ICC-July-Aug-2019 by India China Chronicle

An India-China Economic and Cultural Council publication

July-August 2019 â&#x20AC;˘ ` 100

Will the Wuhan spirit bloom

into the Asian century? Major General BK Sharma (retd)

Vikrant Jawharkar (Rocky)

Sustained India China engagement a strategic imperative

For Yiwu With Love

Aayush Mohanty Clouds over Modi-Xi Summit scheduled in October

Divay Pranav

CMA. Dhyanabrata Sanyal

US-China Trade War: Winners in ASEAN Indiaâ&#x20AC;&#x2122;s Golden Opportunity

Impetus to Incredible India essential to boost tourist inflow from China

Kalpit Mankikar

Alice Liu

Malathi and KS Subramanian

Space is the new frontier in China and India

Alice creates her wonderland

Glimpses from a visit to Sichuan

www.icec-council.org

Vol 6, Issue 5, July-August 2019 EDITOR-IN-CHIEF Mohammed Saqib EXECUTIVE EDITOR Rajni Shaleen Chopra EDITORIAL BOARD Mani Shankar Aiyar PS Deodhar Prof Haixiao Song Dilip Cherian Shaodong Wang Amir Ullah Khan EDITORIAL TEAM Irfan Alam Audrey Tso Jaya Chhaparia DESIGN Manoj Raikwar OWNED, PRINTED AND PUBLISHED BY Mohammed Saqib Registered with the Registrar of Newspapers of India under RNI No: DELENG/2011/43423 PUBLISHED FROM A-82, Zakir Bagh, New Delhi - 110025 ADDRESS FOR ALL CORRESPONDENCE India-China Chronicle B-59 (GF), South Extension - II, New Delhi - 110049 Telefax: 011-46550348 PRINTED AT Thinkink Creation Patparganj Industrial Area, New Delhi Mobile:+91-9818717456 E-mail : thinkink.creation@gmail.com All Rights Reserved. Reproduction in whole or in part without written permission is prohibited.

All advertising enquiries, comments and feedback are welcome at info@icec-council.org The information contained in this magazine has been reviewed for accuracy and is deemed reliable but is not necessarily complete or guaranteed by the Editor. The views expressed in this digest are solely that of the writers and do not necessarily reflect the views of India China Economic and Cultural Council (ICEC).

Chinese film charms viewers worldwide, critics call it modern China masterpiece

iven my abiding interest in China, a recent headline on a Chinese film caught my eye. ‘Do not miss Ash is Purest White’. It’s a Chinese masterpiece, wrote film reviewer Rashid Irani in Hindustan Times, one of India’s leading English dailies. Bollywood has charmed China for many years. One after the other, masala fare from Bollywood has set cash registers ringing in China. Here I saw an Indian film reviewer list a Chinese movie in his weekly column. I was surprised to see the score given to the movie. Five upon five. Indians relish words of wisdom spoken about in casual conversation. Zhao Tao, in what is being hailed as her finest performance yet, quietly remarks to Jianghu crime syndicate gangster Bin (Fan Liao): Volcano ash is very pure, isn’t it? A long pause follows. Anything that burns at high temperatures is made pure. A very Indian construct. Supported by the mythology and philosophy that marks our ancient land. Perhaps this stands true about Chinese philosophical thought too. Some truths are universal. Rashid Irani called Ash Is Purest White a cracker of a tale that tracks the people caught in the middle, when centuries of tradition collide with new definitions of progress. “Cinephiles craving something more substantial than Hollywood’s fast and furious follies would do well to spare a couple of hours for Ash Is Purest White this weekend”, he wrote on August 1. His fulsome words of praise piqued my curiosity. I saw that reviewers across the globe have given full marks to mercurial Chinese auteur Jia Zhang-ke, calling this movie his peak achievement. Namrata Joshi, film reviewer for The Hindu, said this was cinema set against a sweeping, epic backdrop of the radical, socio-economic changes in China. The intimations of changes are always in the air. It is we who fail to see them till they are upon us. Joshi correctly noted that the theme of migration and resettlement due to supposed reforms and development echoes loud for us here in India as well. She called the movie a compelling personification of changes and continuities. Kevin Maher, writing for the Times (UK), said the film slowly reveals melancholic aims, guiding a low-key finale towards a mournful evocation of what China has lost on the way towards modernization. In these times when Hollywood spends billions of dollars in special effects to tell a story, a Chinese movie made on a frugal budget made headlines worldwide. This is also the greatness of Indian cinema – something that the Chinese have observed and commended. Dangal, Secret Superstar, Andhadhun, Bajrangi Bhaijaan, Hindi Medium and more are low-budget Bollywood films that soared as great cinema on the strength of good stories and performances. Quite like Bollywood blockbusters, Ash Is Purest White is a masala movie. Author Jonathan Gil Harris says in the masala movie, elements that are supposedly separate and even incompatible combine: tragedy consorts with comedy, poetic language with coarse slang, prim morality with unbounded desire. Ash Is Purest White has all of this. If Indians had seen it, they would have loved it. But our homegrown Bollywood has spoiled Indians for generations. So much fare is available in our mother-tongue that Indians have got used to watching movies in Hindi, or at the most in our regional languages. Indian movies have routinely been dubbed into Mandarin and recorded phenomenal success. If Ash Is Purest White is dubbed into Hindi, we can expect a similar success for it here.

Editor-in-Chief Mohammed Saqib

A huge elaborately and exquisitely crafted statue of the Mother Goddess at a podium

A Chinese devotee bathes the idol of Lord Shiv at the Chinese Kali Temple in Kolkata. Image Credit: mandarinfodot.com

Chinese should visit India to see the amazing Durga Puja celebrations

ndia is a large, diverse country. It has an ancient civilization whose hallmark has been assimilation and integration. An example of this is the Chinese Kali Temple in Kolkata, the capital of West Bengal, a state in east India. The temple is of Goddess Kali. In this temple, the offering made to the Goddess comprises noodles, chop suey, rice and vegetable dishes. Kolkata has a large community of the Chinese, who have been living here for some generations. The temple is in Chinatown, in Kolkataâ&#x20AC;&#x2122;s Tangra area. This temple is one of the most beautiful examples of assimilation and acceptance that have been the defining qualities of the Indian civilization. The Chinese who pray at the temple say that most of them are Buddhists and some of them are Christians. But all of them pray regularly at the temple, because they consider it to be an integral part of the Chinese community in Kolkata. At the temple, the pranaam (salutation) to the Goddess is done in Chinese style. The devotees light tall candles on the night of Kali puja. They also light special Chinese incense sticks. Kali Puja is part of the Durga Puja festival, a most astounding and grand spectacle of West Bengal. Durga Puja is the Hindu celebration of the Mother Goddess. The festival honors the powerful female force in the Universe. The dates of the festival are determined according to the lunar calendar. This year, Durga Puja shall take place from October 4 to October 7, followed by the grand immersion of Durga idols on October 8. Durga Puja is time indeed for Chinese tourists to visit India and be part of the amazing celebrations. Huge, elaborately crafted statues of Goddess Durga are installed in homes and beautifully decorated podiums all across the country. The celebrations are marked by traditional singing and dancing. It is a most fantastic spectacle, and is an unmatched experience for tourists visiting India.

Women during Sindoor Khela, part of Durga Puja celebrations Image Credit: indiablooms.com

Executive Editor Rajni Shaleen Chopra

CONTENTS COVER STORY

Will the Wuhan Spirit Bloom into Asian Century? 4

Major General BK Sharma (retd)

US-China Trade War: Winners in ASEAN India’s Golden Opportunity Divay Pranav

16 Clouds over Modi-Xi Summit scheduled in October Aayush Mohanty

19 Space is the new frontier in China and India Kalpit Mankikar

24 For Yiwu With Love Vikrant Jawharkar (Rocky)

34 Impetus to Incredible India essential to boost tourist inflow from China CMA. Dhyanabrata Sanyal

42 Alice creates her wonderland Alice Liu

54 Glimpses from a visit to Sichuan Malathi and KS Subramanian

61 Gupshup • PM Modi’s hug for ISRO Chairman watched by millions globally • Chinese President Xi Jinping’s words that have been shared worldwide July-August 2019 ▪

CHINA INSIGHT TH E

DEEP

EYE

Will the Wuhan Spirit Bloom into Asian Century?

T Major General BK Sharma AVSM, SM and Bar (Retd)

He is Head of Research and Centre for Strategic Studies and Simulation at the United Service Institution of India. He was conferred three military awards by the President of India for rendering exceptional distinguished national service and for displaying courage. Besides, he was conferred the national award for nation building by the Confederation of Educational Excellence of India in 2017. He is chosen for the coveted REX Karmaveer Global Fellow Award 2019, instituted by the Indian Confederation of NGOs (INCONGO) and United Nations. He specializes in strategic net assessment methodology, scenario building and strategic gaming. He has represented his country at the UN in Central America and as a military diplomat in Central Asia. He has visited about 35 countries as member of international delegations and on educational tours. He regularly participates in Track-2 Level dialogue on China, Afghanistan and Vietnam.

▪ July-August 2019

he evolving global geopolitical scenario is marked by volatility, uncertainty, complexity and ambiguity. The unanimous view is that the Indo-Pacific is the centre of gravity of the global power shift. The world is witnessing a heightened strategic brinkmanship between the ‘Great Powers’ in Eurasia and the Indo- Pacific region. At the same time, there is unprecedented realignment by the middle-level powers and smaller countries. In Eurasia, the strategic alliance between Russia and China has consolidated, and Afghanistan has become the front line state in the New Great Game. The post US withdrawal period is marked by critical uncertainties. The big power rivalry in the Indo-Pacific devolves around China’s Belt and Road Initiative (BRI), Counter Intervention Military Strategy on one hand, and the US Indo-Pacific Strategy and Security Alliance System on the other. Intertwined with the two aforesaid dominant approaches are the other players. These include the increasingly assertive Japan, Russia’s ambitions to be the pivot for Asia, India’s Act East Policy and the renewed focus on ASEAN centrality. Amidst the ensuing strategic milieu, there is hope that the Future is Asian, and that the 21st century will essentially be an Asian Century. Asia is populated with five billion people, majority of the world’s mega cities, bulk

of the world economic growth, eight largest militaries, five nuclear powers and rich panoply of civilizations. Whether you gauge by demography, geography, economy, military or any other metric, the contours of an Asian Century are getting bolder. On the flip side, Asia is studded with a number of flash points and it is witnessing vicious grey zone conflicts. Much of Asia’s future is predicated on the course and complexion of Sino-Indian relations. The leadership of the two countries owes the people of Asia a shared vision and common destiny of mankind. India and China together with other stakeholders must create a strategic environment that is conducive for building cooperation, managing competition and mitigating conflicts.

India’s relations with China in the 21st century have grown and diversified. In the last two decades, bilateral relations have transited through three broad phases. First was the rapprochement period from 2000 to 2006. Second came the pendulum period from 2006 to 2017. Thereafter, the Wuhan spirit has been the dominant force in the last two years. The pendulum phase witnessed serious military stand offs between the armies of the two countries at Depsang and Chumar in Ladakh sector, and the Doklam crisis on the Indo-Bhutan and China border. Added to this challenge was bickering over the UN resolution 1267. China, in deference to Pakistan’s appeal, was seen dragging her feet on declaring Mohd Azhar as an international terrorist.

The Wuhan reset

PM Narendra Modi with Chinese President Xi Jinping at the SCO Summit

Sustained India-China engagement is a strategic imperative for the realization of the Asian Century. The two sides must build on the Wuhan spirit and insulate the relationship against a third factor (Pakistan). India has shown remarkable restraint and maturity by keeping a wise distance from China’s Tibet, Xinjiang, Hong Kong and Taiwan dilemmas. India expects that China too should heed its core interests and sensitivities and play a constructive role by moderating Pakistan’s behaviour rather than emboldening its hostile attitude towards India

Amidst this gloom, the Wuhan Apr 2018 informal summit was a refreshing breakthrough. It paved the way for the reorientation of bilateral relations. Prime Minister Narendra Modi and President Xi Jinping, the two tall leaders of Asia, showed wisdom to reset relations in the context of global geopolitical developments that devolved around fragile security scenarios in the Korean peninsula, Persian Gulf, West Asia and Afghanistan. This was also in light of the unilateral US withdrawal from international treaties, and the looming trade and technological wars. The two leaders agreed to mitigate the competitive component in the bilateral relations, address the third factor (Pakistan and US) pragmatically, respect respective core interests, adhere to new guidelines on the confidence-building measures to maintain peace and tranquility at the border and build strategic trust for resolving other issues. Post Wuhan, the diplomatic activity moved along a positive trajectory with a focus on building strategic communication, practical cooperation, enhancing cultural exchanges and finding a new modus vivendi in bilateral relations. President Xi Jinping and Prime Minis-

July-August 2019 ▪

CHINA INSIGHT ter Modi interacted at various international events, notably at the SCO summit in Bishkek and G-20 Summit in Osaka. Presently, the worldview of the two countries converge on a multitude of issues, including upholding the sanctity of international treaties, fair trade practices, climate change and even on the fight against international terrorism. The two sides have not allowed divergences such as the border issue, succession of the Dalai Lama, trade imbalance, water issue etc to dampen the Wuhan spirit.

Anxieties remain Nonetheless, it would be naïve to gloss over the fact that fundamentally India and China remain circumspect about each other. India remains wary of the growing Pakistan-China strategic nexus, China-Pakistan Economic Corridor, China’s strategic forays into India’s immediate neighborhood and the Indian Ocean region and China’s massive military modernization and infrastructure development in Tibet. Similarly, China remains skeptical about the US-India strategic partnership, with particular reference to the Indo-Pacific Strategy, the Quadrilateral Security Dialogue (Quad) between the United States, Japan, Australia and India; India-US military cooperation and the signing of strategic agreements like LEMOA (Logistics Exchange Memorandum of Agreement), COMCASA (Communication Compatibility and Security Agreement) and the possible signing of BECA (Basic Exchange Cooperation Agreement) in the near future. China is also uneasy about the Indian decision of not endorsing President Xi Jinping’s signature Belt and Road Initiative. New Delhi perceives that China is pursuing a strategy of restraining India and ipso facto emboldens Pakistan to countervail India. China on the other hand perceives India as being a cog in the US design to stymie China’s rise.

