Wednesday, September 17, 2014

Xi’s visit major test for Indian PM

In the days leading up to the State visit of Chinese President Xi Jinping to India, Beijing has been up to its usual games.

Xi will come bearing the promise of Chinese largesse. Apparently he is ready to make investments worth $100 billion which, his diplomats have noted, will be three times that which Indian Prime Minister Narendra Modi obtained from his recent visit to Japan and probably a fair bit more than he will get in his forthcoming visit to the United States.

Money like this will always be at a price, whatever country you are dealing with. Mostly it comes in areas such as the promise to buy things the donor country wishes to sell, or special concessions to set up industries that can produce goods cheaper than is possible in the donor’s homeland.

This is a quite normal part of the give and take of international dealing and is well understood by all parties.

But with China there are always the hidden concessions. In this case they were set up a few days ago when Chinese troops violated the Line of Actual Control between the countries in Jammu and Kashmir and penetrated two kilometres into Indian territory.

Around 200 members of the People’s Liberation Army, complete with bulldozers and other equipment, were seen constructing a road which Indian officials said was an attempt to link with outposts on the Chinese side of the border.

Indian troops confronted the incursion and the Chinese eventually withdrew.

The incident was serious – as Beijing claims large areas of Jammu and Kashmir as well as most of the Indian State of Arunachal Pradesh - but not serious enough to halt Xi’s visit. He will be greeted with all the usual honours accorded to a foreign Head of State, and Beijing will claim this as proof that India is not committed to the current border and is ready to accept China’s claims.

The same goes for a recent agreement between New Delhi and Hanoi for a joint oil exploration project off the Vietnamese coast – intruding into the South China Sea which Beijing claims as its private lake. China has criticised the deal, describing its sovereignty over the area as “undeniable”.

So will Modi be forced into concessions in order to promote the massive infrastructure projects that are so dear to his heart and on the promise of which he was elected in May?

New Delhi says the borders will be discussed during the visit, but most commentators suggest there will be little or no movement on an issue which has dragged on since the 1962 war between the two countries.  

In many ways this is a visit for the Chinese to sound out the new Indian PM and to see how far he will buckle under the inducements of support for high speed rail, industrial parks, highways, ports etc.   

They will find the Indian leader a far different proposition from his quietly-spoken predecessor, Manmohan Singh - a man who is prepared to call a spade a spade, ready to take as much as they are prepared to give, while offering as little as possible in return.

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