i c chronicle (sep 2013) pdfs

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Jackie Chan Bridging borders offscreen AGRI-BUSINESS

INTERVIEW

EDUCATION

Noodles Entangled

Shanghai will set up a Free Trade Zone

Catching up with China on education

www.icec-council.org

Vol 1, Issue 6, September 2013 EDITOR-IN-CHIEF Mohammed Saqib EXECUTIVE EDITOR Urmila Rao

“Heart of economic growth g in India�, Bhopal Haat, Bhopal, Madhya Pradesh WHY HAAT OF INDIA

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EDITORIAL BOARD Mani Shankar Aiyar P.S. Deodhar Dilip Cherian Amir Ullah Khan Chen Si (China) EDITORIAL TEAM Irfan Alam Shawahiq Siddiqui Sumelika Bhattacharyya Garima Arora Manju Hara Vinny Sachdeva 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 Anne Print Solutions B-32, Okhla Industrial Area, Phase-I, New Delhi-110020 Tel. 011-40525878, 011-65690940 Email: info@anneprintsolutions.com All Rights Reserved. Reproduction in whole or in part without written permission is prohibited.

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All profit and no loss in cultural handshake When we and the Chinese Embassy jointly decided to invite actor Jackie Chan to inaugurate the Chinese film festival at New Delhi in June, he readily agreed.

But in the thick of a border dispute, we waited anxiously to see whether his chartered flight would get a clearance from the Indian authorities. Our worst fears came true as the documents indeed got mired in the bureaucratic processes in India. We were running out of time but good intentions have a way of finding their way through. The star chose to travel by a regular flight, and not just that, he also brought along graceful actresses from his movie Chinese Zodiac too, with whom the inaugural screening was slated.

This is the power of cultural linkages; it binds people together.

Keeping political sentiments and economic relationships aside, the Chinese fans thronged the stadium in no less numbers than the Indian fans did, to see their hero in flesh and blood.

Culture is beyond profit and therein is its appeal. It is distant from thorny politics and calculative business. The reason why Jackie Chan was chosen to be the ambassador of the Chinese Film festival in India was simple: he is a cultural icon who is known and revered by Indian and Chinese people in equal measure. Our belief is that such gestures by the government and civil society are instrumental in creating a positive environment between the two countries. This is reflected in the words of Cai Fuchao, the Director of the Press and Publication,who mentioned in the inaugural event: “cultural exchanges are one of the important components of the bilateral ties and exchanges between the two countries.�

Our trade relations are reasonably good. It is in the cultural realm that both the countries have to do more. The Chinese Embassy and ICEC’s humble effort was geared towards the effort of strengthening the cultural ties.

When we practice Buddhism, dig into noodles and momos, go to China for studies, believe in fengshui, decorate our homes with Chinese lamps and take Kung fu lessons, hardly do we harbour any negative feelings. Such engagements go beyond political machinations and commercial gains.

The proof of the pudding is in the eating. Jackie Chan got a rousing welcome in Delhi. His song enthralled the Indian and Chinese audiences who sat side by side enjoying the moment. Together!

CONTENTS

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Feedback

29

Brief News Noodles Entangled Chinese food companies have the potential to become global players if they get government regulatory and financial support. However, the industry also needs to innovate. There are issues of food safety and quality in the production process. The companies’ global proliferation is also challenged by factors like management style, language, culture as well as complexity of laws and regulations existing in other countries.

HIGHER EDUCATION

32

COVER STORY

The tough Jackie with an elfin charm Introductions are for greenhorn actors, not for veterans and certainly not for living legend Jackie Chan, who has relentlessly enthralled his audience with awesome action for over four decades. The fact that he has a fan following that cuts across age, gender, boundary and class, is no small feat. Even actors of action genre such as Arnold and Sylvester, despite their Greek-god akin chiseled cuts, have not been able to extract the admiration of such a wide demography as Jackie Chan does.

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|2| India-China Chronicle September 2013

Catching up with China on education By virtue of a higher literacy rate, China is able to wield greater influence in the world order compared to India. If India wants to seize opportunities in the new millennium, it will have to overhaul its education system

36

Shanghai will set up a Free Trade Zone Consul General of India at Shanghai, Mr. Naveen Srivastava, assumed office in Shanghai in August 2012.

This marked his reconnect with China after 12 years. A little over a decade is, by no means, a lifetime, but the consul general is amazed to see the scale and pace of development that has taken place in China.

‘The Infrastructure development in particular has been both rapid and world class’, he says. In an e-mail interview with Urmila Rao, he shares that his consulate is focused on promoting trade, economic and people– to-people exchanges between East China and India. He also gives his take on increased instances of trade disputes and much more.

44

46

Recording poverty of India and China India’s poverty and inclusive growth record is much better than China’s, and levels of poverty in the two countries are not very different

INDIA TOURISM

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Rajasthan: More than China clay for tourists India and China are geographically diverse and vast. So, just as China offers a surprise package that is quite different from West or South of

HANDICRAFT REPORT

56

Restructuring the border

INTERVIEW

East China calling entrepreneurs Sudhir Wadhawa, director, Skyblue International (Shanghai) Co. Ltd, finds setting up office in East China easy. He says that though the language is a roadblock, one receives 90 % of what one gives in terms of attitude. ‘China is not run

Weaving the Cloth of Friendship In April this year, ICEC took a trade delegation to China for enhancement of Handicrafts Trade and the brand image promotion of Indian handicrafts in the Chinese market. The delegation was headed

by Smt. Zohra Chatterji, Secretary Textiles, Government of India. A first of its kind MoU was signed between the China Council for Promotion of International Trade, PRC and the Export Promotion Council for Handicraft, India for promotion of trade in the handicraft sector.

China’s high economic growth is based on a number of factors, including the fact that it attaches great importance to its border regions.

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Booming business in the land of fish & rice: Zhejiang Zhejiang was the old name of the Qiantang River, which passes through Hangzhou, the provincial capital. This province has the largest number of islands in China.

ECONOMY

GROWTH

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52

New Flavours of Friendship Chinese Chef Yang Ling Ling, 35, has been rustling up delicious dishes for over 10 years now. He worked in the different cities of Dragon Land before making an adventurous move to Ceylon in 2006. Since then he has been on a journey to explore and understand South Asia with an aim of building relations through his mouth-watering Chinese food recipes. The chef is presently working at Claridges Hotel, New Delhi, after a four-year stint in Bangalore.

Garima Arora met Ling to understand how cuisine popularity can mark a new beginning for IndiaChina relations and much more...

First time in Shanghai?

Follow these tips The coastal city of Shanghai is inviting. But for a first time visitor, the cosmopolitan city can be overwhelming. In order to make your stay smooth sans rude surprises, it is better to be prepared.

PROVINCE PROFILE

INTERVIEW

BEYOND THE GREAT WALL

INTERVIEW

15

CHI-INDIA: Poised to become Management Education Super Power?

China, similarly, India too displays multiple hues from East to West and North to South. In our current series, we are exploring Rajasthan, for our Chinese tourists, who wish to experience a little piece of the mosaic of history from Western India.

Both Chinese and Indian B-Schools are taking steps to globalise themselves. Together, they can re-invent a new model of management education as well new processes of international ranking and accreditation focusing on the needs of the East.

EDUCATION

12

Art of using soft power for hard presence America has spread its cultural hegemony and values through its open media that has strategically benefited America and contributed to the collapse of socialism. China too is using Soft power or ruanshili to achieve the desired goal with the least objection.

AGRICULTURE

8

like the rest of the world. That doesn't make it good or bad’, he opines. In an interview with ICEC, he says business with China means being ready for surprises, avoiding working in lowmargin high- risk environment and keeping provisions handy.

DIPLOMACY

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Exhibitions & Trade show In India & In China

MISSING PIECES

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Lessons to learn

Shaoxing & Surat – Textile capitals of China & India September 2013 India-China Chronicle |3|

F E E D B A C K

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Two Locomotive

Chugging on Track

Breaking the Barrier

A Daughter’s Memoirs

For The Chinese and Indian Experience The article – ‘Breaking the Perception Barrier’ was very much timely and insightful. With the rapid depreciation of the rupee and stringent visa regimes by the western countries, a degree in Europe or America is going beyond many Indian’s budgets. Since China is offering comparable quality degrees at a fraction of the cost together with the tag of ‘Chinese experience’, pursuing a degree in China,especially a MBA or a MBBS makes more sense. The nuances in cultural differences between Indian and Chinese families and their priorities in education were also beautifully brought up in the article.

Padma Khanna, Bangalore

Perceptions should be challenged.

The article of Rahul Choudaha, ‘Breaking the Perception Barrier’ made for a strong case to believe that the governments of the two countries should actively promote student exchanges. Students spending their formative years in a different country are leave with a permanent positive mark about that country throughout their lives. This is evident from the warmth which Hamid Karzai or Aung San SuuKyi emanates when they visit India. I believe that more university level tie ups and better cultural awareness of the people of both the countries can lead to a win-win situation for students from both the countries and thus foster better relations between India and China.

It’s time some perceptions get serious challenge.

Pradipto Sarkar, Delhi Economics at play Ila Patnaik’s well-researched article on the Chinese economy was a pleasure to read. Like with anything Chinese, even the slowdown of the GDP growth looks ‘part of the plan’. On a lighter note, the global meltdown seemed more like a result of the Americans becoming lazy than the effect of the hard work by the Chinese. Definitely one side was working hard on the ‘bear hug’. As always with Indians, we can wait and watch for the Chinese to slow down so as to make a killing when the hunt is over. Overall the article laid out for the lay man in clear terms how the

|4| India-China Chronicle September 2013

global economy is interlinked and how policy decision in one country can affect others. Still wondering if people anywhere in the world are pondering over the economic policies of India and how it can impact the world. I guess too much of spirituality and otherworldly knowledge has made us too complacent to think on such trivial matters.

Latha Jaishankar, Bangalore

Bond with Culture PD Kaushik’s article gave an excellent narrative on how the relations between India and China have been throughout the years. It was a fitting reply to those who feed on the fear of Chinese growth. From very early days, cultural and economic ties have greatly benefitted both the countries.

The importance of exchange of ideas, development of knowledge, and the advancement of fine arts were rightly brought up disregarding the prevalent norm of relating relations to the trade volumes. A relationship based on mutual trust and respect can truly stand the test of time and this can come only though genuine interest and fascination for each other’s.

Som Patil, Ahmedabad

INFOCUS | INDIA-CHINA | NEWS

NE HAO India

I

ndia’s first Confucius Institute was opened at the Mumbai university campus in July this year in collaboration with the Tianjin University of Technology (TUT) in China.

Confucius Institutes are the cultural and language education centers around the world which are sponsored by the Government of People’s Republic of China. With their presence in 93 countries, the 327 Confucius Institutes provide cultural awareness, training and language classes. In addition, they also provide scholarships for select students around the world to go to China for higher studies. It is reported that the Mumbai University has received $1,50,000 from China for setting up the Institute. A language exchange program is also on the agenda and China is seeking English teachers

Representatives attend the inauguration of the Confucius Institution at University of Mumbai in Mumbai, India. India's first confucius institute, jointly built by the University of Mumbai and China's Tianjin University of Technology.

in exchange for Mandarin teachers from China. Though it is the first Confucius Institute in India, Indians are not new to Mandarin classes. There are several educational institutions in India that teach Mandarin. For example, in 2009, the Vellore institute of Technology set up a Chinese language center in partnership with the Confucius Institute. The Institute also conducts a Chinese Proficiency Test. Last year, more than 100 people had registered for the course and the Office of Chinese Language Council International or Hanban had sponsored the top 20 students to travel to China.

Chinese SUV giant targets Indian market

T

he Indian car market will soon have a Chinese company competing for spoils in the SUV segment, which has seen sustained growth in the country despite a general slowdown.

Great Wall Motors, which is China’s largest Sports Utility vehicle (SUV) maker is planning to become the first Chinese auto company to directly enter the Indian market next year and is looking forward to showcase its wares at the earliest. It is widely anticipated that the company will enter the Indian market

|6| India-China Chronicle September 2013

next year and will become ‘the first bona fide Chinese company to come here’ as it sees great potential in the Indian SUV market. Though China’s largest auto maker SAIC has a stake in General Motor’s Indian subsidiary, but Great Walls Motors will be the first to make a direct entry.

Great Wall Motors will compete with companies like Toyota, Mahindra, Mitsubishi, Tata, Chevrolet and Maruti for a pie of the SUV market.

Chinese citizens demand growth sans enviromental and health damage

T

he 18th Communist Party of China (CPC) Central Committee is likely to hold its third plenary session in November to discuss the introduction of comprehensive

reforms. The economy, which registered almost two –digit annual growth over the past three decades, is showing signs of declining. The economy witnessed a humble growth of 7.5 % in the second quarter this year. In the latest step of reform measures to revive growth, the State Council, China’s Cabinet, recently approved Shanghai to establish a pilotfree trade zone. This is done in a bid to further free up the economy.

Since the Party assumed new leadership last November, a series of reform moves have been initiated to spur growth. Xinhua News recently quoted, China’s Financial Minister Lou Jiwei, “tax systems concerning business turnover, consumption, resources and property will continue to be reformed in order to promote economic development.”

The growth measures , however, are marred with concerns over environmental degradation and health problems. Massive protests against construction of chemical projects are rising at multiple places across the country, indicating more people are seeking to block any growth that sacrifices the environment and public health.

Taking these concerns into cognizance, finance minister Lou also said that China will impose its consumption tax to goods that could cause severe environmental pollution and over exploitation of resources. “The tax will also be applicable to more luxury goods,” he said.

SINO-INDIA holds talk on Central Asia Affairs

I

ndia and China recently held their first official dialogue on Central Asia in Beijing during which the countries focused on their similar approaches on issues like counterterrorism, regional and energy security.

The Indian Embassy in Beijing informed the media through a press release that the two-day talks were held cordially. The conversation included discussions on specific issues like “regional security and counter-terrorism, Shanghai Cooperation Organisation, (SCO), energy security, development partnerships, and people-to-people contacts with the countries of the region.”

“Both India and China are in the neighbourhood of Central Asia and have established close political and economic ties with the countries of the region,” the release said. “Both countries stated that strong relationships with the countries of the Central Asia region were an important priority in their foreign policy.”

There were also talks between the two countries on the potential emerging centre of Afghanistan in reference to the planned pullout of US and NATO troops from the wartorn country by 2014 , which has sparked concerns over the likelihood of the return of the Taliban and al Qaeda.

China wants to set up industrial park in UP

C

hina proposes to set up an industrial park in the northern Indian state of Uttar Pradesh (UP) which will focus primarily on electronics. The project will be developed with the help of the UP State Industrial Development Corporation (UPSIDC), which has been approached by the Chinese Embassy in a bid to get 400 acres of land for the project.

Kanpur, Allahabad, Lucknow, Moradabad, Noida, Greater Noida and Khurj are the potential places for the industrial park while India’s External Affairs Minister Mr. Salman Khurshid and Chinese Prime Minister Li Keqiang have been reported to have shown interest in such projects in general and this one in particular. In May, Mr. Khurshid stated that the industrial park could help balance trade between the two countries, which is presently in favor of China.

The trade and commerce counselor at the Chinese Embassy, Namgya Khampa, has approached the UPSIDC in a bid to take the matter further.

September 2013 India-China Chronicle |7|

INFOCUS | CHINA | AGRICULTURE

Noodles Entangled Challenges of Chinese Food Companies in Going Global

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Marcos Fava Neves

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ecently, I had attended a debate organized by International Food and Agribusiness Management Association, in Shanghai to discuss about the capacity of Chinese food companies to become international companies in the coming years. The participants in the debate included a University professor, CEO of a Chinese food company that exports food to the USA and CEO of one of the largest trading companies based in Asia. The audience comprised of executives, government officials and academics, who also gave their inputs on the topic. In addition, I had also attended a workshop with around 15 of the largest pork and poultry producers and processors operating in China, and discussed the future of the industry.

The summary of the discussions were thus: 1) Opportunities that existed in the field, mostly related to the worldwide growth of food markets; 2) Major challenges for the industries operating in the meat markets in China 3) Inability of the Chinese food companies to be globalized due to lack strategy 4) Major difficulties faced by Chinese investments that were present abroad 5) Globalization opportunities for Chinese companies in the new world where food and bio fuels would be an important topic of trade in the coming years.

Good News and Opportunities

Firstly, there are several opportunities for growth in the Chinese meat markets. Projections show that internal markets in 2030 will amount to around 1.5 billion consumers and urbanization will be around 70 %, bringing incredible changes in consumption patterns.

In the next 20 years, income will grow at an average rate of 5 to 8 % per year. Thus with this, GDP per capita in China will rise from US$ 5,500 to US$ 15,000 in 2030. The major impact of this fact is that there will be an increase of almost 15 kg in the per capita consumption of meat by 2030, going

up from 57 to almost 70 kg per person.

It will be an incredible development of markets that will bring a lot of opportunities as well as challenges.

g)

Major Upcoming Challenges

In order to prepare for this growth and accomplish new macroenvironmental changes, several challenges were raised by executives. a) Human resources management will be an issue both in terms of availability of trained employees and the increased cost of labor due to higher salaries and benefits, estimated as more than 30 %. b) Adaptation to new governmental regulations towards food security in China will increase production costs, even regulations regarding feeding the animals may reduce the amount of products used as feed. c) Government policies towards improvement of small and medium size companies will also change the industry in the near future, since some of these are low scale and have low productivity. d) Government policies towards the usage of land in China will challenge the growth of this industry mostly because of the growth of municipalities and Chinese companies that will need to expand internationally to secure supply chains. e) Diseases may spread due to the density of production and may bring risks of severe epidemics and frequent contamination outbreaks. f ) Cross regional development of

h)

i)

j)

k)

logistics towards inlands of China, where there is also a growing market and production.

Strategy of adjustment to this fast growth, together with promotion of sustainability, due to an increase in environmental concerns and media coverage that may pose a formidable challenge.

The need to innovate was also a challenge as discussed. Importance was given to innovations that increase profitability in the production systems by promoting vigorous scientific and technological projects.

Information management, mostly in how to follow the market information and select the most relevant for decision-making, in addition to global competition and opening of markets.

Price volatility of grains and increasing the need to develop long term procurement strategies were also discussed.

There was emphasis on the need for gradual improvement of institutional environment and the need to improve financial support for new investments along with the improvement of collective actions, with better chain organization and coordination.

In addition, the requirement to improve management capacity to understand and adapt to the new environment was also stressed on.

