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China’s Economic Rise:High Growth with Widening Inequality Sriram Natrajan There is still an impending crisis in rural China that could arise due to low incomes, high underemployment, worsening physical and social environment besides other lacunae. The main theme of the China Human Development Report 2005, which was for the first time prepared entirely by Chinese scholars, was ‘Imbalances in China’s current development path’. This report warned that if the imbalances were not addressed, future growth of the Chinese economy would be seriously undermined. This report also called for inclusive and sustainable development, equal access to basic rights and opportunities and improving capabilities by guaranteed sufficient income, access to education and health... It is therefore imperative that to achieve the Chinese government’s goal of a well-off society (xiakang), income redistribution towards more equitable levels is necessary. In particular, the wide disparity between the urban and the rural needs to be addressed since a larger proportion of the population is rural and their incomes are much lower. This is also necessary not only in view of the rising discontent in rural areas but also more broadly and fundamentally to strengthen the domestic economy and increase consumption that would otherwise be difficult to achieve.
Global Energy Search of India and China: Shared Paths and Conflicting Interests Nandakumar J With the two countries intensifying their search for worldwide energy resources there are increased chances of conflict of their interests in acquiring overseas energy resources. China’s policy of ‘Oil for Aid’ with African countries and its increasing trade partnership with oil rich Persian Gulf countries and Central Asian states evince that Beijing is much more persistent and aggressive than India in pursuing its energy strategy. With its $18.5 billion bid offer to purchase UNOCAL shares in early 2005 also indicated that Beijing does not face any financial limitations in pursuing its energy search. On the other hand, India does not find it economically feasible to compete with Chinese companies to bid energy assets in places like Kazakhstan. As cooperation may be limited to joint biddings in only small energy finds, competition will predominantly be seen in global energy search of India and China.
China’s Recent Approach to Terrorism: Post-9/11 Perceptions Jagannath P Panda From strategic views, the present war on terrorism is seen by China as enhancing the American military position in Asia, directly on China’s periphery. Especially the war on terrorism has given the United States a new and potentially permanent military presence in Central Asia while extending United States tilt towards India in South Asia, resuming military cooperation between both the countries. The defeat of the radical Islamic forces in Afghanistan and elsewhere would serve China’s long-term interests even though they never posed a significant security problem to China in the same way as they did to the United States, Russia, Israel and India. Jiang Zemin and other Chinese leaders did however insist on several conditions for any US action. It should be authorized by the United Nations Security Council, be based on concrete evidence, observe international law, and not target innocent civilians. But in the event, as it became clear that the UN role would be minimal and that the US intended to proceed even without releasing conclusive evidence to the public, and as civilian causalities mounted, China moderated this position and chose not to criticize the US publicly. China’s position on the concessions it expected in return for its support has also shifted over time. Some early statements indicated the expectation of a quid pro quo, whereby the US would offer “support and understanding” for China’s own anti-terrorism and anti-separatism activities. In other words, China expected the US to moderate its position on issues such as Taiwan, Tibet, and Falun Gong. This stance too was soon moderated, with official statements denying that China had demanded any specific concessions.
Centre – Province Relations In Contemporary China Jabin T Jacob China’s recent rise in the international order has been based on its rapid economic growth but this growth has also thrown up various internal challenges including regional disparities and social unrest. To maintain economic growth and to address such domestic problems, the political administration in China must continue to rely on a careful balance in centre-province relations.
China’s White Paper–2006 on National Defence: Rising Confidence & Concerns Dr. Srikanth Kondapalli China’s track record on nuclear and ballistic missile proliferation to countries of concern leaves much to be desired from China despite its assurances that it is not proliferating such weapons of mass destruction. Lack of transparency on the part of China on these pressing issues have led to considerable discomfort among several countries in the recent period and have led to “hedging” strategies being adopted. While the Chinese military’s engagement with other militaries have raised some comfort levels, it is not clear whether these are short or long term policies. Also, it is not clear whether these indicate to China pursuing policies to its own benefit and to the detriment of others. Moreover, the direction of the modernisation of the PLA forces in the recent period and its threatening military exercises and forays in regions of concern and in “hot spots” have led to apprehensions among several countries. While the 2006 white paper dismisses such apprehensions as product of a “small number” of countries raising a racket of China threat, the security concerns among the neighbouring countries are increasing in the recent period.