Mahabalipuram Summit The visit of China’s foreign minister to New Delhi was expected to finalize the agenda for the October meeting between

▪ July-August 2019

PM Narendra Modi and Chinese President Xi Jinping in Johannesburg on the sidelines of the BRICS Summit

the two top leaders. The Kashmir imbroglio seems to be a plausible reason for New Delhi asking Beijing to reschedule the visit. Let us hope that the two sides don’t permit these irritants to dampen the prospects of the much-needed thaw in bilateral relations. While the two sides are bracing for a much-awaited Mahabalipuram Summit in October 2019 between President Xi Jinping and Prime Minister Modi, the Pakistan factor has once again raised its toxic head, with potential to impede the Wuhan process. China has disregarded Indian sensitivities and embraced Pakistan by raising the Kashmir issue at the UNSC. Beijing has also objected to naming of Aksai Chin as Indian territory and to the very reconfiguration of Ladakh as a Union Territory by India. China’s seemingly exaggerated concerns were somewhat allayed by Indian Foreign Minister S. Jaishankar during his recent visit to Beijing. India made it clear that J&K is a domestic issue, and that India had no designs beyond the Line of Actual Control (LAC). The moot point is whether China will continue to assert its position as a de-facto third party in the Kashmir

imbroglio and overtly support Pakistan at various platforms. Also, how will India respond to China’s intransigence on Pakistan? The ebb and flow of the Mahabalipuram Summit will depend on this contradiction. The big picture tells us that sustained India China engagement is a strategic imperative for the realization of the Asian Century. It is therefore paramount for the two sides to build on the Wuhan spirit and insulate the relationship against a third factor (Pakistan). India has shown remarkable restraint and maturity by keeping a wise distance from the dilemmas that China faces in Tibet, Xinjiang, Hong Kong and Taiwan. India expects that China too should heed its core interests and sensitivities and play a constructive role by moderating Pakistan’s behaviour rather than emboldening its hostile attitude towards India. Sagacity demands that the two responsible nations do not permit the recent developments to cast a spell on the much-touted Wuhan spirit. They should use the opportunity of the forthcoming Mahabalipuram Summit to put the bilateral relations not only on an even keel but also on a positive trajectory to make the Asian Century a reality. 

TRADE DISRUPTIONS NEW OPENINGS

US-CHINA TRADE WAR

Winners in ASEAN

India’s Golden Opportunity

▪ July-August 2019

 DIVAY PRANAV

he US has imposed three rounds of tariff on Chinese goods worth US$250 billion in the last 12 months. The duties up to 25-30% cover a wide range goods including chemicals, agricommodities, machinery, furniture and automobiles etc. Another round of tariff hike cover remaining US$300 billion of imports impacting products such as apparels, footwear, toys, computers, smartphones, other electronics items etc. China has retaliated by imposing tariff of 5% to 25% on US$110 billion of US products, including chemicals, coal and medical equipment. China exported US$539.7 billion of goods to the US in 2018. Roughly onethird could be moved quickly to a third country. Furniture, shoes, garments and toys, for example, are products always in search of the lowest-cost country. They have experienced cost pressure for a decade in China because of increasing wages and tightening environmental standards. During the first seven months of 2019 (Figure 2), the US imports from China reduced by 12.3% YoY. However, its imports from Vietnam were up 33.2% YoY, and from Taiwan up 20.2% YoY, from Bangladesh up 10.9% YoY, and from South Korea up 9.8% YoY. India too seems to be benefitting with 9.7% growth in exports. However, withdrawal of GSP benefits may curtail its growth in the coming months. The trade war is already beginning to impact Chinese economy and has forced Chinese government to expedite structural reforms. Interestingly, somebody’s loss is somebody’s gain, with many competing nations to emerge as potential winners in short, medium and long run. Governments, manufacturers, traders, buying houses, retailers – all are reacting to the challenges and opportunities arising from the present situation. The beneficiaries of the US-China trade war are East Asia, South East Asia and some African countries like Ghana, Ethiopia and

Nigeria. What’s in it for India and how we can leverage this opportunity to increase our exports and build a strong manufacturing base for affected sectors?

ASEAN — Benefitting from Trade Diversion and Attracting Manufacturing FDI ASEAN is likely to emerge as the fastestgrowing trading partner for the US. Several countries in the region are likely to emerge as a substitute to China in the Global Value Chains. In addition, outward FDI from China as well as relocation of factories of Japanese/South Korean/Taiwanese companies currently operating in China to this region is also likely to gather momentum in the coming quarters. Vietnam has emerged as the biggest beneficiary of the US-China trade conflict. It latched on the opportunity of trade substitution in the short-run and is poised to gain from production relocation in the medium-term. In the first seven months of 2019, Vietnamese exports to the US have surged 33.2% compared with the same period last year. With US$36.0 billion in shipped goods till July 2019, Vietnam has become the eighth biggest source of American imports, up from 12th place a year ago. As per the statistics released by the General Statistics Office of Vietnam, the country ran a trade surplus with the US (US$30.1 billion up to 7M19, +39.2% YoY), and a deficit with China (US$16.3 billion, + 48% YoY) and South Korea (US$12.2 billion, -3.6% YoY). This explains Vietnam’s newly acquired spot as an assembler in the Global Value Chain with components and inputs being sourced from China and South Korea. Vietnam’s top export growth to US in first seven months included Mobile Phone: 91.7%, Electronics: 71.6% and Machinery: 54.6%. Most of these products are those attracting 25-30% duty in the US when shipped from China. Besides Vietnam, Cambodia, Burma

Divay Pranav works as a market-entry expert for Chinese companies in India at his role at Invest India. He has helped a large number of Chinese enterprises to conclude market feasibility studies in India, and later helped them liaison with the central and provincial government agencies. He also keenly observes developments in the global FDI and trade regime, and actively publishes point-of-view papers

The trade war is already beginning to impact Chinese economy and has forced the Chinese government to expedite structural reforms. Interestingly, somebody’s loss is somebody’s gain, with many competing nations to emerge as potential winners in short, medium and long run July-August 2019 ▪

TRADE DISRUPTIONS NEW OPENINGS

Figure 1: United States — Top 20 Importing Co untries, 2014–18 US$ billion

Rank

Countries

2014

2015

2016

2017

2018

Share in Total Imports, 2018 (%) 21.2%

China

468.5

Mexico

483.2

462.4

295.7

505.2

539.7

Canada

296.4

293.5

349.3

312.8

296.2

346.1

277.7

299.1

13.6%

318.8

12.5%

3 4

Japan

134.5

Germany

131.4

132.0

124.2

136.4

124.8

142.4

114.1

117.5

5.6%

125.8

5.0% 2.9%

South Korea

69.7

United Kingdom

71.8

69.9

71.4

Ireland

58.0

74.3

54.7

54.3 45.5 45.3

45.4

49.9

2.3%

India

44.2

57.5

42.4

48.9

2.4%

Italy

39.3

60.8

34.0

53.3

44.8

54.7

46.0

2.2%

47.1

48.5

47.8

54.3

46.7

48.9

2.1%

52.4

2.1%

France

Vietnam

30.6

Taiwan

38.0

42.1

40.8

46.5

49.2

39.2

31.3

42.4

1.9%

Switzerland

40.9

36.3

30.6

36.0

1.8%

Malaysia

31.4

45.8

34.0

41.1

36.6

37.4

1.6%

39.4

1.5%

14 15 16

Thailand

27.2

Brazil

28.6

29.5

30.0

31.1

31.9

26.0

16.5

29.5

1.3%

Singapore

27.5

17.8

20.9

19.4

1.2%

Netherlands

18.3

31.1

16.8

26.6

16.1

1.0%

47.0

17.8

22.1

24.5

16.9

18.9

1.0%

24.1

0.9%

18 19 20

Saudi Arabia

Source: United States Cen sus Bureau; Author ’s Ana lysis

▪ July-August 2019

and Laos have also benefitted from retreat of Chinese imports to the US market. Likewise, Thailand and Malaysia have benefitted on account of their existing ecosystem for electronics, and the automobile sector can attract relocating factories. It is a known fact that Chinese companies have been heavily investing in these economies since last four to five years. There are evidences of trade diversion from mainland to the neighbouring ASEAN countries. However, before the onset of the trade war, these countries were attracting Chinese FDI due to rising wages, strict enforcement of environment laws and rising cost of production. Some of these macro factors have helped Vietnam make massive strides in the last 10 years for diversifying beyond shoes and apparel to relatively higher-value products by attracting companies such as Samsung, Intel and Canon.

Figure 2: United States — Top Importing Countries, Monthly Data, Jan–May 2019 US$ billion

Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19

Jul 19

YTD 2018

China

41.6

33.2

31.2

34.8

39.3

39.0

41.5

297.1 260.6

-12.3%

Mexico

27.7

27.6

31.3

30.4

32.1

30.5

30.1

197.2 209.7

6.3%

Canada

23.4

23.2

27.7

26.8

29.3

27.8

26.9

186.8 185.0

-1.0%

Japan

11.5

11.4

13.1

13.0

12.0

11.9

12.9

82.0

85.8

4.6%

Germany

10.2

9.4

11.4

10.7

11.0

9.6

11.4

73.3

73.7

0.5%

South Korea

6.9

6.1

6.9

6.7

6.4

6.2

6.5

41.6

45.7

9.8%

4.3

4.9

5.8

5.3

4.8

5.6

34.1

36.6

7.3%

Vietnam

5.4

5.3

4.7

5.1

4.6

5.6

27.0

36.0

33.2%

Rank

Countries

YTD 2019

Ireland

4.8

4.0

5.4

4.8

5.7

5.0

5.2

33.0

35.1

6.4

France

4.2

5.0

4.9

5.6

5.2

4.7

4.9

30.3

34.6

14.2%

India

4.9

4.6

5.1

5.0

5.6

4.1

5.0

31.4

34.4

9.7%

Italy

4.7

4.1

4.8

4.9

5.0

4.6

5.5

31.7

33.6

6.1%

Taiwan

4.6

3.9

4.2

4.4

4.7

4.3

4.7

25.6

30.8

20.2%

Switzerland

3.5

3.2

3.6

3.7

3.9

3.5

3.8

23.8

25.2

5.8%

Malaysia

3.0

2.7

3.4

2.9

3.3

3.1

3.3

22.7

21.8

-3.9%

Bangladesh

0.6

0.5

0.6

0.5

3.6

4.0

10.9%

Source: United States Census Bureau; Author’s Analysis

According to Foreign Investment Agency of Vietnam, Vietnam attracted US$22.63 billion in FDI between JanAug 2019. Top five investing nations in Vietnam in the first eight months of 2019 are Hong Kong (US$5.63 billion or ~25% of the total FDI flow in Vietnam), South Korea (US$3.48 billion), Singapore (US$3.27 billion), China (US$2.78 billion) and Japan (US$2.34 billion). This partly reflects the trade diversion trend that was visible since the beginning of the year. The trend is likely to continue over the near term – from both Chinese and non-Chinese firms. For example, LG announced in April that it would relocate its premium phone manufacturing to Hai Phong, which accounts for 10-20% of LG’s smartphones. Some other examples of investment relocation and supply chain re-configuration favouring ASEAN economies are mentioned in Figure 5.

Governments, manufacturers, traders, buying houses, retailers – all are reacting to the challenges and opportunities arising from the present situation. The beneficiaries of the US-China trade war are East Asia, South East Asia and some African countries like Ghana, Ethiopia and Nigeria. What’s in it for India and how we can leverage this opportunity to increase our exports and build a strong manufacturing base for affected sectors is the moot question ASEAN — This Cheers is not without its Fears ASEAN’s cheer might be short-lived. The US has taken a note of rising trade deficit with Vietnam and has suspected transhipment of Chinese goods with “Made in Vietnam” label to its shores. This is forcing Vietnam to get stricter in dealing with such trade evasions. Vietnam is likely to eventually get selective about the nature of FDI it wants to attract. Being an export dependent economy, Vietnam will not like to position itself as a new hub for

trade diversion for the US consignments. ASEAN countries that are being captured by US’s broadening trade war net include Vietnam (currency manipulation, undervaluation); Singapore (currency manipulation, undervaluation); Thailand (currency undervaluation, GSP); Malaysia (currency manipulation); Indonesia (GSP); Philippines (GSP); Cambodia (GSP); and Myanmar (GSP). US has accused several ASEAN countries of undervaluing their currency to manipulate the prices of their goods and

July-August 2019 ▪

TRADE DISRUPTIONS NEW OPENINGS

Figure 3:

United States’ Imports from ASEAN Countries, Yearly Data, 2014–18 US$ billion

Rank 1

ASEAN Countries Vietnam

2014

2015

30.6

38.0

2016 42.1

2017 46.5

2018 49.2

Malaysia

30.6

34.0

36.6

37.4

39.4

Thailand

27.2

28.6

29.5

31.1

31.9

Singapore

16.5

18.3

17.8

19.4

26.6

Indonesia

19.4

19.6

19.2

20.2

20.8

Philippines

10.2

10.0

11.6

12.6

Cambodia

2.85

3.03

2.81

3.06

3.82

Burma

0.09

0.14

0.24

0.37

0.50

9 10

Laos

0.03

0.05

0.06

0.10

0.14

Brunei

0.03

0.02

0.01

0.02

0.10

137.5

152.0

158.4

169.7

185.0

2,356.4

2,248.8

2,186.8

2,339.9

2,540.8

Total ASEAN Total US

Source: United States Census Bureau; Author’s Analysis

has threatened to impose duties. Five of the 10 ASEAN countries are among the top 20 beneficiaries of the Generalized System of Preferences (GSP) privileges. In fact, Thailand (US$4.3 billion) and Indonesia (US$2.1 billion) are the second and fourth largest beneficiary of this scheme. Most of the ASEAN nations are much smaller in size and availability of labour pools than India. Very soon their available resources to attract new factories will be under stress. India should capitalize on this opportunity by positioning itself as a long term and sustainable production hub.