As seen, the major challenges raised by the executives are tough but

September 2013 India-China Chronicle |9|

INFOCUS | CHINA | AGRICULTURE

since it is in a market that is growing, it is a question of adjustments. The major dilemmas, as we comprehended, would be to localize or globalize the production, to focus or to diversify towards different food business, to promote growth via public or private companies and the capacity to understand and adapt.

Internationalization of Chinese Food Companies

First of all, it must be recognized that China has several brands that are becoming international and with this strategy, it has learnt the complexity of the international operations. A huge innovative effort is being made and hence, in several areas we can see Chinese products being regarded in terms of quality.

These are companies which took advantage of a strong Chinese domestic market and are mostly engineering based companies with the ability to invest in key assets, while maintaining their core business with a global leadership team and global structures and strategies. Taking advantage of scale and scope economies, these Chinese companies have gone outside China and are enjoying success.

But an intriguing question comes up after studying the success of engineering companies and others that are globalized. Why is this globalization

not observed in the Chinese food companies? It can be clearly seen that the globalization processes led by these companies are not happening at the same level as that of the food companies, because none of top 25 food transnational companies of the world is Chinese.

One argument is that the Chinese food industry doesn’t share the same advantages as equipment companies and still struggle with low investments in R&D. Besides, there are issues related to food safety and quality in its production process. There are no recognized large brands outside China in this sector. The lack of reputation and difficulties in marketing label

FOOD COMPANIES THAT PRODUCE SPECIALTIES OR FOCUS ON PRODUCE THAT DOESN’T DEMAND LARGE AMOUNT OF SOIL, WATER AND OTHER RESOURCES CAN EASILY BECOME GLOBAL PLAYERS. BESIDES, THE CHINESE COMPANIES, WHICH ARE ENGAGED IN PRODUCING FOOD IN OTHER PARTS OF THE WORLD AND MARKETING ACROSS THE GLOBE, CAN BECOME INTERNATIONAL PLAYERS.

|10| India-China Chronicle September 2013

China food products as low value, as far as perception is concerned.

Although Chinese government can subsidize this globalization strategy- since money is not an issue to China- there are other factors that make it difficult for Chinese companies to become global players of foods originating in China. The lack of water, soil, uneven development of infra-structure, low production yields, structure of the rural society, lack of agribusiness talents for large scale operations and the huge internal market to consume the local food production come forth as major challenges.

The list of difficulties is long, but this doesn’t mean that Chinese food companies can’t be global companies.

It is a question of time before Chinese companies can become global suppliers.

I see opportunities in two groups. The first group would be food companies producing specialties or other products to supply to the internal market with plenty left to export, as international players. Produce that doesn’t demand large amount of soil, water and other resources are the ones that may be globalized first and become global players.

The second group of companies to globalize from China will comprise of Chinese companies producing food in other parts of the world, and marketing those across the globe.

Major Difficulties faced by Chinese Investments Abroad

The major difficulties for Chinese agro and food business are related to: a) The management style, language and culture. Chinese culture and way of doing things are different from other cultures and these differences cause difficulties. b) The perception that Chinese investments may be seen as a “new colonialism”. There are several countries and societies that see Chinese investment as extraction of local resources and deprivation of benefits for local societies. c) Difficulties for Chinese food companies to understand the local institutional environments, and complexity of laws, regulations etc. in these countries lead to high transaction costs. d) Protectionism in some markets closes the opportunity for Chinese investments. e) Chinese insurance system doesn’t offer enough protection to face the risks of international investments done by Chinese food companies or Chinese entrepreneurs. f ) Tax policies in China also do not stimulate international investments, and thus do not bring enough benefits for companies. g) Some countries see it as a labor export strategy for China and do not accept it, since in most projects the labor force tend to be all Chinese, not employing local population

ALTHOUGH RESTRICTIONS EXIST, THERE IS AN OPPORTUNITY FOR CHINESE FOOD COMPANIES TO GO GLOBAL, SINCE SEVERAL PARTS OF THE WORLD FACE AN ABUNDANCE OF NATURAL RESOURCES REQUIRED FOR EXPANDING FOOD PRODUCTION BUT LACK THE CAPITAL. h) Lack of cooperation among Chinese companies and reluctance in sharing experiences that could help to learn and avoid problems.

The Globalization Opportunities for Chinese Companies and Conclusions

Although these restrictions exist, there is an opportunity for Chinese food companies to move from internal to global, since several parts of the world face an abundance of natural resources required to expand food production but lack the capital needed to do so.

Brazil, Argentina, African countries and others have the resources required but lack capital. Some like Brazil are friendly to Chinese international investments and institutional environment has already provided a level of development.

Due to its large and growing internal food market, we cannot expect that China in general will be a large supplier of food to the world. China will be a large food importer as it already is. But in some specific markets,

food produced in China will reach the world and Chinese food companies will emerge and become international food exporters.

There is a large opportunity for Chinese companies to have a global food production platform and produce food in several parts of the world, mostly in the countries that have natural resources and thus become real food multinationals. This can be done via acquisitions or starting some business from zero. The recent acquisition of Smithfield Foods in the USA by Shuanghui International Holdings for US$ 4.7 billion shows that these movements are already happening.

Tully Sugar in Australia was bought

by COFCO Corporation for US$ 140 million and Manassen Foods Australia was acquired by Bright Food Group (Shanghai) and several others are in the process of taking shape in the future.

I truly agree with this trend and would agree with readers that though today there is not a single Chinese food company among the 25 largest food multinational corporations by 2020 we will have at least three to four Chinese companies on the list. A lot will be witnessed in the coming years.

Marcos Fava Neves is a professor at the School of Business, University of São Paulo, Brazil and international speaker.

September 2013 India-China Chronicle |11|

INFOCUS | INDIA-CHINA | EDUCATION

Catching up with China on education %\ YLUWXH RI D KLJKHU OLWHUDF\ UDWH &KLQD LV DEOH WR ZLHOG JUHDWHU LQĂ€XHQFH in the world order compared to India. If India wants to seize opportunities in the new millennium, it will have to overhaul its education system Amir Ullah Khan

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he discussion on education today is dominated by several views expressed on the use of technology in improving the quality of educational institutions. The debate on quality is indeed serious today and it is time we delve into some real issues that concern education in India and China, at both the elementary and secondary levels as well as in the Universities. There is also a serious concern about quantity.

We are not able to provide education to those who demand it, despite the constitutional guarantees under the Right to Education Act in India. With the population of the young and adolescents on a steady rise, this paucity in supply is indeed a serious matter that education ministers should look into

rather than pandering to some vague perceptions of threat to local culture and language.

The comparison between India and China is an interesting one. While India scores high by way of its English speaking population and its English medium education, China outnumbers India everywhere else. The literacy rate in China is 92% and average years at school are nearly 12, as a nine -year education is compulsory by law and the attendance in primary schools is 99%. In India, the literacy rates are yet to reach 65%, and though the Right to Education Act makes 8-years of education compulsory but is hardly able to achieve half the target and the attendance in schools is never more than 70%.

Nearly 70% of all high school graduates in China attend University, while

|12| India-China Chronicle ƒ September 2013

the figure for India is at best 15%. China has nearly 2000 Universities while India has a little more than 650.

The world economy has been transformed in the last few decades.

Investments move seamlessly across continents as sentiment shifts happen almost overnight and trace emerging patterns of growth and development.

This has resulted in a pressure on the services sector, and particularly on the knowledge economy to provide the human resource required in this changed world. While the manufacturing sector has changed beyond recognition with transportation and communication getting revolutionized and a services sector that does not respect legacy and tradition, the world demands a rethinking in skilling and training. How has the education sector responded to

this challenge? Is the University system that has worked so well in the past ready to address these new concerns?

What role do China and India play in this new world order?

The emphasis in recent days has moved from the Global to the ‘Glocal’.

The term ‘Glocal’ is relatively new. It was popularized in the nineties in business literature just as the term globalization had seen its heyday in the eighties. According to Erik Swyngedouw, Glocalisation, as described in Globalization or ‘glocalisation’? Networks, territories and rescaling. Cambridge review of International Affairs, 2004;, refers to activities where institutional and regulatory arrangements

shift from the national scale upwards to both supra-national and global scale.  The end of the cold war signaled the beginning of an unprecedented pace of globalization as firms revisited the concepts of comparative advantages and started turning into multinational or transnational companies. Leveraging raw material from one continent, labor from another, processing facilities in a third and packaging in yet another location, the manufacturing world has turned production into a global logistics exercise. Globalization had indeed arrived and its fierce flow has led to the demolition of the most forceful symbol of a bipolar world, the Berlin wall.

The estimate is that there will be 50

In an interesting forecast, it is said that 40% of today’s children will work in occupations that do not even exist at the moment.

For example, nearly a hundred thousand youngsters today work on designing mobile phone applications, a skill that neither exLVWHG QRU ZDV FRQWHPSODWHG HYHQ ÀYH \HDUV DJR

million new entrants in the work force in India in the next five years while the deficit for the rest of the world where populations are shrinking is about 36 million. Another rather exaggerated estimate is that India needs to skill 500 million people in the next few years.

The Planning Commission and the various ministries of labour and that of rural development are projecting these figures. Whatever be the number, the fact is that a large number of people need to be skilled, some in traditional ways and most so as to be able to handle a new and transforming work culture and landscape.

Both India and China are together in understanding that today’s education challenges are actually quite different and difficult. The countries have a unique advantage with their large populations. India in fact is the world’s youngest country, with an average age of 25 years and 65 % of the population is below the age of 35.

Therefore, it is critical that students get trained to handle international

September 2013 ƒ India-China Chronicle |13|

INFOCUS | INDIA-CHINA | EDUCATION

demands from countries that see shrinking work forces and ageing populations. The 200 million children in the school going age group will need classrooms, teachers and skills that are both modern and futuristic.

That is why the education system must be one that inculcates a sense of innovation, a culture of diversity, a thirst for technology and a quest for solution seeking that will be required by a workforce that will operate on the global landscape.

Therefore the challenges from Globalization and its variation Glocalisation-are many. With factors like financial turmoil, commodity price fluctuations, inflationary tendencies, the slow recovery if at all in the US, the clouds of war looming across the Middle East and the like, there is much that the world has to grapple with in the decades to come. The critics of globalization have their daggers drawn. They argue that, in almost all developed countries since 1980, the gap has widened  between skilled and unskilled workers both in terms of wages and unemployment rates. Financial flows are being monitored strictly and immigration rules keep getting tightened every now and then while protectionism rears its head through non-tariff barriers. The future is going to be exciting as we watch global investment, trade and technology trends.

The twenty first century has seen some major upheavals already and if past trends are indicative, the environment will continue to be dynamic for quite sometime.

The 600 million strong work force in India does not just provide cheap labor, but is also the largest provider of skilled manpower in the world. It is the youngest population in the world with a mean age of 24 years, in a globe that is ageing pretty fast. Thus the large population, with its striking diversity that is missing in the homogeneity of China, offers the world a variety of skills in terms of languages spoken, technology, education and adaptability in disparate environments. With the millions of Indians now going to school and getting skilled, India is the largest provider of engineers (more than half a million annually) and English speaking

professionals in the world.

On the jobs and the placements front, the first point to note is that there are several white collar skilled jobs for professionals. These are jobs that come with high salaries, are urban in character and actually constitute a very small proportion of the total number of people in the work force.

What is indeed important is to look at the work force in the rural and the semi-skilled or unskilled sectors.

The big ones in this category are the textile and the construction sectors.

The second problem centers on skilled worker shortages. Estimates are that, even with the current growth rate, India will have a shortage of nearly five lakh professionals in the software sector alone in the next two years. The number of engineers graduating out

EDUCATION SYSTEM MUST BE ONE THAT INCULCATES A SENSE OF INNOVATION, A CULTURE OF DIVERSITY, A THIRST FOR TECHNOLOGY AND A QUEST FOR SOLUTION SEEKING THAT WILL BE REQUIRED BY A WORKFORCE THAT WILL OPERATE ON THE GLOBAL LANDSCAPE. of the various colleges in the country now is at least five lakhs a year but the demand is far greater even at present.

Many of the colleges are poorly equipped, both by way of the lack of infrastructure and the lack of trained faculty. Therefore, the graduates are often unemployable and industry experts say that only one in four are actually skilled. However, given the shortage of engineers and the increasing demand, there are really no unemployed graduate engineers. The same is the story with those who go to study in Business Schools for their MBAs. Indian colleges and institutes are to produce more than a lakh MBAs this year but the estimated demand is for at least one lakh and twenty five thousand.

With middle class population in excess of 300 million, India is the larg-

|14| India-China Chronicle ƒ September 2013

est market for automobiles, high value foods, mobile phones etc. ahead of or just behind China. This turn around has resulted as education levels have gone up - nearly 98% of children are enrolled in primary schools now.

Besides, because of the fall in fertility rates, an average Indian family now has less than three children compared to five a couple of decades ago, leading to increased expense on education and health per child. There are a lot of debates on the issuee. Are demographics India’s biggest challenge or do they give India the opportunity for a truly knowledge based economy? If India is to seize the new opportunities that the new millennium brings, it will have to overhaul its higher education sector. At the tertiary level, in terms of our children seeking university education, the Gross Enrolment Ratio is an abysmal 16 % while the world average is over 27%. Only 17 million children have access to University seats. Even now only about 15% of our children matriculate and just half the number ever reach college. The government’s data, in a Planning Commission sponsored study shows that in 2011, the deficit in the number of school seats had reached 60 million. That is the number of children in India today who don’t have a school seat even if they want to attend school.

At the university level, what this means is that if just 30% must go to university, at least 36 million college and university seats need to be created. With about 650 universities now, India still needs to double the number.

The Indian Parliament does not find time to debate on the new bill that will allow foreign universities in the country. China has taken a lead much earlier. India thus needs to revisit its education policy and that too on a war footing. ‰

Amir Ullah Khan is President of the Global University at Saharanpur in UP and Professor of Economics Saleema Razvi is a Research scholar Health Economics and trade issues at the Indian Institute of Foreign Trade,  New Delhi

Shanghai will set up a

Free Trade Zone Consul General of India at Shanghai, Mr. Naveen Srivastava, DVVXPHG RIÂżFH LQ 6KDQJKDL LQ August 2012. This marked his UHFRQQHFW ZLWK &KLQD DIWHU \HDUV $ OLWWOH RYHU D GHFDGH LV by no means, a lifetime, but WKH FRQVXO JHQHUDO LV DPD]HG WR VHH WKH VFDOH DQG SDFH RI GHYHORSPHQW WKDW KDV WDNHQ SODFH LQ &KLQD Âľ7KH ,QIUDVWUXFWXUH GHYHORSPHQW LQ SDUWLFXODU KDV EHHQ ERWK UDSLG DQG ZRUOG FODVVÂś KH VD\V ,Q DQ H PDLO LQWHUYLHZ ZLWK Urmila Rao, he VKDUHV WKDW KLV FRQVXODWH LV IRFXVHG RQ SURPRWLQJ WUDGH HFRQRPLF DQG SHRSOHÂąWR SHRSOH H[FKDQJHV EHWZHHQ (DVW China and India. He also gives his take on LQFUHDVHG LQVWDQFHV RI WUDGH GLVSXWHV DQG PXFK PRUH

September 2013 ƒ India-China Chronicle |15|

INFOCUS | INTERVIEW | NAVEEN SRIVASTAVA

What kind of change have you witnessed in East China’s business environment?

The East China Region or the Yangtze Delta River region that our consulate covers, comprising Shanghai and provinces of Zhejiang and Jiangsu, remains one of the major economic powerhouses in China. The region, which has both excellent infrastructure connectivity, and is home to some of the largest sea-ports in China, is one of the most favored entry-points for foreign companies who come to China.

The local governments have made investments in the development of regional infrastructure to connect and integrate the region. This has had a multiplier effect on economic growth.

The region is also trying to evolve its economic structure and gradually move up the value chain, thus moving away from traditional manufacturing.

This is also happening partly due to rise in labor costs. I see this trend continuing over the next several years.

Take Shanghai, for example, which has been working to develop into an international economic, financial, trade and shipping centre as well as a base for advanced manufacturing such as electronics, automotive industry and shipbuilding. The recent announcement that Shanghai will set up a Free Trade Zone – in fact the first on mainland China – further shows that the region will continue to further open up.

How do you ensure promotion of trade between India and the provinces your consulate covers?

One of the main areas for us here at the consulate is to promote trade, economic and people to people exchanges. The East China Region accounted for almost 40% of the overall India-China bilateral trade in 2012. In terms of trade and economic relationship, our efforts have been to not only promote two-way trade but also two-way investments. The consulate in cooperation with local chambers of commerce in various cities in our region organizes regular seminar/workshops to disseminate information about investment

opportunities in India for Chinese companies as also the regulatory frame work for FDI in India. Apart from Shanghai we have also been organizing such seminars in tier II and III cities in this region.

Have these efforts borne fruit?

We are seeing signs of increasing number of Chinese companies planning to invest in India. The reasons are several in my view. Some of these companies already have business relations with Indian companies, for example, as a supplier for many years and are now looking to build on that

FOR INDIAN COMPANIES THAT PLAN TO ENTER IN CHINA, THE CONSULATE PROVIDES ASSISTANCE IN TERMS OF BRIEFING THEM ABOUT THE GENERAL INVESTMENT CLIMATE, RULES AND REGULATIONS. WE REGULARLY ORGANIZE PROGRAMS AND INTERACTIONS FOR VISITING DELEGATIONS FROM VARIOUS INDUSTRIES AND ORGANIZATIONS IN INDIA relationship by investing in India.

In other cases it is the attraction of the huge market potential that India offers. Our focus is to encourage such Chinese companies and facilitate them in their plans to invest in India.

What about Indian companies planning to have a presence in China?

We also help Indian companies who already have a presence in China as well as those that are considering entering in China. Shanghai and the Yangtze River Delta region is already home to a large number of Indian companies, whose numbers now are about 150. These cover an entire spectrum – from IT companies,

|16| India-China Chronicle September 2013

to those engaged in manufacturing here, to others who are mostly doing sourcing from China. The consulate works closely with Indian companies in our region and has regular interaction with them. Many companies also join us in our outreach activities in the region which provides not only an opportunity for our businesses and industries to explore opportunities but also to meet the local leadership and network. For Indian companies which plan to e nter in China, the consulate provides assistance in terms of briefing them about the general investment climate, rules and regulations. We regularly organize programs and interactions for visiting delegations from various industries and organizations in India.

Trade apart, how do you ensure promotion of tourism and cultural exchanges?

Enhancing people-to-people exchanges including tourism and cultural exchanges is an important part of our work. We have been organizing cultural events regularly not just in Shanghai but also in the cities in the neighboring provinces.

