China's $160 billion Andhra Investment a National Security Timebomb

Discussion in 'Defence & Strategic Issues' started by tarunraju, Jul 21, 2013.

  1. tarunraju

    tarunraju Moderator Moderator

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    Andhra Nero Kiran Kumar Reddy today valiantly announced that China is in talks to invest a staggering US $160 billion in Andhra Pradesh; in various sectors that include infrastructure development, real-estate, education, SMEs, and light-industry. Mr Reddy and his minions are projecting this is some sort of governance victory; but in reality, has anyone with a basic understanding of national security and geopolitics, worried.

    Reddy says that no less than the economic advisor to Xi Jinping, Shoosan Maa assured him that China plans to invest around US $160 billion in the state, across various sectors, over a short period of time. It looks really dicey, and could go a long way in lifting up the economy, employment, right? Wrong! China realised that it can pull an "Africa" on India, by adapting a carrot and stick approach. Keeping the LAC hot is the stick, and "investments" are the carrots, or are they?

    China, over the past two decades, struck similar "investment" deals with underdeveloped African nations, where they would invest on heavy infrastructure, real-estate, and "education," but not necessarily spending that money in a way that betters the local economies. Typically, Chinese investments would funnel back to Chinese companies in contracts to undertake big projects; and these companies would then cite lack of skill or scale in the local labour-force, and bring with them their very own labour-force from China. A key word here is "investment" and not "aid." India (Andhra Pradesh), and its citizens will eventually foot the bill for that $160 billion. When that much money is being spent here, it's being done so that >160 billion goes back, in profits.

    The influx of a Chinese labor-force to support undertaking of projects that benefit from that $160 billion investment will not be small, it will be akin to the influx of South Asian labour to UAE, to support its real-estate and infra boom, only at a much larger scale. One couldn't even imagine the national security risk that a flash-flood of, say, 100,000 Chinese workers poses.

    The other big sector Reddy chest-thumped about, was education. Andhra Pradesh, particularly Hyderabad, attracts students from all over the country for its engineering and IT education; among several other disciplines. Chinese investments into the education sector will not just bring Chinese labour to support the infra-projects associated with investments in the sector, but also students. Zhoushan Maa, Jinping's economic advisor, announced that he expects 10,000 Chinese students studying in Andhra Pradesh with the beginning of investments into the education sector. That number could obviously rise.

    Andhra Pradesh is not just a big state with a metropolis, it has a 900 km coastline, three merchant ports (Vizag, Kakinada, Krishnapatnam), the seat of the Eastern Naval Command in Vizag, India's sole cosmodrome at Sriharikota, India's largest cache of nuclear fuel (NFC Hyderabad), key defence institutions in and around Hyderabad (BDL, DRDO, NRSA, HAL to name a few), and so on.

    Valid concerns or fear-mongering? Discuss. :scared2:
     
    Last edited: Jul 21, 2013
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  3. Iamanidiot

    Iamanidiot Elite Member Elite Member

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    Re: China's $160 billion Andhra Investment a National Security Timebom

    Coast Ap wallahs will declare Independence if this happens in the future.Right now anger is simmering their about Telangana issue
     
  4. Singh

    Singh Phat Cat Administrator

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    Re: China's $160 billion Andhra Investment a National Security Timebom

    160billion $ ? Over how many centuries ?
     
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  5. tarunraju

    tarunraju Moderator Moderator

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    Re: China's $160 billion Andhra Investment a National Security Timebom

    China said it's "ready to invest," without mentioning a timeframe. Chinese infra companies see this as a diversion from the real-estate bubble pop back home, so my guess is "in a short span."
     
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  6. tarunraju

    tarunraju Moderator Moderator

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    Re: China's $160 billion Andhra Investment a National Security Timebom

    Yeah, Costa would declare independence, if even a cent from that $160 billion stands a chance to make it to Lanco's, GVK's, GMR's, or Ramky's coffers; it doesn't. It stands to only open the door for Chinese companies to enter and undertake those projects.

    The $160 billion number is obviously inflated by China. It's like one of those "free pizza" coupons from Dominos that claims to carry a tangible value.
     
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  7. t_co

    t_co Senior Member Senior Member

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    Re: China's $160 billion Andhra Investment a National Security Timebom

    lol, so when Chinese workers and money flow into a region of India, it's a national security issue?