Strategy for Targeting Opportunities Arising from the US-China Trade War India has gained marginally on the trade side due to the US-China trade war so far; however, it is yet to touch its true potential on attracting factories relocating from China or integrating its manufacturers into changing supply chains. Here are some of the steps that can help India achieve these goals in short to medium term. Customized Strategies by Product/ Industry Type • Trade-linked targeting strategy to

attract manufacturers for Apparels, Footwear and Toys. • Over 35 US retailers for apparel & footwear and discount store operators have been working to diversify their sourcing options beyond China. Export Promotion Councils should work with these retailers, buying agents and other influencers to bring these orders to Indian factories. • In-depth advisory on identifying credible suppliers and last-mile support in developing new vendors will help in building large orderbooks for India. • India should focus on promoting Domestic Champions in these sectors

ASEAN is likely to emerge as the fastest-growing trading partner for the US. Several countries in the region are likely to emerge as a substitute to China in the Global Value Chains. In addition, outward FDI from China as well as relocation of factories of Japanese/South Korean/Taiwanese companies currently operating in China to this region is also likely to gather momentum in the coming quarters

▪ July-August 2019

Figure 4:

United States’ Imports from ASEAN Countries, Monthly Data, Jan–May 2019 US$ billion

Rank 1 2

ASEAN Countries Vietnam Malaysia

Jan 19

Feb 19

Mar 19

Apr 19

May 19

Jun 19

Jul 19

5.38

5.32

5.27

4.73

5.15

4.60

5.56 18.95 25.84

36.4%

3.35

3.10

3.33 16.29 15.36

-5.7%

2.86 12.91 13.37

3.6% 1.7%

3.01

2.72

3.41

2.88

YTD 2018

YTD 2019

Thailand

2.68

2.36

2.86

2.66

2.81

2.60

Singapore

2.16

1.80

2.30

2.31

2.27

2.61

2.71 10.67 10.85

Indonesia

1.74

1.57

1.71

1.58

1.81

1.53

1.52

8.81

8.41

-4.6%

1.13

1.06

1.17

4.96

5.14

3.6%

0.51

Philippines

1.01

0.93

1.03

1.05

Cambodia

0.40

0.33

0.38

0.37

0.39

0.36

1.47

1.88

28.3%

Burma

0.05

0.06

0.05

0.06

0.05

0.07

0.17

0.28

65.4%

Laos

0.02

0.01

0.02

0.01

0.05

0.07

31.3%

Brunei

Total ASEAN

0.002 0.008 0.002 0.007 0.001 0.007 0.001 0.004 0.021 364.7% 16.44 15.11 17.05 15.64 16.99 15.93 17.74 74.28 81.23

9.4%

Source: United States Census Bureau; Author’s Analysis

and incentivise them to achieve compliance standards to meet the sourcing norms. • Special indirect and direct tax-linked incentive package for investors in advanced technology sectors through a competitive bidding system. • Priority sector should include Semiconductor Fabrication (FAB), Solar Photo Voltaic cells, Lithium storage batteries, Solar electric charging infrastructure, Computer Servers, Laptops, etc. • Consumer electronics, another onethird of US imports from China, will take more time to move, because the supply chain is rooted in China. India should start by attracting front-end assembly over the next three to five years. Push for Greater Market Access in Key Markets and Product Categories • Negotiate hard with China to open its domestic market for Indian exporters in sectors like Pharmaceuticals, Agri-

commodities, Organic Chemicals, Sea Food, Engineering products, Indian movies, etc. • Substitute Chinese imports to the US where India has a comparative advantage over China and its South East Asian counterparts: • Ministry of Commerce & Industry has already identified 350 products where India can emerge as a substitute sourcing location to China such as Rubber, Graphite Electrode, Organic Chemicals etc. Position “Make in India for the World” as the Development Theme for New Industries • 300 factories making electronics goods such as smartphones and components, LED and TVs have started operations in India. However, majority of them are focused at selling products in the local market and are concentrated in small stretch between Noida-Greater Noida-Gurgaon-Manesar. • Efforts should be made to locate them in zones that are cost competitive from

export point of view. Prescribed steps — Establish country-specific industrial parks in PPP mode in coastal states, incentivise industrial real estate innovations like Factory on Rent or Built to Suit in coastal states, find synergies between national programs like Skill India or Sagarmala to meet the industry’s requirement. • Similar efforts should be made for attracting investments in Lithium Ion batteries, Electric Vehicles, robotics and other advance sectors. As of now, our domestic demand is not enough to attract large scale factories. Strive to make Domestic Champions, wherever possible • India should avoid the tendency to let foreign-owned companies tap opportunities in the global trade, by using it as a base for last-leg assembly. • US-Japan trade war in 1960-80s resulted in Japan pushing its assembly operations to South East Asia and then to China. Japan continued to run large trade surpluses against the US

July-August 2019 ▪

TRADE DISRUPTIONS NEW OPENINGS

Figure 5: Investment Relocation and Supply Chain Re-Configuration ASEAN Countries

Sectors

Investment Description

Beneficiary

Micron Technology

Semiconductor

Announced plans in late Nov 2018 to set up a plant in Batu Kawan, Penang with an initial investment of RM1.5 billion. Expected to break ground in 1H19.

Malaysia

Dyson

Electronics

Announced plans in Oct to build a plant for manufacturing electric cars in Singapore, which will be ready by 2020.

Singapore

Hon Hai/Foxconn

EMS for Apple’s iPhone

Invested up to $213.5m in a subsidiary in India since September and acquired land use rights (250,000 sqm) in Vietnam.

India/ Vietnam

GoerTek

Manufacturer of earbuds for AirPods

Shifted production from China to Vietnam with an initial investment of US$260 million to set up a plant in Que Vo Industrial Park (IP) to evade tariffs & political tensions.

Vietnam

Cheng Uei Precision Industry

Manufacturer of chargers and connectors for iPhones and Android smartphones

Announced intentions to shift production to ASEAN countries such as Thailand, Vietnam and the Philippines due to the trade war.

Thailand/ Vietnam/ Philippines

Panasonic

Electronics

Closed its US plant in early 2017 and switched to consignment production and exports from Malaysia

Malaysia

Delta Electronics

Supplies power components to Apple

Made a US$2.1 billion offer in July to purchase a Thai affiliate to expand production

Thailand

Kayamatics

Internet of Things devices

Has two Chinese factories but plans to set up production lines in Kuala Lumpur and Penang in Malaysia

Malaysia

Universal Alloys Corporation

Invested US$170 million to set up an aircraft parts manufacturing plant in Da Nang, with aim to start production for exports to North America & EU in 2021.

Vietnam

Avionics manufacturer

Harley Davidson

Motorcycles

Shifted part of its processes to Thailand

Thailand

Man Wah Holdings

Furniture maker

Purchased a sofa manufacturing and export firm in Vietnam for US$68 million

Vietnam

Hung Hing Printing

Printing

Expanding to Hanoi, Vietnam with a new printing and packaging facility

Vietnam

Sports shoe manufacturer

Announced that most of the shoe production will be moved from China to Vietnam, with 65% of the production to be eventually done in Vietnam, while production in China will be reduced to 10%. About 8,000 jobs will also move to Vietnam from China.

Vietnam

Brooks Running Company

Produces shoes and Accessories

Announced that it has been shifting production of handbags to Cambodia from China, with 15% of its handbags sourced from Cambodia in 2018

Cambodia

Steven Madden Cooper Tire & Rubber Company

Produces automobile & truck tires

Formed a joint venture with Sailun Vietnam Co Ltd. To build a truck and bus radial tire factory near Ho Chi Minh City, Vietnam

Vietnam

Vera Bradley

Consumer goods maker (e.g. handbags & luggage)

Considering shifting manufacturing operations from China to Cambodia & Vietnam

Cambodia/ Vietnam

Source: FDI Markets; MKE Research; BVD Orbis Cross Border; Author’s Analysis

▪ July-August 2019

Most of the ASEAN nations are much smaller in size and availability of labour pools than India. Very soon their available resources to attract new factories will be under stress. India should capitalize on this opportunity by positioning itself as a long term and sustainable production hub

indirectly through exports of materials to assembly countries. Similar patterns are now visible in China to Vietnam to US trade flows. • Domestic champions holding new positions in Global Value Chains (GVCs) can help us retain our competitive advantage in times of disruptions. Incentivise such endeavours by offering: • Low cost capital/tax incentives to Indian businesses willing to diversify into strategic sectors/industries. • Encourage foreign/Indian OEMs to develop Tier 1 or Tier 2 Indian-owned suppliers by aligning production subsidies to development of local vendors.

Specialized Incentives for Attract Relocating Factories • Reduce/waive import duty on new or used machinery (with residual life of 5 years and above) or offer Additional Capital Subsidy on purchasing Made in India Capital goods • For example: In September 2019, Thailand announced a 50% cut in the corporate income tax for 5 years for the companies relocating base due to the US-China trade war. India must take bold measures to offset the higher taxation and operating cost to reduce the overall “Cost-to-Serve” for MNCs for key export markets. • Corporate Income Tax benefits for

attracting new factories to develop new industrial zones, especially those well-positioned for exports. E.g. Vietnam reduces corporate income in disadvantaged areas. • Offer real Plug-n-Play facilities like Shovel-ready land parcels for factory construction, or Ready Built Sheds in good locations or pre-approved projects. • Work on stabilizing production by understanding the key challenges of those industries such as availability of skilled workforce, labour productivity, access to reliable power supply network, water resources or cheaper fuels such as natural gas. 

July-August 2019 ▪

INFORMAL TALKS SECOND ROUND

CLOUDS OVER

Modi-Xi Summit scheduled in October 16

â&#x2013;ª July-August 2019

 AAYUSH MOHANTY

he removal of Article 370 by the Indian legislature along with the passing of The Jammu and Kashmir Reorganisation Bill 2019 has not gone down well the Chinese and the Pakistanis. With the re-organization of the state, Jammu and Kashmir is now a Union Territory with a legislature, and Ladakh a Union Territory without a legislature. The recent move by the Government of India has drawn sharp reactions from both China and Pakistan, leading one to question to whether the summit dubbed as Wuhan 2 would be a pleasant affair or could be called off. The Wuhan informal summit between India and China, according to observers in 2018, was to start a new chapter for two of Asia’s powerhouses – especially after the 73-day standoff between them in Doklam. A similar informal summit between the two countries was planned to take place in October this year initially in Varanasi, the constituency that Prime Minister Narendra Modi represents in the Lok Sabha (lower house of the Indian parliament). Reports have suggested that the venue for the summit might be shifted to Mamallapuram in Tamil Nadu. However, the sequence of events after the removal of Article 370 and the bifurcation of Jammu and Kashmir might jeopardize the summit in October this year. A week after the Indian Parliament took the landmark decision to abrogate Article 370, India’s External Affairs Minister S. Jaishanksar was scheduled to attend the India-China high-level meeting in Beijing. His meeting with the China foreign minister was to focus on peopleto-people and cultural exchanges. On China’s request, the discussion between the two representatives was turned to the events in Kashmir at the time. The government, going out of its way, deputed the External Affairs Minister to apprise the Chinese side of India’s decision to downgrade Article 370. The Chinese response has been strong

which is evident through the bellicose articles in their media, primarily through party mouthpieces like Global Times. India’s stance is clear. According to the statement released by the Ministry of External Affairs on August 12, 2019 regarding the high-level meeting, the External Affairs Minister stated that it is not making any new territorial claims, and all decisions taken were India’s internal affair. Meanwhile, Pakistan did not get any international support on Kashmir, even from the Organisation of Islamic Cooperation (OIC). At the behest of Pakistan, China tried to raise the Kashmir issue in the United Nations Security Council and went ahead to call for an informal meeting on Kashmir. If China had its way, it would have wanted to convene an official UNSC meeting which would have led to formal statements. It took a concerted pushback by other members to have a closed door meeting. There were no formal pronouncements from this meeting, as consultations are usually informal and no minutes of the meeting are kept. News reports stated that India was supported by the majority of members of the Council except for the Chinese and the British, who favoured a press statement at the end of the closeddoor meeting even when there is no provision for the same.

Problem in finding common areas of work The problem between India and China now is that it is becoming difficult for both countries to find areas of common interest and work on them, as suggested by Deng Xiaoping in the 1980s. For more than 35 years now, no real progress has been made, especially in sorting out the boundary issues between the two countries. China’s inconsistent stand on Jammu and Kashmir is also frustrating for India. China is a permanent member of the United Nations, and India expects

Aayush Mohanty is a Research Associate at the Vivekananda International Foundation, a New Delhi-based think tank. The views of the author do not necessarily reflect the views of VIF

As India prepares to work towards becoming a five trillion USD economy by 2024, the investment opportunities and the returns from the same would be profitable for both US and China July-August 2019 ▪

INFORMAL TALKS SECOND ROUND

Prime Minister Narendra Modi and Chinese President Xi Jinping in Wuhan, 2018

As economic pressure builds along with diplomatic difficulties, the Chinese would want India to be in their corner in specific issues, especially regarding trade and the upcoming battles in the World Trade Organization which can be initiated by the US President. Hence it is imperative for China to refrain from commenting on Kashmir it to be more responsible and sensitive to India’s opinions and concerns. The Chinese still show parts of India as their territory in their maps. While the Chinese have stopped the practice of issuing stapled visas to residents of Arunachal Pradesh, the possibility of the same being restarted cannot be ruled out. China has also taken over the presidency of Financial Action Task Force (FATF) from the US, which also means that there might be a possibility of easing off the extreme pressure on Pakistan to curb terror-sponsoring organizations. The Chinese would want the informal summit to take place. For that to happen,

▪ July-August 2019

they need to court India as the US turns the screw on them for a “fair trade deal.” As India prepares to work towards becoming a five trillion USD economy by 2024, the investment opportunities and the returns from the same would be profitable for both countries. The issues of trade faced by both India and China vis-à-vis the US is something that needs to be discussed, and also the imbalance of trade between India and China.

China must exercise prudence in siding with Pakistan China has consistently Pakistan’s interest in

represented multilateral

forums. China’s isolation in the United Nations regarding UNSC resolution 1267, followed by the position it has taken post the re-organization of Kashmir has not been beneficial for China’s diplomatic outreach. Also, the ChinaPakistan Economic Corridor (CPEC) has not yielded returns as expected by both countries as differences prevail over various projects One may concede that the possibility of the summit taking place seems likely. Good relations with India are important for the People’s Republic of China as it celebrates its 70th anniversary. The trade war with the US and the BRI projects under intense scrutiny might dampen celebrations. The priority between India and China should be to seriously look into the border issues. To begin with, the best they can do is to finally settle the middle sector, viz. Sikkim’s border with China, which is the least controversial. The recent decision by the Indian government to postpone the visit of Chinese Foreign Minister Wang Yi to discuss boundary issues casts a shadow on the informal summit. The boundary talks were scheduled when the Indian foreign minister visited Beijing in mid-August. As economic pressure builds along with diplomatic difficulties, the Chinese would want India to be in their corner in specific issues, especially regarding trade and the upcoming battles in the World Trade Organization which can be initiated by the US President. Which is why it is imperative for China to refrain from commenting on Kashmir, which the Indian Government has made vehemently clear is an internal issue. To the credit of the Chinese, they are pragmatic enough that they will not invest time on an issue which does not give them political dividends. So it is likely that the summit shall go ahead as scheduled. The border issues that India faces in this sector with China must be resolved amicably. China has high stakes in Gilgit-Baltistan due to heavy investment in CPEC. Hence it must deal with diplomatic issues pertaining to the region with sagacity. 