For example, a few weeks back, we had organized an Indian food festival in cooperation with several Indian restaurants in Shanghai. Similar festivals are also organized in other cities and we also participate in the tourism related exhibitions in the region. We recently worked with the Shanghai International film festival to showcase several Indian films to commemorate 100 years of Indian cinema. This was the first time that such a large number of Indian films (18) were shown in the Film Festival in Shanghai. In addition we do regular screenings of Indian films at our consulate which attracts the young Chinese population. We now are planning to do such events with local universities too. Another aspect that we have focused on is organizing visits to India by Chinese print and audio-visual media. In the last year alone, there have been three visits by the two main media groups in Shanghai.

Mr Naveen Srivastava, Consul General of India, Shanghai along with Mr M P Bhardwaj, Deputy Consul General interacting with the exhibitors at India Pavilion.

Your consulate has posed trade dispute advisories on your websites…

Trade advisories have been put up as a sort of cautionary advice for Indian companies when they trade with Chinese companies. The backdrop was an increase in the number of cases of trade disputes that we saw in 2009-10.

The idea behind such advisories is to ensure that Indian businesses are fully aware of the picture and do their due diligence. It is certainly not to deter Indian companies from doing business with Chinese companies. We assist Indian businesses by responding to their trade queries, requests for verification of credentials of Chinese companies with whom they might want to do business and we also provide assistance in cases of trade disputes. For example, in 2012 alone we have responded to more than 250 trade queries from Indian businessmen.

What would be your tips to Indian companies that are willing to trade with companies in East China?

The most important thing for

Indian companies would be to do their homework in terms of verifying the background of the Chinese company with whom they wish to have a trading relationship.

Our consulate can help Indian businessmen in this regard by verifying the credentials of local companies through the local authorities and Chambers of Commerce. They should also, if possible, visit the company to see firsthand and have a face to face interaction. Only when they are satisfied they should move ahead.

There are companies that wish WR RSHQ DQ RIÀFH WRR« As regards establishing offices here, we would certainly encourage that.

There is no better way to get a feel of the country and the potential that it offers. We have been and would be happy to provide advice to Indian companies who plan to enter China. I would also suggest to our companies/ businesses to participate in trade fairs that are held in China. There are a variety of such fairs and exhibitions which take place throughout the year.

Participation in such fairs will not

only allow our business to build up networks but also help to promote India’s trade and expose Chinese consumers to Indian products.

How, in your view, can both the countries come together as strong friends to serve an example to the region?

Over the years our bilateral relations have become more mature and multi-faceted. While we have made good progress in strengthening our economic relations and people-topeople exchanges, I feel that there is still a lot of scope of further boosting these ties. Our Prime Minister has often said that there is enough space for both India and Chine to develop.

Indian entrepreneurs and businesses should think seriously about expanding their presence in China and should be ready to seize the opportunity.

Greater exchanges between peoples of our two countries – be it in trade and economic field, culture or tourism – will contribute to better understanding and will in the long run be beneficial to the overall development of a stable relationship.

September 2013 India-China Chronicle |17|

INFOCUS | INTERVIEW| JACKIE CHAN

The tough Jackie ZLWK DQ HOÀQ FKDUP Introductions are for greenhorn actors, not for veterans and certainly not for living legend Jackie Chan, who has relentlessly enthralled his audience with awesome action for over four decades. The fact that he has a fan following that cuts across age, gender, boundary and class, is no small feat. Even actors of action genre such as Arnold and Sylvester, despite their Greek-god akin chiseled cuts, have not been able to extract the admiration of such a wide demography as Jackie Chan does.

ICEC Team

B

e it ‘Rush Hour’ or its sequels, grandmas to five-year olds, and everyone in between, enjoy his humor laced spell binding action with equal enthusiasm. While Jackie’s earlier hits of ‘80s , ‘The Fearless Hyena,’ ‘ Half a Loaf of Kung Fu,’ ‘The Young Master’, established him as an action hero, his more recent Hollywood blockbusters such as ‘Shanghai Noon’ and ‘Shanghai Knights’, catapulted him to the posi-

tion of a hero who packs action with the message of love and peace.

After ‘Drunken Master’, Chan decided that movies have a larger effect on society and hence started featuring in movies that were devoid of debauchery and violence. The gutsy actor thus focused on action movies but started using props, as regular as table napkins and spoons for novelty in action sequences, thus breaking the monotony of typical kung-fu format. Chan Kongsang aka Jackie has used charms of his

|18| India-China Chronicle September 2013

stunt, dangerous somersaults and lifethreatening multi-storey jumpings, to enthrall fans even when it meant putting life in danger. In a recent interview with ICEC he said, “I have broken every bone in my body doing stunts.” With equal candor, he admits, “I don’t like to do them.” Nevertheless he did, for decades because that is what he knew the best. He did daring action because if he didn’t do them, the risk of getting fired loomed. A choice he could ill-afford in the rising days of his career. Back than

in China, most production houses worked on limited budgets. “A lot of things we could not rehearse, such as jumping off a building, we just did it.

It was not like America where you had a calculator to judge wind and speed.”

Original stunts (no body doubles) were synonymous to Jackie. This choice gave him his identity and made Chan a Hollywood Jackie.

Now, the 59-year old is swearing off the high-action and is focusing on becoming an “actor”, a la (Robert) De Niro, of Asia. Moving beyond action, he now wants to “act” and concentrate on good scripts and is even interested in doing song and dance sequences in Bollywood. One can see a renewed sense of appetite in this producer-director of action–comedies such as ‘Project A’, ‘Police Story’, and the hit period film ‘Mr. Canton and Lady Rose.’

Rising from humble beginnings and scripting a success story does not rest on luck. Jackie remembers moving with 2 USD in his pocket struggling for work. “It was Chinese New Year and there was no work,” he reminisces.

With the money, he could only afford bread, that too with anxiousness on how long the feed is going to last.

A stoic personality, not for once, does the star cling on to godly sentiments or religious notions to hook his success

there. For him, m, it is sheer hard work all the way. It took him six years to write the movie ‘CZ12 ‘or Chinese Zodiac that he co-produced, wrote, directed and d also starred in. The movie is close to his heart due to the theme which revolves lves around Chinese relics, nationall treasures – the missing pieces of 122 Head Statues of Chinese Zodiac. Talking king about the movie, says Jackie, “Why hy should a country’s historical pieces es be in the museums of other countries? tries? They should be returned back ack to their original countries.” The movie has been made for a purpose, he emphasises. ses. Controversies trail public blic figures and Jackie has been een no exception to this trend. At the 2009 Boao Forum when he made a statement: ement: “We’re too free. Chinesee people should start gaining control”, ntrol”, he drew wrath ath of his fans and nd followers. Sitting ting at New Delhi,, clearing the air, he says that the media dia picked up the worst to attract an audience. Putting his comments in context, ntext, the actor argued what he meant. “If If my son goes wild, takes drugs….I have ve to control him… If I give freedom, youu should know how to use that freedom.. m.. you should use freedom the right way.” y.”

India has as a special place in his heart. A good ood relationship between India and China is what he hopes for. It is not a matter of wishful thinking but ut conscious effort that made the hero attended the Chinese Film Festival al (organized by ICEC in June at New w Delhi) by cancelling his Toronto itinerary. nerary. He did not mind taking a commercial ommercial flight in lieu of his chartered rtered bird. The pretty co-stars of ‘CZ12’, CZ12’,’ Yaoxing Tong and Zhang Lan Xin also made the event special.

The five-day ve-day Chinese film festival was as inaugurated with Chinese Zodiac. In this photo ia-China Chronicle e takes feature India-China Chronicle ers through Jackie’s our readers India visit.

September ber 2 2013 India-China Chronicle |19|

BUILDING BRIDGES OFF SCREEN: ICEC COUNCIL’S CULTURAL FIESTA WITH JACKIE CHAN

INFOCUS

JACKIE CHAN

Jackie Chan arrives at Sirifort Auditorium, New Delhi to inaugurate the Chinese film festival.

At exclusive press conference before the screening, signing in.

Actress Zhang Lan Xin from Chan’s movie Chinese Zodiac signing.

Co-actress Yaoxing Tong looks on.

Chan flanked by Zhang Lan & Yaoxing Tong with message of peace

Replying to a media query

(From left) Yaoxing Tong, Zhang Hongsen, Director-General of Film Bureau, SAPPRFT, Jackie Chan, Han Sanping, Chinese film producer and distributor, Zhang Lan |20| India-China Chronicle September 2013

Media posing a question to Chan

Print and Electronic media turned out in big numbers

Questions from media are plentry

Chinese media at press conference at Sirifort Auditorium

From exclusive press conference to Hall No.1 of Sirifort Auditorium among over 3000 fans.

September 2013 India-China Chronicle |21|

INFOCUS | INTERVIEW| JACKIE CHAN

“People confuse action with violence�

Jackie Chan wears many hats including those of action hero, director, producer, FKRUHRJUDSKHU VFUHHQZULWHU VLQJHU DQG HQWUHSUHQHXU +H LV OLNH D Ă€RZLQJ ULYHU ZKLFK PHQGV LWV FRXUVH DW HYHU\ URXJK EHQG ,W LV MXVW QRW KLV ÂżHU\ DSSHWLWH EXW D ODUJHU YLVLRQ RI FKDQJLQJ WKH VRFLHW\ WKDW GULYHV KLP WR ZRUN IRU PXOWLSOH UROHV %\ WKDW WRNHQ KH LV D VRFLDO DFWLYLVW WRR 7KURXJK KLV PRYLHV WKH DFWLRQ FRPHG\ KHUR spreads messages of harmony, respect and peace and wants countries to respect HDFK RWKHUÂśV FXOWXUH +H KDV VWRSSHG DFWLQJ LQ PRYLHV WKDW NLGV FDQÂśW ZDWFK $W KLV PHGLD LQWHUDFWLRQ LQ 1HZ 'HOKL KH SURSRVHG VLQJLQJ VRQJV DW WKH 6LQR ,QGLD ERUGHU ZLWK D PHVVDJH RI KDUPRQ\ DQG SHDFH ,Q D FDQGLG FKDW ZLWK Urmila Rao KH VKDUHV KLV YLHZV RQ UHOLJLRQ OXFN DQG PRUHÂŤ What inspired you to make the movie ‘Chinese Zodiac’?

In the year 2000 I saw an auction of Chinese antique pieces in Hong Kong. They were bronze heads of Chinese zodiac pieces and the bid was going higher and higher. The buyers were Chinese businessmen who were buying the pieces to bring them back to China. I decided to sit down with them. They asked me if I could make a story about it. I agreed, thought about it and kept writing the script for six years between doing ‘Karate Kid’ and five other movies.

I’m an actor and so I took time to write the script. The movie is about the history of China. It is not only a problem (of national relics under possession of other countries) of China but that of the whole world.

When I went to Cambodia, I saw that one half of the face of Buddha was gone. Where is the face? It is in some other country’s museum. When I was in Egypt, I learnt that a part of the Pharaoh’s relics are in a museum in another country. Why don’t they give it back? Why are they interested in keeping historical pieces that belong to some other nation? This is a problem that the entire world is

facing. Through my movie, I want to give a message to the world, to respect one’s own culture, as well as mine.

'R \RX WKLQN ÀOPV KDYH D UROH WR SOD\ LQ WKH VRFLHW\" :KDW ZRXOG EH \RXU PHVVDJH WR WKRVH ÀOPPDNHUV ZKR XVH D ORW RI YLROHQFH LQ WKHLU PRYLHV" I can’t criticize someone else’s

, KDYH WR ÀQG a way to make P\VHOI ORRN JRRG In America, script writers, write VFULSWV IRU 5REHUW 'H1LUR $O 3DFLQR DQG WKH OLNH , don’t have such UHVRXUFHV

|22| India-China Chronicle ƒ September 2013

work. There are so many directors and there are so many ways of making movies. Some directors like violence and some want to make movies which involve sex. I am not that kind of a director. When I direct I always tell myself, I will make amovie which I can show to my children. If I can show it to my children, I can show that movie to others’ children also. I know my way of making a movie as I believe that producers/ directors have responsibility for the society, for the world, and for the children.

9LROHQW PRYLHV FDQ VWLU D ORW RI GLVWXUEDQFH Yes, especially now through Internet people can download a lot of stuff, and there is lots of violence even on TV. But I can’t understand why so many young kids love violence.

I see many children learning a lot of terrible things from movies and that is bad. I like action but I hate violence.

Sometimes people confuse action with violence. :KDW GRHV UHOLJLRQ PHDQ WR \RX" $UH \RX UHOLJLRXV" No, I used to be very religious when I was young. However, while

I was growing up, I started having faith on myself. I had to work hard which I do even now. When I have time I help people, do charity and work out. +RZ GR \RX NHHS \RXUVHOI ÀW" I train whenever I get time. It is for an hour a day when I travel and otherwise, it is at least two-three hours a day.

8VXDOO\ SHRSOH DUH QRW UHOLJLRXV ZKHQ WKH\ DUH \RXQJ LQ \RXU FDVH LW ZDV WKH RSSRVLWH When I was young, I used to believe in Buddha. I used to look at the moon and my teacher used to

say that if I did something bad, the moon would open and God would punish me. Every night I used to pray to the moon, not to punish me. When mankind went to the moon, I realized that there was no God on the moon and my teacher was lying to me. Since then I stopped believing in God. <RX KDYH EHFRPH D VWDU WKURXJK VKHHU KDUG ZRUN %XW GR \RX WKLQN OXFN WRR KDG D UROH WR SOD\" Luck is not enough. I think that luck can somehow make a person into an actor but beyond luck, you have to work hard, ten times harder, in fact... when everyone else is holidaying,

I am busy writing my script, when everybody else is sleeping, I am busy editing. I have to find a way to make myself look good. In America, script writers, write scripts for Robert DeNiro, Al Pacino and the like. I donâ&#x20AC;&#x2122;t have such resources. When I was young, I just knew action. Nobody wrote scripts for me and so I had to write my own scripts, and direct myself to show the audience my technique and skills. Gradually people started accepting my style. Right now, I have decided to change my style as I want the audience to accept my acting talent and not just action. You have to change your personality yourself. You have to do it yourself ! Â&#x2030;

September 2013 Â&#x192; India-China Chronicle |23|

BUILDING BRIDGES OFF SCREEN: ICEC COUNCIL’S CULTURAL FIESTA WITH JACKIE CHAN

INFOCUS

JACKIE CHAN

Lamp lighting at Sirifort Auditorium before the screening.

Chan showing his action as special guests look on in amusement.

PS Deodhar, President, ICEC along with esteemed guests

Mr. Cai Fuchao, Chinese Minister of State Administration for Press Publication, Radio, Film and Television.

Mr. Manish Tiwari presenting a vignette from a period film of Bollywood.

Chan enthralls audiences with his song. Several mobile cameras flashed to capture the moment.

Chinese audiences turned up in huge numbers at the film festival. The movie ‘Chinese Zodiac’ was screened on the inaugural day. |24| India-China Chronicle September 2013

Chetan Bhagat, Huawei’s brand ambassador reading out the name of lucky winner for Huawei’s Ascendmate phone.

A young fan seeking autograph

Emcee in conversation with ICEC’s secretary general Md. Saqib at ‘An Evening with Legend Jackie Chan’: Dinner in honour of Chan at Leela Palace, New Delhi.

September 2013 India-China Chronicle |25|

BUILDING BRIDGES OFF SCREEN: ICEC COUNCIL’S CULTURAL FIESTA WITH JACKIE CHAN

INFOCUS

JACKIE CHAN

At the dinner, Chan flanked by Mr. Fuchao and Ms. Chatterjee.

Sharing light moments with kids at Smile Foundation

A little girl reciting a poem

Chan sharing his thoughts with the dinner guests at Leela Palace.

Kids at Smile Foundation welcoming Chan

The enthusiasm and questions for Chan were at an all time high

Chan meeting with Ms. Zohra Chatterjee, Secretary, Ministry of Textile.

ICEC conferring the first ‘India-China Friendship Award’ to the ambassador of peace and harmony Chan

Chetan Bhagat and Chan just before the dinner

With a fan |26| India-China Chronicle September 2013

Chan at Smile Foundation

Lets shake some hands and legs on Bollywood song September 2013 India-China Chronicle |27|

INFOCUS | INTERVIEW| JACKIE CHAN

Art of using

soft power Shaking hands on Screen

I

CEC in association with FICCI, organised a round table interaction between the Chinese film delegates of SAPPRFT (State Administration of Radio, Press, Publication, Film and Television) and the Indian film makers at New Delhi. The objective was to discuss the problems that both the film industries face in each other’s country. The discussions centered on finding a solution in order to enhance and strengthen the film ties between the two countries.

Speaking at the occasion, Mr. Atul Shunglu, Asst.

Secretary General, FICCI said that there are a lot of issues that need to be solved to pave the way for improved bi-lateral ties in the film industries’ of both the countries. The leader of the Chinese delegation, Mr. Zhang Hongsen, Director General, Film Bureau, SAPPRFT emphasized the role of Indian film industry in recent times. Indicating the potential of the massive growth of Sino-India film trade, he said that Indian movies such as ‘Three Idiots’ and ‘My Name is Khan’ have garnered a lot of attention in China. Supported by the fact that the Chinese film industry has produced 745 feature films, the 108-year old Chinese film industry has steadily climbed up to register a high growth trajectory over the past few years. He emphasized that if documentaries and animated films were to be included, the number would add up to a whopping 879. The Chinese film industry netted $2.8 billion in 2012 and this figure is expected to reach $3 billion by the end of this year; said Mr. Hongsen. Chinese film industry has grown at 50% every year.

Talking about the Indian film industry, Ms Nidhi Maheshwari of KPMG (Media and Regulatory Practices) stated that it has achieved the size of $ 2 billion with the CAGR of 11.3% per year.

|28| India-China Chronicle September 2013

Domestic films garnered 76% of the revenue from digital format films with its share increasing from 50% in 2010 to 80-90 % in 2012.

There are 800-900 3D screens in India and 3D movies are received very well in India. Ms. Maheshwari stated that even less funded movies had shown a tremendous growth leading to a new growth story of Indian film industry. The growth has also been witnessed as the movies are being viewed by international crowd and stereotypes are being broken.

The major reason behind the success of the Indian domestic films is that they are filled with the likes of Indian music and emotional drama. Mr. Sawahiq Siddiqui, president, ICEC, took forward the point that greater presence of Indian movies in China is possible if China could relax its regulation that limits the number of foreign movies screened in a year.

“Keeping the growing India China cultural exchange in mind, there could be a provision to allow more Indian movies to be released in China,” he said.

