(This is a reprint from NewsBred).
India has been rather loose with its pronouncements on “fishing” in China’s troubled waters and gain by having world shift its manufacturing epicenter to our land.
After Prime Minister Narendra Modi gave a call to states to utilize the opportunity in post-Covid world, Ravi Shankar Prasad, the Electronics and IT minister, rather shockingly has asked the states to be “proactive” when the “anger against China” spills over.
Uttar Pradesh chief minister Yogi Adityanath has followed it up by laying the doors of his state open and held conference calls with Lockheed, Cisco, Adobe, FedEx and UPS (United Parcel Service) to showcase its potential. Among others are medical device makers and pharma multinationals.
The trouble is India is far from replacing China as world’s global manufacturing hub. Even if India wants to take a hearty slice out of the pie, it needs drastic action on accompanying factors which are easy to manage in a totalitarian system like China’s than in its own federal structure.
China accounted for 28 per cent of world’s global manufacturing output compared to India’s 3.0 in 2018. This has come about not because China offers just cheap labour. A lot of countries could do it. It’s because China hefts up its muscles by additional factors of (a) networked suppliers and distributors; (b) component manufacturers; (c) loose regulatory atmosphere; (d) artificially depressing its currency for its goods to become cheaper than compared to the world. And it has been doing so for 30 years.
India, in comparison, has a gap in its intent from reality. Would it be able to ignore health, safety, environment and employment regulations which China does without a care in the world? Could it deliberately undervalue its rupee by say, buying more dollars? Could it rebate and exempt its export and import taxes? Would India be able to deploy child labour, have long working hours and provide compensation insurance like China does? Does it have a similar integrated industrial system?
If India has in mind to be a hub for mobile phone giants like Apple, the chances are slim. Rare Earth elements are key in mobile-manufacturing and China controls 97% of it. From batteries to headphones, Rare Earth is lifeline to mobiles. Besides, Rare Earth is also needed for electric cars, wind turbines, solar cells etc. (Rare Earth, in layman’s terms, are a few elements which occur in the same ore deposits and exhibit similar chemical properties yet different electronic and magnetic elements).
There is no harm in India coveting world’s top manufacturing giants. But “assembling” isn’t the same thing as “manufacturing.” A separation between the two is possible, say, with delivery-giants like FedEx and UPS. But on matters of manufacturing products, just providing “assembling” is not good enough. India needs a giant churn in manufacturing in a limited time window. China would already be at work to woo the big money with more incentives.
The larger point is geopolitical realignment. For a while now, India had been sliding in the West’s camp, led by the United States. If there was a veil of diplomacy, it’s now gone to winds. India, Israel, US, West, Saudi Arabia, Japan etc now look firmly on one side. India is now open about its bad vibes against China. A large part of it is justified given how China rails against India in international forums, blocks its entry into Nuclear Suppliers Group (NSG), and sings Pakistan’s tune on Kashmir and terrorism. But the likes of BRICS, SCO etc gave it a semblance of balancing. Now that optics is gone. And what happens to our deep defence reliance on Russia which is firmly embedded into China’s camp? Does it mean we also have “lost” Iran for good?
First was India’s move to scrutinize FDIs (Foreign Direct Investment) which China is vehemently protesting against. Now is this “open” intent to woo world’s biggest manufacturers. There is nothing wrong in sensing an opportunity. But why say “at the expense of China”? Unless you want to signal the West and remove the ambiguity on your neutrality.
India has just done so. It comes with collateral damage though. China enjoys tens of billions of dollars trade advantage against India. They surely would now resort to arm-twisting India. It would be messy but one hopes India has taken into account the Dragon’s next moves. Events would now happen rapidly. Watch the space.
Indian Express is preening that alongside International Consortium of Investigative Journalists (ICIJ) it poured over 11.5 million leaked documents of 214,000 shell companies and 14,000 Mossak Fonseca clients, between 1977 and 2015, and found over 500 Indian individuals using the tax haven.