MOON RACE GIANT LEAPS

SPACE

is the new frontier in China and India July-August 2019 â&#x2013;ª

MOON RACE GIANT LEAPS

 KALPIT MANKIKAR

lose on the heels of the curtains falling on World War II, a new conflict for dominance and supremacy began with the Cold War, which pitted the world’s two great powers – the capitalist United States against the communist Soviet Union. Both sides began to make giant strides in the fields of arts, culture, science and technology to prove the preeminence of its economic and political system. The globe had already been carved up into spheres of influence- the capitalist bloc comprising the US and its allies, and the communist bloc of USSR and its set of allies. Exploration of space became another dramatic space (pun intended) for the Cold War contest with a Russian R-7 intercontinental ballistic missile launching Sputnik, the world’s first satellite. This was the first man-made object to be placed into the Earth’s orbit on October 4, 1957. Sputnik’s launch jolted the Americans. Space became the new frontier to be conquered. This was merely an extension of the imposing American custom of exploration, and it was important not to cede ground to the Soviets. In 1958, the US put its own satellite, Explorer I, which was designed by its military into orbit. President Dwight Eisenhower instituted the creation of the National Aeronautics and Space Administration (NASA), an agency dedicated to space research. In the next three years, the Soviets would make giant leaps with the launch of lunar probe Luna 2. Russian cosmonaut Yuri Gagarin became the first person to orbit Earth. However, the giant leap for mankind would come with the Apollo 11 space mission’s Neil Armstrong. He became the first man to set foot on the moon’s surface on July 16, 1969, making good President John F. Kennedy’s boast of landing a man on the moon before the end of the decade. Apart from scientific breakthroughs,

▪ July-August 2019

the spinoffs of a space program included rousing the curiosity of young and old alike. In June 1963, Valentina Tereshkova, the first woman in space who circled the earth, had an entire generation of young girls hooked on to the exploits of Soviet cosmonauts and became a role model of sorts.

Asian powers leap for the stars The year 2019 marks the golden jubilee of Armstrong’s stupendous feat, and a new space race is indeed heating up in Asia. China and India are swiftly ramping up their space programs. In January 2019, China became the third country to successfully land on the far side of the moon. On March 27, 2019, India announced that it had achieved a historic feat by shooting down its own low-orbit satellite with a ground-to-space missile, and joined a select group of nations having anti-satellite missile capabilities. The nations who have achieved this ability earlier include the US, Russia and China. Asia’s ‘Sputniks’ have forced nations that were pioneers or had the firstmover advantage in the field to draw up plans again, said a commentator during a recent panel discussion on TV. US President Donald Trump seeks to establish up a Space Force, an elite new branch of the armed forces. French president Emmanuel Macron publicized the formation of a new space command on the eve of the annual Bastille Day military parade. The question we should be asking is: Was the West really a pioneer in space research?

Asia pioneered space research In the first century AD, the Chinese are said to have possessed simple gunpowder made from charcoal dust and sulfur ostensibly to display fireworks during festivities. Later, the Chinese attached bamboo tubes to arrows and launched them with bows. In 1232, the Mongols

Kalpit Mankikar was News Editor at a leading English daily. He is currently pursuing China studies at the London School of Economics

China and India are swiftly ramping up their space programs. In January 2019, China became the third country to successfully land on the far side of the moon. On March 27, 2019, India announced that it had achieved a historic feat by shooting down its own low-orbit satellite with a ground-to-space missile, and joined a select group of nations having anti-satellite missile capabilities. The nations who have achieved this ability earlier include the US, Russia and China

Scientists and engineers work on a Mars Orbiter vehicle at the Indian Space Research Organisation’s (ISRO) satellite centre

were at war with the Chinese and during the battle of Kai-Keng, the Chinese repelled the Mongols with adept use of rocketry. Not to be outdone, the Mongols ventured into producing their own rockets, which are said to have made its way to Europe. On both sides of the English Channel, pioneers like Britain’s Roger Bacon and France’s Jean Froissart worked on improving the efficacy of gunpowder that led to rockets getting a better range. Italian innovator Giovanni Fontana created a prototype of a rocket-powered torpedo that could set ships blaze. In this way, Asia’s wizardry in rocketry travelled to the West and Europe’s innovators created battle-ready variants. In 2018, archaeologists found around 1,000 rockets developed by 18th-century warrior king Tipu Sultan in an abandoned well in Karnataka, south India. Tipu, who died fighting the British in the

fourth Anglo-Mysore war in 1799, was said to be the mastermind in developing indigenous rockets known as ‘Mysorean’. Indian and Chinese astronomy has a long history going back from ancient to modern times. Indian astronomy is said to have reached China with the expansion of Buddhism during the Later Han (25– 220 CE). Imperialism may have spelt a death knell for the same. It is well known that China suffered during the Century of Humiliation. With the arrival of the British East India Company in the 18th century, Indian astronomical traditions were gradually edged out by Europeans.

China rising Nevertheless, the space flight of India and China started after both nations began charting their independent path in the early 1950s. China’s space program took off in 1956 after the Fifth Academy of the Ministry of National

Defence was established. Addressing Communist Party leaders in 1958, Mao Zedong—modern China’s founder— stated that Beijing should follow in the heels of the Soviet Union and US by launching a satellite into space. In April 1970, a Long March 1 rocket put China’s first artificial satellite “Dong Fang Hong 1” into orbit. In 1994, the BeiDou satellite navigation system was launched as a counter to United States’ Global Positioning System (GPS). In 2003, China became the third country after the United States and Russia to send humans into space. Astronaut Yang Liwei spent about 21 hours in space aboard the Shenzhou-5 spacecraft. After this mission, five other manned missions were conducted between 2005 and 2016. In 2016, astronauts Chen Dong and Jing Haipeng spent a month abroad Tiangong-2, China’s space laboratory. In 2007, it entered the anti-satellite arena

July-August 2019 ▪

MOON RACE GIANT LEAPS

The Chang’e-3 rocket carrying the Jade Rabbit rover blasts off from the Xichang Satellite Launch Center in China’s southwest Sichuan province

by obliterating an old satellite. This technology allows for attacks on enemy satellites disrupting their communication capabilities. Only the United States, Russia and India (in 2019) have conducted such tests. China National Space Administration and China Aerospace Science and Technology Corporation are involved in space exploration. Plans are afoot to send probes to Mars, Uranus and Jupiter, build a scientific research station in the moon’s southern polar region and a stateof-the-art space station within a decade. In June, a ‘Long March 11’ rocket carrying 7 satellites was launched from a platform on a large semi-submersible barge in the Yellow Sea. In January, China’s lunar probe Chang’e-4, named after its Moon goddess, successfully landed on the far side of the moon. China’s spending on space-related activities has climbed from

▪ July-August 2019

$5.6 billion in 2016 from $4.5 billion in 2010, revealed data from China’s National Bureau of Statistics. Speaking at the Chinese Communist Party’s 19th National Congress, President Xi Jinping said that the space exploration program will play an important role in projecting the nation as “developed and powerful” by 2049—when the People’s Republic of China marks its centenary. Beijing has spurred investors to participate in its efforts to commercialise some aspects of the space industry, setting up funds and opening up government launch sites for their use. Several private Chinese space firms are developing rockets capable of delivering low-cost micro-satellites with commercial applications.

India’s odyssey India’s first prime minister Jawaharlal Nehru was instrumental in realising the potential of exploring the cosmos. He

set up the Indian National Committee for Space Research (INCOSPAR) in the 1960s, roping in physicist Vikram Sarabhai in this endeavour. This agency was succeeded by the Indian Space Research Organisation (ISRO) in 1969. In the mid-70s the agency saw one of its first successes with the launch of its first satellite, Aryabhata, which was named after an ancient astronomer. ISRO’s orbital rocket, the Satellite Launch Vehicle-3 was successfully launched in 1980, making India the sixth nation to achieve spaceflight. In the mid-80s, Indian astronaut Rakesh Sharma flew with two Russian cosmonauts to the Soviet space station Salyut 7. In 1981, when India carted out its first communication satellite on a bullock cart, this led many to wonder whether a developing country could afford to devote large sums on space exploration. India’s efforts at developing itself into a space

Chinese astronauts Jing Haipeng, Liu Wang and Liu Yang, China's first female astronaut, wave during a departure ceremony at Jiuquan Satellite Launch Center, Gansu province Photo credit: pbs.org

Launch of Chandrayaan 2

power have been met with hostility and derision from the West.

Against all odds In the 1990s, the West scuppered efforts by ISRO to develop cryogenic engines, which are used in launching second

Photo credit: ISRO

generation satellites. The Soviet Union’s Glavkosmos space agency was to supply the technology to India, but the US raised a red flag pointing to a violation of the international Missile Technology Control Regime. The West feared that cryogenic knowhow could be harnessed by India to

develop intercontinental ballistic missiles – a charge rejected by Indian scientists. Glavkosmos reneging from the deal and revoking the transfer of cryotechnology agreement in 1993 spurred India to develop a prototype on its own. In 2014, India successfully put the Mangalyaan robotic probe into orbit around Mars. This was greeted with a cartoon in an international publication depicting a farmer with a cow knocking at the door of a room marked Elite Space Club where two men sit reading on India’s accomplishment. India’s space program has gained new prominence after Prime Minister Narendra Modi’s victory in 2014. At the South Asian Association for Regional Cooperation (SAARC) summit in 2014, Prime Minister Modi announced plans to launch a SAARC satellite (later named South Asia satellite) offering communication services free of charge to SAARC nations. In May 2017, ISRO launched the 2230-kg GSAT-9 South Asia satellite. PM Modi has showcased the space program as a marker of India’s rising global stature. In the middle of his election campaign in March 2019, Modi addressed the nation to disclose that India had become the fourth country to shoot down a low-orbit satellite with a missile. The nation’s budget for spacerelated activities has touched $1.8 billion, making it one of the most cost-effective projects in the world. To sum up, the next few years seem to be exciting for space research with nations like China and India pushing the boundaries and private players getting to the field. Advanced research may involve breakthroughs in communications technologies, mineral exploitation and may be tourism to the moon!  (Inputs from Indian Space Research Organisation, China Aerospace Science and Technology Corporation, China National Space Administration, National Bureau of Statistics of China, US Federal Aviation Administration Office of Commercial Space Transportation, US National Aeronautics and Space Administration, China Manned Space, Reuters, Xinhua)

July-August 2019 ▪

SOCIAL WORK NOBLE INITIATIVES

'Express Sympathy & Love Activity' of International Volunteer Service Club, Yiwu

FOR YIWU ď Ž VIKRANT JAWHARKAR (ROCKY)

belong to a middle class SC family. We had a simple upbringing in a family environment that insisted on high values in personal conduct. The love of my parents has been my biggest strength in life. It is because of their blessings that I am living an enriched, meaningful and successful life. My nickname is Rocky, and many friends in Yiwu know me this way. For 16 years I have been settled in Yiwu, engaged in import and export business through

â&#x2013;Ş July-August 2019

my company Fortune Exports Ltd. After years of hard work and the grace of god, we have offices in China, Hong Kong, India, Panama, Chile, Dubai and Africa. After my graduation in 2003, I moved to China and started working for a company. In 2007, I started my own business. By 2009, as soon as I was capable of sharing my gains, I started involving myself actively in social service. Whether it was in India or in China, I have always been engaged in social

causes. It gives me great happiness and peace to help the needy.

Social Activities in India: 2009-2012: For four consecutive years, I supported the education of poor girls through the Jeev Sewa Sansthan 2009-2011: For three consecutive years, I donated substantially for the marriage of poor girls through the campaign Help for Kanyaadan 2012-2013: For two consecutive

WITH LOVE years, I donated substantially for the eye surgery of many elders through the campaign Your Gift of Sight by Sewa Sadan Eye Hospital

Social Activities in China I have continuously engaged myself in many social welfare activities in China. For many years now, I have been supporting the education of poor Chinese A Sunrise Charity Club activity to help old people

children. Every month, for the last eight years, I have visited orphanages or poor elderly people in different villages, helping them with money, food and household items of daily use. An activity started by us five years ago has hugely been appreciated by the Yiwu government. These are voluntary blood donation camps. Yiwu is a thriving trade centre, and foreigners of many nationalities are settled here for business. In this large foreigner community in

July-August 2019 â&#x2013;Ş

SOCIAL WORK NOBLE INITIATIVES

Yiwu, we Indians were the ones who started this blood donation movement. Now after five years, there are more than 20 communities comprising the Chinese and foreigners of many nationalities who come together under one roof for this noble cause. When I think of how many needy people will be helped in hospitals through this blood collection, I consider this my biggest achievement as an Indian in China.

CEO of International Volunteer Service Club In 2018, in acknowledgement of my social work, the Yiwu International Family appointed me as Chief Executive Officer (CEO) of International Volunteer Service Club. Yiwu International Family is a non-profit organization. It is part of and sponsored by the Bureau of Commerce, Yiwu. This is the very big honour for me or for any foreigner staying in a foreign country. In China, non-government organizations (NGOs) are referred to as clubs. Now, through the International Volunteer Service Club, I can undertake many more activities for social welfare. My appointment as the CEO of this organization has energized many other well-meaning Indians and foreigners of other nationalities to come together for noble causes that serve the society. Thanks to my social work, I have been honored many times by the Yiwu government. I hold honorary position as Executive Committee member in many organizations that are doing sterling work in the field of social welfare. The local newspapers have carried many features on me, and there have been many interviews on the local television channels. I see this media coverage as a force multiplier. I hope that others who learn about my humble contribution may also be inspired to contribute to the society in their own way. I have initiated many activities as part of the Volunteer Service Club.

▪ July-August 2019

Major Achievements and Honours 2015: ‘Best International

Exchange Contribution Award’ by Yiwu International Family, (Bureau of Commerce, Yiwu)

2015-2018: Elected

Executive Committee Member of Yiwu International Family (Part of Bureau of Commerce, Yiwu)

2016-2017: Elected as

President of Indian Association, Yiwu

2017: ‘Honest and Trustworthy

Foreign Merchants Award’ from Yiwu Government (Biggest award for businessmen in Yiwu. First Indian to be honoured with this award)

2018: ‘Most Energetic Member

Award’ from Yiwu International Family

2018: Re-elected Executive

Committee Member of Yiwu International Family till 2021

2018: In recognition of my efforts for

social welfare, Yiwu International Family honoured me and appointed me as CEO of International Volunteer Service Club, Yiwu

2018: Contribution for Kerala Flood

Relief. We indians living in Yiwu collected a handsome amount and donated to for flood relief in Kerala through the Indian Consulate in Shanghai in presence of Consul General Mr Anil Rai and then Union Minister of State for Culture and Tourism Mr K J Alphons

Jan 2019: Awarded ‘Most

Beautiful Volunteer’ through Yiwu Culture and Publishing Bureau, Yiwu Government

Mr. Wang Birong, Director of Yiwu Bureau of Commerce of Zhejiang Province, honouring me with the title of CEO of International Volunteer Service Club, December 2018

May 2019:

Elected as Vice President of ‘Building Beautiful Yiwu Association’, part of the Yiwu local government. I am the first Indian to be elected for this post

2019: Hosted meet in Mumbai for

Consul General of China in Mumbai and Maharashtra Cabinet minister Mr Subhash Deshmukh. This was a fruitful meeting which was organized to boost strong business and cultural relationship between India and China Whenever I get an honour or award, it is a proud moment not only for me but also for our community and our country. This recognition and appreciation makes me

feel proud and blessed as an Indian who has adopted China as his second home. Both in India and in China, I always want to be a good citizen and I always want to involve myself in social noble causes. I want to be a bridge between China and India so that we are able to cooperate with each other and strengthen our ties in every sphere for maximum mutual benefit. From China I have learnt about a strong work culture and also about hospitality. I learnt about virtues that are vital in our day-to-day life. Living earlier in India and now in China, I have tried to help others wherever I can, and will do so till God gives me strength. The Chinese men, women and children with whom we have interacted as part

of our social welfare activities feel very touched and happy that even though we are foreigners, we have come forward to help them. The joy that we see in their eyes makes us feel blessed and proud. Since I can speak fluent Chinese, it is easy to communicate with them. They ask me where I am from. When I say India, they smile with happiness. They say, “Oh India! It is our neighbour country. Both countries have been good friends for so long. Our culture is the same. Welcome welcome!” What motivates me to help people is the smile we see on their faces, the tears of joy we see in their eyes. Their happy expressions and their blessings. All this motivates us to do more and more good work.

