Wednesday, September 13, 2017

INDIA - JAPAN AXIS TO COUNTER CHINA'S INCREASING INFLUENCE IN ASIA

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Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe , the G -2 giants of Asia ,will set the future direction of the special strategic and global partnership between the two countries , when they meet  in Gujarat .

Abe begins a two-day visit on Wednesday, during which he and Modi will hold the 12th India-Japan annual summit in Gandhinagar in Gujarat.The two leaders will review the recent progress in the multifaceted cooperation between India and Japan under the framework of their Special Strategic and Global Partnership' and will set its future direction .

Recently India-Japan ties are on an upswing in wide range of areas, including defence and security. In their recent  annual defence dialogue , the two countries had agreed to collaborate closely in defence production, including on dual-use technologies.

This summit is being taking place amid rising tension in the region following the nuclear test by North Korea and growing Chinese assertiveness in the South China Sea. Interestingly Japan took a firm stand in recent  Doklam stand off  along indo China border . Japan  was one of the first countries to support India in this standoff.

Also this Modi-Abe meeting is being held on the back drop of recent naval exercise held between the navies of the two nations, along with the US .This was a major naval exercise in the Bay of Bengal, where some of their frontline warships took part. China has watched the Malabar trilateral exercise with unease and caution as it took it as challenge to China .Both countries very well knows that they are  living in a world that is becoming increasingly vulnerable and unpredictable, with outstanding issues like North Korea and because of muscle flexing by China. So India and Japan with their partnership shall provide a certainty in the region and beyond.

The Japanese PM will be the second world leader to be hosted by the Gujrat  city after Chinese President Xi Jinping. Apart from discussing a host of bilateral and international issues, the two leaders will also participate in the ground-breaking ceremony (bhoomi pujan) for the Mumbai-Ahmedabad High-Speed Rail Project . The ceremony will be held near Sabarmati railway station.

Besides important security and economic issues , other issues like  Defence partnership, geopolitics in the Asia-Pacific region, nuclear cooperation, and the joint infrastructural projects in the region will be also discussed.

The recent closeness between India and Japan is reflected in Japan‘s openness to supply India with military technology which reflects the high level of confidence between the two countries.This new G - 2 axis is definitely taking shape to check increasing Chinese influence in the whole region .

Further to contain China's increasing influence and assertiveness a great urgency was felt by India to counter China’s OBOR i.e.One Belt, One Road, initiative. Though China is making all efforts to persuade India to join its One Belt, One Road (OBOR) initiative. India has not  agreed to be a part of this project , which aims to connect the Eurasian landmass and Indo-Pacific maritime . The project envisages the construction of road, rail and port projects through a number of countries to connect mainland China to markets in Asia and Europe.

The OBOR initiative includes a number of projects including the “flagship” China-Pakistan Economic Corridor (CPEC), Bangladesh-China-India-Myanmar (BCIM), New Eurasian Land Bridge, China-Mongolia-Russia Economic Corridor, China-Indochina Peninsula Economic Corridor and 21st Century Maritime Silk Road.

India opposes OBOR because of INDIA'S  sovergnity concerns , as it passes through Pakistan Occupied Kashmir . One Belt and Road Forum is a controversial economic corridor traversing through Pakistan- occupied Kashmir .Not only India opposes OBOR but to counter this  , a  new proposal   AAGC was first mentioned in the joint declaration issued by prime ministers Modi and Shinzo Abe in November 2016. The declaration included their intention to work jointly and cooperate with other countries to promote development of industrial corridors and networks in Asia and Africa.

Recently Prime Minister Narendra Modi made the strong plea for developing an Asia-Africa Growth Corridor (AAGC), with support from Japan, while addressing the annual general meeting of the African Development Bank (AfDB) in Gujarat’s capital of Gandhinagar last Tuesday, May 23.Both the Indian and Japanese governments presented a vision document for this project which is largely meant to propel growth and investment in Africa, by curtailing the ever-increasing presence of the Chinese on the continent through AAGC .

