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Chindia: Border Talks and the Dalai Lama

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December 11, 2011
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by Sanjeev Kulkarni

chindia-yin-yangEconintersect: China and India routinely have spats over Dalai Lama. The most recent flare up was caused by a Buddhist conference in New Delhi in November, leading to cancellation of border talks between the two neighbors who share a 4000 kms long border, and a robust $63 billion trade in 2010-2011.

The routine spats between the two more resemble a show of controlled aggression between India and Pakistan which is enacted every evening in Wagah. The Economist calls the border dispute between Pakistan, India and China as fantasy frontiers. According to Asian News Network:


” The last-minute cancellation of border talks between China and India was triggered by a Buddhist conference in New Delhi this week, and came after a diplomatic game of chicken that went wrong. Add an Indian government that works sometimes on parallel tracks and a China that has been unusually prickly recently, and the result is that the Special Representatives of the two Asian giants did not meet this week as planned, according to people familiar with the developments. New Delhi also complains of aggressive Chinese patrolling on their undemarcated frontier, while Beijing is suspicious of India’s fast-developing ties with the United States, seen by some as part of moves to contain China.”


Now that the latest, routine song and dance bollywood style “Enter the Ninja” show between China and India is over, economic compulsions have taken the center stage.

The fourth round of India China AnnualDefence Dialogue (ADD) was held recently in December, in “the most cordial manner”. In another development, China has decided to bid for infrastructure projects in India. According to Wang Xeufeng quoted in The Times Of India:

“The Indian government’s plan to invest USD 1 trillion in infrastructure projects offers excellent opportunity for Chinese companies to participate,” Wang Xuefeng, Minister at the Embassy of China, said at an event here [in New Delhi]. He added that India offers several competitive advantages in manufacturing and infrastructure construction. “In the past three years, Chinese enterprises have completed India infrastructural projects with a total value of USD 10 billion…,” Wang said.”

According to planning commission India will soon announce a debt fund for infrastructure within two months. We will not be surprised if this is also co-denominated in Yuan.

An earlier GEI article has higlighted the long term growing trade between the the two largest growing economies and has been dismissive about the hype on differences between China and India. A target of $ 100 billion has been set for 2015 between the two. We are speculating that this target will be exceeded due to the changing economic scenario.

A few Rupee and Yuan suggestions and remarks:

We look forward to variations of ‘Enter The Ninja’ song and dance hi tech laser shows much more tech savvy than the Wagah Border along Indo China border. It will :

1. Allow New Delhi and Beijing to creatively script their routine gnashing and bashing at each other yet provide hi quality entertainment.

2. Give a boost to tourism and entertainment industry in Mumbai and Hong Kong.  US will be very happy since many US Hollywood companies own Bollywood companies. So this will be win win situation for everyone without raising eyebrows and heartburns in Washington DC, New Delhi and Beijing. .

3. Fund the infrastructure projects from the tourism revenue without resorting to US Dollar [junk according to some Chinese commentators!] debt funds and bonds.

Sources:
Global Buddhist Congregation: Official Web Site
The Indo Pak Song and Dance Sequence at Wagah Border: BBC
Fantasy Frontiers:The Economist
India-China talks axed over Buddhist meet: The Asian Network
India, China hold annual defence dialogue: The Economic Times
Chinese firms to bid for India infra projects: The Economic Times
Infrastructure debt fund likely within two months: The Economic Times
RIC and The New Silk Road: Econintersect
When Bollywood meets Hollywood: The Times of India
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