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Modi puts his foot on the tail of the Dragon; and hopes the nation is with him

(This is a reprint from NewsBred).

India is decoupling itself from China, and not just from Line of Actual Control (LAC) in Ladakh.

India has banned 59 Chinese Apps used by tens of millions of its citizens and I would be surprised if the Prime Minister Narendra Modi doesn’t warn us of its fallout in his afternoon broadcast to the nation on Tuesday.

China would retaliate by pulling out its investments and factories and looking to cripple our telecom and pharmaceutical industry due to our over-reliance on its equipment and ingredients. Their smartphones have 72% of our market. Half of our electronic imports and two-thirds of our drugs depend on China. Why, even our bulletproof vests are made with material from China.

The investment and jobs we were looking in infrastructure (Tsingshan, steel) and automobiles (SAIC), not to speak of the names which are household such as Big Basket, Byju’s, Flipkart, MakeMyTrip, PayTm, Swiggy, Zomato etc could all take a massive hit. It could grow into a trade war and we the citizens of this country would have rising costs, lost jobs and hardships coming our way.

How do you think our cash-strapped telecom companies could cope? Or how diminishing incomes would react to rising costs? And not just demand, would the supply side be able to stay on its feet if walls go up?

Yet India must decouple itself from China. A nation which depends on enemy for its food, goods and materials don’t last.  Germany lost to Britain because of the latter’s blockade in World War I. Ancient Athens fell to Sparta who won’t allow supply of grains through the Black Sea. Why, Australia today is tabulating the cost of a diplomatic spat with China on its crop exports.

The free-trade advocates might whisper into your ears that its’ protectionism, that we are going to pre-liberalization era of 1991 but don’t pay heed. Instead ask: What kind of open trade China is if its subsidizing land, material and tax-cuts for its manufacturers, brutalizing its labour, just to make sure your manufacturing remains buried forever? It’s nothing but a return to colonial era when we exported raw material and imported finished products.

Time is ripe for India to actively intervene in markets. Put spine in India’s manufacturers. Write-off investments in machinery if required. Revamp land, labour and tax structures. Incentivize them to the extent they reinvest profits in men and material. We could then hope for our future generations to look after their parents. Our disabled soldiers to return to the care of their able sons and daughters

If nothing, listen to what Chinese said a few years ago in their economic White Paper of the 21st century:

“Manufacturing is the main pillar…the foundation of the country. Since the beginning of industrial civilization in the middle of the 18th century, it has been proven repeatedly by the rise and fall of world powers that without strong manufacturing, there is no national prosperity.”

India already has the assurance of US State Department which announced last year that Australia, New Zealand, Japan, South Korea and of course India would take care of its supply chains in a rewired world. The critical industries outlined are pharmaceuticals, medical equipment, semi-conductors, automotive, aerospace, textile and chemicals among others.

Many countries are already opting for China Plus One manufacturing strategy. Taiwan is now actively promoting “non-Red supply chain”; Japan has put $220 billion on the line for its companies to shift production back home from China. South Korea is doing likewise with easy regulations, financial aid and tax incentives to those who could “return” home. Italy has announced an emergency decree which empowers it to veto foreign investment in electricity, water, health, media, aerospace, banks, insurance, robotics etc.

Prime Minister Modi seems to have opted for the brave course of short-time pain to long-term suicide. He has put his political career on line. He had no business to walk down this road which could put India in some serious woes.  It might make us a little poorer, our goods more expensive but it would secure our borders, our future.  China’s cheap exports are a gift which we would pay with ocean of tears in future. Let’s do our bit for our motherland.

 

In case of war, would US rush to India’s defence?

(This is  reprint from NewsBred).

Behind their pandemic-induced masks, Indians have a floating question on their lips: What if China was to pour into India and spank us like it did in 1962.

Columns on military match-ups are box-office hits.  In today’s Mint, weighing scales have measured India and China on nuclear, submarines, armoured vehicles, boots-on-the- ground, everything. It assures readers we are better in inhospitable terrains, fighter jets and in shape thanks to our periodic pounding of Pakistan. It doesn’t look at the weight Pakistan could bring into equation but that’s okay. Indian soldiers are world’s envy for over a century for a reason.

Indians are also hopeful on the United States. That Trump and Modi would look after each other’s backs. This lack-in-self isn’t mindful that India’s nuclear arsenal is deterrent enough. We won’t be rolled over in a conventional war too.  Besides, still don’t have a formal military pact with the United States.

Sure, in last decade and a half, the US administration across presidents, and Indians between their Manmohan and Modi, have resembled two lost brothers who couldn’t have enough of each other. It began with access to military sheets (GSOMIA) but ramped up startingly under the Modi regime. An important threshold crossed was reciprocal logistical support (LEMOA) in 2016; and greater Indian access to US military technology (COMCASA) in 2018. The next stage is a deal for 2021 when US could share advanced satellite, intelligence and topographical information (BECA) with India. It would be huge, but not now.

The United States, as it is, has more military pacts than one could count. In the Indo-Pacific waters itself, it’s committed to come to aid of Japan, South Korea, Philippines, Australia and, a little beyond, New Zealand. Western Europe of course is a Biblical commitment in the form of NATO (North Atlantic Treaty Organization). It’s extremely possessive about Central and Latin America and if in doubt, ask a Cuban.  In the Middle East, Israel and Saudi Arabia have the blank cheque of security. Since the Second World War, the United States has committed itself to defend a quarter of the world’s population. All are not cut-and-dried military pacts. But de facto, some 69 countries which is worth 75 per cent of world’s economic output, could claim a security umbrella festooned by Washington D.C.