The AAGC is an attempt to create a free and open Indo-Pacific region by rediscovering ancient sea-routes and creating new sea corridors that will link the African continent with India and countries in South-Asia and South-East Asia. The project stakeholders hope the sea corridors will be of low-cost and shall have less carbon footprint as compared to a land corridor.  Under the AAGC, there is a plan to connect ports in Jamnagar (Gujarat) with Djibouti in the Gulf of Eden. Similarly, ports of Mombasa and Zanzibar will be connected to ports near Madurai; Kolkata will be linked to Sittwe port in Myanmar. India is developing ports under the Sagarmala programme specifically for this purpose. Apart from developing sea corridors , the AAGC also proposes to build robust institutional, industrial and transport infrastructure in growth poles among countries in Asia and Africa.

Japan’s contribution to the project will be its state-of-the-art technology and ability to build quality infrastructure, while India will bring in its expertise of working in Africa. The private sector of both countries are expected to play big role by coming together to form joint-ventures and to take up infrastructure, power or agribusiness projects in Africa.

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This visit of Japanese prime minister Shinzo Abe to India is expected to see the launch of the Asia Africa Growth Corridor (AAGC) . This project can be seen as a counter to China’s Belt and Road Initiative (BRI). India and Japan may commit about $40 billion initially to the proposed growth corridor with their partnership playing a key role in development of the corridor.

China has all reasons to worry  from this new emerging G- 2 axis of two powerful giants ofAsia 

Thursday, August 17, 2017

INDIA EMERGES AS A MATURE POWER AFTER DOKLAM STAND OFF WITH CHINA

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INDIA EMERGES AS A MATURE POWER ---CHINA BADLY TRAPPED IN ITS OWN GAME -- INDULGED ONLY IN PSYCHOLOGICAL WAR  -- CHALLENGE TO  ITS SUPER POWER STATUS

"India is behaving like mature power in Doklam standoff with China : US expert"

Relations between two Asian Giants China and India have again  become tense due to recent face-off with Chinese army  in Dokalam which is at the tri junction of India, Bhutan and China. This stand off has almost become  more than a month-long . Doklam is a  plateau of Bhutan. The ongoing tensions relate to the construction of a road by China in Bhutan’s Doklam region. Bhutan had reportedly protested China’s action, and sought India’s help. Indian Army then moved in to this  area of construction and stopped Chinese unlawful illegal activities . Experts opined that with the construction of this road, China would have got upper hand to spy on and to isolate the sensitive India's  Siliguri corridor, also known as the Chicken’s Neck.This will not be accepted by India at any cost .Doka La is the Indian name for the region which Bhutan recognises as Doklam, while China claims it as part of its Donglang region.

India has said Beijing's action to "unilaterally determine tri-junction points" violated a 2012 India-China pact which says the boundary would be decided by consulting all the concerned parties.

India also conveyed to the Chinese government that the road construction would represent a significant change of status quo with serious security implications for it.

Because of China's unlawful aggressive postures towards it's neighbouring countries , an inclination to support Terrorism against third country , China now is more or less internationally isolated .

UNILATERAL ACTIONS TO SETTLE DISPUTES IS HIGHLY CONDEMNABLE INCLUDING MARITIME CLAIMS.

Now world acknowledges that India is "behaving like a mature power" in the Doklam standoff in the Sikkim section and making China look like an adolescent jumoing jack , as per  top American defence expert .

India and China have been locked in a face-off in the Doklam area for the last 50 days after Indian troops stopped the Chinese People's Liberation Army from building a road in the area .US has allpraise for  India's behaviour over the matter . A great maturity and confidence . New Delhi move was very calculative , neither backing away from the dispute nor replying in kind to Beijing's loud mouth over-the-top rhetoric.India is behaving like mature power and making China look like the adolescent . It is foolish that  China wanted to keep alive a boundary dispute with its most formidable neighbour

If China wants to pursue an assertive maritime strategy, it needs to secure its borders on land first ,so that it doesn't have to worry about overland aggression from its powerful neighbour .

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Confronting India in the Himalayas is neither easy nor feasible cost/benefit analysis wise .

US & EU has indicated that if the dispute escalates, chances are there , that they may come out in support of New Delhi .

China has been ramping up rhetoric against India over the last few weeks, demanding immediate withdrawal of Indian troops from Dokalam. The Chinese state media, particularly, has carried a barrage of critical articles on the Dokalam stand-off slamming India.