Mr. Samir Gupta, managing director, Cinema Capital said that both Indian and Chinese movie stars could make an impact on the success of films by working together. Mr. Han Sanping, Chairman of the China Film Group Corporation, stressed that a window should be opened for international movies in the domestic market. He further said that there is lack of publicity of Chinese movies in the Indian market.

There were also talks about the role of Chinese consulates based in India to promote Chinese movies in India. The quota system has restricted the presence of Indian movies in China.

Most of the quota of imported movies is used up by western movies causing roadblock for Indian movies. An urgent need was emphasized for collaboration in movie sector.

for hard presence America has spread its cultural hegemony and valuess through its open media that has VWUDWHJLFDOO\ EHQH¿WHG G America and contributed uted to the collapse of socialism. China too is using Soft power or ruanshili to achieve the desired goal with the least objection.

Priyadarshini Rawal

T

he arena of World d politics has been wittnessing vibrant changges in the last two decades. es.

For centuries, power has been een measured in terms of military itary and economic might, but the he realistic measurement of power ower by these resources seems to have ave completely ignored the powerr of attraction. In the international arena, power is shifting from the harder version to a softer one. In the nuclear age, modern and developing technology gy has made war more expensive and destructive and thus it is no longer an instrument for shaping the dos and don’ts n’ts of other September 2013 India-China Chronicle |29|

INFOCUS | INDIA-CHINA | DIPLOMACY

countries. Soft diplomacy appears to have become a replacement for traditional hard power and has started achieving outcomes using the power of attraction in a non-military and nonthreatening fashion. Power, at present, is associated with gaining as much as possible without losing anything significant. On this note, Soft power seems to be more efficient than hard power, as far as the use is concerned; a country has to take in human and economic losses, and however soft the power may be it is all about inspiring others through words, culture and people to people diplomacy. Cultural tourism is part of a central strategy for countries like India and China, and for the nations of Africa, South east Asia and the Arab nations. In this scenario of international politics, the direct investment of the Chinese in African media and increasing investments in infrastructure projects throughout Africa further indicates the emergence of a new phase of Chinese Soft diplomacy.

Impact of soft diplomacy Naturally, all of this indicates that the concept of diplomacy itself is changing in the present context. Previously, diplomacy was more governmentoriented, but currently diplomacy absorbs non-state actors like the mass media, civil society and NGOs, which use negotiation techniques, culture, political values, and public relations.

Soft diplomacy provides great and easy to adopt solutions to many problems.

A state utilizes Soft diplomacy as an instrument to achieve soft/smart power and characterize itself as a co-optive power, or the power or ability to shape ‘what others want’. Co-optive power can be based on trade, aid, investment, empowerment strategies and public diplomacy, i.e., attractiveness of one’s culture and values which can manipulate the agenda of political choices. Global Public sentiment is an area in which ‘Soft diplomacy’ tends to utilize or manipulate to attract the other state and its people. Thus, the outcome of Soft diplomacy and global public sentiment is bidirectional in nature.

A former French minister observed that the Americans are powerful because they can ‘inspire the dreams and

desires of many, due to the mastery of global images through film and television, and as a result a large number of students from other countries aspire to go to US for higher studies.’ It is often argued that China is following the US footsteps by understanding the values of Soft diplomacy which came out more clearly when America achieved nothing from Iraq invasion but lost its Soft power and goodwill.

America’s Soft power strategy played a significant role in ending the Cold War. America has spread its cultural hegemony and values through its open media that has strategically benefited America and contributed to the collapse of socialism. However, with

A FORMER FRENCH MINISTER OBSERVED THAT THE AMERICANS ARE POWERFUL BECAUSE THEY CAN ‘INSPIRE THE DREAMS AND DESIRES OF MANY, DUE TO THE MASTERY OF GLOBAL IMAGES THROUGH FILMS AND TELEVISION, AND AS A RESULT A LARGE NUMBER OF STUDENTS FROM OTHER COUNTRIES ASPIRE TO GO TO US FOR HIGHER STUDIES.’ the changing image of the US in West Asia, there are limitations for American influence in Iraq and Afghanistan and even in Turkey, which has refused to allow US ground forces to operate on its soil, and has further pushed Washington to change its preferred battle plan.

These events are creating more opportunity for rising powers like India and China which are considered to be noninterfering in nature as compared to the other great powers like the US, Soviet Union or Great Britain.

Harmony through ‘Panchsheel’ In India and China, the early traces of the knowledge of the power of attraction can be seen in past Buddhist exchanges between both countries.

Prominent examples are the attractiveness of Nehru’s concept of non-alignment that turned into a movement with 120 countries as members and

|30| India-China Chronicle September 2013

Zhou Enlai’s people-to-people diplomacy in China. The ‘Buddhist concept of “Panchsheel” is adopted in both Indian and Chinese diplomacy, and the same idea has also been incorporated in other South-East Asian countries in the form of “Pancasila”. In modern politics, this concept was first codified in the Indo-Chinese treaty of 1954. These “Five principles of peaceful coexistence” or “Panchseel” are defined as a mutual respect for each other’s territorial integrity and sovereignty, mutual non-aggression and mutual non-interference in each other’s internal affairs. Equality and mutual benefit, and peaceful coexistence have always been an integral part of their foreign policy.

In the present scenario, these two old Asian civilizations and rising powers: China and India are trying to follow the path of Soft power on the world stage through Soft diplomacy.

China is a rapidly growing economy and claims to be a Soft power but due to its expanding military expansion, golden shield project, great firewall censorship of the internet and various other reasons Chinese Soft power is viewed with skepticism.

China’s soft power in trade The Chinese are expanding their presence in Africa and West Asia by using culture and information to spread their influence in the region and counter what it views as unfair treatment in the global media. A paper on this topic by Yu-Shan Wu at the South African Institute of International Affairs, describes Soft power or ruanshili (in Chinese), as an important instrument to help a state achieve its most desired goal with the least objection. Soft power rests primarily on three resources: culture, political values/ideas, and foreign policies. China has pursued various foreign policies to support this cause. In West Asia, the bilateral trade on energy sector and other goods like manufactured goods, machinery and equipment, vehicles, foodstuffs, engineering and labor services are strengthening the relations between China and West Asian countries. The policy towards Africa is similar. China has provided infrastructure development in Africa and in recent weeks, there have been

two significant Chinese investments in South Africa – one with Top TV bought by the private company Star Times and secondly, Chinese have purchased shares within the Independent News and Media channels in Africa.

Additionally China has also provided a good infrastructure in African regions.

Africa and China have decided to jointly face their common enemy imperialism and China is already Africa’s largest trading partner. China and Africa “are good friends; good brothers and good partners” said Li Zhaoxing, a former foreign minister of Peoples Republic of China (PRC).

With a series of island and territorial disputes, China has comparatively lesser acceptance as a Soft power in its neighborhood than India. Its motives have always been under scrutiny. Meanwhile, China is facing a bundle of political issues like corruption, environmental degradation and human rights abuses which prevent it from gaining a positive influence over the global public. Though China has contributed cheap consumer goods, schools, roads and infrastructure to Africa yetthe flip side is that China is only exporting raw materials and bringing its own labor forces into many African countries.

This creates frustration within those African countries who are demanding more employment for their own citizens. African countries with investments coming from the whole world have greater bargaining power now, but such resource extraction makes the argument of neo-colonialism stronger.

Thus, China loses the image of Soft power. The question that arises here is whether this is a Chinese style of colonization or Soft power diplomacy?

Peaceful rise On the other hand, China is promulgating numerous diplomatic ideas like peaceful rise, harmonious world, peaceful development, responsible power, good neighbor policy, etc. and China is also strongly promoting its culture through Chinese media, Chinese food, martial arts etc. to support its claim as Soft power. Beijing consensus model best represents the concept of Soft diplomacy which is based on Chinese-style socialism and has gained

a great recognition in its neighboring countries. The focus of this model does not only lie in economic development but also calculates political values and social structure. Chinese diplomacy on climate change has accelerated China’s Soft power in light of the US walking out from the Kyoto protocol. The EU, Asia and other developing countries have openheartedly welcomed Chinese diplomacy on climate change.

Politicians in democracies have to rely on a combination of inducement and attraction. If a leader represents the values that others want to follow, it will cost less to lead. Indian leaders are also beginning to think of higher investments in Soft power and public

THE WORLD OF POLITICS IS NOW A THREE-DIMENSIONAL CHESS GAME, WHERE ONE CAN WIN BY PLAYING BOTH VERTICALLY AND HORIZONTALLY, THAT IS, BY A MIX OF HARD AND SOFT POWER. THE MIX PROVIDES A STATE WITH A MUCH BETTER CHANCE OF WINNING THE GAME OF INFLUENCE-BUILDING. diplomacy in a striking manner. The Indian Council for Cultural Relations (ICCR) is actively promoting cultural diplomacy through festivals in foreign cities. The Public Diplomacy Division (PDD) of MEA is available on social media like Twitter and Facebook. India Perspective’s magazine of the PDD is available in 17 languages across162 countries and the Division has been welcoming a large number of foreign delegations and journalists to India.

Besides, the Division has also invested in opening ICCR chairs in different universities abroad, in order to encourage learning about Indian culture, concepts and languages.

China has also been participating in academic and cultural exchanges with the world. Similar to ICCR chairs, China has also opened up its Confucius institutes across the world. The Chinese emphasis on “harmony” seems

more viable than the American model of “exporting democracy’’. On the Indian side, its culture, history, religion, tourism and film industry all are promoting its Soft diplomacy. Moreover the international community is showing a great interest in understanding Indian values.

Building Influence Softly On the question of acceptability, the Indian Government has presented and accepted a more attractive model of democracy and multiculturalism as compared to the information-controlling Chinese state model. However, India still has to catch-up to China’s greater investments in Public diplomacy because it is needed to retain its position in global sphere. In the case of education,Beijing does a much better job of promoting Chinese culture and language to foreign students. Though India has started promoting and supporting education in Africa, the gap is still substantial. India is surely able to do more with its lesser global presence as the question concerns maintaining interest and further sustaining it.

In a world, where influence can no longer be achieved on the basis of military power, it becomes a necessity for a state to convince others by attraction. Soft power is the solution to this constraint. In the present world of ours, politics has become a necessity to maintain a win-win situation to preserve goodwill and to continue cooperation with other states. The zero-sum game theory of economics is an out dated concept in international relations. The world politics is now a three-dimensional chess game, where one can win by playing both vertically and horizontally. This means that a mix of hard and Soft power provides a state with a much better chance of winning the game. It will be fascinating to study Indian efforts to develop Soft diplomacy and rise as a Soft power within the next decade. Moreover, it will also be interesting to study the efforts of China at developing its Soft diplomacy in order to achieve universal acceptance as a Soft power.

The author is researcher at the Institute of Chinese Studies, New Delhi

September 2013 India-China Chronicle |31|

INFOCUS|INDIA-CHINA|HIGHER EDUCATION

Both Chinese and Indian B-Schools are taking steps to globalise themselves.

Together, they can re-invent a new model of management education as well new processes of international ranking and accreditation focusing on the needs of the East.

Dr. H.Chaturvedi

I

ndia and China are projected to be number one and the two biggest economies of the world. However, though the dragon and the elephant are progressing fast in the economic development U.S.A and Europe are still leading in the field of knowledge development by a huge margin. Of late, both India and China have concentrated their attention on knowledge sector, particularly higher education.

This is the need of the hour as the population of students in post-secondary higher education is huge in both these countries. Out of approximately 100 million post-secondary students in the world, India and China together account for more than 40 per cent of the total enrolment. Their university systems have become the largest in the world. They are also major exporters of students to Universities in Europe and North America.

Management education in both India and China has big stakes in producing managers, entrepreneurs and future leaders for their booming economies. During the past two decades, management education in both countries has grown exponentially and produced hundreds of thousands of business managers.

During this period, globalization has gained a place of pride on the agenda of political leaders and policy makers in both countries. Both Indian and Chinese companies have expanded their operations across the globe and realized both the promises and pitfalls of globalization. In the same period, several Indian and Chinese companies, both from the public and private sectors, have become truly global owning to their sizable operations across the globe.

|32| India-China Chronicle September 2013

CHI-INDIA: Poised to become

Management Education

Super Power?

Currently Indian and Chinese B-Schools are involved in a big race for becoming globally competitive and for gaining entry into the list of the top 100 or 200 B-Schools in the world.

They are under tremendous pressure from government, recruiters and policy makers to improve their positioning at the international level. Since published research work is a major determinant of global rankings and positioning, top B-Schools from India and China are being continuously evaluated on this count.

Globalization Odyssey of Chinese B- Schools China has been a late starter in management education due to various

political and historical reasons. The Chinese government has pushed big economic reforms during the 90s and has also started expanding management education. In 1991, China approved 9 universities for management programs and currently it has more than 237 universities which are qualified for admitting MBA students, states Dr. Ningyu Tang.In China, it is said everything moves on government’s support. It is true about management education, too. During the ‘90s the Chinese Government formed an MBA Committee in the Ministry of Education and helped CEIBS, a leading Chinese B-School to obtain overseas collaborations. It was observed by the Chinese government

in 2004 that in the country there were only 5,000 managers with global experience, whereas the need was for around 75,000 managers. This huge gap in demand and supply has been a major reason for the recent spurt in management education in China.

Roadmap for Globalization Chinese Universities are mostly supported by federal, state or local governments. Many of them have become very ambitious and aim to become world class research oriented Universities by 2020. Taking a cue from these universities, Chinese B-Schools have also charted out their roadmap to achieve global status by 2020. It was around the year 2000 when they

September 2013 India-China Chronicle |33|

INFOCUS|INDIA-CHINA|HIGHER EDUCATION

had envisioned achieving top positions in the domestic market. They have endeavored to get collaborations with foreign B-Schools between 2000 and 2010. Now several Chinese B-Schools are well poised to become truly global by 2020.

While globalizing themselves, Chinese B-Schools initially followed traditional collaborative activities with foreign B-Schools viz. exchange of students and faculty, collaborative teaching and dual degree programs. Before expanding overseas, Universities from Peking, Tsinghua and SJTU set up their campuses at Shenzhen which is an important industrial city. For setting up overseas campuses, SJTU and Nanjing universities have set up their MBA campuses at Singapore in partnership with NTU and NUS, two leading universities of Singapore. While searching for foreign partners, the leading Chinese B-Schools like Tsinghua, Peking, SJTU and Fudan have been very selective. They have identified Iveyleague B-Schools from North America, Europe, Singapore, Hong Kong, and South Korea viz. HBS, MIT Sloan Wharton, Stanford, Ivey, Euromed, Manchester, NUS, HKU, Essec, Schulich, Mccombs etc.

For globalizing themselves, leading Chinese B-Schools have used the concept of Total Quality Management very effectively. They have expanded their intellectual capital by recruiting faculty from abroad and sending many of their own faculty to partner B-Schools for training. They have also increased the intake of foreign students by marketing Admission through their alumni and by using their international rankings. It is very pertinent to note that leading Chinese B-Schools have worked hard to get accreditation from international agencies like AACSB, EFMD and AMBA. Tsinghua, Peking, SJTU and Fudan have already been accredited by one of these agencies. For reaching this stage, these B-Schools have revisited their vision and mission and redesigned their curricula and courses.

Globalization Story of Indian B-Schools Post 90s, with the opening up of

the Indian economy, leading Indian BSchools have also started globalizing their curriculum, admissions, placements, as well as executive education.

Efforts have been made to sign MoUs with foreign B-Schools so as to facilitate exchanges of students and faculty.

Endeavors of Indian B-Schools were reinforced by similar attempts of European and North American B-Schools who were very keen to forge alliances with Indian B-Schools.

To become global in their operations, some Indian B-Schools have taken the initiative to start campuses abroad. Among public funded institutions, IIFT was the first to start its satellite campuses at Dubai and Dar-esSalem. It had partnered with a local BSchool in Tanzania to offer its program in international Business. IIM, Banga-

fered admission abroad. Recession post-2007 had thrown a spanner in the expansion plans of India B-Schools as the market shrank in the Middle East and elsewhere.

Another indicator of Indian B-Schools’ emphasis on globalization is the curricula reform which led to the inclusion of contents related to globalization in their courses.

Initially, IIMs, ISB, FMS and ISB had introduced one core paper on International Business, which was later followed by other B-Schools. Gradually courses related to globalization were introduced in electives like Marketing, Finance, OB/HR and Operations.

The most popular elective courses introduced by Indian B-Schools have been International Marketing, International Finance, International

be accepted by Ivy League B-Schools for partnerships of various kinds.

India is a big market for international accreditation agencies like AACSB, EFMD and AMBA and she has attracted them to start their operations in India, in a big way, after 2005. Leading B-Schools from India have decided on different agencies for international accreditation. ISB, Hyderabad and TAPMI have already been given accreditation by the AACSB, USA. MDI, Gurgaon, S.P Jain Mumbai, and IMI, Delhi have been accredited by the AMBA, UK. IIM, Ahmedabad is trying to get EQIS from EFMD, Brussels. According to Ms. Eleva Peacock, South Asia Head, AACSB, more than 10 Indian B-Schools are preparing to obtain accreditation.Th Global Research by Indian B-Schools

malya Kumar, during the period 19902009, 108 articles were published by Indian authors which equates to five articles per year. Compared to India, Hong Kong University of Science & Technology (HKUST) currently produces about 30 articles annually and Wharton, USA, double that number.

Figures quoted by Prof Kumar do not speak well about the current status of research in Indian B-Schools.

However, there is another school of thought, which does not accept Western models of research and publications. In December 2011, on the occasion of the Second Indian Academy of Management Conference hosted by IIM Bangalore, a symposium was held to take stock of Indian management research and explore future directions.

Five management scholars, who ad-

lore has also tried to start its campus abroad, but it could not get the concurrence of MHRD, Government of India which was focusing on expansion of IIMs inside the country rather than abroad. S.P Jain, Mumbai is a good example of setting up campuses abroad.

It started its first off-shore campus at Dubai but later expanded to Sydney and Singapore. Similarly IMT, Ghaziabad went to Dubai to start its campus with the support of the UAE Government. Foreign campuses of Indian BSchools faced difficulty in attracting local students for admission. Initially students aspiring to taken admission at the main campus at India were of-

HRM, Cross Cultural Management and Global Supply Chain.

Students exchange, faculty exchange and international placement have also been attempted by Indian B-Schools in their yearning for globalization.

Student and faculty exchanges have expanded very fast. Currently more than 50 business schools are actively pursuing student and faculty exchange programs. Mostly students from Europe have come to Indian B-Schools with little representation from Asian nations.

