Tag Archives: China

Expansionist China and the Economic War

Lalit Shastri

Chinese Foreign Minister Wang Yi and Iranian Foreign Minister Mohammad Javad Zarif signed the Iran-China strategic partnership pact, Saturday 27 March 2021

The die has been cast. The World is getting divided. There are enough signs of a no-holds barred economic war between nations wedded to democracy on one side and expansionist China with countries inextricably tied to it due to the economic stranglehold on the other. After the Indian Army pushed back China in the Galwan Valley and banned its money spinning apps, and challenged both its military might and sway in digital technologies, trade and commerce, we now have a scenario where China is against the wall due to so many factors. And this, despite its position as world’s leading economic power. China is now hyper active on the world stage to counter the Quad.

At the Quad meeting between the US, India, Japan and Australia, earlier this month, US President Joe Biden renewed commitment to ensure that the Indo-Pacific region is governed by international law, committed to upholding universal values, free from coercion and also announced the launch of an “ambitious new joint partnership” to boost vaccine manufacturing, for the global benefit and strengthen vaccinations to benefit the entire Indo-Pacific region. He also underscored the Quad is going to be a vital arena for cooperation in the Indo-Pacific.

Indian Prime Minister Narendra Modi stamped the moment by reiterating that the Quad will now remain an important pillar of stability in the region.

Australian Prime Minister Scott Morrison joined the discussion by asserting that together the Quad nations will create a different future. It is the Indo-Pacific that will now shape the destiny of our world in the 21st century, he asserted.

The Japanese Prime Minister Yoshihide Suga echoed the same sentiment by stating that Japan-Australia-India-U.S. leaders working together will help in realizing a free and open Indo-Pacific.

Days later, addressing his first press conference after his swearing-in, the US president had underscored “a stiff competition with China, while pointing to China’s overall goal to become the leading country in the world, the wealthiest country in the world, and the most powerful country in the world. Biden also used this important interaction with the media to categorically drive home the message that it is not going to happen during his presidency and the United States are going to continue to grow and expand.

Picking China in no uncertain terms, Biden also informed media-persons at this press meet that he has already told Jinping in straight terms: “as long as you and your country continues to so blatantly violate human rights, we’re going to continue, in an unrelenting way, to call to the attention of the world and make it clear what’s happening to the Uighurs, what’s happening in Hong Kong”.

Besides the message delivered through the Quad, China also has been facing the heat on the issue of forced labour in China’s Xinjiang region and the call for boycott of goods produced through blatant violation of human rights.

Expansionist China
Expansionist China, which has a long standing territorial dispute with India and Japan, is also locked in South China Sea disputes over maritime and island claims with Taiwan, Philippines, Vietnam, Brunei, Indonesia and Malaysia. The strategic importance of South China Sea can be gauged from the fact that a third of the global maritime trade and close to 40 per cent of China’s total trade passes through the South China Sea shipping lanes.

To ensure strategic balance in the South China Sea, U.S. warships and aircraft have frequently been moving into that area in a “show of force” and carrying out exercises in the disputed waters.

Then there is the Belt and Road Initiative, a global infrastructure development strategy, a brainchild of Chinese President Xi Jinping adopted in 2013 to invest in close to 70 countries to build economic land and rail transportation routes through Central Asia. China describes the Belt and Road Initiative, which has 2049 as the deadline for completion, as “a bid to enhance regional connectivity and embrace a brighter future.”

Significantly, India, a major regional power, has refused to join China’s Belt and Road project. India has point blank declined to join the BRI because the China-Pakistan Economic Corridor (CPEC), which is integral to the BRI, passes through Pak occupied Kashmir (PoK).

Notwithstanding the fact that China is Australia’s largest trading partner and also their interdependence economically – China needs raw matrial from Australia, while Australia ships almost a quarter of its exports to China – the situation has reached such a pass that Australia is now thinking in terms of diverting much of its shipment to other countries.

China-Iran: Comprehensive Partnership
During Chinese Foreign Minister Wang Yi’s six-nation tour to Iran, Saudi Arabia, Turkey, Oman, Bahrain and the UAE, China and Iran on Saturday 27 March 2021 signed what has been described by a section of the media as a 25-year “Political Strategic and Economic Treaty”.

The treaty was signed by Wang Yi and Iranian Foreign Minister Mohammad Javad Zarif. From China’s point of view, the pact with Iran is significant especially due to the Belt and Road Initiative in the region.

During his meeting with Iranian President Hassan Rouhan, who has hailed the Iran-China strategic partnership as ‘major step’, the Chinese Foreign Minister reiterated that China’s willingness to develop the China-Iran relations will not change.