China very well knows that it can not take India head on that's why it has fully engaged in propoganda and psychic war . China's image of emerging super power has badly tarnished because of Doklam .

Saturday, August 12, 2017

CHINESE GREED FOR FOR LAND , POWER , RESOURCES LEADS TO COLONISATION

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CHINESE UNENDING GREED FOR LAND , POWER , RESOURCES LEADING TO COLONISATION OF  SMALL COUNTRIES BY MUSCLE & MONEY POWER

China  believes in the theory of  might is right ,which  is  not only unethical but unacceptable  . All UNSC members need to ensure that the international rules , Law , Arbitration's , ultimately prevails & are followed in true sense. 

China flaunted international law and rules many times  by virtue of their might and even said , international tribunal arbitration decision on South china sea is nothing but piece of paper . Height of arrogance !

UNILATERAL ACTIONS TO SETTLE ANY DISPUTES IS HIGHLY CONDEMN ABLE , INCLUDING MARITIME CLAIMS. 

China is fully engaged  behind the screen i.e.  by hook or crook , by luring , by giving easy huge loans or by developing infrastructures to realize  its ultimate objectives . This ultimately leads to colonisation of  neighbors in a very camouflaged way .

China's one belt one road is nothing but a real road map to achieve this objective.Under this concept CPEC is a master plan for deep Chinese penetration of Pakistan's economy. Pakistan has now become an sitting and lame  duck in front of China .China has planned over USD 50 billion for  this China-Pakistan Economic Corridor (CPEC) project .

However as per expert , CPEC is likely to  damage more rather than to  benefit  the local economy, especially in the agricultural and industrial sectors besides disturbing ecological balance .

Chinese manufactured goods are relatively cheap &  their export to other countries via the shorter route of Gwadar Port will further reduce import costs in markets specially in Pakistan .This will kill Pakistan's own industry . Cheaper, made-in-China goods, brought on trucks from China to Pakistan via the Karakoram Highway (KKH) have already begun to flood Pakistan`s domestic market.  China is now controlling Pakistan's big market . Pakistan can not compete with China as the cost of production in Pakistan remains relatively high, due to the high costs of energy.

Pakistan`s export performance is continuously showing downwardly trend  and shall be further affected  because of CPEC . Now China is going to flood external market  at Pakistan`s expense. 

International Monetary Fund (IMF) has also warned Pakistan that while CPEC projects may generate a balance of payment outflows to the tune of USD 3.5 to 4.5 billion for Pakistan by 2024.This  will considerably diminish CPEC benefits. It has been suggested that Pakistan must build up its foreign exchange reserves as the increase in Yuan (Chinese currency) inflows , will further increase Pakistan`s miserable trade deficit.

Another IMF report has says that in the absence of a robust energy distribution system, the increased power generation capacity through a loss-making distribution system  could result in faster accumulation of circular debt and fiscal costs, as well as undermine the long-term financial sustainability of the new power projects.The efficiency of distribution network has to be improved quickly . But there is no plan for investment for improving distribution.

Another main  pitfall for Pakistan is the way Chinese companies are likely to emerge as new monitor agency in Pakistan`s economy, specially in the agricultural sector.Pakistan`s national food security policy  mentions the potential of enhancing the country`s agricultural exports to China through CPEC to achieve food sovereignty. All plans are more or less on papers for public opinion & consumption only  without any strategy.

The Pakistan policy  outlined an increased role for Chinese companies in facilitating exports of products  from Pakistan to China, but whether the Pakistani producers will get a fair price.It is not clear as  how this  interaction between local producers and Chinese companies will benefit Pakistan.
When one considers in totality ,the proposed co-operation in agriculture, along with Chinese development of road, rail and energy projects in Pakistan, CPEC could have long term economic and political impacts and may turn out to be more of a liability than a golden opportunity for Islamabad.

In long run there is no benefit for Pakistan , It`s all about expanding China`s growth . Pakistan's sovereignty will be in danger .

The China-Pakistan Friendship Highway runs over 1,300 kilometres from the far western Chinese city of Kashgar through the world`s highest mountain pass and across the border. For China, the two-lane thoroughfare symbolizes  a blossoming partnership, nourished with tens of billions of dollars of infrastructure investment. But it may benefit China more than Pakistan .