July-August 2019 ▪

SOCIAL WORK NOBLE INITIATIVES

Express Sympathy Activity In January 2019, I started an initiative called the ‘Express Sympathy Activity’. As part of this initiative, we Indians visit one village where we meet many poor families and spend time with them. We donate money to them along with food and other important household products. In the event organized in January 2019, we distributed oil, rice, sugar, blankets, clothes, heaters and other products to poor families.

Love and Care Activity In May 2019, I organized the ‘Love and Care Activity’. As part of this activity, many Indians from our Yiwu community visited disabled children in an orphanage. That orphanage has more than 30 disabled infants and children. We spent time with the children, cut cake and ate food with them so that they felt that they are loved and cared for. We also donated many useful things to the orphanage like infant sofa, bed, diapers, tissues, rice, milk, infant chairs, toothpaste for children, toothbrushes etc.

My efforts to strengthen Make in India initiative In May 2015, Prime Minister Narendra Modi visited China. He urged all Indians living in China to contribute for the Make in India initiative. He urged all of us that the Indians living in China should inspire the Chinese to visit India and also inspire them to invest in India by opening factories or establishing business linkages. I was greatly moved by his remarks. In the last two years, I have managed to get some Chinese companies to invest in India in various manufacturing activities. I consider this as my small contribution towards our nation. In 2016, I invited BJP Vice President Shri Shyam Jaju to Yiwu City to meet Indians and Chinese in Yiwu who had the potential to contribute to the Make in India initiative. I want to be a bridge between China and India. I want to do more and more to strengthen the economic, cultural and social linkages between the two countries. 

▪ July-August 2019

YIWU PREMIER

ince 2014, we organize an annual cricket tournament named YPL or Yiwu Premier League. Teams from all over China and different countries participate in this tournament. This is a very big achievement for us. Through cricket, many Indians from different parts of China come together. This tournament is famous in China and is supported by the Yiwu government. We Indians love to play cricket everywhere. Even in China, cricket is not only a sport but a festival for Indians. In 2009, we were just eight to ten friends who used to play cricket in Yiwu. Now we have our own club named Omkaar Cricket Club with 88 players. This is the biggest cricket group of Indians in all of China. Omkaar Cricket Club was started

in 2011 by me and my friend Deepak Kanojia, whom we all call Danny. Our motto was to bring all Indians living in Yiwu together through this platform. Cricket is played in many cities in China, and YPL is very famous among all cricket players here. Many teams from all over China participate in this tournament. Foreigners of other nationalities including Nepalis, Afghanis, Australians etc participate in YPL. YPL is supported by Yiwu International Family and other government departments like the Ground Department. We are very thankful to local government for their support in this event.

Response of local government In 2014, we thought of organizing the first Yiwu Premier League. I went to

LEAGUE the local government for permission. At that time, they did not know much about cricket. I explained the sport to them. I told them that if we organize YPL here, other foreigners living in China will visit our city. The Yiwu government was highly supportive. They gave us permission and sponsored our tournament. This has been a huge honour for us that even though we are foreigners, the local government has always supported our initiatives. Every year, they help us to organize YPL by way of ground use, various permissions, security for the event etc. Yiwu Premier League has emerged as a major sports tournament for all foreigners. A large number of locals come to watch it. Many teams participate in this tournament now, including teams of foreigners of diverse nationalities. 

July-August 2019 ▪

SOCIAL WORK NOBLE INITIATIVES

ACTIVITIES IN SNAPSHOTS

Sunrise Charity Club activity to donate useful things in villages

In 2018, in acknowledgement of my social work, the Yiwu International Family appointed me as Chief Executive Officer (CEO) of International Volunteer Service Club. Yiwu International Family is a non-profit organization. It is part of and sponsored by the Bureau of Commerce, Yiwu

▪ July-August 2019

Help for poor people as part of ‘Express Sympathy and Love Activity’ in a village near Yiwu

Volunteer activity with children to teach them about cleanliness, use of dustbins, care for environment

‘Love and Care Activity’: Cutting cake with disabled children in an orphanage

Award presented by Sunrise Charity Club for welfare activities by International Volunteer Service Club

I want to be a bridge between China and India. I want to do more and more to strengthen the economic, cultural and social linkages between the two countries. In the last two years, I have managed to get some Chinese companies to invest in India in various manufacturing activities. I consider this as my small contribution towards our nation

Members of the Indian community in Yiwu after donating blood at a blood donation camp

July-August 2019 ▪

SOCIAL WORK NOBLE INITIATIVES

On July 7 this year, Indians donated 24000 ml blood at a blood donation camp in Yiwu. This is the highest donation by any foreign community in the history of the province

Blood donation movement by Indians in Yiwu

bout ten years ago, Yiwu did not have many foreigners. We did not have smart phones or WhatsApp groups. Now we joke among friends that at that time, life was good and normal. We friends used to meet almost every day and hang out together. One day outside a mall, I saw a blood donation camp being organized in a van by an NGO. The people donating blood there were all Chinese. When I was in India, I had donated blood a few times. Looking at the van, I was reminded of how hospitals need blood for the use of patients. I told my friends that we should also go to the van

▪ July-August 2019

and donate blood. Some of my friends were enthusiastic about it. Others were nervous or in a dilemma regarding the matter. One said yes, let us donate blood. Another said – we are in a foreign country. Is it safe for us to donate blood here? He was afraid that since we did not know much about the country, perhaps it was better to avoid getting into any new activity. All through this talk, I was thinking of the many patients in hospitals who need blood. In that time of desperate need, does it matter whether the blood was donated by a Chinese or an Indian? The patient is someone’s child, someone’s

parent, someone’s spouse. All that matters is that a precious life must be saved. I told my friends – drop all these dilemmas. We will go and ask the blood donation team whether we can donate blood. If they agree, we shall do it. As we entered the van, the Chinese team there was completely taken aback. We could read their confusion on their faces. ‘These are foreigners! Do they want to donate blood?’ We could make out that all the Chinese people in the team were highly confused. When we told the doctor that we want to donate blood, he and the other staff were shocked. And they started their discussion on our question. After

some time, the doctor told us, “Sorry, we cannot take your blood. You are not Chinese. You all are foreigners.” Now it was my turn to be confused. Why could we not donate blood? I started discussing the same with the doctor and requested him to clarify. The doctor said that in his professional career, he had not come across any foreigner who had donated blood. He felt that he was not authorized to have a foreigner donate blood in the van, and he did not know the procedure for the same. I asked the doctor that if foreigners want to donate blood, where should we go and whom we should contact. The doctor gave us the reference of the blood bank. He said we could go and check there. So

activity should focus on a good cause, and not on partying or entertainment. They asked me for my suggestion. I was reminded that some years ago, when we wanted to donate blood for poor and sick people, we were not able to do so. I suggested that we should hold a blood donation camp. All of us knew that this was a big task. We did not know of any foreigner community in Yiwu which had done this. But what is life without noble challenges? We started working on this project. I visited the local blood bank and asked them if we Indians could hold a blood donation camp. I sought the help of the local blood bank for this activity. Even today, I remember their reaction. They

response of Indians to the blood donation camp. More than a 100 Indians participated in the camp and donated blood. The response was heart-warming. Even the Blood Bank staff was impressed.

Our effort grows The number of donors at the camp organized by us has gone up impressively over the years. As a result, the amount of blood that we have been able to donate has also seen creditable growth. On July 7, 2019, we Indians donated 24000 ml blood. This is the highest donation by any foreign community in the history of Yiwu. We were the first foreign community to start such the blood donation camp. After our first successful camp, we got an offer

We were the first foreign community to start the blood donation camp in Yiwu. Now, along with the Sunrise Charity Club (part of Yiwu International Family), there are more than 36 organizations, associations and local communities which come together for the blood donation movement. Indians are the biggest foreign community to have taken the lead in blood donation at that time we actually got rejected. But this thought stayed with me, that I must donate blood for those in need.

Indian community takes lead for noble cause In some years, we formed the Indian Community in Yiwu. We were discussing that what should be our first activity, what we should do for the community. Some suggested that we should organize a get together for all Indians. Some said we should have a function for kids. Others suggested a Bollywood party. Suddenly it came to my mind that this was going to be our first activity in Yiwu, which was now our second home. I felt that our first activity should be such that it should serve a noble cause for our second home. I shared these feelings with my fellow Indians. I am happy to say that everyone was in agreement that our first

were astounded, and they were also touched that a foreign community had come forward for this illustrious cause. They congratulated us many times. For us, it was our small effort to help the local community. For them, it was like we had made history.

We were nervous We worked closely with the Blood Bank staff to organize the first blood donation camp. We worked hard at it so that all arrangements would be good. But we were highly nervous. We were worrying whether the camp would be successful, and whether our community will fully support us. This was the first time any foreigner community in Yiwu was organizing a blood donation camp. We wondered what kind of response we would get. Even today, I smile in love and gratitude when I remember the enthusiastic

from Sunrise Charity Club (part of Yiwu International Family) to merge with them and organize even bigger blood donation camps in coordination with more Chinese groups, communities and associations. We saw that there was merit in their suggestion. We merged with Sunrise Charity Club. Now after five years, there are more than 36 organizations, associations and local communities which come together for the blood donation camp. But among them, only four foreign communities have marked their presence. Foreign communities who donate blood in Yiwu hail from India, South Korea, Sudan and Turkey. Indians are the biggest foreign group among them in terms of numbers and also in terms of the blood donated by us. Every year, Indians receive a lot of appreciation from the Chinese for our enthusiastic and strong blood donation initiative. 

July-August 2019 ▪

AVIATION IMMENSE OPPORTUNITIES

Impetus to Incredible India

essential to boost tourist inflow from China 34

â&#x2013;ª July-August 2019

 DHYANABRATA SANYAL

aving worked in the aviation sector for the last few decades, I have deeply analyzed this market. I have observed that there are innumerous market opportunities for India in China and the south Asian countries. Considering the economic development of the region, we can see emerging trends that the focal point of aviation business will likely shift from Europe and the US to China and the south Asian region in about 15 years. The International Air Transport Aviation (IATA) has conducted various studies on the aviation sector. A recent major study reveals that as per present aviation market trends, by 2037 the passenger numbers could swell to 8.2 billion. It is also estimated that the Asia-Pacific Region will grow by 4.7 % per year. By 2035, this region will contribute approximately 1.8 billion extra passengers, with its total market size of 3.1 billion. As per the projected forecast, there will be anticipated compound annual growth rate of 3.5%. The data from the research conducted by IATA into the China and India aviation markets is highly promising. Presently infrastructure is being developed in India, by which every small place in the country is connected by air. This upgradation is being done as part of the UDAN (Ure Desh Ki Aam Nagarik) scheme. Airports are being developed and modernised. Aviation infrastructure in China is top level now. The whole of China is well connected. There are operations across sectors by both state-owned and private airlines. Despite huge traffic base as well as commercial, business and religious

affinity, there are considerable gaps in the airline operations between China and India. Considerable growth is also visible in the India-China aviation market (Table 1). It is evident from the graph that with respect to China -India traffic movement, the growth of air traffic is more from India to China. Growth rate in the last five years in percentage points percentage points is as follows:

TABLE 2 2014

2.7%

2015

3.8%

2016

5.7%

2017

5.8%

2018

5.8%

There are ample opportunities in the aviation segment between India and China. Due to lesser capacity available between the two countries, considerable travel to China also takes place via Hong Kong, Sri Lanka, Malaysia, Korea and Thailand. It is evident that proactive marketing initiatives must be taken by the Indian Tourism Department. Awareness campaigns must be initiated in the various provinces of China. Not only the pilgrimage areas but also the diverse cultural as well as natural beauties of India must also be projected in order to draw Chinese tourists. There is need for the “Incredible India” campaign to be strengthened. Frequent road shows, advertisement and aggressive social media campaigns must

TABLE 1 YEAR

2014

2015

2016

2017

2018

INDIA TO CHINA

366683

382182

451308

474748

528961

CHINA TO INDIA

357028

368233

427056

448736

499737

CMA. Dhyanabrata Sanyal is Senior Assistant General Manager-Commercial in Air India, and Manager-China for India’s national carrier

By 2025, China will overtake the US and take first place in global ranking in the aviation sector. It is likely that China, India and Indonesia will occupy the first three positions among the top five July-August 2019 ▪

AVIATION IMMENSE OPPORTUNITIES DATA SOURCE: IATA

Both China and India have the potential to be major catalysts which can trigger huge exchange of tourists between the two countries. Due the immense geographical and cultural diversity of both countries, tourism can get a major boost if proper publicity campaigns are initiated

By referring to the accompanying graph, we can infer the following: • By 2025, China will overtake the US and take first place in global ranking in the aviation sector • It is likely that China, India and Indonesia will occupy the first three positions among the top five

▪ July-August 2019

be initiated to achieve the same. Despite big campaigns and e-visa facilities, only 2.40 lakh Chinese tourists visited India last year. The number of Indians who visited China was much higher, at 14 lakh. Countries all over the world are making a big pitch for attracting Chinese tourists. This is because the number of Chinese tourists visited countries globally crossed 144 million last year. This is the highest outbound tourist traffic from any nation in the world. In its report on the aviation traffic, the IATA report states the following: “The 3.5% CAGR to 2037 assumes an unchanged policy framework over that period. Policy shifts, however, are likely over time. Should protectionism continue to expand in a “reverse globaliza-

TABLE 3 Scenario

CAGR

Total Pax in 2037 (Origin-Destination Passengers)

Jobs GDP supported supported in in 2037 2037 (2016 Prices)

Reverse Globalization

2.4%

5.7 billion

90 million

$4.6 trillion

Constant Policy

3.5%

7.0 billion

100 million

$5.5 trillion

Maximum Liberalization

5.5%

10.3 billion

119 million

$7.6 trillion

Source: IATA/Tourism Economics & Oxford Economics

tion” scenario, aviation would continue to grow, but at a slower pace and deliver fewer economic and social benefits. Under a liberalized environment connectivity would generate significantly more jobs and GDP growth.”