In Riyadh Wang batted for a five-point initiative to achieve security and stability in the Middle East. The fine-tuning of the objectives of Wang’s West Asia tour obviously points to an attempt by China to counter the takeaway and the deep message conveyed to the entire world by Biden, Modi, Morrison and Suga when they went on a virtual platform for the Quad Summit.

Wang spoke of mutual respect, upholding equity and justice, achieving non-proliferation, collective security, and accelerating development cooperation in Riyadh.

China also is in an overdrive mode to counter sanctions over the “Xinjiang forced labour” narrative. In a latest move, the Chinese Foreign Ministry has responded to unilateral sanctions on Chinese officials over Xinjiang by announcing sanctions against two US individuals, one Canadian politician and entity on Saturday. China has also sanctioned nine UK individuals and four entities following what it has decried as “their provocative statements”.

The Chinese mouthpiece Global Times said in a report Sunday that the “West has forced companies including H&M, Nike to politicize the Xinjiang cotton supply chain issue and pushed them to offend Chinese consumers and the market. It is inevitable that they will be punished by the market”.

The Global Times report goes on add “Foreign brands may see their total enterprise value, in perspective of growth prospects, reduced by about 50 percent in five years, due to their groundless vilification over cotton…”

Chinese Minister of Defense Wei Fenghe, on Friday during a visit to the site of Chinese Embassy in former Yugoslavia, said: “The Chinese military will never allow history to repeat itself as China is capable and determined to defend its national interests,” Wei Fenghe was there to pay tribute to martyrs in Belgrade, where the Chinese Embassy in former Yugoslavia was bombed by NATO in 1999.

Chinese Foreign Ministry also said on Friday that the US-led NATO, owes a debt to the Chinese people, in the backdrop of the condemnation of NATO by Serbian President Aleksandar Vucic and the Serbia’s nation-wide commemoration of the deaths of thousands of innocent people by NATO.

On March 25, China and Turkey kept the Quad Summit in perspective when they agreed to oppose what they described as “attempt by some countries to politicize the COVID-19 vaccine cooperation” and pledged to continue their cooperation in fighting the pandemic.

A day earlier, Hungarian President Janos Ader had also said that Hungary and China will continue to strengthen cooperation on anti-pandemic, economy, trade, tourism and military affairs, and would promote in-depth development of the Hungary-China comprehensive strategic partnership.

These are not merely utterances. In fact, the die has been cast. The world is getting divided and there are enough signs of a no-holds barred economic war between nations wedded to democracy on one side and expansionist China with countries inextricably tied to it due to the economic stranglehold on the other. After the Indian Army pushed back China in the Galwan Valley and banned its money spinning apps, and thereby challenged both its military prowess and sway in digital technologies, trade and commerce, we now have a scenario where China is against the wall due to so many factors. And this, despite its position as world’s leading economic power. China is now hyper active on the world stage to counter the Quad by embracing allies or by trying to build new alliances in West Asia, and with countries of Central and Eastern Europe to retain its stranglehold on national economies.

The Quad Summit and Rahul Gandhi at his mischievous worst

Lalit shastri

New Delhi/Washington DC: Prime Minister of India Narendra Modi, US President Joe Biden, Australian Prime Minister Scott Morrison and Japan Prime Minister Yoshihide Suga will come together for the first Leaders’ Summit of the Quadrilateral Framework, being held virtually on 12th March 2021.


The Leaders will discuss regional and global issues of shared interest, and exchange views on practical areas of cooperation towards maintaining a free, open and inclusive Indo-Pacific region. The Summit will provide an opportunity to exchange views on contemporary challenges such as resilient supply chains, emerging and critical technologies, maritime security, and climate change. The Leaders will also discuss ongoing efforts to combat Covid-19 pandemic and explore opportunities for collaboration in ensuring safe, equitable and affordable vaccines in the Indo-Pacific region.


At his Thursday press briefing, ahead of the Quad Summit, the US State department spokesperson Ned Price narrated the important role of The Quad, as it’s known – it’s a small grouo of countries United States, Australia, India and Japan. – Price threw more light explaining the Quad was established not to counter one single threat or to focus on one single issue, but it was really established to showcase what democracies can deliver together both for our their populations and for the broader world. Price further said Quad members are uniquely positioned to help lead the region out of crises and to help move the region towards the more positive vision both to address the crises and to seize opportunities that are presented to all of us collectively.

Quad is not focused on any single issue, to include China, Price made it very clear.


In the present context of Quad and China, one cannot miss drawing attention to Congress leader Rahul Gandhi, who lost no time on Thursday 11 March when he tweeted that there is no democracy in India citing the Swedish Freedom House Report. He even flashed an excerpt from it which said India is now partly free and as autocratic as Pakistan and worse than Bangladesh. This tweet by Rahul Gandhi is highly mischievous, more because of its timing that coincides with the Quad Summit. Rahul and his Congress party have a bleak track record and they they are always too ready to serve the Chinese cause much against national interest. Rahul’s latest stance exposes him without end and he needs to explain to the people of India the secret memorandum of understanding, he had signed between the Indian National Congress and the Communist Party of China in 2008.

