Chinese takeaway: PM Narendra Modi in Mongolia

Ray

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Chinese takeaway: PM Narendra Modi in Mongolia
C Raja Mohan

With barely three million people deep inside the Eurasian steppe and sandwiched between Russia and China, Mongolia is an unlikely destination for Prime MinisterNarendra Modi this week. China will certainly loom large over Modi’s three-nation tour, beginning Thursday. For, Modi is trying to move the Sino-Indian relationship out of the stasis that it finds itself in. Given his focus on “Make in India” and attracting foreign direct investment, Modi would want to end India’s prolonged political neglect of South Korea, one of the world’s leading economies, located at the heart northeast Asia. But Mongolia? Why has Modi chosen to be India’s first prime minister to visit Mongolia?

Some point to Mongolia’s potential as a source of natural uranium and other valuable minerals for India. But New Delhi already has agreements on uranium supplies with many countries from where it is easier to ship uranium than the landlocked Mongolia. Others would see rivalry with China as the driver behind Modi’s brief sojourn in Mongolia. If China spends so much political energy in cultivating India’s neighbours in the subcontinent and the Indian Ocean, it has been argued, Delhi should be doing the same on China’s periphery.

Mongolia is indeed a very sensitive neighbour of China, and the investment of the PM’s time in Mongolia seems worthwhile. To be sure, there has been a geopolitical dimension to India’s engagement with Mongolia. Over the last few years there, India and Mongolia have steadily expanded their defence exchanges and security cooperation.

But there are also limits to any Indian powerplay in Mongolia. With just two neighbours, with whom Mongolia has had difficult relations in the past, Ulaanbaatar has no interest in provoking either Russia or China by undertaking activities hostile to them. Like all small states with large neighbours, Mongolia wants a measure of “strategic autonomy” from them. The country, however, carefully calibrates its partnerships with other major powers. It also had to carefully circumscribe its relations with the Dalai Lama amid Chinese protestations.

Over the last quarter of a century, Mongolia has diversified its relations with an approach that is called the “third neighbour” policy. Originally developed vis-a-vis the United States in the immediate aftermath of the Cold War, Mongolia has sought active cooperation with Germany, Europe, Japan and Korea. Ulaanbaatar has also taken to multilateralism, regional and international. Mongolia holds annual multilateral military exercises on its soil called the “Khaan Quest”, and has participated in UN Peacekeeping Operations. These activities have already given Mongolia an interesting global personality.

Spiritual Neighbour

For Mongolia, India is more than a third neighbour — it is the “spiritual neighbour”. Buddhism travelled to Mongolia in different periods from India and Tibet to emerge as the dominant religious faith over the last two millennia. It has survived the Stalinist-era oppression of religion, when Mongolia became part of the Soviet sphere of influence after the Bolshevik Revolution.

India was the first country outside the socialist bloc to establish diplomatic relations the socialist bloc to establish diplomatic relations with Mongolia in 1955. Reviving its religious heritage and celebrating its new democratic orientation have become the major attributes of Mongolia after the 1990s, and India figures prominently in both domains. If the Mongolian state has put special emphasis on reaffirming the nation’s cultural identity, it might have found the right man in Modi.

During his travels over the last year — whether it was offering prayers to Lord Pashupatinath in Kathmandu, Nepal, meditating at a Buddhist temple in Kyoto, Japan or visiting the Sri Maha Bodhi tree in Anuradhapura, Sri Lanka — Modi has put shared religious heritage with neighbours at the centre of his regional engagement. Mongolia, then, offers many possibilities for Modi’s cultural diplomacy.

Dharma Connection

Modi, who used to express his interest in Buddhism when he was the chief minister of Gujarat, has now lent it a special mission in shaping the future of the subcontinent and Asia. Speaking in Delhi earlier this month on the occasion of Buddha Purnima, Modi said, “Without Buddha, the 21st century will not be Asia’s century.”

Modi has talked about the possibilities of restoring historic Buddhist sites in the subcontinent and promoting tourism by integrating them across borders through modern transportation facilities. If spiritualism and economic development are presented as two sides of the same coin by Modi, his three-nation tour this week will see Buddhism at the very forefront of India’s new Asian outreach.

The writer is a distinguished fellow at the Observer Research Foundation, Delhi and a contributing editor for ‘The Indian Express

http://indianexpress.com/article/opinion/columns/chinese-takeaway-modi-in-mongolia/
One has to exploit the natural resources from wherever it is feasible to ensure that India has a steady growth matrix and Mongolia provides that.

Strategically, India must assist Mongolia to build its infrastructure and ensure the presence of Indian industry in that country so as to enhance India's image as a partner in the growth of Mongolia.

India has a strategic and defence cooperation. This requires to be boosted.
 

no smoking

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One has to exploit the natural resources from wherever it is feasible to ensure that India has a steady growth matrix and Mongolia provides that.