The following are the main challenges for the Indian aviation sector: 1. Infrastructure 2. Lesser capacity available with the existing Indian aviation services 3. Lesser wide body aircraft to take

long haul or ultra long haul flights. Indian carriers are in possession of only 10% wide body aircraft. Alexandre de Juniac, Director General and CEO of International Air Transport Association (IATA) from September 2016, warned against protectionism and a reversal of globalization. This, he said, could slow down growth and put up to 100 million jobs worldwide and $5.5 trillion in GDP at risk over the next 20 years. In October 2018, de Juniac sounded a cautionary note regarding the aviation sector with the following words: “Global prosperity depends on air connectivity. Aviation is sensitive to policies that either support or undermine growth. And these seem to be pointing in the wrong direction. Dampening demand for air connectivity risks high quality

July-August 2019 ▪

AVIATION IMMENSE OPPORTUNITIES

Aviation boost in the Asia-Pacific region Revenue Passenger Kilometers Growth depicted

For China domestic

For India domestic

2018: 11.8

2018: 19.0

Nov 18: 7.8

Nov 18: 13.2

Dec 18: 7.9

Dec 18: 14.8

Jan 19: 14.1 Jan 19: 12.4 With the data available, it can be inferred that in both countries, aviation sector has ample opportunities and enormous scope of growth. While discussing the revenue drivers in the aviation sector, the following factors must be considered:

1. Capacity: In the Indo-China segment, there is lots of non utilized capacity. This can be well-utilized by airliners and will offer immense opportunities for revenue growth.

2. Passenger yield: Passenger yield is high when compared to the global average yield. This must be modulated in a dynamic manner, day to day and also specific to flights. 3. Load factor: Passenger Load factor is at a negative quotient. The important thing is that passengers must be made aware of the diversities in both the countries diversities in every sphere. Leisure and religious tourism must be projected strongly. In addition, leisure tourism, education tourism and also medical tourism must be encouraged apart from the existing business tourism between the two countries.

4. Ancillary revenue and other sources: This can easily be generated by adopting innovative strategies.

5. Cargo: China is the global hub of cargo. Hence it is possible to drive up revenue by optimal use of the aircraft belly.

▪ July-August 2019

recently attended the China-South Asian Aviation conference, organized by CADAS and Yunan Airport Group. It was organized at Kunming, P.R.C and people from every field of aviation from South Asian countries including International Air Transport Association (IATA) attended the conference. We also had senior officials from the Airport Authority of India (AAI), CAAC, CAASL, GMR, ATC, CCO of Indigo and other major aviation experts. The statistics provided by the International Aviation Transport Authority regarding the growth in the aviation sector are highly valuable. They help us in formulating strategies for growth. IATA has made vital growth projections. Based on aviation data collected globally, IATA has estimated that by 2034, the fastest growing market in the aviation sector will be China. The Asia Pacific region is becoming a very lucrative area for aviation growth. Tourism traffic from India is increasing for specific destination points abroad and also in terms of domestic traffic. Currently, the US is the largest passenger market in the aviation sector. Other top positions in this sector are occupied by China, UK, Spain, Japan and Germany. Currently, India is at the seventh position in this order. The stupendous growth of air traffic by the Chinese will overtake the US in the next 15 years. According to IATA estimates, in the next 15 years the third place in the global aviation sector

shall be occupied by India, and the fourth place by Indonesia. Currently, in terms of aviation traffic, Indonesia is at the tenth position. Going by these projections, India shall witness a steep rise in aviation traffic and will rise from seventh place to third place. IATA has projected that within China, in the next 15 years we shall have 800 million new passengers. For the same period, the US will have 480 million new passengers and India is projected to have 320 million new passengers. Among other nations, Vietnam shall also witness a steep growth in aviation traffic. This is because Vietnam has both high tourist potential and growing business opportunities. The Indian aviation traffic is currently growing at the rate of 6.8 per cent annually. China is an established market. Hence the annual growth rate of China is currently at about 5.5 per cent. These are the market trends for south-east Asia and

China. We can see that taken together, this comprises a huge segment of the aviation market. The growth of India in the aviation sector can be higher, but we face infrastructural challenges. The government is aware of these bottlenecks to our growth in the aviation sector. With the UDAN scheme (Udey Desh Ka Aam Nagrik), we are improving our infrastructure significantly. Our tourism department must take up the task of heavy advertisement of the charms of India in the Asia-Pacific countries. There is high tourism travel in the South-Asia region. Culture is part of the marketing tool by which we analyze the tourism market trends. Our analysis has revealed that Chinese citizens are most likely to fly abroad during the vacation period. Similarly, China has great potential as a tourism destination. But while business travel from India to China is relatively high, the

charms of China as a tourism destination are not known well-enough among Indians. It must be stated that China is one of the safest countries in the world. It has a diversified topography. There are mountains and hills, beaches and vast shorelines. Spring cities like Kunming are highly attractive tourism destinations. China organizes lavish ice and snow festivals. India has similar diversity of heritage and culture. Our festivals can be a major draw for tourists. If these sectors are given the required impetus, we can have growing group tourist movement from India to China and vice versa. Both countries have immense opportunity for business travelers and also leisure travelers. The business of Indian airlines is restricted by the number of aircrafts. In India, the total number of aircrafts among all carriers may be 550. We need more routes and also more aircrafts to ply on these routes.

July-August 2019 ▪

AVIATION IMMENSE OPPORTUNITIES (Sea, Sand, Sun). Both the countries have no dearth of such factors. The only thing required is the proper stimulus which will trigger tourism affinity between two largely populated countries. There are strong civilizational affinities between India and China. This is also a major factor that can push mutual tourism growth between India and China. In the present global scenario, we must ensure flawless execution of the S 4 model – Safety, Security, Surveillance & Scope – in order to ensure uninterrupted tourist flow in both the countries. Airlines play a vital role in promoting tourism and contributing to the exchequer of the country. At present, Chinese and other carriers operate 38 flights per week, utilizing 90% of the capacity (out of total 42 slots) in three major cities in India from four cities of China. Chinese as well as other carrier operates direct flights to Kolkata, Delhi and Mumbai from Beijing, Shanghai, Guangzhou and Kunming. On the other hand, Indian carriers operate five flights a week to Shanghai from Mumbai/Delhi, utilizing only 11% of the capacity. This has created a clear imbalance in traffic flow.

jobs, and economic activity dependent on global mobility. This forecast is a cautionary warning to governments. First, the industry will grow but they must clear the infrastructure bottlenecks to bring that growth to their home markets. And secondly, governments must understand that globalization has made our world more socially and economically prosperous. Inhibiting globalization with protectionism will see opportunities lost,” said de Juniac. It is evident from the available statistics that the tourist movement between the two countries is far below the figures that can be reasonably expected. This is despite the fact that both China and India have the potential to be major catalysts which can trigger huge exchange of tourists between the two countries. Due the immense geographical and cultural diversity of both countries, tourism can get a major boost if proper publicity campaigns are initiated. Tourism is an economic phenomenon. Hence it focuses on three basic models. These are the 4 As (Attraction, Amenities, Accommodation, Access), 3 Es (Entertainment, Excitement, Education) & 3 S

It is not out of place to mention that in China, the authorities of the various provinces are following concerted policies in various cities to offer major incentives to airlines. These incentives are being provided irrespective of the nationality of the airline. Despite this, the Indian carriers have not tapped the strong Chinese aviation market. Various south Asian carriers have captured the market in diverse cities of China. The GDP of a country plays a very important role in strengthening the growth of leisure as well as business tourism. The GDP has a very strong linkage with leisure and also business tourism. Higher GDP translates into higher air travel. The GDP growth of China and India is as follows in Table 4. The International Air Transport Association (IATA) announced global passenger traffic results for January 2019 showing traffic (revenue passenger kilometers or RPKs) rose 6.5% compared to January 2018. This was the fastest growth in six months. January capacity (available seat kilometers or ASKs) rose 6.4%, and load factor inched up 0.1 percentage point to 79.6%.

TABLE 4

The following economic data projection by IMF not only gives a positive signal but also projects increased capacity utilization for the aviation industries of China and India. Projections by IMF Nominal GDP (billions $)

PPP GDP (billions Int. $)

Year China

India

China

India

Nominal GDP capita ($) China

India

PPP GDP capita (Int. $)

Growth (%)

China

India

China

India

2018

13,407.40

2,652.25

25,270.07

9,596.83

9,608

2,014

18,110

7,287

6.567

7.168

2019

14,216.50

2,716.75

27,331.17

10,505.29

10,153

2,036

19,520

7,874

6.267

7.053

2020

15,468.10

2,972.00

29,609.09

11,468.02

11,014

2,199

21,082

8,484

6.119

7.257

2021

16,806.50

3,257.72

32,038.09

12,584.23

11,935

2,379

22,752

9,189

6.000

7.489

2022

18,206.85

3,577.32

34,581.36

13,840.08

12,900

2,578

24,503

9,974

5.750

7.740

2023

19,713.52

3,924.11

37,274.68

15,218.52

13,970

2,791

26,414

10,825

5.600

7.731

2024

21,309.50

4,306.29

40,147.77

16,736.53

15,102

3,023

28,453

11,750

5.500

7.742

▪ July-August 2019

Proactive marketing initiatives must be taken by the Indian Tourism Department. Awareness campaigns must be initiated in the various provinces of China. Not only the pilgrimage areas but also the diverse cultural as well as natural beauties of India must also be projected in order to draw Chinese tourists. There is need for the “Incredible India” campaign to be strengthened. Frequent road shows, advertisement and aggressive social media campaigns must be initiated to achieve the same

Ground-handling costs higher in China In China, ground-handling cost is higher in comparison to India. This gives a jolt to the Indian carriers in terms of the profitability component. Any wrong decision towards business or pricing strategy may lead to loss. Hence it is essential for Indian airliners to operate on the Marginal Cost model. Fixed cost involved may be absorbed in domestic segment, as there is growth in domestic load. This impacts the fixed cost of foreign operations and one may also increase domestic fare marginally. This is viable in the current Indian aviation scenario. Chinese carriers charge considerably higher prices in the domestic segment. This will give airlines more domestic passengers who have arrived from India or China. 

July-August 2019 ▪

REVIVAL HERITAGE BUILDINGS

Alice Creates Her

Wonderland

â&#x2013;ª July-August 2019

 Rajni Shaleen Chopra

he smile of a woman and the space where her innate beauty flowers are the mark of a happy civilisation. Where a woman is able to dream, reach for the skies and achieve what she seeks is the mark of an empowered civilisation. There is a structure of red bricks in Guangzhou, about 100 years old. It is so lyrical in its beauty that it makes visitors pause. An abundance of charm flows through it. The structure bears the handprint of a woman named Alice. The Cosmos works in amazing ways. This beautiful Chinese woman, Liu Feng, could have been given any English name. Her parents named her Alice. The name was destined. Alice created the Wonderland. The wonderland is now called Xi’n Villa. It is located in the southern business center Guangzhou, capital city of Guangdong Province. When Alice went to Guangzhou about 10 years ago, an old red brick building caught her eyes. The building had been constructed in the 1920s. As she gazed at the beautiful but dilapidated structure, Alice was intrigued. She thought to herself: How can I give a second life to this place? After decades of neglect, the building wore a shabby look. Nobody could imagine turning this place into an enchanting destination called Xi’n Villa. The name stands for Garden of delicate fragrance. Alice imagined what nobody could. People called her vision unrealistic and undoable. But Alice believed in her dream. She stayed with it. It is credit to her untiring efforts and her belief in her vision that Xi’n Villa is today a five-star property, and is among the favourite destinations of its kind in Guangzhou. Alice Liu was born in north east China. She was a top model and had won many awards when she came to south China for business. Charmed by the old brick building, she used her own resources to revitalize it and develop it into a new place altogether. The turnaround didn’t happen easy. Alice studied architecture to revive the building in line with her vision. She extensively studied for the endeavour, picking up the nuances of planning and aesthetics. It took more than ten years to develop the building just the way Alice had envisioned it. Xi’n Villa is located very close to Pearl River, the fourth longest river in China.

Rajni Shaleen Chopra is Executive Editor of the India China Chronicle

The Beauty with Brains Alice’s striking good looks had helped in building a thriving career as a model. She was not just another pretty face. Even

REVIVAL HERITAGE BUILDINGS as she was building a career in modeling, she knew that her dreams lay elsewhere. Her dreams lay in creation and in giving shape to the fantastic leaps of her imagination. From her early years, Alice had observed in herself a strong sense of art and aesthetics. This was not part of her education background. Even as she stayed busy in front of the camera, her mind remained occupied with ideas that would shape her future. As she discussed with friends and relatives her project of turning around the old brick building, many well-wishers tried to convince her not to pursue this work. But her heart was set on this venture. She spent a lot of money in rejuvenating the red brick building and even faced financial problems because of it. Initially, Alice opened a high-end restaurant in the building in 2008. By that time, she had spent three to four years in turning it around and making it ready for housing the restaurant. The restaurant flourished but because of external social factors, business became bad in 2012 and all such high-end investments became useless. Alice was forced to change course. This was when she decided to turn the place into a hotel with eight rooms. Nobody believed that this would be a good thing, but Alice pursued her vision. It took some years of hard work, but she finally created the building into a coveted destination. The hotel is highly successful now, and is always high in demand. Xi’n Villa is a far, delicious dream from what the old red building used to be. Xi’n Villa can rightly be called her creation, and Alice has won many awards for it. An intelligent woman with a keen mind, Alice is highly dedicated to her work. In her quest to create Xi’n Villa, Alice faced multiple challenges. With her passion and persistence, she overcame them all steadily. It is no wonder that even successful architects are in awe of Alice. She is highly professional in her work. Even though she is not from the field of architecture, she is a fast learner. In giving a makeover to the old building,

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AWARDS WON BY ALICE 2019: Global Gardens Leading

Prize for Friendly Environment and Beautiful Life

2018: Most Beautiful

Boutique Hostel, China’s Commercial Surroundings Appraisal

2018: 2018 Top Ten Best

Award, Guangdong

2018: Best Award for

Lingnan Homestay Fashion

2018: Best Award for

Lingnan Traditional Culture

2017: Cultural Heritage,

Boutique Homestay Guesthouse

Best Award for Revitalization of Cultural Relics

2018: Outstanding

2017: National Award for

Contribution to Cultural Heritage

Most Beautiful Landlady

Alice retained some elements of the traditional oriental architecture and also infused some innovative Western ideas. There is also a very traditional south China flavour to the building. Hence, the building is a delightful fusion of ideas. The assemblage is striking, and from the feedback of visitors, repeat visits by old patrons and heavy demand, it is evident that people enjoy being here.