India imposes anti-dumping duty on Textured Tempered Glass imported from Malaysia and other countries

Newsroom24x7 Network

New Delhi: Government of India has imposed countervailing and anti-dumping duty ranging from 9.71% to 10.14% on Textured Tempered Glass, whether coated or uncoated, imported from Malaysia or any country other than Malaysia.

Newsroom24x7 had done an exclusive news coverage on dumping of sheet glass from China in 2015. The latest imposition of anti-dumping duty is aimed at addressing the same problem that continues to raise its head on a continuous basis. Question arises, why the problem is allowed to linger on and harm the interests of domestic manufacturers. Delayed action notwithstanding, the anti-dumping duty that has now been imposed keeping Malaysia in focus would also hit China in a big way, both in the short and long run.

The gazette notification to impose the anti-dumping duty was issued on 9 March 2021. The anti-dumping duty has been imposed to protect the interests of domestic manufacturers who were suffering “material injury” as textured tempered glass was being exported to India from the at subsidized prices and also due to subsidization of the textured tempered glass by the exporting countries or by the subsidized imports of the subject goods originating in or exported from the subject country.

The present imposition of anti-dumping duty is directly linked to the matter of “Textured Tempered Glass” falling under tariff item 7007 19 00 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in or exported from, Malaysia, and imported into India, and the final findings, of a Government of India Authority, notified through a gazette on 11 December, 2020.

The Union Finance Ministry, in exercise of the powers conferred by sub-sections (1) and (6) of section 9 of the Customs Tariff Act, read with rules 20 and 22 of the Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995, after considering the final findings of the Designated Authority, in the matter of Textured Tempered Glass imported from Malaysia (or any other country) has issued the gazette notification to impose countervailing and anti-dumping duty.

Learnings from tale of two neighbours – India and China

Tapan Misra

The source of military conflict with China is complex. It is part military, part Chinese desire of redrawing of Chinese territory, commensurate with their perceived and concocted historical Chinese sway and probably more importantly, Chinese desire to restrict India to low end manufacturing and dominantly consumer market. Both the countries, with their similar population (India 1.3 billion and China 1.44 billion) and burgeoning and wealthier middle-class, are lucrative markets to each other and also other industrial nations.

I have sourced from World Bank data the growth of per capita GDP of both the neighbours, presented in equal footing of US$2010. If we have a look into per capita GDP of both the neighbouring nations, both countries were almost at par in poverty status in sixties and seventies. Both the countries, China under rigorous communist regime and India with hybrid of democratic and socialistic framework, established quite strong scientific base in terms of academic institutions since their independence, following second world war. But no amount of investment in scientific institutions and academia could bring prosperity to their populace. Both countries started their improvement in their lot only when they liberalized their economy, shrugging off restrictive hold of apparatchik and bureaucratic stranglehold on industrial, commercial, banking, marketing and regulatory policies.

Deng Xiaoping, unleashed opening of Chinese economy in early eighties, after consolidating his power base in post Mao transition, following demise of Mao Zedong, Chairman of PRC, in 1976. He rationalised the conflict between communistic ideology and market economy with his famous rationale: “No matter if it is a white cat or black cat; as long as it can catch mouse, it is a good cat.” India followed the path of market liberalization from license raj and era of selective patronage of businesses, in early nineties.

From the plot of growth of per capita GDP of both the countries, we see the inflection point almost took a decade after initiation of liberalization. In case of China, it was early 1990s and in case of India, it was early 2000s.

The architect of China’s liberalization could witness early fructification of his risky policy. Deng passed away in 1997. Afterall, it is no easy task to shake off the shibboleth of well entrenched political system, accustomed to sense of supremacy in everything. But one thing is clear, once a policy environment is established, successive rulers of both countries augmented their GDP in their speeds.

One interesting point is to be noted. Chinese economy got one more inflection point within almost a decade after the first inflection point, at early 2000s, accelerating their growths further. In fact, second inflection ushered in dominance of China in world economy and surprising growth in high tech, capital goods, space technology, military prowess. In case of India the second inflection point seem not to be arriving even after two decades or so after the first inflection. Our growth rate remains moderate and stagnant. We seem to be losing out in high tech and capital goods industry. Our telecom industry has huge ingress of Chinese equipment, our auto industry has less and less of India designed product, our mining industry is importing more and more heavy Chinese equipment, we do not have any respectable presence at all in semiconductor and electronics market. In space our neighbours and friends in Asia are just moving too fast. A look at our trade reveals, raw materials dominate our export against import of finished goods, naturally pushing our trade deficit upwards. You look around. We are moving but we are facing more and more catching up to do. We are good at many things, but we can hardly claim to be too good for a few things.
In my view, the first inflection is because of liberalization of overall economy, which triggered proliferation of livelihood industries with moderate technology but large job creation. This in turn fuelled higher income, and more service industries. But they do give fillip to GDP as they create present day technology base and widen job employment. But continuation of business leadership in future, high trade advantage and accelerated growth can come only when we create technology of future in todays environment. That is where innovations and innovation friendly environment play a decisive role. My presumption is: China’s second inflection is mainly due to harnessing of their large innovation potential.