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China says their friendship is as high as the Himalayas and as deep as sea , but sorry it has no heart .

The project CPEC is a crown jewel of China 's one belt one road ( OBOR ) initiative ,which is a massive global infrastructure project to revive the ancient  Silk Road ,shall connect Chinese  companies to the new markets around the world .

In 2013 Beijing and Islamabad signed agreements worth $46 billion to built transport and energy infra structures along the corridor.While both countries say the project is mutually beneficial but the data have a different story .Pakistan's export to China fell by almost eight percent in 2016 while imports jumped almost by 29 percent .Pakistan already accused China of  flooding its market with cheap goods .

The ground reality is , if one buy from China it is easy and cheap , where as , it is costlier & troublesome to export goods to china . Because China protects its market !

A caution !

Friday, August 4, 2017

US SANCTIONS AGAINST RUSSIA - MOST UNHEALTHY SIGN FOR INTERNATIONAL TRADE



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 UGLY FACE OF SANCTIONS AGAINST RUSSIA EMERGES AGAIN

Sanctions has now become a tool to pressurise  , threat , force a particular country or group of countries by a country or group of countries. It has also become a tool to draw trade favours  . Economic sanctions are basically commercial and financial penalties applied by one or more countries against a targeted country . Economic sanctions are  used for achieving domestic and international goals & favours .

Economic sanctions are not necessarily imposed because of economic reasons only  but they may  be imposed for a variety of other reasons as well  , like  political, military, social , terrorism , or to  deal with   countries & leaders  like on Col. Gaddafi - Libya ,Iraq - Saddam Hussain , Syria - Asad.
Economic sanctions are also used  to impose or  guide foreign policy of other countries by many westerns blocks governments. Economic sanctions are usually imposed by a  powerful country upon a smaller and  weak country .

To cover up their deeds these countries raises  Commonly used excuses  e.g.  a threat to the security of the region or threat to humanity , country treats its citizens unfairly , chemical threats e.t.c. . Economic sanctions are have ultimately become as an alternative effective weapon to weaken the targeted country , instead , of going to war to achieve desired goals or objectives .
Recently , regime changes  have become  a  objective of economic sanctions.The recent examples were Col. Gaddafi , Saddam Hussain . But success of sanctions are  not always guaranteed , like President Asad of Syria .

The sanction not only affects the economy  of targeted country but it  also affects the economy of the imposing country too .The imposing country not only looses the market of Targeted country but it automatically  restricts the imposing country , that they can not Import desired goods from the Targeted country under  import restrictions . Ultimately  both Import and Export of imposing country also gets badly  affected by restrictions  , The imposing country also loses investments  opportunities from targeted country and loose market   to competing countries .

The US President Trump has finally signed the legislation and his reluctance to sign was clearly visible in his signing statement in which he called the legislation as  flawed. . He said , quote : In its haste to pass this legislation, the Congress included a number of clearly unconstitutional provisions,, including curbs on the president's ability to "negotiate" with Russia.: unquote . US President  accused the US Congress of sick mentality & dragging the relationship with Russia to an all-time low .It seems  US lawmakers has forced him to signing the bill which issues new additional economic sanctions against Russia.The new act also  strips the authority of the US presidential office to lift sanctions imposed on Russia by executive orders .This is too much . Probably never happened in US history .

This sanction has targeted the Russian energy sector specifically  and restricts on Russian weapons exporters as well .

This bill also constrains Trump's ability to waive the penalties  ?- A sign of of mistrust from the Republican-controlled Congress, .The sanctions aims at to penaliseRussia for allegedly meddling in the 2016 US presidential election and for Russia's annexation of Crimea.

President Trump said , quote :"I signed the bill which  represents the will of the American people to see Russia take steps to improve relations with the United States," unquote .

Expecting the signature, Moscow proactively ordered Washington to reduce its diplomatic presence in Russia to 455 people before September 1 to bring it at par with Russia in US .

These sanctions against Russia shall put the global stability at risk and will be dangerous and is short-sighted . Definitely Russia shall take retaliatory measures which will results to rise in tension .