Old structures beckon the Alice touch Now that Alice has exhibited her unique flair of turning around an old, dilapidated building into a plush hotel,

When Alice went to Guangzhou about 10 years ago, an old red brick building caught her eye. The building had been constructed in the 1920s. As she gazed at the beautiful but dilapidated structure, Alice was intrigued. She thought to herself: How can I give a second life to this place? After decades of neglect, the building wore a shabby look. Nobody could imagine turning this place into an enchanting destination called Xi’n Villa. Alice imagined what nobody could and gave shape to her captivating vision for this building it has nursed her taste in this field. And after having won many awards for her accomplishment, Alice is considered a master of this art. On the basis of her successful work with Xi’n Villa, and her devoted mind to architectural heritage, Alice was chosen by experts and others to head the Guangdong Architecture Cultural Heritage Protacting Institute as its President. Alice’s effort in leading way to cultural assets and her popularity in this field of

architecture is evident from fact that she is also getting more and more offers to breathe life into old buildings. Alice travels much to study the best architectural practices worldwide. Recently, she went to Israel and some other European nations to study the indigenous practices of architecture. She also travelled to India and Egypt to draw inspiration from the traditional and heritage architecture of these ancient civilizations. 

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Alice in India

n India, Alice was invited by India China Economic and Cultural Council (ICEC) to visited ancient monuments celebrated for their architecture in cities like Delhi, Jaipur and Agra. Alice recounts that she was extremely happy to see these wonderful, famous monuments. She was greatly impressed by the ancient Indian wisdom and aesthetics in architecture, and also the Indian traditions and sensibilities in designing spaces. Touched by those romantic and fascinating stories, Alice realized how important architecture is to sustain a civilisation. She observed that once these buildings were no more, all their stories, their splendid heroes and heroines would be gone with the wind. Alice also found that her oriental perception was similar to Indian artistic and architectural sensibilities. She found that the interplay of peace, harmony, nature and romance deeply influence her, and are reflected in her work. Her creations exhibit the influences of varied masters.

The Learning from White Swan Today, Alice is a successful revitalization architect. She is seen by her peers as the lady who combines beauty, wisdom and good management. No journeys are easy. What the world sees today as a wise, purposeful and creative businesswoman is the product of years of refinement and learning. Alice admits that when she set out on this journey, she had no idea how to run a restaurant or a hotel. In order to equip herself with the right learning, Alice went to South China’s first five star hotel, the White Swan in Guangdong province. The White Swan has hosted over 40 heads of state and government. Queen Elizabeth had stayed

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Even successful architects are in awe of Alice. In giving a makeover to the old building, Alice retained some elements of the traditional oriental architecture and also infused some innovative Western ideas. There is also a very traditional south China flavour to the building. Hence Xi’n Villa is a delightful fusion of ideas

at the White Swan when she had visited China in 1986. Alice went to the White Swan to study the nuances of a five-star hotel, and how to run it. The White Swan is a huge property. Alice had the fear, of course, that the management there would not heed her request, and would not be bothered about the success of a small place like Xi’n Villa. But after her sincere persuasion, the General Manager (GM) of the White Swan agreed to help her. He even sent managers and staff members to train the staff of Xi’n Villa. The results have proved that Alice was on the right track. Xi’n Villa is comparatively much smaller. But when you step into it, you realize that it is a five-star estate. Alice remembers that she noted everything good at the White Swan and made sure that Xi’n Villa boasted of the same attributes. From the smiling face of her staff, the fragrant smell of local white

orchid and low melodious music to assuring excellence in every single facility, Alice applied all of her learning at Xi’n Villa. The flowers in the vases, the accessories kept for guests, the service by the staff – everything is marked by her touch of excellence. Since business and bookings are largely online now, Alice has successfully learnt how to make the best of travel and hospitality websites. She has harnessed all online and offline elements and hence is running a successful hotel. Alice’s friends fondly say that there are various small hotels in Guangzhou which are good, but they cannot match up to five star standard maintained by Xi’n Villa. This is how Alice has left competition behind.

The Enchanting Villa Xi’n Villa boasts of beautiful rooms including a presidential suite, lush gardens

and a café. Alice has drawn inspiration from many masters in the field of architecture, management, marketing, hotel business etc. Alice says that whenever she comes across any opportunity of learning from a master, she always joins such lectures or study groups. For the café at Xi’n Villa, Alice took lessons from a café master on how to run a good coffee shop. Her effort is to get waters from different founts of excellence and apply them for the execution of her projects. So many people visit Xi’n Villa after hearing about Alice’s hard work, achievements and awards. They come to see how a graceful woman can imbue everything with a positive vibe and beauty. It is astounding that Alice’s love and care has actually given Xi’n Villa a beautiful fragrance. It is remarkable that Alice has been able to create beauty in every part of Xi’n Villa. Every small thing has her beautiful touch and is full of life. Her thinking is reflected in everything. It is a reflection of how she is. Amidst all this striving for success in every field, Alice is a modest woman and keeps a low profile. All the eight rooms of the Xi’n Villa have individual names. It has two special rooms with the names Dongshan Master and Miss Xiguan. In Guangdong, Guangzhou, there is a saying. All the rich, powerful, educated gentlemen live in Dongshan. All the young beautiful ladies live in Xiguan. All these men would like to pursue those girls. The girls want to marry these gentlemen. Alice named the biggest room the Dongshan Master. The second biggest room, she named the Xiguan Room. Both these rooms have enchanting balconies and the most beautiful views of the garden. The rooms are furnished in such a way that when one steps into them, one immediately feels the romance of the place. One may find the sunlight or moonlight dancing on the glasses. In Dongshan Master, one can envision a fine gentleman standing at the balcony, thinking of his fiancé or lover, and

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singing a song to her, or writing a poem for her. The Xiguan Room has a similarly charming ambience. When one steps into the room, one is enveloped by a fragrance. It is easy to visualize a beautiful woman sitting at the table in a lavish Oriental dress, writing a letter to her lover. Often, soft Chinese classical music plays in the background. The shadow of the trees, the fragrance of the delicate glowers, the light shining through the Roman glass – all add to the mystique of these rooms. Other rooms in Xi’n Villa have special names like Taste Room, Guangdong

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Opera Room, Sewing Room, Tea Room, All-Trades Room, Heritage Room. Since Xi’n Villa has high occupancy, one has to book beforehand. The hotel is a favourite destination for family celebrations like engagements or wedding anniversary celebrations. In keeping with the heritage feel of the place, Alice specially provided for wellrestored heritage furniture for Xi’n Villa which is ornate and very comfortable. Various interesting activities are organized at Xi’n Villa. On the ground floor, Alice has provided a small library.

From time to time, reading parties are organized here, which are popular among visitors.

The red brick building The red brick building was designed by a French designer. It has two parts. The front part of the building was for the masters, and the rear part was for the staff that worked there. Since the liberation of China in 1949, the owner of the building went abroad. Some other people had been living in

Now that Alice has exhibited her unique flair of turning around an old, dilapidated building into a plush hotel, it has nursed her taste in this field. And after having won many awards for her accomplishment, Alice is considered a master of this art. Over the last couple years, she has received several requests to revitalize more such old buildings. Alice has found that this work entices her intellectually and makes her creativity flow. She is now engaged with a project where she is turning around a much larger old building into a commercial complex parts of the red brick building without any special permission. After the 1980s, the local government realized that old buildings should be preserved, and their residents were persuaded to shift to other places. When Alice started to renew the place, nobody had been living there for many years. Neglected for nearly 70 years, the building did not have a functional power system, water supply system or drainage system. Fortunately, it had retained the strong red brick walls. The glazed tiles, Roman glass, terrazzo floor, ceramic tiles and other old and

ornate construction material which was still in good condition spoke of the grand past of the building. The tiles had been imported from Italy or Spain, because at that time China did not produce such ceramic tiles. Even after nearly a century of construction and later neglect, the tiles had retained their strength and lustre. The Manchurian style windows enhanced the Oriental aura of the red brick building. Alice retained all of these in the renovation. In addition to the wild orchid growing in the building complex, there was also

a very old Huang Pi tree here, a popular tropical tree. It bore almost 100 kg of fruit every year. Now, the building is equipped with a new power system, water supply system, drainage system and other amenities, and is a highly comfortable living space. Even after the renovation, the French design of the 1920s has been retained charmingly. Alice has made a pond inside the garden against a lush backdrop. Visitors to the hotel like to enjoy morning and afternoon tea in the garden, and also have breakfast here. 

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Dongshan and its Vibrant History

i’n Villa is located in the district of Dongshan in the city of Guangzhou. Dongshan has many old buildings built round 1910 to 1920. During those years, while China was still a conservative nation, Guangzhou had a robust social life. It was the city of choice for the Chinese who had made a fortune for themselves abroad. On coming back to their country, they chose to live in Guangzhou, bringing with them a lavish lifestyle. They were rich and powerful. A large number of them

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settled in Dongshan and built beautiful buildings. The buildings exhibited a fusion of Oriental and Western ideas and also construction material. Local Chinese materials and also imported construction material was used for the construction of these buildings. Around 1949, a large number of these people went abroad, abandoning their fancy houses. There was nobody behind to care for these buildings. After almost a century of neglect, these strong and sturdy buildings became shabby. Many of them were demolished.

In recent years, the government realized that these heritage buildings and culture must be protected. It was realized that when a building is razed, its stories, its grandeur, its culture – all get erased. From then on, the government has not allowed anyone to destroy or demolish these buildings. Now, the government is encouraging people to protect these buildings and give them a new life. It is difficult to use these buildings without rejuvenation, because they are very old now. They don’t have air-conditioning systems or

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RENDEZ-VOUS DONGSHAN

modern water systems. Now people are trying to revitalize these buildings and trying to protect the virtues and values of this area. Nevertheless, if one wants to use these buildings and also protect what they boast of, it is a difficult task. Culture functions and art functions are being planted into this process to make the protection of the buildings an organic effort. Alice discovered the red brick building around 2009 when she first came to Dongshan. In the old building, she found

â&#x2013;Ş July-August 2019

a wild orchid tree, which was more than a 100 years old. The garden was full of the fragrance of the orchid. The majestic old orchid and its fragrance inspired her to build a building here and give the place a new life. When she started work on the revival of the building, she retained the original red Chinese bricks used in its construction. The building revived by Alice was the residence of the first chief police commander of Guangzhou after the Ching dynasty. Back in the 1920s

when few people owned vehicles, this building boasted of a number of cars, and had a garage in the premises.

Historical significance of Dongshan Dongshan has a special appeal among the Chinese. Chen Jitang, the legendary military general who held governing authority over Guangdong province lived here. From 1929-36 he made tremendous contributions to the provinceâ&#x20AC;&#x2122;s

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development, growth and modernization. People of the province fondly referred to this period as the Golden Age of Guangdong and called him 南天王 (the Celestial King of the South). Lu Xun, the most important literary figure in 20th-century China, used to live in this neighbourhood too. Close to the red brick building revived by Alice, the third National Congress of the Communist Party of China was held. The site is within a 100 yards of X’in Villa. That august building witnessed many important historical events. Many greatly influential people such as Chen Duxiu, Li Dazhao, Mao Zedong, Qu Qiubai etc converged here for important meetings. Even now, many leaders of the Communist Party of China come here to remember the first leaders of the party. Chen Duxiu, the Chinese revolutionary socialist, educator, philosopher and author who co-founded the Chinese Communist Party with Li Dazhao in 1921 used to visit this neighbourhood for meetings and revolutionary activities. Zhongshan is one of a very few cities in China named after a person. It is named after Dr. Sun Yat-sen (1866– 1925), who is known in Mandarin as Sun Zhongshan. Dr. Sun Yat-sen is regarded as the founding father of the People’s Republic. He also lived in Guangzhou for some years. Dr. Sun Yat-sen was born in Cuiheng village in Nanlang Township of what was then Xiangshan County. In 1925, the year after his death, Xiangshan was renamed Zhongshan in his honour. Sun Ke, the son of Dr Sun Yat-sen, was born in Xiangshan (now Zhongshan), Guangdong, China. The history of Dongshan and this distinguished neighbourhood is of immense historical value to China. The government and the people have recognized that when a building is no more, the immense history associated with it vanishes too. Hence people like to visit this area, with the sense of protecting its history. It reminds them of the significance of this city in the history

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Dongshan has a special appeal among the Chinese. Close to the red brick building revived by Alice, the third National Congress of the Communist Party of China was held. The site is within a 100 yards of X’in Villa. That august building witnessed many important historical events. Many greatly influential people such as Chen Duxiu, Li Dazhao, Mao Zedong, Qu Qiubai etc converged here for important meetings. Even now, many leaders of the Communist Party of China come here to remember the first leaders of the party of modern China. This has also led to a renewed desire among the people and the government to protect the old buildings here and revitalize them.

Rendez-vous Dongshan Over the last couple years, Alice has received several requests to revitalize more old buildings. Alice has found that this work entices her intellectually and makes her creativity flow. She is now engaged with a project where she is turning around a much larger old building into a commercial complex. This new building combines a café, a

shopping area and space for parties and banquets. To up the thinking quotient of the place, it shall also house a small museum and a library. This new building is right next to Xi’n Villa. The property is owned by someone else. Alice was invited to revitalize it and run the business too. She is now running this commercial property with a friend. It is called Rendezvous Dongshan. Alice is a woman who loves life. She is full of life. Alice expects that through her hard work and passionate effort, she can give new life to these precious old structures to preserve China’s diverse cultural heritages. 