International accreditation is a big differentiator for quality on local turf, but it also enables Indian B-Schools to

Academic research is a valid measure of quality in any centre of excellence in higher education. B-Schools also motivate their faculty to get their research papers published in international journals which are mostly double-blind peer reviewed. How do our Indian BSchools fare on this parameter which speaks about their global standing in business education? Prof Nirmalya Kumar, LBS, UK has made an attempt to compile a number of research papers in management published by faculty from Indian B-Schools. He has chosen a list of 40 international journals listed by the Financial Times in their annual global MBA rankings. According to Prof Nir-

dressed the symposium, did not agree with the broader conclusions of Prof Kumar that the current state of Indian management research is not satisfactory. They also disagreed with Prof Kumar’s proposition that publishing in the 40 top-tier US/Western journals listed by the Financial Times of UK is the only panacea for the global positioning of Indian B-Schools. The Union Rural Development Minister (then Environment Minister) also stirred the hornet’s nest by saying that the IIT/ IIM faculty is not world-class.

Khatri, Ojha, BudhwarSrinivasan and Verma have suggested that Indian B-Schools should establish their own

|34| India-China Chronicle September 2013

top-tier journals to promote rigor and relevance in management research in India. For this, they have also given the example of Chinese management scholars who have founded the Asia Academy of Management (AAM).

Under the auspices of AAM, Chinese Scholars and B-Schools have succeeded in bringing together a critical mass of scholars working in East Asia, and have also started journals like Asia Pacific Journal of Management and Management and Organization Review.

Can Indian and Chinese B-Schools work together for globalization?

Dr Jagdish N Sheth, the Charles H. Kellstadt Professor of Marketing at Emory University, USA has published a book in 2008 titled “Chindia Rising”. In the preface, Dr Sheth has said, “The rise of Chindia is not only inevitable, but will also be beneficial to the world economy. It will generate unprecedented innovation, probably more dramatic and breathtaking than the first Industrial revolution, by making existing technologies more affordable and accessible and by inventing ways to replicate natural resources.”

Chinese and Indian B-Schools can reinvent a new model of management education and research by working with rigor and relevance specific to Asia and other emerging economies of the world. They can join hands to develop new methods and processes of international ranking as well as accreditation. They can find new meanings of globalization by sharing their experiences, best practices and learning in management education focused on the needs of the East.

Can there be “reverse globalization” management education in the similar fashion as the newly coined concept of “reverse innovation”?

Dr. H.Chaturvedi is director, Birla Institute of Management Technology, Greater Noida

September 2013 India-China Chronicle |35|

First time in Shanghai?

Follow these tips 7KH FRDVWDO FLW\ RI 6KDQJKDL LV LQYLWLQJ %XW IRU D ÂżUVW WLPH YLVLWRU the cosmopolitan city can be overwhelming. In order to make your stay VPRRWK VDQV UXGH VXUSULVHV LW LV EHWWHU WR EH SUHSDUHG

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hina has become a hot spot destination for Indian travellers â&#x20AC;&#x201C; both business persons and tourists. China tours, unless fully conducted ones, can be daunting because of language problems. Following are a few guides to life in China, based mainly from my experience in Shanghai. Hope they are of help to future sojourners!

1. Getting around There are three main modes of public transport in Shanghai â&#x20AC;&#x201C; taxis, metros and buses. New travellers who do not know how to read Chinese are better off avoiding the buses because the drivers are not always regular with the stop announcements. Taxis are the most convenient way to travel â&#x20AC;&#x201C; but also the most expensive one. The first three kilometres cost RMB 14 and thereafter it is RMB 2.4 per Km. After the ride is over, it is better to ask for the receipt or fapiao (pronounced as faa phiaao). The receipt helps track down the taxi in case one has forgotten anything in the cab. One should be careful to board only a legal taxi (which have â&#x20AC;&#x2DC;taxiâ&#x20AC;&#x2122; written at the top).Chinese words are often not pronounced the way they are writtenin English. Therefore, it is highly useful to carry in written Chinese the name of oneâ&#x20AC;&#x2122;s hotel and destination and just show it to the cab driver. Cabs that are available to be hailed have a green light on top of them and those that already have passengers or have been booked have no or red light on top.The Shanghai metro is quite convenient if you know the place you want to go to from beforehand. However, if using the metro, one should be prepared for a good walk. The minimum charge for a metro ticket costs RMB 3 and can go up to 7 RMB depending on the distance. Tickets can only be bought at ticket |36| India-China Chronicle Â&#x192; September 2013

vending machines (which require one to keep handy RMB 1 or 0.5 coins or RMB 5, 10 or 20 banknotes). Travel cards are available at the metro station service centres for RMB 20 which can be used in taxis as well. Google Maps usually gives accurate direction guides to get about in Shanghai. Arriving at the airport, travellers can choose to take the metro, maglev, buses or stand in line for taxis. There is no prepaid system here, just a line for taxis. Travellers carrying boarding passes can get a discount on their maglev ticket fares.

2. Food Shanghai has restaurants of myriad cuisines and price ranges. Right from Vietnamese, to Spanish, Indian to

Australian, all kinds of restaurants have set shop in Shanghai.

Apart from these there is of course the local Chinese cuisines.

A good guide to dining and living in Shanghai can be found at this website: www.smartshanghai.com. Food delivery is also popular. Indian and other cuisines can be delivered in Shanghai, Beijing and Suzhou by the Sherpaâ&#x20AC;&#x2122;s delivery company (www.sherpa.com.cn). The phone numbers for the different cities can be gleaned from the website. Sherpaâ&#x20AC;&#x2122;s attendants speak excellent English and there is also the option to order online. It might also be good to carry ready to eats as vegetarian restaurants are difficult to find in China. Shanghai though does have a vegetarian restaurants like â&#x20AC;&#x153;New Age Veggieâ&#x20AC;? that serve vegetarian dishes. Those who do not mind fast food can always find 24 hrs KFCs and McDonalds in the city. Better still they can actually order from these chains whose hotline numbers and online order options are available on these links: https://www.4008-517-517.cn/mdswo/ (Mc Donalds) and http://www.4008823823.com.cn/kfcios/ index.htm?utm_campaign=KFC_Online_Ordering&utm_ source=Official&utm_medium=HP&utm_ content=rightbutton (KFC) 3. Money exchange Airports usually have money exchanging counters. These are usually private and give a lower rate but can often exchange Indian Rupee. Within cities, apart from a few foreign private kiosks like those of Thomas Cook, banks exchange money legally. Banks usually accept the US dollar and not the Indian Rupee. A convenient way to obtain RMB in China is to carry a Visa or MasterCard credit or debit cards as the numerous ATMs all around the cities all accept these cards for cash withdrawal.

4. Phone calls Those looking to make international calls can use IP cards available for RMB 10-20 from newspaper stalls or small

stores selling phone cards. The best SIM cards are available from the companies China mobile and China Unicom. In case the stay in China is for a week or more, it might be best to get a Chinese SIM card â&#x20AC;&#x201C; you will need your passport and minimum RMB 50 for that.

5. Emergencies At any time if you are stuck in Shanghai and want to communicate with the taxi driver (or other service providers) in Chinese you can dial the Shanghai helpline 962-288.

The police helpline number is 110. If there is a medical emergency, it is best to take a taxi and rush to one of the nearest hospitals by asking the Shanghai help-line to conduct the necessary communications with the driver. In the event of a passport loss, apart from registering an FIR at the nearest police station, one should contact the Indian embassy or consulates as applicable. if you are stuck in Shanghai and want to communicate with the taxi driver (or other service providers) in Chinese you can dial the Shanghai helpline 962-288. The police helpline number is 110. Almost all big cities now have 24 hour convenience stores which sell goods for daily needs. As one is careful in any new place, one should be cautious in China as well and take the general necessary travel precautions. Wishing all incoming travellers a very safe and happy stay!!! Â&#x2030;

SUMELIKA BHATTACHARYYA Chronicle Bureau, Shanghai

September 2013 Â&#x192; India-China Chronicle |37|

INFOCUS|INDIA-CHINA|GROWTH

Recording poverty of India and China India’s poverty and inclusive growth record is much better than China’s, and levels of poverty in the two countries are not very different Surjit Bhalla

T

his article attempts to document the record on poverty reduction in both China and India. That China has grown substantially faster than India is a matter of record and great pride for China. That the welfare of the poor in China has also improved at a much faster rate than India is also conventional wisdom as articulated by various scholars at international institutions like the UN, World Bank,

Asian Development Bank, etc, and these findings have been supported and endorsed by Nobel laureates like Amartya Sen, for example, in “Why India Trails China” (New York Times, June 19).

There are several household surveys of consumption in India, and such surveys are led by the official National Sample Survey (NSS) conducted every few years. These data are publicly available. Unfortunately, while everyone applauds China’s GDP growth rate, no

|38| India-China Chronicle September 2013

one, with the possible exception of the World Bank, has access to household unit-level data. In other words, we have to take the official government view on household income and consumption growth, etc. Given the very large transparent accumulation of foreign reserves of more than $ 3.5 trillion, there is little doubt that GDP level, and GDP growth, in China is extraordinarily high. The story of how much trickle-down there has been in China is documented below.

There was an important non-government household survey conducted jointly by Texas A&M University, US, and the Southwestern University of Finance and Economics in Chengdu, China, in 2011. The survey results were widely reported in the international press in December 2012. One of the results was that the Gini index of income inequality in China was a high 0.61, much higher than governmentreported results of a Gini of 0.48. Unlike official Chinese household data, the explicit stated policy of the survey organisers was that researchers worldwide could access these data. Somewhat strangely, repeated applications to the website chfsdata.org have not met with success. The results for China reported below are obtained from the World Bank website, iresearch.worldbank.org/PovcalNet/index.htm.

The Indian data are based on the NSS consumer and expenditure surveys for the years 1999-2000 and 2011-12 and for China for 1999 and

2010. The table reports the head count ratio of poverty for the World Bank’s poverty line for developing countries like China and India, that is, PPP $1.25 per capita per day, which also just happens to be India’s official (Tendulkar) poverty line. For India, two estimates of poverty are presented (survey details for the China surveys are not known).

The two estimates are the standard official measure of consumption (what is called the mixed recall period and referred to as Type I) and the mixed recall period with perishable items like vegetables, fruits, meat, etc measured with a recall period of seven days (referred to as Type II, the recall refers to memory recall of items purchased over the last 7, 30 or 365 days).

China’s record: spectacular growth in per capita GDP, per capita consumption, and poverty decline. From a poverty level of 35.6 per cent of the population in 1999, China reduced it to 11.6 per cent in 2010, for an average pace of decline of 2.2 percentage points a year.

Both survey and national accounts (NA) consumption growth in China were near identical during this decade, at 6.7 and 7.3 per cent per annum respectively, that is, the survey-measured consumption growth was higher. If the efficiency of growth is (crudely) defined as the decline in head count ratio per unit of consumption growth, then China’s efficiency for the decade 1999 to 2010 was around -0.3, that is, for each 10 per cent growth, poverty in China was reduced by 3 percentage points.

Another term for efficiency could be inclusiveness of growth. The poverty level for India in 1999-2000 and 2011-12 were 42.9 and 21.9 per cent, respectively. This gives an average pace of decline of 1.8 percentage points per annum, somewhat below the 2.2 per cent average recorded in China.

But note the low level of household consumption growth observed in India — only 2.8 per cent per annum. This yields an efficiency-inclusive index of

September 2013 India-China Chronicle |39|

INFOCUS|INDIA-CHINA|GROWTH

RAJASTHAN More than China clay for chinese tourists

0.6, twice the level observed in China.

Also note that survey consumption growth in India (2.8 per cent per year) is considerably below national accounts growth (4.8 per cent per year).

If nothing else is changed but just the collection of household data on consumption, India shows a pace of poverty decline almost identical to China â&#x20AC;&#x201D; 2.1 ppt a year for Type 2 recall data compared to 2.2 ppt for China.

This yields an efficiency index for India one and a half times higher than China â&#x20AC;&#x201D; that is, 10 per cent growth in average consumption reduces poverty in China by 0.3 percentage points, in India by 0.74 percentage points.

Another way of looking at the respective growth rates is by looking at the survey â&#x20AC;&#x153;captureâ&#x20AC;? of consumption, that is, the ratio of survey consumption to NA consumption. For China, this capture averaged a high 71 per cent, 1999-2004 and 74 per cent, 20042010. This survey capture for China is among the highest in the world. The survey capture in India averaged 53 per cent in the early 2000s and 51 per cent, 2004-2011, and 46 per cent in the recently concluded 2011-12 survey. In striking contrast to China, this survey capture level for India is among the lowest ever recorded for developing countries.

The low survey estimate for mean consumption in India and high survey

$QRWKHU PHDVXUH RI WKH HIĂ&#x20AC;FLHQF\ RI JURZWK LV WKH FKDQJH LQ LQHTXDOLW\ 8VLQJ WKH *LQL DV RQH PHDVXUH RI LQHTXDOLW\ WKH *LQL LV HTXDO WR LI HYHU\ERG\ KDV WKH VDPH LQFRPH DQG LI SHUVRQ KDV DOO WKH LQFRPH LW LV REVHUYHG WKDW LQHTXDOLW\ LQ &KLQD LQFUHDVHG PDUJLQDOO\ SHU FHQW EHWZHHQ DQG ,Q ,QGLD QRPLQDO *LQL LQFUHDVHG E\ SHU FHQW KRZHYHU WKH UHDO *LQL FRQVXPSWLRQ DGMXVWHG E\ UXUDO XUEDQ SULFH GLIIHUHQFHV LQFUHDVHG E\ RQO\ SHU FHQW estimate for China have strong implications for our assessment of poverty levels in the two countries. If India had the Chinese average of survey capture in 1999 and 2011 (about 75 per cent rather than 50 per cent), it would mean that per capita consumption levels in India were 50 per cent higher than those observed, which means that poverty levels in India in 2011-12 would be substantially below Chinaâ&#x20AC;&#x2122;s in 2010, at any reasonable range of poverty lines, for example, PPP $1.25, $2 or $2.5 per person per day.

Indeed, if one goes back to 1983, NSS data suggest that real inequality in India has stayed constant for nearly 30 years (Gini of 0.303 in 1983 and 0.317 in 2011-12), whereas the World Bank estimates that inequality in China has increased by more than 50 per cent â&#x20AC;&#x201D; and much more, if the â&#x20AC;&#x153;bannedâ&#x20AC;? China CHFS survey

|40| India-China Chronicle Â&#x192; September 2013

is considered accurate.

No matter how one slices the data, it is the case that growth in India has been substantially more inclusive and pro-poor than China â&#x20AC;&#x201D; and that the bottom one-third of the population have had a higher standard of living than China, despite the substantially higher GDP per capita level (and growth) in China. So before the international organisations, and/or scholars like Amartya Sen lecture India about the example of China, it would help if they were less political, and less ideologically biased, and it would help even more if they looked at the data before leaping to unsubstantiated conclusions. Â&#x2030; This article appeared in Indian Express, New Delhi.

The writer is chairman of Oxus Investments, an emerging market advisory firm

India and China are geographically diverse and vast. So, just as China offers a surprise package that is quite different from West or South of China, similarly, India too displays multiple hues from East to West and North to South. In our current series, we are exploring Rajasthan, for our Chinese tourists, who wish to experience a little piece of the mosaic of history from Western India.

Rahul Verma

Jantar Mantar

T

he Jantar Mantar is a collection of architectural astronomical instruments. It was built in 1716 AD at Jaipur, of Rajasthan by Sawai Jai Singh II, who was a Rajput ruler and had shown allegiance to Emperor Aurangzeb and the later Mughals. It is also called â&#x20AC;&#x2DC;Yantralayaâ&#x20AC;&#x2122; of Sawai Jai Singh II, a great astronomer of India. It consists of fourteen major geometric devices for measuring time, predicting eclipses, tracking locations of the starsas the earth orbits around the sun, ascertaining the declinations of planets, and determining the celestial attitudes and related ephemerides.

The instruments like Sundial are made from local stone and marble and carry astronomical scales, which are generally marked on the inner lining of the marble. The monument was declared a national monument in 1948.

its artistic style and the blend of both Hindu and Rajput architectural and cultural elements.

Any streak of light is reflected by the beautiful array of mirrors covering the walls and the ceiling of the Mahal in order to illuminate the room.

The structure of the fort is divided into four sections each with its own entry gate and courtyard.

First Courtyard: It is the main entrance to the palace grounds with the Shila Devi temple to the right of the stairway steps where Rajput Mahara-

jas offered worship. The entrance to the temple is through the elegant silver sheet covered double leaf gate with a raised leaf.

Second Courtyard: It can be reached on going up the main stairway of the first level courtyard and consists of Diwan-i-Aamwith 27 colonnades, each mounted with the elephant capital.

Third Courtyard:Ganesh Pol or Ganesh Gate is the entrance to the private palace of the Maharajas. It includes the three level structure which leads to the private quarters of the royal family.

Amber Fort

A

t Amer, 11km from Jaipur, stands the majestic Amber fort. Built

by Raja Man Singh I, it is known for Sep 2013 Â&#x192; India-China Chronicle |41|

INFOCUS | INDIA TOURISM | RAJASTHAN

The main attractions in the third courtyard include Garden, Tripolia Gate, and Lion Gate.

Fourth Courtyard: This Zenana Mahal, where the queens resided. It was also the residence for the queens’ mothers and Kings’ consort and all the female attendants.

are a few other attractions within the park. One can enjoy cycling, boating and walking trips within the park.

Hawa Mahal

B

uilt in 1799 AD by Maharaja Sawai Pratap Singh, the Hawa Mahal, literally meaning palace of winds, is located in Jaipur. It depicts the famous Rajputana architecture and is a great spot for spectators with an awesome view of the city. Constructed in a pyramid shape, it is five storied and has 953 small windows decorated

Chittorgarh Fort

S

ituated several kilometers from Bhilwara, Chittorgarh fort is the largest fort in India and the grandest in the state of Rajasthan. It portrays the history of heroism and sacrifice of the epitome of Rajput pride, romance and spirit. Perched atop a 180 meter high hillock, it sprawls over a massive area of 700 acres and is a standing sentinel to the courage and valor of Chittorgarh.

It was also called Water Front due to its water bodies within it. It had 84 water bodies of which only 22 exist today. The fort has a total of 7 gates.

The fort has various Stambha (towers) and Palaces.