Russian Prime Minister  also  lashed new US sanctions as a full-fledged economic war on Moscow.This will end all hope of mending healthy ties and shows US  President weakness . It's most  humiliating .

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China strongly opposes this unilateral sanctions imposed by US ,China said it is against any unilateral sanctions imposed by any country,Iran, too, reacted strongly .It's sick mentality of post WW II which is not going to change so easily.Moscow said the sanctions may lead to a full-scale trade war with the US, while European governments have threatened Washington with retaliation if it harms European business interests.

THIS SANCTION HAS CREATED AN UNEASE TENSION IN INTERNATIONAL ARENA .
IT IS STUPID ACT , NOT AN HEALTHY SIGN- THE US POLICING THE WORLD HAS LEFT UNSC DUMB & DEAF.

Thursday, August 3, 2017

INDIA CHINA DOKLAM STAND OFF THREATENS CHINAS OBOR CORRIDOR PROJECT

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Relations between two Asian Giants China and India have again  become tense due to recent face-off with Chinese army  in Dokalam which is at the tri junction of India, Bhutan and China. This stand off has almost become  more than a month-long . Doklam is a  plateau of Bhutan. The ongoing tensions relate to the construction of a road by China in Bhutan’s Doklam region. Bhutan had reportedly protested China’s action, and sought India’s help. Indian Army then moved in to this  area of construction and stopped Chinese unlawful illegal activities . Experts opined that with the construction of this road, China would have got upper hand to spy on and to isolate the sensitive India's  Siliguri corridor, also known as the Chicken’s Neck.This will not be accepted by India at any cost . 

This Dokalam standoff between India and China could even threaten threaten Beijing’s Belt and Road Initiatives in totality . Beijing’s should be worried that their hard hit & head on politcs is pushing New Delhi further away  to other power camp which could end up making it an strong enemy next door. It's will be a  strategic loss if someone's neighbors becomes an enemy .

The total India-China bilateral trade is around $71 billion .India’s trade deficit with China has mounted to a whopping $46.56 billion till  last year and Indian exports continued to decline . So in case of war, it will be  China who will be the main losers .

Now China isn't that dominating economic force in the world anymore. Its growth is slowing down .Its labour cost has increased many fold . There are many other  economy related  troubles spinning off simultaneously. The Chinese are now no more  that strong  but are very much vulnerably . They slowly  sliding down .  Now China's position as the world’s manufacturing hub and a major exporter to the world is being challenged by India .

These are the good and sufficient  reasons  for China , as to why not to further escalate the tensions with India and other neighbours and specially with India ,a emerging economic powerhouse with vast market and a youthful country unlike China .

Going  to  a full-fledged war with India, for  a small issue , is not wise for China rather it will  harm more because not only they will loose a big market but about their image shall also tarnish very badly ,that too after south china sea tension ,without any long-term gain . It will be a big big  big mistake.
Further today's India is no longer a weak ,vulnerable country . It is as powerful as China economically , technically and a major military power , powered with high missiles and space technology .  India has grown over years , and having tremendous capabilities in the areas of exports, manufacturing sectors .Probably China is playing psychological warfare as it can not  defeat India a real professional & fighting force & which have enough experience of war on land war .

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It would be very difficult  for PLA navy to break India’s strong  maritime network .China is largely reliant on imported fuel and  over 80% of its oil imports sail through the Indian Ocean or Strait of Malacca.  India is not like Southeast Asian countries, India with huge and  superior economic , technical , defence & maritime power , shall never succumb to China’s threatening strategies .. India is strategically located at the heart of China’s energy lifeline and the Belt and Road Initiative .  Offending India will only push it into the rival camp, which in turn shall  try to contain China by blocking the Malacca Strait and the Indian Ocean.

It would be impossible for China to break India's maritime blockade. Offending India will only benifit China's rival camps..This is the worst military stand-off in last  three decades . This impass would fuel anti-Chinese sentiment in India which China will not be able to cope up . India remains as one of the most important strategic country  for China’s ‘Belt and Road Initiative’ because of its geographic location.For the sake of world peace China needs to change its stance . China's old  theory of  might is right , which they happens to apply very frequently on neighboring  countries  , is internationally  not acceptable at all and it is not working  too . .