China’s Defence Policy and its White Papers Brig. Vinod Anand (Retd.) China’s military, as it is argued in the white paper, is being modernized not only to meet requirements of a Taiwan contingency as also to catch up with world wide trend of revolution in military affairs. Development of military is to be coordinated with ‘peaceful development’ of China in all other non-traditional areas of security. But then China’s growing military capabilities are already altering military balances in the region. The real issue affecting future strategic environment, therefore, is not that China’s power is increasing, but the strategic uncertainty about how China might use that power in coming decades. There is also a belief that China may hide its growing military capabilities in order to cloak its intent.
The Question of Tibet in Recent Times Dr. Yeshi Choedon The Question of Tibet is not fading a way into the relic of history nor is ‘the final solution’ appears to be in the horizon. In fact, the report of the Intergovernmental Panel on Climate Change (IPCC) of 2007 has the potentiality of bringing the issue of Tibet once again in the forefront. This time, the international concern for Tibet issue is not only for the sake of Tibetans but also for the protection of global environment and survival of living species on this planet earth. The recent report of the IPCC stated that there is an overwhelming probability that human activities are warming the planet at a dangerous rate. The Chinese’ so called development activities in Tibet has direct regional and global bearing. So for the sake of the larger cause, this time the global community need to muster all their wills to coordinate their efforts to pressurize China to find a negotiated settlement of the Tibet Question. The settlement of Tibet Question is one of the essentials to gain trust and confidence in Sino-India relations. India is in best positions to take up the issue of Tibet with China. China should also realize that being a rising power with big role to play in global affairs, it should not drag on the unresolved problem which might become a convenient tool to be used by unfriendly major powers to nag China in the future. Restless Tibetan youths in future may be willing to resort to violent means and they may fall a prey to other Powers who may want to checkmate China from playing a major role in global sphere. Therefore, it seems that time has arrived for China to find a negotiated settlement of this long pending Question to avoid embarrassment and prevent hostile Powers from using Tibet issue against it. In any case, Tibetan movement is poised to carry on in foreseeable future as well and the spirit of Tibet is still very much alive and active in the awakened world.
Sino-Indian Trade : Harmonizing Competition with Cooperation Dr. Rup Narayan Das Emboldened by business potential, a number of Corporate Houses in Private Sector also established joint ventures in China. They include Ranbaxy Limited, Aurobindo Pharmaceuticals Ltd., and Dr. Reddy’s Laboratories. Besides, IT major like Infosys, TCS and Satyam Computer Services and National Institute of Information Technology (NIIT) have also set up their ventures in China. Other Corporate Houses which have set up their operations in China include Tata Exports, Torrent Group, Lupin Laboratories, Kanoria Chemicals and Industries, Raymond Ltd., Reliance Industries Ltd., Bry-air, Vam Organic, United Phosphorous and Videocon. Indian Banks like SBI and Bank of Baroda have also established their overseas Branches in China to facilitate business. The Shipping Corporation of India has also opened its office at Shanghai following the signing of Maritime Transport Agreement in 1997. Introduction of direct flight between India and China since March 2002 has also facilitated trade and commercial intercourse between the two countries. Similarly a number of Chinese companies have set up their offices in India. They include China National Machinery Import and Export Corporation, China Petroleum Technology & Development Corporation, China Metallurgical Import and Export Corporation, Sinochem, Waxi Machine Tool and Feiyue and consumer durable companies like Konka and Haier. Huawei Technologies has set up software R&D Centre in Bangalore.
Hu Jintao: A New Chinese Saviour in Africa? Dr Bhabani Dikshit The seriousness that the Chinese have displayed in Africa with regard to their sincerity in the African development dialogue and policy orientations signifies a marked departure of the past experiences that the Africans might have undergone. If the intentions are true to their spirit, the new Chinese initiatives will usher a new era in international politics. Or else, the Africans will have to experience another phase of exploitation and sufferings. Let us hope history does not repeat itself. Hu Jintao’s new foreign policy formulations of a ‘harmonious world’ will go a long way in matching China’s economic might if the Chinese experiment with Africa succeeds.
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