Huawei

Why China is fighting the world? What’s the method behind this madness?

(This is a reprint from the NewsBred).

Why is China so reckless, why it doesn’t mind that the world is beginning to array itself against Beijing politically, economically and militarily?

It has pushed India to a point where India is doing navy drills with the United States in Andaman and Nicobar, right at the mouth of Malacca Strait which, if it was to be blocked, would finish China. Eighty-percent of China’s energy and trade is conducted through these waters. This is the strait which joins Indian Ocean with Pacific Ocean.

China has torched the informal summits between its leader Xi Jinping and Narendra Modi, all those moments at swing in Ahmedabad, those hugs at BRICS and SCOs, after it killed 20 Indian soldiers and buried billions of Chinese investments now, and for decades, in India. It has created an enemy in India when an enduring friendship was in the front lawns.

It has angered the United States, The European Union and a host of other democratic nations with its revamped security laws on Hong Kong to the extent that Washington would offload its officials at airports; England is offering citizenship to Hong Kong residents, tearing the extradition treaty and EU is vowing to stand by the “citizens of Hong Kong.”

It has annoyed most of its neighbours in Indo-Pacific–Vietnam, Malaysia, Indonesia, Philippines, Japan etc—with its aggressive claims on reefs and islands; patrolling and sinking their assets with impunity. Most of them it shares seats with in ASEAN and RCEP.  Besides, nations such as Vietnam, Japan and Indonesia—and many others—are de facto NATO bases which could cripple the supply lines of China.

It has spat on one of its largest partners, Australia, by raising a prohibitive 80% tariffs on exports by Canberra. All this for Australia voicing their concern on Hong Kong.

Leave aside Tibet or Taiwan, China is also making partners such as Kazakhstan fume with claims on its sovereignty. They recently had a report in its servile media where Kazakhstan was said to belong to China since ages and that Kazakhs would have no problem if they were to merge with China.

Isn’t China mindful that Hong Kong, as a global financial hub, is their interface with the capitalist world?

This is a country which has a debt that is 300 percent of its GDP. Its Belt and Road Initiative (BRI) is staring at a financial catastrophe in the Covid-19 world. It has lent $1.5 trillion to more than 150 countries. Several of these countries would soon be defaulting on loans.

Most of us know that China is world’s largest exporter. Very few realize that it’s also world’s second largest importer. It imports minerals and oil to run its industries which feed its exports. Why is it endangering these imports?

It’s telecom giant Huawei, with over $100 billion of revenue every year, has gone on a “survival mode” as said by its own president, Guo Ping since US has shut its door. So would do India, England and the Western world.

Isn’t China mindful that the world is seething in anger against them? That actions against Beijing are already shifting gears? Why is it shooting itself in the foot? Why is it willing to lose in seconds all that it had gained in decades?

An incident during the lockdown perhaps holds an answer to China’s present recklessness. People of Hubei and Ziangxi clashed with the police as they were refrained from crossing the bridge over the Yangtze River. All they wanted was to get back to work. China’s big firms, which engage 30 crore migrants, were opening up. Millions today need work to survive.

It’s all about population

China has always worried about its population. Even way back in 1820, every third person in the world was Chinese. It could feed its people due to its fertile floodlands around two major rivers: the Yellow river and Yangtze River. That of course was the agricultural era. But food is food in any era. That was the reason it annexed Tibet since both these rivers originated there. What if India, a neighbour, poisons those rivers? What if a puny like Tibet, without any army, could choke it to its death? China thus staked its claim on Tibet and cooked up historical evidence when Tibetans are no Han Chinese.

It’s thus inevitable that people’s anger would burst forth if world begins to pull out its manufacturing units out of mainland.  The population is already ageing, Covid-19 hasn’t been a help in an already falling birth rate. What happens if “Tiananmen Square” erupts in every province?

This is the reason why China is taking on the world. It wants to stoke the feeling of nationalism in its 1.40 billion population. It has insurmountable problems since the world is hostile and views them as villain of this Coronavirus catastrophe. Their best bet is to tell its people that they need to get behind since Capitalist forces of the world want to break them up like they did during the Opium Wars of the 19th century.

