RCEP

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.

 

 

Soldiers have done their bit with lives; what are we doing for our India

(This is a reprint from NewsBred).

All of us are grieved for our dead soldiers in Ladakh. That all of us want a retribution. That the government is literally closing doors on Chinese telecom equipment which enjoys one-fourth of Indian market. That the Confederation of All-India Traders (CAIT), claiming to represent 7 crore traders, has called for a boycott of Chinese products. That the Prime Minister Narendra Modi and Foreign Minister Dr. S. Jaishankar have used the language the nation wanted to hear.

Most of us have also resolved to boycott Chinese goods. It’s also dawning on us though that it’s easier said than done. I mean our mobile phones run on parts supplied by China. Our consumer goods, electronics, toys, furnishings, textiles, luggage, watches, kitchen items, footwear and frozen food etc bear Chinese imprints. We are also heavily reliant on China in pharmaceuticals and automobile sectors. There are thousands—yes, THOUSANDS– of products we import from China. Our supply chains rely on China. Where do we start and where do we end?

If this is unnerving, you could forward the argument that the Chinese entrenchment in our system is creating millions of jobs in trade, kirana shops and logistics. That there is much ado about nothing since our exports matter only two per cent to overall China’s buying. That India’s loss would matter little to China which has economy five times ours size. Besides, how do I throw out my “Ganesha” and “agarbattis”?

This implies that we need a serious introspection. We want our government to hit China hard; we want our soldiers to spill their blood in inhospitable terrains; we appeal for funds to be raised for the martyrs’ families; we dominate hashtags on social media with our outrage but we don’t—or can’t—do anything else. We could urge boycott of China’s goods but please excuse us from doing it ourselves. There is one thing we want from the nation; quite literally the other we do in practice. We want our soldiers to make the ultimate sacrifice but won’t allow that little pinch in the pocket. Can a nation survive without the cost paid by its citizens?

The Confederation of All-India Traders say there are at least 3,000 Chinese products we could easily replace with our own. If you can’t put away your mobiles, make sure you aren’t buying out-and-out Chinese brands. In case of an IPhone or a Samsung, the profits go to those companies and not to component-makers in Shenzen. Besides, what does it take to delete at least Chinese apps from your mobile phones even if you swoon over tik-tok?

China is today only doing what superpowers have done all through since the Industrial Revolution. You loan out a huge amount to a poor or developing country on very generous terms and with a long window. When the debt becomes unpayable, you extract your pound of flesh in form of a nation’s resources.

That’s what China did with Sri Lanka who now has surrendered the critical Hambantota port which is such a critical military advantage to China overlooking India. It did the same to Djibouti which was forced to allow China a military base on its land. Angola is paying through its nose with crude oil on the debt it’s unable to service as per terms. Kenya is on the verge of defaulting on China’s loan extended for a railway link between Mombasa and Nairobi. It could soon be parting with its Port of Mombasa. South Africa is fearing a similar debt trap. There are endless such instances in Latin America, Europe, Asia and rest of Africa.

I am sure none of us want India to suffer a similar loss of sovereignty. That we want this trade disadvantage of $50 billion to be reduced to a nought.  That we are virtually funding China to hurt us. That if we could boycott the Chinese goods we could, it would reduce the trade imbalance by $13 billion in 2021.

Sure, we want Modi government to stand by us with tariff and non-tariff measures. That it must call out China which subsidizes its products, under-prices it, and makes our traders and manufacturers uncompetitive. Our government does—and could do more—to cushion our exporters. That self-reliance–Atmanirbhar—would create products, supply chains and jobs in due course. After all, in this Corona pandemic, we did manage with our supply chains and various local productions did come up.

Let’s not fool ourselves that Indo-China trade is beneficial only to us. It matters hugely to China. There are any number of investments it makes in India through the back channels of Hong Kong and vessel states. That’s why India has decided to screen direct foreign investments. That’s why India has chosen not to be a part of RCEP (Regional Comprehensive Economic Corporation) which would have only rerouted China’s gains. That’s why India has refused to grant market tag to China as neither its’ banks nor pricing is independent of this Communist state. The Modi government is showing its spine: We need to show ours.