Food and Purchases Food

Apart from the historical monuments, palaces and parks Rajasthan is also famous for its food and hospitality. Known for its exotic cuisine, Rajasthan offers a great package for spice lovers though non spice lovers can also enjoy Rajasthan food. The main dishes of Rajasthan include:

Bharatpur National Park

L

ocated in the Bharatpur city of Rajasthan, Bharatpur National Park is a tourist attraction that is open to tourists throughout the year. However, the best time to visit is between the period of October and February as the migratory birds flock to the park during that period and make it more attractive.

Bharatpur Bird Sanctuary is officially known as Keoladeo Ghana National Park and occupies an area of

|42| India-China Chronicle Sep 2013

with lattice work.

Designed by Lal Chand Utsad the main structure of this palace is built of red and pink sandstone and the palace is believed to have been constructed in the form of the crown of Lord Krishna. The main intention behind the palace was to provide a scope to royal women to view everyday life through the windows, as they never appeared in public. Hawa Mahal gets its name for its windows, which enable the free flow of winds across the palace.

29 sq. km. It was built by the Maharaja of Bharatpur in the 19th century to save his town from the calamitous flood water. The name Keoladeo Ghana was adopted from an ancient Hindu temple dedicated to an incarnation of Lord Shiva, Keoladeo, located in park

itself. The park was declared National park in the year 1982 and has also gained the status of a World Heritage Site in 1985.

The Park is covered with kadam forests, shallow lakes and grasslands.

Almost 350 species of birds are found in the sanctuary including resident and migratory ones. The highly endangered Siberian Cranes are the most awaited and popular guests of the park. The birds arrive in December and stay till the early days of March.

Though birds attract the limelight, the animals that can be prominently spotted at the park include the Golden Jackal, Striped Hyena, Fishing and Cat, Jungle Cat among others.

Reptiles - A wide variety of reptiles can also be found in the Bharatpur National Park. Visitors can get to see the large Python lazing in the warmth of the sun.

Other than visiting the park, there

r Bajre Ki khichdi, a healthy and easy to digest dish prepared from rice and lentils. r Kalakand, a sweet made out of solidified, sweetened milk and cottage cheese. InAlwar it is also knownas Milk Cake. r Dal Bati Churma, one of the most famous preparations in all functions, and weddings in Rajasthan and has three main servings i.e. Dal(lentil), Bati(baked wheat balls) and Choorma (sweet cereal powder) r Ghewar, another delicious Rajasthani sweet dish consists of rounded cakes of wheat flour immersed in sugar syrup. r Pyaaz Ki Kachori, a fried circular shaped spicy dish with onion filling. It is famous all over Rajasthan and forms a great combination if eaten with Dal Bati Churma.

Shopping

The narrow lanes of the market or bazaars, which are vibrant and filled with beautiful artifacts. Traditional paintings, blue pottery, clothes with block printing and tie-and-dye, stone and wood craved articles are a few items one should not miss while shopping in Rajasthan.

Hotels In Rajasthan

Hotels range from three -star to five-star varieties. If one desires to spend the moments like a king, there are Heritage Hotels in the popular towns of Rajasthan like Jaipur, Udaipur, Bikaner etc.

Some of the famous hotels in Rajasthan are: r 5BK )PUFM -BLF 1BMBDF 6EBJQVS r )PUFM +BJ .BIBM 1BMBDF r ăF 0CFSPJ 6EJBWJMBT )PUFM 6EBJQVS r 6NBJE #IBXBO 1BMBDF +PEIQVS The average cost per night in five star hotels in Rajasthan ranges from Rs. 15,000 to Rs. 30, 000.

Sep 2013 India-China Chronicle |43|

INFOCUS | INTERVIEW | YANG LING LING

NEW FLAVOURS OF FRIENDSHIP Chinese Chef Yang Ling Ling, 35, has been rustling up delicious dishes for over 10 years now. He worked in the different cities of Dragon Land before making an adventurous move to Ceylon in 2006. Since then he has been on a journey to explore and understand South Asia with an aim of building relations through his mouth-watering Chinese food recipes. The chef is presently working at Claridges Hotel, New Delhi, after a four-year stint in Bangalore.

Garima Arora met Ling to understand how cuisine popularity can mark a new beginning for India-China relations and much more...

For how long have you been in India?

It’s been 6 years that I have come to India. Earlier I was working in The Oberoi Hotel, Bangalore for a few years before I moved to The Claridges in Delhi two years back.

Why did you decide on moving to another country?

I was given an opportunity to go to Sri Lanka and work as a senior

chef in a very well-known domestic restaurant. At that time I was young and ambitious, and wanted to see the world, meet different people, and explore new opportunities. My parents and other family members also supported me as they do even now.

Hence I made the move.

Have you got used to Indian lifestyle which is very different from China?

Yes, I love India and everything about it. It’s so colorful and the lifestyle here is much relaxed as compared to China. I love Indian cuisine. In fact I have become so used to eating daal, roti, and sabzi that if I don’t eat it for three-four days, it feels as if something is missing. I like this “different” feeling.

To what extent has the authenticity of Chinese cuisine been diluted in India?

The Chinese food that I make has 30% Indian flavor and retains 70% authentic mainland flavor. Most of the ingredients are from China but still many ingredients like oil, chilli etc. are from India. In China we use different kinds of oils for different dishes such as sesame oil, chilli oil, fish oil, corn oil, sunflower oil, etc. Here in India we have to use some local ingredients which are liked by the Indian taste buds.

Do you feel that Indians are depriving themselves of good Chinese food by compromising on the original taste?

Indians like to have gravy and most of the Chinese dishes are dry.

So I have to make the dishes in curry forms in order to set the taste and make the dish acceptable. Many times people ask for an additional bowl of gravy to eat with fried rice. Besides, a lot of oil is used in Chinese cooking and it is often visible on the top.

|44| India-China Chronicle September 2013

For example, if you eat dishes like Gongbao Jiding or shredded chicken in China you will find a lot of oil in them. Here in India I cannot serve food with oil because 9 out of 10 people will complain if they see any trace of oil in their dish.

Share your process of learning to cook ‘Indian style Chinese’.

The most important thing is to study the local taste of the place.

On and off I go to other Chinese restaurants in the city to see how they prepare and cook. I also ask local people about their liking of taste, and read cookery books to see what ingredients Indians use while cooking.

Which food do you think is more nutritious, Chinese or Indian?

What is your aim regarding food, do you want it to be tasty or healthy?

For me food, irrespective of its form, should taste good. It’s not right to say that one food is more nutritious than another as the recipes that we use today are age old ones with a bit of alterations. Both Indian and Chinese cuisines have not been invented yesterday or today. They carry a history and the person who first made it according to the availability of vegetables and ingredients must have given it a thought and our bodies are already used to it. It’s mainly the eating habits which get reflected in a person’s health. Chinese are usually slim as their eating timings are different from Indians. In China, people usually take breakfast at 7 or 8 am, lunch at 12 noon and dinner around 5:30pm-6:00pm. After that they go out for long walks or different kinds of exercises such as group dancing, taiji practicing, kite flying or playing badminton etc. In India, people usually eat late and then go to bed straight away and hence they sport big bellies.

Which Chinese dessert is popular?

Chinese cuisine doesn’t really have a wide variety of desserts. Chinese people usually prefer eating fresh seasonal fruits after dinner. In Chinese restaurants you can find some sweet porridge or Hong Kong desserts like Durian cake or mango custard.

Do you think food brings Indian and Chinese people closer no matter how politically hostile we are at the borders?

Food brings people closer. Chinese food is famous in India and is available at affordable prices. Many Indian restaurants have opened up in China in recent years and Indian cuisine is slowly becoming famous among Chinese people. “Curry” is the most popular among Chinese people and it represents India!

According to you what are the differences between Indian and Chinese food culture?

Dining out in China is more of a celebration where food is taken with drinks, usually beer or bai jiu.

People are loud and it’s normal to get drunk, as it is believed that the more you drink the more gratitude you show towards your host. India on the other hand follows the British way of dining and eating, especially in restaurants.

Where do you shop for vegetables and meat?

I usually go to INA market to buy most of the stuff including vegetables, meats, spices and other ingredients.

Which is one health tip that you would recommend?

Enjoy your food, eat at a proper time, and drink hot water or green tea to wash away the fatty acids. Do not mix hot and cold food, i.e. avoid icy cold water with hot food.

September 2013 India-China Chronicle |45|

INFOCUS|INDIA-CHINA|ECONOMY

Restructuring

the border Tridivesh Singh Maini

C

hina’s high economic growth is based on a number of factors, including the fact that it attaches great importance to its border regions.

The 1982 constitution of People’s Republic of China (PRC) categorically outlines the role of provinces – including its border provinces – in its economic diplomacy. PRC has set up organizations such as the Foreign Af-

fairs Office (FAO) and Foreign Trade and Economic Cooperation (FTEC), specifically for the purpose of dealing with foreign relations at the border.

While the FAO, under the provincial governments as well as the Chinese foreign office in Beijing, deals with logistical issues pertaining to ties with other countries, the FTEC, focuses on specific economic issues. To ensure smooth demarcation of functions, FAO has been entrusted with responsibilities such as reception of foreign dignitaries, foreign visits of local leadership and fairs with sister cities abroad amongst other issues. FTEC confines itself to the nuts and bolts of economic issues, and its main mandate is the promotion of local economic interests.

Among other functions, some of the crucial ones include implementation of national policies, laws and regulations regarding foreign trade, economic cooperation, foreign direct investment, economic zones and trade promotion through trade fairs.

China’s grand vision

The country aims to connect Yunnan with Myanmar via high speed trains. Kunming, the capital of Yunnan has already boomed over the past few years and a trade fair that was held there recently saw businessmen and entrepreneurs from China and other neighboring countries pouring into explore business opportunities. Apart from Yunnan, many other provinces have proven to be significant gateways for neighboring countries.

One prominent example is Xinjiang which is well integrated with Central |46| | 46 46 6| | India-China In nd diaia-C Ch hin h in ina na Chronicle Chro onic nic cle Se Sep September pte pte te b tembe be er 2013 2013 01 0 13 3

INDIA’S EFFORTS SO FAR IN CONNECTING ITS BORDER REGIONS WITH NEIGHBORING COUNTRIES IN SOUTH ASIA ARE MODEST AS COMPARED TO CHINA’S STELLAR PERFORMANCE IN THE SAME SPHERE. APART FROM A FEW STATES SUCH AS TRIPURA WHICH HAVE BEEN SUCCESSFUL IN CULTIVATING ECONOMIC TIES WITH NEIGHBORS IN SOUTH ASIA, THE OTHER BORDER STATES LAG FAR BEHIND.

and South Asia. Connectivity between China’s border province and Pakistan is high on the priority list. Both the countries have recently agreed to expedite the idea of linking Kashgar in Xinjiang to Gwadar in the Sindh province of Pakistan. China is likely to invest in a railway link connecting both the countries too. This is of course in addition to plans related to large scale industrial and infrastructure development projects. There are also talks of setting up an economic zone in Gwadar that will further boost the economy of China’s western regions.

New Delhi’s ties with its border states

India’s efforts so far for connecting its border regions with neighboring countries in South Asia are modest if compared with China’s stellar performance in the same sphere. Apart from a few states which have been successful in cultivating economic ties with neighbors in South Asia, most border states have not made any significant progress.

Tripura has been keen to foster close

September 2013 India-China Chronicle |47|

INFOCUS|INDIA-CHINA|ECONOMY

ties with neighboring Bangladesh. In January 2012, Bangladeshi Prime Minister Sheikh Hasina visited the state on the invitation of the Chief Minister Manik Sarkar and was conferred with an honorary doctorate by the Tripura University. The state has shown keenness to supply power to neighboring Bangladesh via the Paltana power plant and the state government has been waiting for over two years for permission from New Delhi for doing so.

Jammu and Kashmir and Punjab have been eager for easing out visa regimes with Pakistan, as well as addressing the issues which hamper bilateral trade.

Punjab has in fact been enthusiastic for beginning power trade with Pakistan.

More recently, Rajasthan and Gujarat have expressed willingness to engage in closer trade ties with Pakistan, specifically in the petroleum sector. Efforts for closer economic collaboration with Myanmar are being sought, which is why we have seen visits by official and non-official delegations, from the North-East and other parts

of India, to Myanmar.

Apart from the keenness of the border states to push for greater trade relations with the neighboring countries, it would be important to mention here, that many important projects such as gas pipelines which include the Turkmenistan-Afghanistan-PakistanIndia (TAPI) pipeline, the proposed Indo-Myanmar-Bangladesh pipeline and even the Iran-Pakistan-India pipeline will pass through border states.

Similarly, power trade with countries in the neighborhood is logistically much simpler through these border states.

Two clear examples which reiterate this point are power trades with Bangladesh and Pakistan respectively which are logistically much simpler through the border states of Tripura and Punjab respectively.

In addition to this, Arunachal Pradesh, Manipur and Mizoram too anticipate direct benefits if trade and connectivity with Myanmar are to open up through these states. Their state governments have been urging the Central

government to liberalize the trade regime with Myanmar and also upgrade the infrastructure on the borders.

Indian Prime Minister Dr Manmohan Singh, during his Myanmar visit, had sent clear signals that he is keen on increasing connectivity between India’s North-East region and Myanmar.

There are a number of road projects, including a trilateral highway connecting India with Myanmar and Thailand which is nearing completion and seeks to connect India to the ASEAN region.

A lot of business lobby groups, such as FICCI, CII, ASSOCHAM and even regional chambers of Commerce like the PHD Chamber of Commerce, North Eastern Chamber of Commerce and the Guwahati Chamber of Commerce have been pro-active in pushing on India for removal of restrictions and upgrading of infrastructure. They have been working with both state and central governments to liberalize trade within the neighborhood. These attempts are at best slow. If the larger picture is to be seen, it is amply clear that

New Delhi has no organized mechanism to ensure a smooth and successful state participation in economic diplomacy with its border regions.

If one were to pinpoint two key reasons for the lack luster role that the border states in India have played in connectivity, and trade and commerce, the first would be the lack of a proper coordination mechanism between Central Ministries and State governments. The approach of the central government is neither organized, nor pro-active. For example, it took over two years for the Tripura leadership to convince New Delhi that selling power to Bangladesh would help New Delhi in generating goodwill in that country.

Secondly, while there is no doubt, that the Central government in India has begun to realize the relevance of border regions, it has failed not only to come up with a mechanism for coordination, but has not even outsourced certain basic aspects of economic diplomacy as has been done in other parts of the world.

Recommendations for India to make economic diplomacy more effective

There is no doubt that there are branch secretariats of the MEA located in cities such as Chennai, Guwahati, Hyderabad, Kolkata and Dharamshala to facilitate economic diplomacy, but they have not been particularly effective because their powers and role are not clearly defined as it is in case of FAO and FITEC, which are well laid out sans ambiguity.

In my view, a number of steps have to be taken to facilitate greater border cooperation for internal development.

Firstly, the powers need to be defined clearly and categorically. Perhaps in the near future, the branches can play a role similar to FAO, and they can actually act as a bridge between the MEA and State government. The MEA can also delegate a certain degree of authority to these branch secretariats on logistical issues. For starters these branch secretariats can handle economic ties with the neighboring countries.

Second, it is imperative that the number of branch secretariats be increased, and they come up at the

|48| India-China Chronicle September 2013

INDIA’S BORDER STATES HAVE PLAYED A LACKLUSTER ROLE IN CONNECTIVITY, TRADE AND COMMERCE WITH ITS NEIGHBORS. THE LACK OF A PROPER COORDINATION MECHANISM BETWEEN THE CENTRAL MINISTRIES AND STATE GOVERNMENTS HAS PUSHED BACK THE ECONOMIC GROWTH OF THE BORDER REGIONS. THE APPROACH OF THE CENTRAL GOVERNMENT IS NEITHER ORGANIZED, NOR PRO-ACTIVE. crucial border states, which are likely to become more important as relations with neighbors grow in the economic realm. Some of the places where they can be set up are: Jammu- Kashmir, Punjab, Rajasthan, Tripura and Manipur. These branch secretariats can work closely not only with State governments, but also with the local chambers of commerce in these states.

Since the MEA and the Ministry of Commerce are laden with numerous priorities, a separate wing can be created in the Ministry of Commerce to specifically look at economic diplomacy with the neighboring countries. This wing can work closely with branch

secretariats, State governments and regional chambers of commerce with powers and authorities akin to FTEC in China.

Fourth, it is important to open international trade centers in border towns such as Amritsar, Jodhpur and Imphal. One of the key reasons why China has been able to expand trade with neighboring countries is the large number of international trade centers, and its ability to organize trade expos and conventions at the border provinces. Though Indo-Pak trade fairs and expos have been organized in Punjab and New Delhi, more such endeavors are needed to further improve bilateral trade. In the context of Myanmar and Bangladesh, such efforts are still needed to be initiated.

If implemented, these solutions will not only give the much needed flip to cross border trade and connectivity, but will also put other potential economic ties, such as power trade on a fast track. Closer ties with the neighboring countries, will benefit not just other countries of the region, but will also assist India’s border states – especially those in the North East – to clock high growth rates. While there is enough focus on border disputes between India and China, perhaps New Delhi could do well to draw lessons from the latter, for a positive outcome.

The author is New Delhi based columnist and foreign policy analyst.

September 2013 India-China Chronicle |49|

INFOCUS|CHINA|BUSINESS

What kind of analysis did your organization do before setting up DQ RIĂ&#x20AC;FH LQ (DVW &KLQD" Initially we were acting as an agent/ middleman and helping overseas importers to source and buy from China.

We came to know that there is a tax refund on each export from China and that Chinese exporters only pass on a part of it to the buyers. The key idea to establish a company in China was to target this profit and start to source from factories who normally do not export. This way we could make profit and still keep the same (or some times better) pricing for our clients. Additionally it helped in keeping our trade secret and encouraged product developments as well. :KDW W\SH RI RIĂ&#x20AC;FH GR \RX KDYH" We now have two companies in China. One is WOFE trading and the other is manufacturing.