China earlier flaunted international law and rules many times  by virtue of their might and even said , international tribunal arbitration on South china sea is nothing but piece of paper . Height of arrogance !

International tribunal in Hague , overwhelmingly backed the Philippines in the case of disputed waters of the South -china sea .It ruled that area  claimed by China in SCS  are not correct and does not comes  under it's territorial claims. Tribunal said some of the disputed waters in question are specifically within the exclusive economic zone of the Philippines and  china  had violated the Philippine's sovereign rights in those waters by interfering with its fishing and petroleum exploration and by constructing artificial islands.Trying a unilateral control over  South China Sea is of grave concern for the whole world , as it is a very important for international trade route.

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India has again renewed for a sensible and pragmatic conversations between India and China on accommodating each other's concerns & sensitivity to  ensure peace on line of actual control . Any attempts made to change the status quo unilaterally  shall  not be tolerated .

Because of China's unlawful aggressive postures towards it's neighbouring countries , an inclination to support Terrorism against third country like Jaishe Mohammad out fit and disrespect for international tribunal , China now is more or less internationally isolated .

Wednesday, August 2, 2017

GREAT GAME OF TRADE CORRIDORS BETWEEN ASIAN GIANTS



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SUPREMACY  BATTLE THROUGH TRADE & TRADE CORRIDORS  BETWEEN TWO ASIAN GIANTS-- PUNCH AND PINCH OF -  OBOR & AAGC

In order to gain larger roles in global politics and to have control over other countries  ,it has now become necessary to first penetrate & control others  trade, which is the soul of twenty first century's international relations .China is in hurry to capture this  pivotal role from where it can dictate others   easily  . To days  concept of international trade means low cost , mass production , market for  products , low packing &  transportation cost e.t.c.

All powers like China, Russia, Japan, and India vie for strong political and economic position throughout the eastern realms of Eurasia where many less powerful countries caught in the middle of this tussle  .The cost of goods mainly depends mainly upon cost of labor and the cost of materials. It’s well known that China has a massive, inexpensive labor force. This, combined with today’s  low cost  & fast transportation of goods globally, results in , China being a central point  for supply of  comparative cheap goods , which are sent all over the world.

Though China’s labor market is cheap (compared to Europe or North America), even then Chinese producers are  under tremendous pressure due to continuous demand to further  decrease the cost , of their products , due to severe competitions . On the other hand  the cost of labor in China , now has also started showing upward trend .

To maintain their mass production and to retain its old market China will  continue have to sell their competitive products at same cheap cost   to world market . Keeping cost low for a longer period  is  a very difficult task because the factors related to cost i.e. labour charges , energy charges ,material cost , marketing cost ,, packaging , handling cost , transportation are either constant or  have an upward trend internationally  .Under these circumstances , to survive in the market , China need to reduce  one of the main factor which can controls & reduces the ultimate cost of the product i.e. TRANSPORTATION . The transportation cost can be controlled and reduced through shorter predefined Trade routes . So the first tool to capture the world market is to have safe & secured  Trade Routes which connects one continent to others through shorter routes.

Keeping  this in mind  China announced to the world that it was planning a mega project to revive the old Silk route for trading, with a corridors , for infrastructure, trade, energy and telecommunications .In the process China brought together leaders and officials of 130 countries, 68 of which China claimed had already signed Belt and Road Initiative (B&RI) project. Several participant countries sent their heads of state and others like Japan and the U.S., who aren’t part of the initiative, sent senior officials.

But India gave cold shoulder to this and did not sent anyone, even a local embassy officials. Indian Ministry of External Affairs issued instructions that anyone from think-tanks, business chambers, and other Ministries would have to take clearance if they were travelling for the B&RI Foru

Just hours before the forum was due to open in Beijing, the Indian Ministry of External affairs issued a comprehensive statement on its strong objections to the Chinese  B&RI .The ministry said their objections are because of : the corridor includes projects in land belonging to India , the projects could push smaller countries on the road into a crushing debt cycle, shall destroy the ecology and disrupt local communities , and agenda is also unclear . This clearly indicates India's   accusation that this is mainly enhancing its political influence, not just the hypes of networks.