One of the broad-indicator of innovation environment of any country is the number of patents granted per year. In last decade, India’s share has jumped by a factor of five. Latest number is hovering around 10800, a miniscule contribution by billion plus population. For China, the numbers jumped in almost same proportion. Only difference is Chinese numbers are around 40 times that of India, latest number hovering just a notch below 400,000, to be precise at 399,878. That is stratospheric difference. Data show, if we have to achieve the second inflection to push up the GDP trajectory, we need to rethink what urgent steps, we have to climb, in vastly pulling up our innovation environment and support system.

I believe there are a few main ingredients of innovation culture: namely, imagination, knowledge, interpersonal communication and ethical value system. We have invested considerably in knowledge system. We have rapidly expanded AIIMS, IIT, IIM, NIT, Science institutions, Engineering and Medical colleges. But we made the entry system so difficult that private tution-shops are probably having more turnover than the funding in IITs!

We created a competitive rote culture, instead of learning culture, leaving imagination to backbenchers of college classrooms.

Actually, all children are born imaginative. But society, parents, education system and knowledge accumulation gradually kill imagination. It is high time we should focus on primary and secondary schooling, quality of teachers and their remuneration. We are not able to attract bright minds for teaching, precisely because of very lopsided investment. Still our country is progressing forward and this is because of dedication of individual teachers, in spite of hardships they face. We should remember, if you give peanuts, you get monkeys. We need to refashion our education system so that learning and imagination, both are fostered.

We also need to dispense with assessing the college teachers in terms of only publications. Patents, copy rights, design rights should be given much stronger emphasis for career growth. In fact, we give away many of our hard-earned knowledge and learnings, just for free, by insisting on publication without legally securing the knowledge for future monetization.

From my long experience and being holder of reasonable number of quality patents and copyrights, I can vouch that our scientists and engineers, many times, are not able to streamline their analytical thought processes, because they lack soft skills like expressing and communicating in succinct and coherent fashion. Somehow, an idea has invaded our minds that if you want to pursue a career in science, it is ok to not to pursue language and arts courses. This phenomenon is adding to killing of the spirit of innovation.

I had an encounter with Intellectual Property Right (IPR) lawyers. I am sorry to say, interaction with them, many times kills patent initiative. They have the uncanny ability to convert a scientific phenomenon to a legalistic draft, killing the patent at the outset. I remember, in Germany I could file a patent in 15 days flat, that is the general time limit awarded there, for converting a demonstrated idea or product to patent. But in India, I find that even filing takes a year or more. By then, your patent gets leaked, as it travels through many hands and somebody else in some other country, files a patent. Patent offices also take their own sweet time.

My experience says, many institutional heads, including the top men, do not believe in patenting or pursuing an innovation to the logical ends. More often they are guided by ignorance and lack of conviction. Also, many of them have not written a single patent to their credit. Many times, our systems believe that contributing scientists and innovators are best managed by technical and scientific managers, who turn out to be more often than not expert system manipulators. The price is being paid by the country. But I must say there are some exceptions. You will find those leaders from the innovation environment and products from their institutions.

I am not telling that patents are be all of innovation. Patents ensure that the idea or product has originality and its practicability is demonstrated. Bringing an idea to a logical end and demonstrating it as a product or software is a great trainer in discipline required for innovation. All of us know, publications need not ensure originality. Even replication of an existing idea also finds avenues for publication. But patents generally ensure originality in thinking and the implementation process.
Everything is fair in love, war and international commerce. The pinpricks in different forms will be expected from our international competitors of all hues. These pinpricks may include unnecessary military engagements, cyber-attacks, currency manipulation, trade embargo, unfair tariff, one sided global institution regimes, encouragement of social and political discontent. We need to deal with them as and when they appear. We can plan for avoiding or minimising them in future. But sustaining rebuttal of these adventures is possible when we jack up our GDP and well-being of our population. Only way out is a concerted effort and conviction of seizing future economy, by building technologies and processes for future only through the sustainable route of innovation.


Tapan Misra is a distinguished scientist, who contributed immensely to India’s space programme. He has headed the Space Application Centre and was also Advisor Department of Space.