Sudhir Wadhawa, director, Skyblue International 6KDQJKDL &R /WG ÂżQGV VHWWLQJ XS RIÂżFH LQ (DVW &KLQD HDV\ +H VD\V WKDW WKRXJK WKH ODQJXDJH LV D URDGEORFN RQH UHFHLYHV RI ZKDW RQH JLYHV LQ WHUPV RI DWWLWXGH Âľ&KLQD LV QRW UXQ OLNH WKH UHVW RI WKH ZRUOG 7KDW GRHVQ W PDNH LW JRRG RU EDGÂś KH RSLQHV ,Q DQ LQWHUYLHZ ZLWK ,&(& KH VD\V EXVLQHVV ZLWK &KLQD PHDQV EHLQJ UHDG\ IRU VXUSULVHV DYRLGLQJ ZRUNLQJ LQ ORZ PDUJLQ KLJK ULVN HQYLURQPHQW DQG NHHSLQJ SURYLVLRQV KDQG\ 5HDG RQ

|50| India-China Chronicle Â&#x192; September 2013

,V REWDLQLQJ EXVLQHVV OLFHQVH GLIĂ&#x20AC;FXOW" Contrary to what most people think, setting up a business in China is very easy and doesnâ&#x20AC;&#x2122;t require either a lot of money or time. We set up a free trade zone in Waigaoqiao in 2005. At that time, the free trade zone registration office helped us with everything and it cost a total of US$4000 approx. to make all docs, notarization etc. A formal office was required in the free zone and the rental was about 24000 RMB per year. Therefore, the initial capital required was US$ 60,000 only. You just need to find the area or city where you want to set up and then apply in that areaâ&#x20AC;&#x2122;s company registration office. We never employed an agent but for one thing for which we did get a liaison office involved was for the environment protection certificate for our textile factory in Jiangsu. The reason was that the government wanted an independent company to give their report as we were using a new technology for textile lamination in that area. As our processing didnâ&#x20AC;&#x2122;t involve any pollution so it was easy for us. 6R WKHUH ZHUH QR KXUGOHV DW DOO" The only hurdle was choosing a name in Chinese that sounded good

East China calling entrepreneurs in English. Skyblue International Shanghai Co Ltd. was our final choice after atleast 10 attempts. Chinese law prohibits company names that sound same or similar in Chinese language.  $Q\ VXUSULVHV RQ WD[ IURQW" China is a surprise everyday. While some of them are pleasant ones, there are some, which shake your planning badly. Taxes for the first six monthsare not high but a new company is supposed to report taxes more frequently.

It is a way of training a new company.

Fortunately, for me, our accountant had an experience of 30 years in China and she steered us out of any trouble well in time. Some setbacks are normal in such a long-term business but most of them were not because of anything else except our ignorance of the law or system. However, we were always

given smaller fines and longer period to sort out issues. Â Â &DQ \RX JLYH D EULHI ORZGRZQ RQ FRUSRUDWH WD[HV VHUYLFH FKDUJHV" Corporate taxes are about 30% of the income. Companies need to pay and report the taxes of all employees.

A very generous expense allowance and nontaxable income level is provided. Though you might find small speed bumps there are no roadblocks.  :K\ GLG \RX FKRRVH ORFDWLQJ LQ (DVW &KLQD" Shanghai was the ideal choice for setting up a trading company. We got the benefit of the best financial system along with usage of international accounting methods, and trained work force. The wages were a little high but

The Indian embassy took out a note stating dos and donâ&#x20AC;&#x2122;ts of ,QGLDQ FRPSDQLHV ZRUNLQJ ZLWK &KLQD <RXU WDNH" Exaggeration and a negative approach. Where a detailed study and support system is required, the Indian embassyâ&#x20AC;&#x2122;s budget and man power constrains make them project a view of negativity. I would prefer a cell in Indian embassy with lawyers and accountant referral system. They could charge for introduction of the right people to newcomers in China. Be it for trade or investment, we have to teach new comers the ways and systems of China. Recently a lot of small traders of India are having payment problems in China. With no written contracts it's difficult to settle such issues. Indian businesses feel comfortable in verbal commitments and thus they sometimes become prey of some bad Chinese businesses. But since locals know the law and system better they have an upper hand in negotiations. Sometimes they even use illegal ways, as they know exactly what they can get away with.  ,Q \RXU RSLQLRQ ZKDW FDQ WKH ,QGLDQ DQG &KLQHVH JRYW GR WR IDFLOLWDWH D FRQGXFLYH EXVLQHVV HQYLURQPHQW EHWZHHQ WKH WZR" All invoices and contracts are required to be attested at special cells made by consulates in both the countries. It should be a paid service. This will deter frauds and tax evasions. There is a vast difference in the way business is done in India and China and so the government should act as a bridge for the two cultures and enable them to interact. Just giving out warnings to businesses of your own country doesn't help in solving the problem.Â

not so steep if you compared the efficiency of people and system in Shanghai.

Besides, the public transport system is to fall in love with. Jiangsu was the ideal choice for our textile factory as we are in a cluster of processing factories. There is too much textile talent in this area. The tax system is a little rigid and you have to unlearn a few things about accounting.

Here again, an experienced accountant helped us a lot.  'R \RX ZRUN ZLWK D ORFDO SDUWQHU" The textile area is completely open for foreign ownership.  'R \RX UHFRPPHQG ZRUNLQJ ZLWK D ORFDO SDUWQHU" I'm personally against partnership agreement with the intention of money making unless itâ&#x20AC;&#x2122;s a collaborative effort to develop something with very precise time frame and goals. A vague effort fails mostly for foreigners. If at all it is required, I project or order base partnership with short term accounting and no or fixed common expenses. Once the project is finished, we can split the spoils and be friends instead of turning rivals.  :LWK ZKLFK DXWKRULWLHV GR \RX LQWHUDFW WKH PD[LPXP" Income tax, Vat refund, export and import customs, labor department and environment.  +RZ KHOSIXO RU SURKLELWLYH DUH WKH UXOHV DQG SURFHGXUH IRU EXVLQHVV LQWHUHVWV" The Chinese system of law is not different from the Indian system. The only difference that I feel is that the Chinese system stresses on settlements out of court. In fact, they help in mediation. Thus, no matter what the result is, everyone goes back home with what he himself had agreed to during the negotiations. Â&#x2030;

September 2013 Â&#x192; India-China Chronicle |51|

INFOCUS | CHINA | PROVINCE PROFILE

Z

hejiang was the old name of the Qiantang River, which passes through Hangzhou, the provincial capital. This province has the largest number of islands in China. Zhejiang features 70.4% of mountainous regions and hills, 23.2% of plains and basins and 6.4% of rivers and lakes.

Picturesque Zhejiang is covered with beautiful mountains and lakes.

The province is one of the smallest and most densely populated provinces of China. Hangzhou and Ningbo are the two sub-provincial cities of the Zhejiang province.

Booming business in the ODQG RI ÀVK ULFH Zhejiang

Natural Resources Zhejiang has been traditionally known as “Land of Fish and Rice”. The northern partof the province excels in fish farming. Zhoushan fishery is the largest fishery in the country.

Zhejiang is also a major contributor in the development of China’s marine economy. Rice is the main crop. Main cash crops include jute and cotton, and the province also leads in tea production. Tea, mulberries, oranges and tangerines are famous local products of the province.

The region is ranked fourth in China for its water resources. Large parts of the land are covered with Capital: Hangzhou Climate: Subtropical monsoon climate Provincial Tree: Camphor tree Provincial Flower: Orchid GDP: US$ 558.16 billion GDP growth rate year on year: 11.8 %(2010) Total foreign trade: US $ 312.2 billion (up 0.9% over 2011); Exports: US$ 224.57 billion (up by 3.8%) and Imports: US$ 87.7 billion (down by 5.8%) FDI: Actual US$ 15.18 billion (Contracted US$22.33 billion) Per capita GDP: US$ 10,200 Population (2011): 54 million with 11.8 million migrant population.

Prominent sectors: Rice, tea, silk and orange. Zhejiang, home of famous Longjing tea, accounts for 10% of China's total tea planting area, contributes 20% of national output, 30% of tea production value and accounts for about 60 % of the nation's tea export.

|52| India-China Chronicle September 2013

Zhejiang

forests. The province is also rich in non-metallic minerals. Its reserves of stone coal, alunite, pyrophyllite, and tuff rank as the first in China and the reserves of fluorite rank the second.

Tourism is also a flourishing industry due to its history and attractive scenery.

Energy Resources Zhejiang is one of the provinces in China that use various energy resources such as water power, thermal, wind and tidal power. A number of large scale thermal power plants and medium sized hydropower stations have beenbuilt in Zhejiang and theyhelp it to produce enough amount of energy. Zhejiang has entered the stage of modernized electric power industry characterized mostly by “big units, large power plants, great grids, super high voltage and high automation”, it is stated.

Infrastructure Being a developed province Zhejiang boasts of good infrastructure.

It has seven airports operating over September 2013 India-China Chronicle |53|

INFOCUS | CHINA | PROVINCE PROFILE

160 domestic and international air routes. Hangzhou Xiaoshan International Airport in Zhejiang ranks No. 8 in China. The roadways have been constantly improved with new highways. The province boasts of six highways and 66 provincial arterial highways. Hangzhou-Jiangxi and Hangzhou-Ningbo are the main railway lines in the Zhejiang province.

A good water transport facility is the highlight of the province that boasts of five major airports. Ningbo can handle freighters of up to 300,000 dwt in size. Aoshan Harbour in Zhoushan can handle up to 250,000 dwt of oil transfer berths, giving it the ability to accommodate oil transshipment from supertankers.

7KH SURYLQFH LV IDPRXV IRU LWV ERRPLQJ RQH LQGXVWU\ WRZQV (Wenzhou-shoes, Datang-socks, Qiaotoubuttons, Diankou- hand tools/hardware, Yiwuworld’s largest sales hub for small consumables).

Economy The total GDP of the province grew by 8.3% to RMB 726.15 billion in the first quarter of 2013, according to the Zhejiang Statistics Bureau. The value-added output in the primary industry rose by 2.6% to RMB 25.83 billion. Y-o-Y and the secondary sector grew by 8.6% to RMB 355.66 billion. RMB 344.67 billion was generated by the tertiary sector in 2013, and the province’s foreign trade climbed by 5.8% Y-o-Y to US$73.87 billion.

Majorr Sectorss Other, 5.07%

Se ervice Se ector, 43 3.13%

Industriaal Sector,, 51.80% %

Advantages of Investing in Zhejiang Zhejiang being one of the developed provinces in Eastern China provides advantageous resources, making it an attractive destination for investors.

The province has a great open market system with orderly competition, great market distribution system and a multilevel security system. It has helped the province to gain first mover advantage among the other provinces.

Located at the East coast of China, the province is well connected through rivers and seas. Yangtze River Delta, which is most vigorous and promising area in China’s economy, proves to be a major reason for growth and

Source: Indian Consulate Shanghai

development of Zhejiang. It is wellconnected to other parts of China, especially southern China, and has direct connectivity with the economic capital of China, Shanghai.

Zhejiang industry clusters have attracted people from all over China.

One of the unique aspects of it is that it has diversified industrial clusters with mostly small and medium scale enterprises. It has strong manufacturing industry, with advantage on labor intensive industries such as textile, leather, garment, chemical fiber and

Zhejiang University

machinery and has become one of the strongest manufacturing provinces of China. Several times it has been ranked as the firstin terms of total economic value, total sales volume, total retail sales of consumer goods and foreign exchange earned through total exports.

Zhejiang environmental support system ranks third in the country and is next to Tibet and Hanan. A good environmental support makes the province an ideal place for farming and one of the best places to live in. Being the origin of eight water systems the water quality of most of the rivers either meets the Grade III of the environmental quality standard for surface water or is even better. Zhejiang Province is one of the provinces which have the largest number of forest parks in the nation.

India-Zhejiang Trade Relations According to the Consulate General of India in Shanghai, the value of bilateral trade with Zhejiang province in 2012 was US $8.318 billion, which was down by 9.76% over the corresponding figures of 2011. Of these Indian exports accounted for US $1.84 billion, a decrease of about 16% as compared to 2011 figures. Exports from Zhejiang stood at US$ 6.477 billion, which was again a decrease of 5.96%.

The principal items of import from Zhejiang to India comprise textiles, textile machinery, a variety |54| India-China Chronicle September 2013

THE BEAUTIFUL MOUNTAINS, LAKES AND NATIONAL PARKS OF THE PROVINCE ATTRACT TOURISTS FROM ALL OVER THE WORLD. ATTRACTED

BY BEAUTY OR BUSINESS, INDIANS HAVE THRONGED ZHEJIANG. THE NUMBER OF INDIANS IN HANGZHOU HAS GROWN TO ABOUT 200 INCLUDING 100 STUDENTS AT THE ZHEJIANG UNIVERSITY. IN NEARBY SHAOXING, THERE ARE 1500 INDIANS, MAINLY IN THE TEXTILE BUSINESS. YIWU ALSO HAS APPROXIMATELY 500 INDIAN NATIONALS. of fabrics, steel and pharmaceutical products among others. Exports from India to Zhejiang include iron ore, cotton, plastics, cotton yarn, copper materials, refined oil, leather and dyes.

According to the Consulate, the total accumulated contracted investments

by Indian companies in Zhejiang in 2010 stood at US$ 193 million, while accumulated actual investment was US$ 84.25 million.

Infosys has software development centers in Hangzhou and IT training center in Jiaxing. Sundram Fasteners has set up a wholly owned manufacturing

0DQ\ ,QGLDQ FRPSDQLHV KDYH VHW XS PDQXIDFWXULQJ XQLWV LQ =KHMLDQJ 7$7$ &RQVXOWDQF\ 6HUYLFHV 7&6 LV SUHVHQW ZLWK HPSOR\HHV unit in Haiyan County of Jiaxing. Thermax and ElgiEquipments (India) have manufacturing units in Jiaxing. TATA Tea has acquired a manufacturing unit in the Anji county of Huzhou. CRISIL Irevna has a consultancy in Hangzhou whereas Ace Micromatic is coming up with a machine manufacturing unit in Jiaxing.

Several companies from Zhejiang are also present in India and doing business with a large cross section of Indian companies in various sectors. The sectors range from power generation, to pharmaceuticals, chemicals, textiles and cellular technology including others. Hangzhou Steam Turbine Co.(HTC),has entered into a 10year agreement with Greenesol Power System, Bangalore, and Zhuji Hengnuo Electromechanic Manufacturing has formed a joint-venture with Krishna Hengnuo Sewing Machine, Surat.

Zhejiang Topsun Group has formed a joint venture with Amit International Ltd, Mumbai to manufacture in the iron ore segment.

September 2013 India-China Chronicle |55|

INFOCUS | DELEGATION | HANDICRAFT REPORT

Weaving the Cloth of Friendship In April this year, ICEC took a trade delegation to China for enhancement of Handicrafts Trade and the brand image promotion of Indian handicrafts in the Chinese market. The delegation was headed by Smt. Zohra Chatterji, Secretary 7H[WLOHV *RYHUQPHQW RI ,QGLD $ ÂżUVW RI LWV NLQG 0R8 ZDV VLJQHG EHWZHHQ WKH &KLQD Council for Promotion of International Trade, PRC and the Export Promotion Council for Handicraft, India for promotion of trade in the handicraft sector.

Shyam Shakaran

W

ith the vision of forging further ties between India and China in the textile sector, the delegation held important meetings with Indian Missions, China Council for Promotion of International Trade (CCPIT) and other Chambers of trade and Industry in China. It also explored avenues for further exchange

of ideas while acknowledging each otherâ&#x20AC;&#x2122;s long tradition of expertise in textile manufacturing, design and development. â&#x20AC;&#x2DC;Being a sun rise industry, textiles have immense scope and potential for further growthâ&#x20AC;&#x2122;, said Smt. Zohra Chatterji. The thrust areas were identified in initiating more Textile Exchange Programs (TEPâ&#x20AC;&#x2122;s) between educational institutions and specifically between

|56| India-China Chronicle Â&#x192; September 2013

national institutes like NIFT of India and Guangdong Industrial technical university of China. Scope of exploring further opportunities in utilizing Chinese expertise in textile machinery manufacturing to strengthen the Indian textile sector especially in weaving machineries, were also discussed.

The seminar also probed the question of improving information exchange on design and craftsmanship

between the two countries. The Ministry of Textiles in India expressed its interest to explore the Chinese expertise in developing a national cluster on textile and queried whether there would be similar interest in China to have an exchange on the same. The Ministry of Textiles also expressed an interest in setting up a larger exchange program of Indian MSMEs, especially for national clusters. Other avenues for cooperation like the possibility of having a CEO summit at the BRICS level and also a fashion show of Indian and Chinese textiles were looked into. The scope of bringing in the Chinese craftsmenâ&#x20AC;&#x2122;s expertise to develop agro-based handicrafts in India was also discussed while conducting a thematic and exclusive exhibition of art, crafts and handicrafts of India. The exhibition of art and handicrafts of India is already being organized in many other countries such as Brazil, and the same idea was scheduled to be held in Shanghai and would include cultural shows and food festivals.

The CCPIT also offered assistance in transfer of technology and knowhow in the textile machinery sector including investments and agreed to send a delegation to India. Mr. Liu Yanfeng,

CEO Shanghai textile association, discussed further on the measures to motivate Chinese weaving machinery manufacturers to invest in India. He also emphasized on organizing an International seminar- cum- textile machinery display in the coming year.

A MoU was signed between CCPIT and Export Promotion Council for Handicraft (EPCH) on April 18 at CCPITâ&#x20AC;&#x2122;s office. It was the first MoU of its kind between India and China to promote trade in the handicraft sector.

It forged an understanding between these organizations to work in tandem for promotion of trade in furniture, gifts, art metal wares etc. An understanding was reached to work closely in areas like participation in trade fairs, buyer-seller meets, hosting of trade delegations among others. The possibility of organizing an exclusive â&#x20AC;&#x2DC;Made in Indiaâ&#x20AC;&#x2122; show in Shanghai or Guangzhou was also considered.

On the side-lines, a MoU was also signed between Mr S. S. Gupta, Development Commissioner (Handicrafts) & Chairman of National Centre for Design & Product Development (NCDPD) and Mr Ye Xiaoming, President, Guangdong Industry Technical College, Guangdong Univer-

sity, for the exchange of designers and trainees. Areas of skill development and technology transfer in the manufacturing techniques also formed part of the discussion. The Institution has also been invited to work closely with Indian leading design institutes such as National Institute of Fashion Technology (NIFT) and National Institute of Design (NID) for joint cooperation.

The Indian pavilion set up by EPCH at Wan Chai, Hong Kong at the Hong Kong Convention and Exhibition Centre was inaugurated on April 20th.Two hundred and fifty five Indian exporters participated in the exhibition showcasing a wide range of products which included a spread of kitchen textiles, window and bar accessories in textiles, home tech, items and concepts of green living, health and wellness. Furniture, kitchenware and fashion jewellery were also showcased.

The other members of the delegation included Shri S.S Gupta, IAS, Development Commissioner (Handicrafts), Shri Rakesh Kumar, Executive Director, Export Promotion Council for Handicrafts and Shri.