All of India’s neighbours , with the exception of Bhutan, have become members of chinese B&RI . India’s concerns was been heightened by the growing presence of China in Nepal, Bangladesh, Sri Lanka and the Maldives.

India’s main objection is on the principle that the B&RI includes projects in the China-Pakistan Economic Corridor (CPEC) that are located in the Pakistan-occupied Kashmir’s Gilgit Baltistan, including the Diamer Bhasha Dam, 180-MW hydel power projects, and more expressways and economic zones along the Karakoram Highway built in the 1970s. Ever since the announcement of the CPEC in April 2015, India has raised those concerns . However, India didn’t clearly said  that  it would not join the B&RI, leaving small hope for speculation that later India may consider , if the Chinese were willing to discuss alternate option.  India made it clear earlier  that it couldn’t either join the project or even attend the forum with the B&RI map showing Gilgit Baltistan in Pakistan as part of a China-Pakistan Economic Corridor & OBOR joining Asia ,Central Asia ,& Europe.

India blamed that China is  not only been insensitive to its sovereignty, but has never fully explained its plan for the Belt and Road (formerly called One Belt One Road) initiative. China’s reply has been that none of the other countries in the project has complained about lack of transparency. Chinese and Indian officials have spoken about the project a few times, but India not satisfied .

China was very unhappy because of  India's snubbing its mega trans-continent corridor project  initiatives which exaggerated further  due to  New Delhi tie up with Tokyo  who is Beijing's arch rival .Both the countries are now pushing ahead with a development of a new corridor between Asia and Africa.

Ignoring Chinese sponsored epic project OBOR both countries i.e. India & Japan announced the Asia Africa Growth Corridor (AAGC ) days after China hosted with great show the One Belt One Road (OBOR) summit in Beijing. The venture is expected to get further impetus in September during the visit of Japanese Prime Minister Shinzo Abe.


India has been involved in Africa for many years, in trade as well as capacity-building activities. Japan, which has been working on infrastructure projects in Africa, can help with its advanced technology as well as funds for the AAGC. Japan is reportedly planning to commit $200 billion for the proposed growth corridor.

So,  the question is whether  AAGC is a counterbalance to OBOR? or clash of supremacy . Objectives of both are different. Long before OBOR, India and Japan were pushing and planning up AAGC as New Silk Road , though got delayed .

India, Russia, and Iran are also planning  together the north-south Transport Corridor, a multimodal route that goes from the west coast of India all the way to St.Petersburg, Russia.

India also has its connect in central Asia Policy . Indias Act East Initiative includes  an array of new road and rail projects that are extending throughout South and Southeast Asia, and seaport development projects at Chabahar in Iran , at Paira in Bangladesh , Trincomalee in Sri Lanka

China's engagement in Africa is extensive, while the India-Japan collaboration in Africa  is beginning to take shape. The AAGC shows that India and Japan desire to take their cooperation beyond the bilateral sphere . This would give challenge to China .

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China's OBOR,  was proposed  in 2013, with an estimated $5 trillion . The  connectivity corridor spanning over 60 countries across Asia, the Middle East, Europe, and Africa. It is meant to be a revival of the ancient Silk Road trading route and is expected to comprise building of roads, bridges, gas pipelines, ports, railways and power plants, besides SEZs. 

On the other hand India and Japan had begun their dialogue on Africa in 2010, a continent in which both have much stake. The main objective of the  AAGC is to enhance growth and connectivity between Asia and Africa. According to the vision document, the corridor will focus on four areas: Development Cooperation Projects, Quality Infrastructure and Institutional Connectivity, Enhancing Skills, and People-to-People Partnership.

China is Africa's largest economic partner, with goods trade worth $188 billion in 2015 -- compared to $59 billion with India. There are around 10,000 Chinese firms in Africa, .
The proposed AAGC shall  integrate Africa, India and South Asia, Southeast Asia, East Asia and Oceania.

India's increased engagement with Africa comes in the backdrop of the third India-Africa Forum Summit held in New Delhi in October 2015 when all 54 African nations had sent their representatives. India has also made many high level visits to several African countries, as part of its outreach. India also held the AFDB annual meeting in Gandhinagar this May.