It would give Communist Party of China (CCP) the handle to retain its control over the people and even over its own comrades. It could further tighten its surveillance over its own citizens in the name of national security. In China, a mobile SIM subscription links a person to his health, finances and recognition details. In the name of controlling health, Beijing is making it mandatory for all its citizens to register to its Apps now.

There is no getting away that more its “sheep”—a term for its citizens—try to breakaway from the fold, more are the chances that China would indulge in some reckless political or military gamble. It explains why the Dragon is more like a mad elephant gone berserk these days.

 

 

China wants its women to stay indoors and raise children

(This is a reprint from NewsBred).

Where would the Chinese Communist Party (CCP) want its women citizens to be? At home, raising children rather than seeking a career for themselves.

Chinese lawmakers have passed a law—2879 in favour, two against, five abstaining—in the 2020 National People’s Congress recently where an estranged couple is required to wait for 30 days before proceeding with application for separation.

If you were to ask a member of the Rahul Gandhi’s Congress party in India, he would say: Big deal. After all, the 1955 Hindu Marriage Act in India provides for a statutory cooling period of six months. What he probably won’t tell is that the Supreme Court of India since 2017 has allowed a waiving of this cooling off period if a trial court reckons there is no hope of reconciliation between alienated partners.

Much of China’s growth has emerged out of mass participation of its labour force. But if births are low, population is ageing and women want career ahead of kids, it’s better the fairer-sex stay at home and rear children. This also explains why there are few legislations to protect women’s rights in the workplace. The totalitarian regime in China just wants to make it harder for couple to make choices in their marriage.

China has passed this law, worried as it is by its ageing population and abysmally low birth rate, despite lifting the one-child policy of 36 years in 2015.  Its birth-rate fell to its lowest point in seven decades in 2019. That’s primarily because women increasingly are joining the work stream, becoming financially independent and find raising children a problem. Despite China’s massive economy size, 600 million Chinese citizens have a monthly income of only $140, as admitted by none other than Chinese premier Li Keqiang.

The cost of raising children in China is becoming prohibitive by the day.  If both the partners are working, sparing money to have children looked after in their absence, not to forget the damning cost of education till they have a university degree, is daunting. It is more so in big cities which are now mushrooming all over China.  In all China has 160 cities with a million residents in its fold. The government also doesn’t offer support by way of family funds.

No wonder, women’s financial independence and the deterrence of expenses on children is hurting China big time.  China has a median age average of 40 years which would be increased to 65 years, or 35 percent of the population by 2050.  In comparison, the dependency ratio in India should be less than 2 per cent by 2050. Every second person in India presently is less than 25 years in age.

China is worried that women not only are increasingly in career-mode, they are seeking divorce in millions. Between 2003-2019, more than 4 million Chinese couples ended their marriages. It’s a sign of gender equality which on paper is increasingly in sync with the Chinese propaganda of “gender-neutral view” but the reality is dark.

Predictably, China’s mouthpiece media of the Communist regime, are welcoming the move. People’s Daily feels the move would deter “careless” divorces. State news agency, Xinhua, finds the new law as legal guarantee of securing a “harmonious family and society.”

There are inspirational stories such as one of real-estate magnate Zhang Xin (see image) who is worth $3 billion and is called “the woman who built Beijing.” She came up the hard way, her family struggled financially but she went on to work for Goldman Sachs in London and on return formed SOHO China with her husband. In 10 years, it was the biggest property developer in the country. But China would rather not have such tales which move its women.

Li is on record that China will not set any GDP growth target in Coronavirus year of 2020. It’s facing heat on Taiwan, Hong Kong and Xinjiang. It’s border row with India is turning into an embarrassment. It’s technological flagships such as Huawei are being kept out of door around the globe. Multinationals are beginning to pull out from China as a manufacturing outpost.

The new divorce law would come into force in 2021. Meanwhile, the same-sex marriage reform was once again postponed in National People’s Congress. It’s a sweet irony that world’s most populous nation today is seeking more and not less births. That is history’s sweet revenge on a nation on steroids.

 

China moves to turn Iran into a client-state; stakes up for India

(This is a reprint from NewsBred).