    The Chinese government doesn't complain when the Japanese, Americans, or British do the same in China...

    The POV presented here is fairly short on specifics: exactly what harms would occur under the investment plan?
     
  8. The Vikas Sharma

    The Vikas Sharma Regular Member

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    Re: China's $160 billion Andhra Investment a National Security Timebom

    I would say Yes if they can show me the money. People say that their interest is in mineral wealth. If they can do value addition here instead of picking ore, why not?
     
  9. roma

    roma NRI in Europe Senior Member

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    Re: China's $160 billion Andhra Investment a National Security Timebom

    the region is sensitive - lots of separate state issues plus even seperative movements, relatively close to sri lanka where lizard is establishing bases, close to the naxal infested areas

    ,plus the "agreement " also includes allowing lizard to send 10,000 of their students to study at indian institutes ,so they will have computers with which they could then infiltrate the system from within ....

    i''d say "No thanks " keep your money , instead we need to urgently improve our economy, manufacturing and reduce the
    leakage -corruption
     
    Last edited: Jul 21, 2013
  10. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    Re: China's $160 billion Andhra Investment a National Security Timebom

    lol, so when Western money flow into China, they don't have to give control of production over to Chinese enterprises? you want all FDI employing Chinese, then you want all your own FDI employing Chinese. of course India should be wary. you can invest, but you can't import labour.
     
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  11. Blackwater

    Blackwater Veteran Member Veteran Member

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    Re: China's $160 billion Andhra Investment a National Security Timebom

    China invest 3 billion in Pak and 180 billion in India:p:p


    Is this 160 billion $$ investment not against the the friendship treaty of 420 between china-pak ??:p:p

    @farhaan
    @Alpha1
     
    Last edited by a moderator: May 10, 2015
  12. t_co

    t_co Senior Member Senior Member

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    Re: China's $160 billion Andhra Investment a National Security Timebom

    Unlike India, China and Pakistan realize investment is not a zero-sum game...
     
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  13. t_co

    t_co Senior Member Senior Member

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    Re: China's $160 billion Andhra Investment a National Security Timebom

    Fair enough, and I'd be surprised if China wanted to put large amounts of labor into this series of projects. There is a lot of skilled labor available in India - but whether the AP government and regulators will be supportive enough to let the Chinese project managers utilize local labor supplies in a flexible manner remains to be seen.
     
  14. Blackwater

    Blackwater Veteran Member Veteran Member

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    Re: China's $160 billion Andhra Investment a National Security Timebom


    true, unlike Pakistan ,no chini labourer or engg should be allowed in india
     
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  15. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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  16. Blackwater

    Blackwater Veteran Member Veteran Member

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  17. t_co

    t_co Senior Member Senior Member

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  18. Blackwater

    Blackwater Veteran Member Veteran Member

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    Re: China's $160 billion Andhra Investment a National Security Timebom

    china investment in Pakistan will only give -10+terrorism.

    i used to think chinis are good businessman but then:p:
     
  19. t_co

    t_co Senior Member Senior Member

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    Re: China's $160 billion Andhra Investment a National Security Timebom

    I get it. Combining your comments with those of Khurshid, the only Chinese who are allowed in India should be mountain soldiers from the Lanzhou Military Region? :p

    On a more serious note, laborers and engineers are pretty different groups of people. It probably isn't worth it to bring simple manual laborers over, but I doubt any Chinese (or Western) firm would invest in a project that was not run and designed by its in-house engineering staff. In fact, Chinese banks require in-house engineers to have direct control over the most critical aspects of all overseas projects, or else they won't fund the project.
     
  20. Blackwater

    Blackwater Veteran Member Veteran Member

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    Re: China's $160 billion Andhra Investment a National Security Timebom

    or may be from chinis from Xinjiang region:p:p:p

    BTW why invest in andhra why not punjab? we punjabis likes chinis,u know wat i mean:p:p
     
  21. Known_Unknown

    Known_Unknown Devil's Advocate Stars and Ambassadors

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    Re: China's $160 billion Andhra Investment a National Security Timebom

    Lol.....seems totally unrealistic....$160 billion is nearly 3 times the GDP of AP state. I think it's a typo. Probably $160 million, but even that would be a lot of money to invest just in 1 state.
     

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