The leak first appeared in NATO-friendly Suddeutsche Zeitung newspaper in Munich and then shared by the ICIJ with selected mainstream media partners, including Indian Express.
A few of the smeared names you already know: Amitabh Bachchan, Harish Salve, Aishwarya Rai, KP Singh and Vinod Adani, elder brother of industrialist Gautam Adani.
Now a few things which you don’t know and must be told about:
The ICIJ is funded by Washington-based Center for Public Integrity which in turn gets its source income from the Ford Foundation, the Carnegie Endowment, the Rockfeller Family Fund, the Kellogg Foundation and the George Soros-owned Open Society.
Another of ICIJ patron is Organized Crime and Corruption Reporting Project (OCCRP) which is financed by the US government through USAID.
And yes, about Panama: a well-known US vassal state. As famous analyst Pepe Escobar says: “Absolutely nothing in real substance happens in Panama without a green light by the United States government. Or as an international tax lawyer told me, “you have to be an idiot to stash money in Panama. You cannot flush a toilet there without the Americans knowing about it.”
So in this selective leak, there is no US senator, European Union politicians, no big Wall Street banks and hedge funds hiding in Panama. Apple, Google, Starbucks—a few of the biggest tax evaders using offshore schemes—have miraculously evaded the scrutiny.”
As former UK ambassador Craig Murray writes: “The filtering of this…information by the corporate media follows a direct western government agenda….The Guardian is quick to reassure that much of the leaked material will remain private.”
This “leak” is essentially to cause domestic rows and embarrassment to BRICS nations, Russia, China and India alongside Bashar-al-Asad of Syria. Certain leaks are held back to potentially blackmail those in times of need. The other persons named are relatively minor players in the big game which West, embarrassed by Russia-inspired victory in Palmyra, has chosen to sacrifice.
So you have the names of demented king of Saudi Arabia; Nawaz Sharif, Pakistan’s prime minister; Avad Allawi, ex-interimt PM of Iraq; Petro Poroshenko, president of Ukraine; Alaa Mubarak, son of Egypt’s former president; Sigmundur David Gunnlaugsson of Iceland; Argentina President Mauricio Macri; Dov Weisglass, the butcher of Gaza, already convicted of corruption. These are all disposable individuals.
And then comes the sucker-punch: Western corporate media I shouting from rooftops that Russian president Vladimir Putin has stashed US $2 billion offshore. The fact is: he hasn’t. He is guilty by association to Arkady and Boris Rotenberg’s alleged ties to money laundering. The same method in hauling over the coals Adani, for the acts of his brother; and Bachchan who was seen as ruling party’s candidate to be India’s president.
As for China, unnamed eight Chinese Communist Party current and former officials and brother-in-law of Chinese president Xi Jinping has been named.
Syria was always going to be a target. Most of Western media has put its focus on Rami Makhlouf, “Assad’s fixer.” He is already under US sanctions since February 2008. Nobody bothers to ask how this “poster boy” of corruption was sheltered by HSBC.
The “leak” is of selected nature, likely obtained by US secret service, meant to serve two purpose:
- To smear BRICS and enemies of empire
- To hold details for blackmailing in future and keep those targets fall in line
The leak essentially is of several dozen firms and individuals who are already blacklisted by the US sanctions. If ICIJ and its partners are really serious, they ought to go after Cayman Papers or the Virgin Island Papers. That’s where the biggies are.
Says Escobar: “The so-called international banking/financial system is a demented casino. It’s not only 8 percent; Hong Kong players tell me as much as 50 percent of global wealth may currently be parked, undisturbed, in non-taxable offshore havens. If a fraction of these astonishing funds would be taxed, governments right and left would be paying their debts, investing in infrastructure, launching round after round of sustainable growth, and a productive spiral would be in motion.”
Three months ago, Andrew Penney, managing director of Rothschild and Co, in a Bloomberg piece, essentially stated that US “is effectively the biggest tax haven in the world.”
So, essentially, we now know a little more about Indian Express and its association with US-backed dubious bodies of investigative journalists.