge Wikileaks founder Julian Assange. With time the memory of these embarrassing revelations will be relegated to history, and all might seem well with the India-U.S relationship. But will the two countries truly be natural allies? Or will the ghosts of Pakistan and U.S’ inaction to the detriment of Indian security interests loom large over this nascent relationship?

Important links:

WikiLeaks U.S. embassy cables: as it happened

US doubts Pak will fight militants

WikiLeaks cables portray Saudi Arabia as a cash machine for terrorists.”

“Wikileaks: China thwarted action against anti-India terrorists”

Cash from Haj pilgrims used to finance 26/11: WikiLeaks”

WikiLeaks cables: Accused Mumbai plotter runs operations from jail