R.K. Srivastava, Executive Director, National Centre for Design and Product development. Â&#x2030;

September 2013 Â&#x192; India-China Chronicle |57|

INFOCUS | INDIA-CHINA | REPORT

Municipal Meeting: Guangzhou in South Delhi In August, the India-China Economic and Cultural Council hosted a high-level delegation of the Standing Committee of the Guangzhou Municipal People’s Congress. The six- member delegation, headed by Ms. Xiaosui Zhao, vicechairman of the standing committee, met Ms. Sarita Chaudhary, Mayor of the South Delhi Municipal Corporation (SDMC), at the MCD Civic Center, New Delhi

T

he Chinese delegation visit was aimed at understanding the policies and practices of SDMC. The meeting centered on SDMC’s budgetary procurement mechanism and its subsequent ratio of allocation of funds to its various departments spawning healthcare, education, sanitation and others.

Responding to the queries on health, Dr. A.K. Mittal, Director of Hospital Administration, SDMC apprised the delegation of the department’s several measures on health care facilitation including free immunization to infants and mid-day meal schemes.

On a query from Ms. Zhao related to the decision of budgetary allocation of SDMC, Mr. Rajesh Pathak conveyed the procedure of planned and unplanned expenditure. “The

amount falling under planned expenditure, which is 20% of the total yearly expense, is released by the Delhi government, whereas the SDMC is responsible for raising non-planned expenditure which is the rest 80%,” he explained to the Chinese delegation.

Answering another query on legal obligation related to ratio of sum allocation, Mr. Pathak replied that the SDMC is not legally bound to allocate certain amounts to particular sectors and that the decision is based on discretion on the municipality.

“Education and Health are our priority areas, followed by sanitation,” Mr. Pathak explained.

The delegation also enquired on the procedure of budget clearance and the time frame taken for the clearance.

Apart from Ms. Zhao, the Chinese delegation comprised Mr. Suicheng Gu,

the executive deputy director general, Ms. Ying Shen, deputy director general of the Commission of Economic affairs, Mr. Liangzhou Li, Deputy director of the Commission for Overseas Chinese and Foreign Affairs, Mr. Daliang Lao, vice-inspector of the Commission for Agricultural and Rural Affairs and Ms. Bai Cao, office director of the Commission for Budget.

Ms. Chaudhary headed the Indian team, with several department heads, including Ms. Kiran Dabral, Additional Commissioner, Health, Dr. A. K. Mittal, Head, Hospitality Management, Mr. Rajesh Pathak, Chartered Accountant and Financial Head.

Mr. Irfan Alam, Member Secretary, ICEC, instrumental in setting the meeting, was also present at the occasion.

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|59| India-China Chronicle September 2013

Sep 2013

Upcoming Product India-China Chronicle

|59|

Shows

Exhibitions&Trade

CHINA

In India x In China

EXHIBITION

DATE

VENUE

EVENT PROFILE

CONTACT PERSON

1

Water Expo China

02 - 04 December 2013

China National Convention Center(CNCC) Beijing, China

Held at the China National Convention Center (CNCC), Beijing, China, the show covers many water industry aspects.

Messe Frankfurt (HK) Limited Mr. Penny Troon Tel: +852--22389930

2

Marintec China

03 - 06 December 2013

Shanghai New International Expo Centre(SNIEC) Shanghai, China

Marintec China is the important panel for decision makers from all shipbuilding nations: shipowner, top manager engineers and technicans meet in China to exchange the newest information and to make trendsetting decisions.

Ubm Asia Limited Tel: +(852)-(2)-8276211

3

International Printed Circuit & Electronics Assembly Fair

04 - 06 December 2013

Shenzhen Convention & Exhibition Center Shenzhen,China

International Printed Circuit & Electronics Assembly Fair is a leading trade fair for Circuit & Electronics industry. The event will provides an opportunity to meet all the Electronics suppliers, product vendors and downstream customers, manufacturers under one roof. The exhibition will showcase latest innovations for Circuit and Electronics Industry.

Hong Kong Printed Circuit Association Ms. Manda Wong Tel: +852--21555099

4

China International Health Expo

05 - 07 December 2013

Pazhou Complex Guangzhou,China

China International Health Expo is the ideal location for industry practitioner to source for international and local healthcare products. It provides an effective exchange platform for both international and local enterprises seeking to expand their market, develop international cooperation, display & sale products, promoting their brand image and upgrading international reputations.

Reed Sino-pharm Exhibitions Co. Limited ( Reed Sino-pharm) Tel: +(86)-(10)-84556677

5

Pharmchina

05 - 07 December 2013

Chengdu New International Convention & Exposition Center Chengdu, China

Pharmchina is a premier show dedicated to the pharmaceutical industry in China.

Boasting of a heritage of 30 years, this event hosts over 1703 exhibitors each year where pharmaceutical goods such as traditional Chinese medicine, biopharmaceutical products, OTC medicines and healthcare products are displayed.

Reed Sinopharm Exhibitions Co. Limited ( Reed Sinopharm) Mr. Yan Wei Tel: +86-10-620288993107

6

Guangzhou Design Week

06 - 08 December 2013

Poly World Trade Expo Center Guangzhou,China

Guangzhou Design Week will be held for a period of three days in Guangzhou, China.

This international expo is unique as it will bring into lime light the significance and value of products and services related to designing industry.

Guangzhou Citiexpo Co., Ltd. Mr. Leo He Tel: +86-20-89080307

7

China Aesthetics & Plastic Surgery Expo

06 - 08 December 2013

Beijing International Convention Center Beijing,China

China Aesthetics and Plastic Surgery Expo will take place in Beijing, China for a period of two days. The main objective of this international expo is to bring members of Private Plastic and Aesthetics Hospitals, Dealers, Government supervision departments, decision makers and researchers under one roof.

Reed Sinopharm Exhibitions Co. Limited ( Reed Sinopharm) Ms. Zhang Meng Tel: +86-13810400500

8

Automechanika Shanghai

10 - 13 December 2013

Shanghai New International Expo Centre(SNIEC) Shanghai, China

Automechanika Shanghai is largest automobile fair that covers up the relevant equipment’s, tools, machineries and services required by this sector. The products displayed here include parts and systems, accessories and tuning, repair and maintenance and service station and car wash and lot more necessary items needed by the workers of this industry.

Messe Frankfurt (Shanghai) Co. Limited Tel: +86-21-61608555

INDIA 1

EXHIBITION

DATE

VENUE

EVENT PROFILE

CONTACT PERSON

Education Worldwide India-Delhi

01 - 01 December 2013

Hotel The Royal Plaza New Delhi, India

The Unique exhibition of its kind aims at the prospective undergraduate & postgraduate students heading towards achieving education in the most renowned & reputed Institutions in INDIA & ABROAD. The event will witness more than 200 Universities from various countries to showcase their courses to the most potential student population of INDIA.

Global Events & Expositions Mr. Siddharth Jain 91-9811663707

2

CPhi India

03 - 05 December 2013

Bombay Convention & Exhibition Centre (BCEC) Mumbai, India

CPhi India is one of the largest and most comprehensive pharmaceutical industry events in South Asia. Focused on pharmaceutical ingredients, machinery, equipment, outsourcing and bio-solutions for pharma, CPhI India brings together high-quality prospects that are actively looking for these products and services.

UBM India Pvt. Ltd. Mr. Sameer Mithia +91-22-66122600

3

Bangalore Nano

04 - 06 December 2013

Hotel Lalit Ashok Bengaluru, India

Bangalore Nano is an event that will be held in Bangalore in India for three days. This event will see the exchange of knowledge and networking opportunities and will also focus on the various challenges that are being faced by the Nanotechnology industry.

M. M. Activ, Bangalore Mr. Amit S. Chakravarty +91-80-41131912 / 13

4

India Travel MartLucknow

07 - 09 December 2013

Venue to be announced Lucknow, India

India Travel Mart-Lucknow is India's one of the prominent International Travel & Tourism Mart. The event will brings people together to promote Inbound, Outbound and Domestic Tourism in unique style. ITM offer unlimited opportunities for everyone to Explore, Market and Publicize their destination/ product/ organization at one place.

I Creative Minds Mr. Sanjay +91-11-25897594

5

China Sourcing Fairs - Electronics & Components, Hardware & Building Materials and Home Products

12 - 14 December 2013

Pragati Maidan New Delhi, India

China Sourcing Fairs is the premier trade shows helping volume buyer's source from Greater China.

Well timed to meet new market demands in India, the China Sourcing Fair are set to facilitate another dynamic and profitable B2B interaction among Indian buyers and China suppliers.

Pico Event Management Mr. Tejashwar Singh +91-9820027954

6

India Cold Chain Expo

18 - 19 December 2013

Jaypee Palace and Convention Center Agra, India Agra, India

India Cold Chain Expo is one of the prestigious events for the professionals who trade in warehousing sector, as the theme of the exhibition is based on the cold chain storage segment.

Global Cold Chain Alliance Ms. Purnima Rawat +91-9899862848

7

Textile Expo Surat

20 - 23 December 2013

Vanita Vishram Ground Surat,India

The Textile Expo Surat is one of the well-known shows on textile industry offering a huge opportunity for the persons related with this industry in any which way. The show is a huge business hub for prominent exhibitors to showcase their products and services to the potential customers.

textile graph event management s-3 second floor, sardar complex, central road no-6 Ahmedabad, India

24 - 29 December 2013

Thiruvananthapuram, India

Silk Mark Expo with the purpose of bringing in viable changes for progressive development and advancement in the domestic as well as international business sector associated with the silk production and large scale textile industry. It will offer a great many exhibitors an excellent marketing platform for the promotion and exposure of the respective market sector.

Silk Mark Organisation Of India +91-80-26282114

Industrial India Trade Fair is one of the largest exhibition of its kind in Eastern & North eastern India. Industrial India Trade Fair focuses the Industrial progress of the region and other states encompassing various sectors.

Bengal National Chamber Of Commerce & Industry +91-33-22482951

8

9

Silk Mark Expo Thiruvananthpuram

Industrial India Trade Fair

27 December 05 January 2014

Milan Mela Complex Kolkata,India

|60| India-China Chronicle September 2013

September 2013 India-China Chronicle |61|

MISSING PIECES Shaoxing & Surat â&#x20AC;&#x201C; Textile capitals of China & India

S

Lessons to learn

haoxing is a prefecture-level city in the northeastern Zhejiang province and is home to five million Chinese.

Located on the south bank of the Qiantang River estuary, it borders Ningbo to the East, Taizhou to the Southeast, Jinhua to the Southwest, and Hangzhou to the West. The name comes from the Shaoxing reign of Emperor Gaozong of Song, and is a poetic term meaning â&#x20AC;&#x153;continuing prosperityâ&#x20AC;?.

Shaoxing has long been a center of Chinese cultural activity, producing such luminary figures as Wang Xizhi, Zhou Enlai, Lu Xun, and CaiYuanpei. It is widely known throughout China for polyester textiles, Shaoxing wine, Meigancai, and tofu. Its local variety of Chinese opera, Shaoxing opera, sung in the local dialect,has huge popularity, coming only next to Peking opera. In the year 2010, Shaoxing celebrated the 2500-year anniversary of the founding of the city.

Economically, the city is driven by the manufacturing of textiles, electronics, and energy efficient lighting. Zhejiang has the fifth highest per capita GDP in the nation, with the city itself being ranked32nd nationally in terms of GDP per capita.

Surat, previously known as Suryapur, is a city in the Indian state of Gujarat. It is also the administrative capital of the Surat district. The city is situated on the left bank of the Tapti River (Tapi).Surat is Gujaratâ&#x20AC;&#x2122;s second largest city, and Indiaâ&#x20AC;&#x2122;s eighth most populated city with a population of 4.5 million. The city registered an annualized GDP growth rate of 11.5 per cent over the fiscal years between 2001 and 2010.

A moat divides the older parts of the city, with its narrow streets and handsome houses, fromthe newer suburbs.

The city is largely recognized for its textile and diamond businesses. It is also known as the textile capital/Manchester/ textile city of India.Surat is known for producing world-class synthetic textiles.

Surat produces r 40 per cent of the nationâ&#x20AC;&#x2122;s total man-made fabric production, r 28 per cent of the nationâ&#x20AC;&#x2122;s total man-made fibre production r 18 per cent of the nationâ&#x20AC;&#x2122;s total man-made fibre export and r 12 per cent of the nationâ&#x20AC;&#x2122;s total fabric production.

Surat city is one of the fastest growing cities in the world.

It is interesting to look at the SWOT of Surat textile cluster: STRENGTHS 1. Abundant raw material 2. ow cost skilled labor 3. Presence across the value chain 4. Growing domestic market 5. Strong backward integration 6. Recent government efforts to promote the industry through a textile policy.

7. Truly vertically integrated from raw material to Ă&#x20AC;QLVKHG SURGXFWV 6WHDGLO\ GLYHUVLĂ&#x20AC;HG LWV UDZ PDWHULDO EDVH WR LQFOXGH PDQ PDGH Ă&#x20AC;EUHV VXFK DV 3RO\HVWHU YLVFRVH DFU\OLF SRO\SURS\OHQH HWF DV ZHOO DV RWKHU QDWXUDO Ă&#x20AC;EUHV 9. Flexible in terms of production quantity and lead time.

WEAKNESS 1. Fragmented industry 2. Lower productivity and cost competitiveness 3. Tech obsolescence.

4. Caters mainly to the low & middle end class.

5. Low level of training.

6. The export-import policy of India changes too IUHTXHQWO\ GXH WR ZKLFK LW EHFRPHV YHU\ GLIĂ&#x20AC;FXOW IRU importers to import goods.

|62| India-China Chronicle Â&#x192; September 2013

7. Delay in delivering the goods at the right time.

8. Lack of economies of scale and advance processing capabilities.

OPPORTUNITIES 1. Huge demand for value added goods all over India & in all major countries.

2. Relocation from high cost economies.

3. Large and relatively untapped domestic market in villages 4. Large Indian Expatriate community resulting in a large demand for Indiangarments.

5. Bilateral Agreements on Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to taxes on income and capital have further opened the Opportunity for higher export for the garment sector.

6. Extensive commercial interactions have greatly helped in laying the foundation for competitive environment.

THREATS 1. Competitive imports from China /DERU VKRUWDJH DV PRVW ODERU FRPHV IURP RXWVLGH SDUWLFXODUO\ IURP VWDWHV OLNH 83 %LKDU HWF 3. Cost competitiveness may be lost in the next few years.

There are interesting similarities between the Shaoxing&Surat textile clusters. Both have adopted the route of marketing infrastructure i.e. the soft intervention for sustaining competition. While Shaoxing has been successful in building clusters like China Light & Textile industries city, Surat has built severaltextile markets with almost 60,000 companies operating out of these textile markets, serving not only the entire country but also the international markets.

The China Light & Textile industries Citymarketplace is a three-star model business marketplace in the province. The textile city abounds in famous brands of products from both home and abroad. The business revenue amounted to 24 billion yuan in 2010 and this record markedit as the second largest marketplace amongChinaâ&#x20AC;&#x2122;s top 100 professional marketplaces that year. It is now the largest distribution center of textile products in China and Asia, boasting of the largest-scale facilities and the most complete range of products.

In order to enhance the marketplaceâ&#x20AC;&#x2122;s grade, the county government put forward an overall plan for the second all-out development of the China Light & Textile Industries City.

The administration concentrated on the cultural buildup of the marketplace and carried out a â&#x20AC;&#x153;Year of Managementâ&#x20AC;? project to facilitate the overall new endeavors. Firstly, it started a fame program to establish and maintain the marketplaceâ&#x20AC;&#x2122;s name by applying to the state administration of industry and commerce for 90 trademarks. Secondly, the administration made efforts to accelerate the normal work of the center and make the center play a bigger role. The administration also September 2013 Â&#x192; India-China Chronicle |63|

started a program to study ways to protect fabric designs. As a result of the research, China Light & Textile Industries City Office for Registration and Protection of Fabric Design was established and 140 designs applied for copyright protection in 2010.

The branch administration of industry and commerce at the City is responsible for keeping business order at the marketplace. The administration has an office on the spot to arbitrate and solve business disputes. The marketplace is equipped with fire engines. Security checks and inspections are carried out regularly in key areas. Cameras monitor the market 24/7. Smoking is banned in the market. The marketplace also checks to see if there are hidden troubles likepotential fire disasters and fire control drills are often carried out.

These measures have effectively protected the marketplace from fires disasters.

In 2010, 165 new companies registered respectively with the West, East, Central and North trading zones of the City.

1450 disputes concerning quantity shortages, sham goods, and contracts were heard and solved. These efforts kept the market in good order.

The textile industry in Surat is mainly engaged in the activities of yarn production, weaving, processing as well as embroidery. Nearly 30 million metres of raw fabric and 25 million metres of processed fabric are produced in Surat daily. The city has several textile markets that exist since times immemorial. Zampa Bazaar, Bombay Market, JJ Textile Market and Jash Market are among them. Katar Gam, Magdalla and Udhana are the areas of Surat where manufacturing is mainly concentrated. In the course of time, people from various other places like Rajasthan and Kolkata have settled in Surat in order to carry out their textile business.

The famous brands of Garden and Vimal textiles evolved from Surat. A few other brands like Parag and Prafful from Surat did become famous for a short time, but failed to create a lasting impression in the market.

One of the main reasons behind the growth of textile industry in Surat is the peoples’ ability to adapt to changes |64| India-China Chronicle September 2013

and the latest trends. The city is quick to respond to any changes in the preferences of people. The industrialists here have strong entrepreneurial skills.

In Surat Textile Market,Federation Of Surat Textile Traders Association (FOSTTA) is an association of Textile Processing units of Surat Textile Market. There are around 60,000 unitsand 160 markets associated with FOSTTA. FOSTTA addresses common concerns of these units and takes care of presentations and representations to several Ministries, Government Departments, Semi Government Institutions and Private Companieson their behalf. FOSTTA is thus a common platform for all the processing units of thearea for constructive interaction and mutually beneficial policy making.

During a recent visit to both Shaoxing & Surat, the author was able to see the similarities & differences of the cities starkly. While international buyers throng the markets in Shaoxing, Surat sees very few international buyers. One reason for this is the infrastructure.

While the infrastructure of Surat has improved over time Shaoxing’s infrastructure in terms of roads, electricity, traffic management, water management, exhibition centre, airport, railways, schools, universities, medical facilities, cleanliness, quality of life etc. is much higher than Surat due to the fact that a part of Shaoxing city was planned over a long period of time to be the textile capital of China whereas Surat grew without a plan & on its own, based on the model of the entrepreneur being the centre of Indian economy rather than the government as in the case of China.

JAGAT SHAH The writer is Chairman, India China Economic & Cultural Council (ICEC), Gujarat

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