Formal military pacts are dying trends. It forces counter alliances and the world is lit up in smoke as it happened during the First World War. Germany and the Austro-Hungarian Empire were committed to each other against France and Russia and Great Britain was forging secret alliances of its own in a skullduggery which remarkably has been kept hidden by the historians of Oxford who make up the history narrative of English-speaking schools.

So, sorry folks, a military pact between India and the United States isn’t happening all too soon. If the United States enters the Indian Ocean, be sure that China and Russia would commit themselves in equal measure. The US would have its military cooperation, sea drills and logistical shares with India. It designated India as a major defense partner in 2016 itself. The satellite and intelligence sharing under BECA (Basic Exchange and Cooperation Agreement) would be big on its own. It would be a game-changer in communications, navigational and threat assessment. India’s defence exports from the United States are second only to Russia. But don’t mistake it for a joint resistancce against an invader.

We’re in a fluid state. We are not at war with China.  Hotheads could spin it out of control for both, and Pakistan. Looking for the United States or Russia isn’t on the charts spread at military commands of the two Asian giants. Treat the two Cold War antagonists as proteins or steroids in a gym. The heavy-lifting is still left to us. Hopefully the worst is behind us. For the time being.

The lessons for India though are unmistakable. China doesn’t have our good in mind. We would know of the United States too if Russia holds firm and delivers us S400 missile system in 2021. Closer home, we need to free up our armed forces from stifling civil bureaucracy. If they want Rafale, that’s what they get. We have a huge lag and delay is not an option.

 

A muscular India gives its army a “free hand” to knock sense in China

(This is a reprint from NewsBred).

It would be a grave misjudgement to believe that China has walked over India in a physical showdown in Galwan Valley in eastern Ladakh on Monday.

If nothing, ask the Chinese who made moves in lockstep over the last few weeks to test India’s nerves and found a nation mature in diplomacy and dare in equal measure.

India has used velvet gloves against a petulant Nepal which thumbed its nose on borders but didn’t elicit a raging anger from New Delhi that would’ve played into the hands of its puppeteer, China. India knows, as does Nepal, that the latter can’t survive without India’s open borders. Simply, the land-locked nation would run out of essential supplies. A manufactured border dispute has no future but for headlines and talk shows.

China meanwhile had crossed the Line of Actual Control (LAC) at four different points in Ladakh, agreed for de-escalation but then stayed put when the two armies were to pull themselves back by a few kilometres. India would have none of an enemy’s forward-post left standing inside the Galwan Valley which belongs to India. It didn’t backdown from a physical combat either since arms and ammunitions are avoided by the two neighbours in sensitive stretches of border running into thousands of kilometres.

Now has come the news that Indian Army has been empowered to act as per the ground situation without looking for directions from New Delhi. In other words, the Indian Army has been freed from political constraints. It’s an unambiguous message to Beijing that they are now in the wilds. That your superior nuclear stockpiles, defence spending or armaments wouldn’t be of much aid if it’s bare knuckle fight. So, if it’s to fists, stones and clubs now, may the best man win. There is no referee.

Indian Express has quoted an army source thus: “Army has been given emergency powers for deployment there as per needs and new situations without looking towards Delhi…We have to demonstrate our strength on the ground…there is no need to show aggression, only our strength.”

This would put China in a spot. Either they shove the conventions and turn it into an armed combat. Or they pull themselves back as they did in Doklam in 2017. Or they escalate which wouldn’t go unnoticed to a concerned world. It’s a massive show of intent from Modi’s India which is largely consistent in its zero-tolerance approach on nation’s sovereignty and integrity.

It’s not like South China Sea where the Middle Kingdom has usurped islands, sea tolls, reefs and banks overriding neighbours protests. China could not only carry through the bluff but were assured of its efficacy by the mumbled response of the affected. India seems determined to call out the bully. It’s not the semi-autonomous Hong Kong, a cowering Taiwan or a Vietnamese fishing boat you could sink to the floor of the South China Sea.

China clearly is upset at India’s assertions in recent months. India has signed a pact with Australia in the middle of the pandemic which would give teeth to QUAD (Quadrilateral Security Dialogue) between four democracies of Indo-Pacific: the United States, Japan, Australia and India itself. It has openly given a call to multinationals to shift their operations to India, a blow to China where it hurts the most. It has decided to screen the foreign investments beyond the FDI regulations. It now heads World Health Organization (WHO) which is to take call if China was complicit in hiding the truth on Corona Virus pandemic. It hasn’t helped the matter that Taiwan, which Beijing is paranoid about, could have “observer” status at WHO on pandemic deliberations. Then we have an expanded G-7 group of nations where India is to be included but no invitation has gone out to China

India has an uncontested control of Galwan Valley, between Ladakh and Chinese-occupied Aksai Chin, since 1962. It suffers from poor infrastructure in a hilly terrain unlike China which makes use of the flat Tibetan plateau to carry its road and highway network unhindered. India in contrast has to cross several mountains to access the LAC. It’s only natural that India wants to secure its borders. China would either have to give up the encroachments or face consequences, no less economic. There is a groundswell of consensus to boycott Chinese goods. The little matter of Huawei 5G also hangs in the balance.

There is little doubt China faces uncommon heat across continents. Pushback against its over-arching reach has already begun in Africa and Southeast Asia. Unemployment is unprecedented. Economic woes are spiralling. The world is a hostile theatre after China’s machinations on pandemic which has set the world back by a generation in economic terms. Its present misadventure in Ladakh is an undisguised diversionary tactics.

There is little doubt Indo-China relations would freeze in near future. It would bring Pakistan in closer ambit of China. India, on its part, would have the United States in its drawing room. Distrust between the two main powers of Asia would now run deep. Russia is a common friend which could find its loyalty divided.