TRAVELOGUE HAPPY MEMORIES

GLIMPSES FROM A VISIT TO

SICHUAN

The giant Buddha at Leshan, Chengdu

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 MALATHI AND KS SUBRAMANIAN

n invitation to attend the Jinjiang Oriental Forum 2019 at the Jinjiang College, Sichuan University, gave us an opportunity to visit the Sichuan province in South Western China. This was our first visit to India’s giant neighbour. It was an international seminar on South and Southeast Asia that discussed issues of regional security, governance and development. Experts from China, India, Pakistan and Nepal participated, but invitees from Bangladesh could not attend. The Sichuan state has a population of about 81 million. Its capital city of Chengdu has a population of about 8 million. It is the fifth largest city in China. Interesting from the geographical, cultural and historical points of view, the Sichuan province deserves as much attention as other parts of the country have received. We took a late-night flight from New Delhi to Chengdu via Guangzhou by the China Southern Airways. We arrived in Chengdu late morning on 12 June and were received at the Shuangliu airport by Carrie, the staff volunteer from the university. A smooth road journey of over an hour and half took us to Minjiang Donghu hotel in Meishan city, situated about 60 kilometers from Chengdu city. Jinjiang college of Sichuan university was the venue for the seminar. Three staff personnel were assigned to look after the visiting experts. The program was hosted by Meishan Municipal Government and the Sichuan University, Jinjiang College. On the morning of June 13, the seminar proceedings commenced with an impressive video presentation on Jinjiang college. This was followed by introduction to the Research Centre for Economy and Cultures of ‘South’ Silk Road’ in Jinjiang College. Bian Xiaochun, Executive Deputy Director of the Institute of World Development, Beijing and the

Mayor of the Municipal Government inaugurated the Centre. A group photo was followed by tea break. Keynote speeches were followed by several seminar presentations over three days which contained most useful and profound analyses. KS spoke on ‘IndiaChina Cooperation in International Affairs’ in the wake of Narendra Modi’s great victory in the 2019 general election.

The spectacular sights of Meishan At the end of the seminar, a lighted up fountain show set to music on the riverfront in Meishan was a spectacular sight. One could see the lights of the city mirrored perfectly in the water as a background to the fountain show. Meishan is a modern city which has not lost touch of the traditional. We visited the three-Su Temple Museum located at the centre of Meishan city which houses

Dr. K. S. Subramanian is a former civil servant and expert on conflict and security issues. His current area of interest is IndiaChina cooperation in international affairs Dr. Malathi Subramanian retired as Principal of Daulat Ram College, University of Delhi. Her areas of interest include gender issues, technology and civic engagement.

The giant Buddha up close

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A rural irrigation system in Meishan

the statues of Su Xun, Su Shi and Siu Zhe, the three famous and much revered writers of the Northern Song Dynasty, reconditioned during the reign of the later Qing Dynasty. It is surrounded by a beautifully laid out garden with a verdant lotus pond. Sichuan University and the Jinjiang College have lovely campuses. We enjoyed visiting them and meeting the academic staff. Many Chinese students and staff were able to converse in English. But outside the university in the city areas, it was not easy to communicate as most people spoke and understood only Chinese. Another interesting discovery was that many Chinese we met in the university had an English name as well as a Chinese one. I asked why this was the case, and I was told that it was difficult for non-Chinese people to remember Chinese names. Therefore, the friend from China who received us at the airport and who was training for English

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language was called Carrie. I found this practice very interesting and highly practical in its approach. After the seminar ended, we returned to Chengdu, the capital city of the province, for our private visit. We stayed the night on the way at a five-star hotel in rural Meishan. The market at the main street could be approached from within the hotel. The market was obviously a favourite with the visitors. One could gather from their presence in large numbers walking up and down the main street as we were doing too. Reaching Chengdu the next day, we stayed at Hotel Zen Urban Resort, a fourstar hotel located at 14, Longjiang Road. Reasonably priced, it was very close to the city centre and one could easily reach the city centre without much difficulty or the fuss of a five-star hotel. App-based taxis which were generally green in colour were easily available. The hotel Zen Urban Resort with a

traditional Chinese décor was a tranquil place with a soothing atmosphere enhanced by a golden statue of the reclining Buddha in full view on one of the floors. One could see that the hotel, which seemed so quiet otherwise, was full of visitors who joined during the breakfast in the mornings. The breakfast had an interesting spread of very inviting dishes, though more attuned to non-vegetarian tastes. However, there was a good choice of fruits which are available in plenty. The luscious lichi fruit had more pulp than seed than what we see in Indian lichis.

Well-managed public spaces In our week-long stay in Chengdu, we visited a number of places of interest and attended some cultural programs with our Chinese friends. We found it interesting that green tea was included in the price of the ticket for the shows. In many places of interest, senior citizens were not charged for entry tickets. Almost every place we

One must appreciate the availability of abundant toilet facilities. Every spot we visited had a number of very clean toilets which were well maintained. The facilities were available in many places within a tourist spot. They were sensor fitted for automatic flushing to keep them clean. Most public places, as reported by women visitors, had floor fitted toilets for women which were nevertheless clean with sensor fitted automatic flushing

A hotel in the rural area of Meishan

The police security robot at the Chunxi Road shopping square

visited had large crowds of visitors. The numbers were well-managed without any chaos. It was quite interesting to note that invariably only one child accompanied a family, obviously the impact of the onechild policy in China until recently. Our Chinese friend Carrie told us that she was also from a one child family. So she did not have any siblings. Not to be missed is the Yearling Giant Panda Breeding and Research Base in the region. Some of the world-famous giant Pandas were in a playful mood. Some were already lolling about with their weight on tree trunks on which they rested. The UNESCO world heritage site of the Dujiangyan that we visited is the site of an ancient irrigation system in Dujiangyan City, Sichuan. Originally constructed around 256 BC by the State of Qin as an irrigation and flood control project, it is still in use today. The systemâ&#x20AC;&#x2122;s infrastructure depends on the

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Min River, the longest tributary of the Yangtze. It is a world heritage site which is thronged by curious visitors in large numbers. It is laid out in a vast area and it was possible to take a motorised trip around the site. Like many other visitors we got our photograph taken against the huge stone with the inscription declaring it as a world heritage site. We visited the Du Fu Thatched Cottage, a National Heritage site in a 24-acre park and museum in Chengdu. The site had been constructed in honour of the Tang dynasty poet Du Fu. This was another site not to be missed for its verdant layout. A visit to the Jinli Street is a must if you are in Chengdu. The Street is a part of the Temple of Marquis, and the buildings are in the traditional Qing Dynasty style of architecture. It is a vibrant cultural showpiece in Chengdu. The theme is Three Kingdoms Culture, a traditional folk culture. It is full of visitors enjoying the varied cuisine for which Sichuan is famous with many eating places. There are many bars, inns, snack stores and souvenir shops. We were able to watch the famous theatre show of the changing masks dance. The manner in which the dancers changed the masks with just a flick of the hand was fascinating. We took one of the green app-based taxis to roam about in the Chunxi Road, a well-known shopping centre. It is a public square for pedestrians only. The shopping street in Chengdu was not to be missed. It has more than 700 shops including large shopping malls, department stores, supermarkets, street stalls, boutiques, as well as modern cafes. The Malls house well known international brands of clothing and jewellery. We decided to visit the McDonalds adjacent to one of the malls. It was most interesting to see a police security robot based on artificial intelligence performing security duties automatically in an unhindered manner. The crowds in the square went about their business unmindful of the robot. The Kuan Alley that we visited was

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Traditional shops in the Kuanxiangzi Alley

In our week-long stay in Chengdu, we visited a number of places of interest and attended some cultural programs with our Chinese friends. We found it interesting that green tea was included in the price of the ticket for the shows. In many places of interest, senior citizens were not charged for entry tickets. Almost every place we visited had large crowds of visitors. The numbers were wellmanaged without any chaos somewhat like the Jinli street, a showpiece of cultural and folk-art including shops selling the famous Chinese silk items. It is a cultural hub on an ancient street, with souvenirs, local folk art and dining specialties. Seated on a stone bench, we savoured delicious potatoes fried with chillies for which Sichuan is famous.

Many varieties of local fruit drinks were on sale. Accompanied by our Chinese friends we visited the Chengdu Wu Hu Shrine which is a Temple dedicated to a prominent Three Kingdoms–era figure, with relics in a tranquil setting surrounded by well-maintained greenery.

Most interesting was a visit to the Sichuan Cuisine museum with the great variety of Sichuan dishes including the Hot Pot. The entry ticket price included the cost of eating as many dishes as one wished. Many varieties of Sichuan cuisine were laid out all around in the square pavilion. A large number of school children were there at the right time of around 11 a.m. to enjoy eating many dishes of their choice to their hearts’ content. This was a novel and welcome idea that could be tried out in India with its vast variety in cuisines of North, South, West and East.

Moving around in China with translation apps in smartphones The massive New Century Global Center that we visited is a multipurpose building in the Tianfu New Area of Chengdu, China, and is the world’s largest building

A traditional cottage at the Du Fu Thatched Cottage site

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A traditional Chinese gateway

in terms of floor area. We found that as in most of the malls we have seen, the wellknown international brands all have their outlets here. The basement of the mall houses many eating places showcasing the variety of the food in Sichuan. Not to be missed is the towering white marble statue of Chairman Mao adjacent to the Institute of Science and Technology at the Tianfu Square. A river boat ride to get a close look at the towering 71 metre giant Buddha at Leshan, a masterpiece of cliff stone carvings was an unforgettable experience. It is the largest stone Maitreyan statue in the world. This majestic rock carving of the giant Buddha was built in the Kaiyuan period of the Tang dynasty (713 AD) and was completed in Zhenyuan period of the same dynasty (803 AD). This Buddha was praised by the Chinese poet who said: ‘The mountain is a magnificent Buddha and the Buddha is a gorgeous mountain’! ‘The Leshan Giant Buddha Scenic Area’ is a National Park and National Tourist Attraction located at the confluence of the Min, Dadu and Qinyi rivers. In 1996, Mt. Emei and the Leshan Giant Buddha were listed in the World Cultural and Natural Heritage in the western region of China. One must appreciate the availability of abundant toilet facilities. Every spot

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It was a truly learning experience to negotiate a people and their culture without knowing their language. While we could not speak a word of Chinese and those whom we came in contact with daily could not speak a word of English, which Indians almost take for granted, it led to most interesting situations. And technology came to our rescue. The translation app on our smartphones was an indispensable gobetween to make us understand each other

we visited had a number of very clean toilets which were well maintained. The facilities were available in many places within a tourist spot. They were sensor fitted for automatic flushing to keep them clean. Most public places, as reported by women visitors, had floor fitted toilets for women which were nevertheless clean with sensor fitted automatic flushing. It was a truly learning experience to negotiate a people and their culture without knowing their language. While we could not speak a word of Chinese and those whom we came in contact with daily could not speak a word of English, which Indians almost take for granted, it led to most interesting situations. And technology came to our rescue. The translation app on our smartphones was an indispensable go-between to make us understand each other. And there lies another story. Google and any of its apps do not work in China. There are parallel Chinese versions of WhatsApp and translation app which one had to download if one needed to converse. Even Gmail did not work. So, our over-dependence on these modes came under unexpected challenges. This was a truly important learning experience which added to the fascinating experience of a visit to China.

GUPSHUP

Photo courtesy: newindianexpress.com

PM Modi’s hug for ISRO Chairman watched by millions globally India’s attempt to land at a previously unexplored area of the moon turned to despair after Chandrayaan 2 lander, Vikram, lost communication with the ground just before soft-landing on September 8. India was grief-struck after the lander lost contact with the moon orbiter. The mission is part of the ongoing efforts of Indian Space Research Organization (ISRO) to engineer the future of moon exploration, among other prestigious projects. Seen in Indian cultural terms, the lander was “our baby” to a whole nation. What followed after Vikram lost contact with the orbiter went viral among Indians globally. ISRO chief K Sivan got visibly emotional with the setback in the Chandrayaan-2 mission, and Prime Minister Narendra Modi hugged and consoled him. The video clip of the PM consoling the ISRO chief was watched by millions of Indians in the country and abroad online and over WhatsApp. The gentle, reassuring hug is a universal symbol of love and support. It is quintessential to the Indian culture.

China’s giant telescope picks up mysterious signals from deep space According to a report in indiatoday.in, Chinese astronomers have detected repeated fast radio bursts (FRB), mysterious signals believed to be from a source about 3 billion lightyears from the Earth, with the largest and most sensitive radio telescope ever built. Scientists detected the signals with the 500-meter Aperture Spherical Radio Telescope (FAST) and they are carefully cross-checking and processing them, according to researchers at the National Astronomical Observatories of the Chinese Academy of Sciences (NAOC). FRBs are the brightest bursts known in the universe. They are called “fast” because these blips are very short, only several milliseconds in duration. But there is no reasonable explanation for their origin, reported Xinhua news agency. The detection of the repeated bursts might help shed light on the origin and physical mechanisms of FRBs, said researchers. July-August 2019 ▪

Chinese President Xi Jinping’s words that have been shared worldwide

‘‘

Cadres must be vigilant to any wind of change. They must know a deer passing by the rustle of grass and leaves, they must know the coming of a tiger by feeling the wind, they must know the arrival of autumn by the colour of one leaf.

‘‘

- Chinese President Xi Jinping’s call to hundreds of mid-career officials at the Central Party School

Robots to rob 120 million people of their jobs in next 3 years More than 120 million workers globally will need retraining in the next three years because of artificial intelligence’s impact on jobs, according to an IBM survey. The five countries with the most workers who will require retraining are China, the US, Brazil, Japan and France, according to the survey. The training required these days is longer than it used to be – workers need 36 days of training to close a skills gap versus three days in 2014, says the survey.

▪ July-August 2019

GUPSHUP

China clones a pet cat in a global first Huang Yu, a 22-year-old businessman, was left heartbroken by the death of his pet cat, Garlic. That thought led him to Sinogene, a commercial pet-cloning company based in Beijing. Yu spent approximately $35,000 on the endeavour. About seven months later, Sinogene produced what China’s official news media declared to be the country’s first cloned cat. This is another sign of the country’s emergence as a power in cloning and genetics. It also suggests that China could turn pet cloning into a viable business. Duplicating dogs and cats has not really taken off in the United States and elsewhere, experts say. Pet-obsessed China might be different. The size of China’s domestic pet market is expected to reach $28.2 billion this year, up nearly one-fifth from 2018, according to Gouminwang, a pet consultancy in Beijing. The country already has 55 million pet dogs and 44 million pet cats, and demand for cats is accelerating. Photo courtesy: Sinogene Biotechnology

Million dollar gowns and ‘weather control’ for weddings Lelian Chew, founder of luxury wedding planning company The Wedding Atelier, creates the most amazing wedding celebrations for her opulent clients who typically hail from Hong Kong, China, Indonesia and Thailand. “We have had clients who bought vineyards just to grow grapes for [wedding] wine or purchased hotels to make sure they can create a space to their specifications. Clients often choose to pay for accommodation for their guests, and I’ve had a bride who was willing to spend US$1 million on an Elie Saab gown,” Chew said in a report in South China Morning Post. Chew’s company, which she launched in 2013, is regarded by many as an industry leader in luxury weddings, with many of Asia’s richest families engaging her services. Although she is not at liberty to reveal any names, Chew says impossible is nothing for these clients.

July-August 2019 ▪

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INSPIRING VALUES Inauguration Beijing – Mumbai Flight

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