China's annoyance no hurdle to improve ties with Japan

Ray

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China's annoyance no hurdle to improve ties with Japan

NEW DELHI: China's possible annoyance at India's coziness with Japan would not get in the way of New Delhi engaging Japan in a big way. As PM Manmohan Singh embarked on his tour to Japan, official sources disputed the perception that fear of Beijing's annoyance was a big hindrance on the efforts to improve ties with Japan. "We are not in the business of anticipatory compliance or allowing one relationship to overwhelm other ties," official sources claimed.

Elaborating on the theme, they said, "It does not make sense to make one relationship hostage to another one."

The purpose of the visit, sources said, was to add content to strategic ties by strengthening military ties, having deepening political consultations, attracting investments for projects such as the Designated Freight Corridor, the Delhi Mumbai Industrial Corridor and enhancing cooperation in fields such as energy and dual use technology.

Sources denied that India planned to act in concert with Japan and the US to contain a rising China. India believes China is not the only rising power in Asia. With the global balance of power shifting to Asia, countries like Indonesia, Vietnam and South Korea are all witnessing economic growth. Concurrently they are increasing their political and security influence in the region. Vietnam's naval capacities are growing and Japan is actually witnessing an economic spurt.

"That is why we plan to create an Asian security architecture. It is a multi-player game which keeps evolving and which others are trying to come to terms with," they added.

Earlier, the PM said India sees its relations with Japan as key for advancing stability in Asia. Describing Japanese PM Shinzo Abe as "a good friend", Singh, in his departure statement, said there was a "growing congruence of interests" between the two countries. It was during the stand-off with China that the PM announced he would stay on in Japan for an extra day.

"The visit will also allow the two governments to take stock of the progress in flagship projects in our partnership, like the Western Dedicated Freight Corridor and the Delhi-Mumbai Industrial Corridor," he said.

In an interview to Japanese media before leaving for Tokyo, the PM promised better implementation and clearance of projects and invited Japanese industry to invest in India. "I see an enormous role for the Japanese industry to contribute not only to infrastructure development of India, but also to accelerate the tempo of manufacturing sector in India's economy," he said.

Expounding on the Indian economy, the PM said, "Our principal concern is to strengthen the impulses to accelerate the process of investment, particularly the investment in infrastructure which has been a big bottleneck which has held up our growth process. We would like to remove these bottlenecks. We have set up the Cabinet Committee on Investment to look at precisely the bottlenecks which hamper the growth of infrastructure sector. And we are hopeful and confident that this will happen."

Questioned about maritime security cooperation between India and Japan, Singh said, "Maritime cooperation and coordination between India and Japan has grown. India and Japan launched bilateral naval exercise last year. We started a new dialogue for discussing maritime affairs, including maritime security challenges."

China's annoyance no hurdle to improve ties with Japan - The Times of India


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Manmohan Singh is spot on when he says that China's annoyance is misplaced over India building up a trade and security relationship with Japan.

China must learn to live with this in the same way India has accepted that the Chinese bonhomie with Pakistan to include arming Pakistan with nuclear assistance.

Just as India has kept good relations with China and Pakistan, and in fact is in constant dialogue to ensure peace in the subcontinent with Pakistan, China must learn from India and build bridges with Japan and not adopt a warmonger role, which China is doing at present.

It is important the India, Japan and the countries around the Pacific Rim chalk out a strategic relationship so that the East West sea corridor is clear of all bottlenecks and threats.

India is on the right course.

China has no cause to be annoyed, not that it really matters!
 

amoy

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So China is doing a favour for India by annoying Japan?? Keep doing it, China!

Manmohan Singh's meet with Japanese PM Shinzo Abe: Can it bring big-ticket projects for India? - Economic Times
In this changed environment, Singh could find Abe willing to collaborate in progressing the nuclear civil cooperation agreement, a matter close to the Indian PM's heart. This would be despite the deep chasms within the Japanese society on a sensitive issue accentuated by the Fukushima disaster of 2011. Like Singh, the Japanese PM seems convinced that safe nuclear energy is the way forward and had let this be publicly known in the run up to the elections last winter.