India would watch with concern a blood-pact in the making between China and Iran which could mean trouble both at home and abroad.

China put an agreement in place last month which would virtually turn Iran into a vessel state. Tehran is already in bed in wild anticipation, once its parliament approves the union.

The 18-page agreement, accessed by the New York Times, involves 100 projects worth a staggering $400 billion. China would get discounted oil for next 25 years and in exchange would pepper the Persia of old with subways, high-speed railways and airports. There would be free-trade zones in strategic locations, including two which would overlook the critical Persian Gulf (Abadan) and the Strait of Hormuz (Qeshm).

Iran plans to hand over Jask, a port just outside the Strait of Hormuz, to China which is the vantage point through which most of the world’s oil transits. India, which imports 84% of its oil, has reduced its dependence on Middle East in recent years but it still accounts for 65 per cent of its needs. Saudi Arabia and Iraq are two of its biggest oil suppliers from the Middle East.

China has a string of ports in Indian Ocean, such as Hambantota in Sri Lanka and Gwadar in Pakistan, and now soon in Jask, which puts New Delhi at unease on its energy and security needs, if China was to block the free seas and give these ports a military makeover.

It also messes up the Chabahar port on the Gulf of Oman which India has helped build and now controls since 2018. India had soaring ambitions of turning this base into access to Central Asia and much of Eurasian landmass, through a mix of sea-land routes, not to say oil pipelines, bypassing the physical barrier of Pakistan on its north-western borders (see image).

Now India is hemmed in on its north and west flanks by two enemies and in between are the impassable Himalayas. It would be increasingly reliant on the military muscle of the United States for its freer access to seas upwards.

The United States would be no less alarmed by China’s move on Iran. It had sought-and controlled—the Middle East for decades since the World War II. Now its Fifth Fleet, based in Bahrain in the Persian Gulf, could face China’s build-up. Its warships have regularly tangled with Iranian fleets in the busy sea lanes of the Persian Gulf.

The proposed deal also makes a nonsense of the United States sanctions against Iran under the Trump administration, which had brought Tehran on its knees with crippled oil supply and blocked access to world’s financial highways. China, it seems, has braced itself too for the US economic sanctions which are inevitable in the wake of this agreement and would intensify the trade or covert war between two of world’s biggest powers.

Iran needs to produce—and supply—at least 8.5 million barrels a day in order to be relevant in the energy sector. China seeks to import at least 10 million barrels a day for its energy needs. It imports 75 percent of its oil from foreign oilfields.

The agreement also outlines China’s plan to help Iran build its 5G telecommunications network, riding on its major player Huawei. The Trump administration has barred Huawei from the United States and India is set to do the same under prime minister Narendra Modi.

The Shia Factor

India’s ties with Iran have plummeted in recent months. The Iranian foreign minister Javad Zarif had made inflammatory remarks on the CAA and on Delhi riots in February for which it was rebuked by the Modi government. India has the second highest number of Shias in the world after Iran. India’s Shias have been a moderating influence on a virulent Muslim section in India.

The document also outlines military cooperation, joint training, exercises and research besides intelligence sharing and manufacturing weapons. The military ties between China and Iran have only scaled up in recent years. The Chinese navy has participated in military exercises in Iranian waters at least three times since 2014.

Then there is the Russia factor. Moscow is India’s biggest defence importer but if asked to make a choice, it would look after China’s back than of India. It is India’s oldest and most reliable friend but the ties now are facing its litmus test. The clincher would be the supply of S400 missile system in 2021 which India is committed to buy and the United States is determined to prevent. It would be a make or break moment for India-Russia ties, at least in the immediate future.

The second Cold War is unfolding. In its first version, the United States and Soviet Union were ranged against each after World War II, in the battle-lines drawn by the NATO and the Warsaw Pact in the European theatre, their respective allies in the neighbourhood of Central-Latin America and Eastern Europe-Central Asia visible in plain view. The contours of the second Cold War is no less apparent. The United States and China are snarling at each other, with Indo-Pacific and the Middle East the two most likely flashpoints. The stand-alone moment for India is gone.

 

 

 

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.