Strategically, India must assist Mongolia to build its infrastructure and ensure the presence of Indian industry in that country so as to enhance India's image as a partner in the growth of Mongolia.

India has a strategic and defence cooperation. This requires to be boosted.
Before you start to dream about Mongolia's natural resources, you at least need to look at the map.
There are 2 ways to send resources out of Mongolia, either through Russia, or through China, there is no sea line for Mongolia.
Russia? They are exporting the same resource of their own. Do you think they would like Mongols to take their customer away?
China? No problem if India is willing to satisfy her on transportation fee.
 

Ray

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Before you start to dream about Mongolia's natural resources, you at least need to look at the map.
There are 2 ways to send resources out of Mongolia, either through Russia, or through China, there is no sea line for Mongolia.
Russia? They are exporting the same resource of their own. Do you think they would like Mongols to take their customer away?
China? No problem if India is willing to satisfy her on transportation fee.

One does not require the sea alone.

The minerals can be moved by rail to the Russia seaport in the East and then it can come to India.

Russia would not mind, since it will get her revenues.
 

no smoking

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Well, of course Russia won't mind it if India is willing to pay a fortune for the rail.
The question is whether India is willing to pay a much higher price for these Mongolian resources.
 

pmaitra

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Well, of course Russia won't mind it if India is willing to pay a fortune for the rail.
The question is whether India is willing to pay a much higher price for these Mongolian resources.
Higher price in comparison to what? Is there a cheaper alternative?

I doubt PRC will allow transit, considering PRC itself is hungry for resources. I am sure the Mongolians would welcome a second customer, so that it is not entirely dependent on imports by PRC.
 

amoy

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the underlying geopolitics in rail gauge

Mongolia embraces China with rail to lower costs
Bloomberg
Mon, Oct 27, 2014

Mongolia’s parliament adopted for the first time a rail gauge compatible with China, to ease transport of its second-biggest export, coal, to its largest customer.

The landlocked nation’s 1,900km rail network was built with help from the Soviet Union last century, as Mongolia looked westward for markets and political support.

Constructing the 240km railway from the Tavan Tolgoi coal basin using China’s standard gauge is expected to save on transportation costs, and helps draw a line under Mongolia’s historical mistrust of its southern neighbor, now the world’s largest energy consumer.

The Chinese gauge was adopted for two routes to the border with 84 percent of votes in favor, according to the parliament’s Web site. The passage follows years of discussion.

With this debate now put to rest, investors are likely feeling a sense of relief, Ulan Bator-based Mongolia Investment Business Group managing director Chris MacDougall said in an e-mail.

Winners from the change include the operator of projects at Tavan Tolgoi, Mongolia’s largest coal deposit with 6.4 billion tonnes of reserves, including Hong Kong-listed Mongolian Mining Corp and state-owned Erdenes Tavan Tolgoi JSC.

South Korea’s Samsung C&T Corp was awarded a US$483 million contract in May last year to build the tracks. Securing power and building signaling and maintenance depots is to increase the costs of the project to US$820 million.

In May, Mongolia Railway, the state-owned company overseeing the line, said construction was slated for completion in late 2016, according to Zorig Alimaa, the head of the project department at the time.

Using standard gauge rail instead of the broad gauge used elsewhere in the country would reduce the cost of transporting coal to China by US$2 a tonne to US$4 a tonne, Zorig said. Broad gauge adds costs because of the need to unload and reload coal before it reaches China, he said.

Imperial Russia adopted a gauge of 1,524mm in 1842 for military purposes, as a way to slow down an invasion by rail, but standard gauge, used in China, is 85mm narrower.

Rail Gauge World
 

SADAKHUSH

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Before you start to dream about Mongolia's natural resources, you at least need to look at the map.
There are 2 ways to send resources out of Mongolia, either through Russia, or through China, there is no sea line for Mongolia.
Russia? They are exporting the same resource of their own. Do you think they would like Mongols to take their customer away?
China? No problem if India is willing to satisfy her on transportation fee.
Have you heard of the saying "Where there is will there is way"? Trade relations are evolving around the world between the countries and same will happen between Asian giants of suppliers and consumers.
 
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no smoking

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Higher price in comparison to what? Is there a cheaper alternative?
Well, for the matter of fact, there is a cheaper alternative--Russia's resources.

I doubt PRC will allow transit, considering PRC itself is hungry for resources. I am sure the Mongolians would welcome a second customer, so that it is not entirely dependent on imports by PRC.
No, PRC allows transit as long as you are willing to pay for the super high cost.
Of course Mongolians would like a second customer, but neither Russian, nor Chinese would like a second competitor. And they are the only 2 export route that Mongolian gets.
 

no smoking

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Have you heard of the saying "Where there is will there is way"? Trade relations are evolving around the world between the countries and same will happen between Asian giants of suppliers and consumers.
Certainly, you can wait until the third route is find. But I doubt that will happen in this century.
 

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