The Japanese who are already the biggest aid-givers to India might also be willing to significantly step up their level of financial assistance. But as in the past this would be more by way of long-term loans for infrastructural projects to be implemented by Indian governmental agencies. Welcome as it might be, it would continue to impose huge debt service obligations on the Indian taxpayer and all the attendant commercial risks would be on the Indian government.

Given that Japanese corporates have successfully demonstrated the capability to develop large infrastructure projects elsewhere in the world, our future bilateral cooperation should envisage the private sector of Japan being financially and otherwise enabled by the two governments to undertake big-ticket projects like setting up of hub ports, developing a network of dedicated freight corridors and modernisation of the Indian rail system.

Through inter-governmental agreements, the Indian government could bind itself to finding the land for these projects and take the responsibility for securing statutory and other governmental approvals besides assuming all the political risks. This should appreciably reduce the imponderables about which the typical Japanese business is invariably worried and help it take a better informed investment decision. A few extra-ordinary measures such as these by both sides might get their respective economies ticking again.
 

SamwiseTheBrave

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i dont get why the indo-japan trade figur stands at just $14billion ?!??! thats really low compared to the actual potential......its a perfect match if you see that japanese economy and money is mainly pension-fund based and is ideally invested in stable, long gestation projects like Infrastructure projects in India.... that is if it completes on time and gives good returns ! investments are anyday better than long-term loans !
 

amoy

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the caricature by @brahmos is lovely

i dont get why the indo-japan trade figur stands at just $14billion ?!??! thats really low compared to the actual potential......its a perfect match if you see that japanese economy and money is mainly pension-fund based and is ideally invested in stable, long gestation projects like Infrastructure projects in India.... that is if it completes on time and gives good returns ! investments are anyday better than long-term loans !
But jealous? unfair? oh no!!

Compared to Key facts on China-Japan trade and economic ties - Globaltimes.cn your $14bil looks like nothing!

-- Japan is China's fourth largest trade partner while China has been Japan's largest trade partner since 2007. Statistics from the Ministry of Commerce showed that Japan was China's largest trade partner until 2003 and was surpassed by the Europe Union and United States in 2004 and then by ASEAN in 2011.

-- In the first half of 2012, Japan's export to China totaled 73.54 billion US dollars, down 6.2 percent from the same period last year, while its import from China was 91.29 billion US dollars, up 7 percent from the same period last year. Japan's trade deficit with China reached 17.75 billion US dollars, marking an increase of 158.5 percent.

-- As of the end of June 2012, Japan's actual cumulative investment in China reached 83.97 billion US dollars, ranking the first among all countries investing in China.

-- Major Japanese export products to China include electric-mechanical products, base metals and their products, transportation facilities, chemicals, optical, horological and medical products.

-- Major Chinese exports to Japan include electric-mechanical products, textiles and raw materials, furniture, toys and miscellaneous products, base metals and their products and chemicals.

-- In the first half of 2012, Japan imported 3,007 tonnes of rare earth resources from China, which decreased 50 percent year on year. Its import from China accounted for 49.3 percent of its total rare earth import.

-- China is one of Japan's largest foreign automobile markets. Toyota sold 442,500 cars in China in the first half of 2012, compared with its global sales of 4,970,000 vehicles. In August, Toyota's sales in China slumped 15.1 percent year on year to 75,300 units.

-- China is Japan's biggest national debt holder. By the end of 2011, China held a total of 18 trillion yen (about 230.5 billion US dollars), up 71 percent from the 2010 level.

Japan announced in March this year that it had won approval to buy Chinese government bonds of 65 billion yuan (about 10.5 billion US dollars). China and Japan started direct currency trading from June 1 this year.
 
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SamwiseTheBrave

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@amoy many thanks for sharing the stats and data, its quite clear that the sino-japanese trade peak has already been reached. whereas the scope of indo-japan trade ties can only improve from here
 
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