RCEP

As prepaid media doubles down on RCEP, they of course won’t listen to Jaishankar

(This is a reprint from NewsBred).

I have long been suspicious of edits which are passionately pushed in the best of English. Much like that bank clerk who is pushing a scheme when you enter the branch. Those pesky calls for your car insurance, those greetings on WhatsApp from land sharks who have the best view in town just for you. The best of them are those who sell their cause to you as if it was your own.

So it is with RCEP (Regional Comprehensive Economic Partnership). I have been noticing in Times of India and Indian Express—Left-Liberals of varying shades—how India’s policy-makers are being lampooned for not signing on. I looked at Mint where economists snack. No different.

The readers are told that India itself flagged off the race nine years ago and has now stopped just short of the finishing line. That how dumb of Modi’s India to cite custom duties on manufacturing when it could benefit from the emerging global supply chain in the times of Coronavirus. That its fears on agriculture and dairy sectors are unfounded since those have been factored in for next 20 years.

And then look at India’s manners. The RCEP nations in a separate document are almost begging us to join the bloc. That China has pledged to import $22 trillion of goods and services over the next decade for its 1.4 billion people. Imagine the market it would offer us. Even China’s “enemies” like Japan and Australia are part of the deal.  Is India so dumb it can’t see that RCEP is 30 per cent of global economy and a world population of 2.2 billion people? It is also implicit that India would stay out of Trans Pacific Partnership (TPP) which is sure to be revived by the US president-elect Joe Biden. Is this “Atmanirbhar Bharat”?

Economists call it protectionism. World is “free and fair”. India is insular. All Modi seeks is win in elections on the turbo-engine of “self-reliant nationalism.” And to hell with how our beloved PV Narasimha Rao and the John Stuart Mill by his side, called Manmohan Singh, took us out of choppy waters of 90s.

Why India is being so stupid? Because it has found out that all those free trades were no help all these years. And how it could be when your manufacturing base is so abysmal? How did those imports help our employment? And how we are supposed to compete when our hands are tied, legs shackled by the mantra of “free trade” even as somebody like China could abnormally subsidize its products and industries?

How come these grave economists never mention that 66 per cent of India’s GDP results from the services sector and the RCEP is heavily loaded against it in favour of merchandizing trade? What significant stuff are we supposed to sell? Are we wrong to assume that it’s a “trojan horse” set up by a Chinese club called RCEP? And that all it would bring is increased import bill and a few million more added to our unemployed?

I would let somebody as erudite as our foreign minister S Jaishankar hold the stage at this moment. Over to him:

“Those calling for increased openness and efficiency are not presenting the full picture (sic). That it’s equally a world of non-tariff barriers of subsidies and state capitalism (reference to China).

“In the name of openness, we allowed subsidized products and unfair advantages from abroad to prevail. And all this while this was justified by the mantra of an open and globalized economy.

“It was quite extraordinary that an economy as attractive as India was allowed the framework to be set by others.

“Past agreements resulted in de-industrialization of some sectors…the choice (for us) was to double down on an approach whose damaging consequences were apparent or to have the courage to think through the problem for ourselves. We chose the latter.

“It will decide if we become an industrial power with what we decide today.

“It is far from turning our back to the world. In fact, it is to enter the global arena with cards to play—not just to provide a market for others.”

Messrs economists, any rejoinder? Silence. Any thoughts why those nations calling for “free and fair trade”, having fattened themselves on protectionism are denying the same diet to India? That others probably want India as a counterweight to China? Silence.

So anyone for Atmanirbhar Bharat? Hands down.

 

 

Who’s afraid of Joe Biden? Certainly not Modi’s India for the ace they have up sleeve

(This is a reprint from NewsBred).

Indian prime minister Narendra Modi had endorsed Donald Trump’s re-election on a public platform: “Ek bar phir, Trump Sarkar.” How do you think Joe Biden would pay back if he does indeed make the inaugural speech in January, 2021?

Biden would probably be good to India on the trade front. Trump puts “America First.” Biden is from the globalist stable, so the tariff walls might actually get lowered. No more vile words on motorcycles. No longer finger-wagging if oil is sought from Iran; or arms from Russia. Our steel and rubber producers would be happy at reduced barriers. So, it could be for young Indians seeking H-1B work visas. And now that Biden has said he would restore Paris climate accord the first thing, India could hope for funds in renewables which, in the first place, had led it to join the accord in October, 2016.

Our newspapers would be happy too which is not the same thing as wellbeing of India. They pine for news which float in from US Congress and Senate and its’ religious committees and its human rights bodies against the Modi government. Now it would come thick and fast. Biden has already disapproved of CAA and National Register of Citizens (NRC). Kamala Harris indeed reminded “the Kashmiris that they are not alone in the world” on dilution of Article 370 in Jammu and Kashmir. The Islamists in our fold, our Opposition and Pakistan—how they sound as if speaking from the same book—would love it.

Modi-Shah worried? You have a thing coming

Still, the Modi-Shah duo need not worry. All they need is better ear plugs to keep the noise out. Biden-Harris are obliged to their masters in Liberal-Left caucus which detest nationalist governments. They use Islamist forces—and the tool of “Islamophobia”—to bring such “Nation First” forces to their knees. The mode is to rupture the society from within. So even if our “Azaadi” gang would be encouraged at Biden’s election, they could do little if Modi-Shah care two hoots about the cacophony. Get on with your CAA and NRC—or your Uniform Civil Code now that both House of Parliament are secured—and to hell with these anarchists.

(As an aside, watch for the moment when it happens. It would unfold as I tell you now: Modi-Shah in pursuit of their commitment, the anarchists occupying our Shaheen Baghs and JNUs, Mamatas and Sonias up in arms, Western media ecstatic and US Congress-Senate blaring out the Islamist propaganda. But mark out their hypocrisy for Muslim cause as terror and war would again be unleashed in Middle East and the terrible plight of Muslim brothers and sisters won’t bring even a reproach from these hypocrites.)

If the Modi-Shah duo are in good space, they have to thank China for it. The United States just can’t drop its eye from China and as long as this hawkish position is retained, possibly for coming decades, be sure that it won’t happen without India. It’s a bargaining chip Modi-Shah won’t be shy to use against Biden.

And what about the world? The Islamist and Left dictators in Africa and Latin America would be pleased with Biden in White House. Not so Great Britain since Biden is not as much “Brexit guy” as Trump is. Nor would be the besieged Muslims in Middle East who could expect tanks to roll on as the war-mongers are returning in force. Nor would be the GIs who could be spending next few years in deserts and among deserted. Talibans of Afghanistan would have Plan B in case the peace process is derailed. Russia would suffer from trepidations on more sanctions.

Iran could be pleased for the peace deal might be back on the table. China would prefer Biden any day to Trump. Banters would return in place of poisoned tongues; the RCEP (Regional Comprehensive Economic Partnership) gang would be up for loot. Europe would be pleased too—that is Western Europe—who were asked to look after self in NATO and aids by the Trump administration.

It would be a poisoned chalice for Biden though.  If it was 60 million for Trump in 2016, it’s already 70 million minus US citizens by his side, besides the illegal votes which might have been floated in in mail-boxes. Unsteady would be the crown on Biden’s head. He and his team—likely nasty—would’ve to curb its enthusiasm for Wars and Loots; Pakistan and China.

As for India, a Democrat in White House in 2020 is far better than it would’ve been in 2016. Just four years ago, we were still rooting for “Hindi Chini Bhai Bhai.” Now we can do business.

 

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.