Amidst Buzz on India-Taiwan Trade Talks, Beijing Reminds New Delhi of ‘One China’ Policy

India and Taiwan do not have direct diplomatic relations with each other, but have trade offices at each other’s capitals. Like most countries, India maintains commercial ties with Taiwan.

New Delhi: Amidst the reported buzz in favour of India formalising trade ties with Taiwan, China’s word of caution, on Tuesday, that New Delhi should abide by the “one China” policy has rung clear.

On Tuesday, Bloomberg had reported that there was “growing support” in the Indian government to formally start talks for a trade deal with Taiwan. This, of course, is in the backdrop of the deterioration of ties with China over the ongoing stand-off at the border in eastern Ladakh.

India and Taiwan do not have direct diplomatic relations with each other, but have trade offices at each other’s capitals. Like most countries, India maintains commercial ties with Taiwan.

According to the news agency, Taiwan has sought a trade deal with India for several years, but the Indian government had been reluctant to take this forward as it would provoke Chinese sensitivities when the act was registered with the World Trade Organisation.

Also read: Taiwan Thanks ‘Friends in India’ on National Day as Posters Erected outside Chinese Embassy

Quoting an un-named senior Indian government official, Bloomberg reported that the over the last few months, the China hawks who want trade talks with Taiwan have gotten an upper hand. “A trade deal with Taiwan would help India’s goal of seeking greater investment in technology and electronics,” the official said, adding that it is “unclear as to when a final decision would be made on whether to start talks”.

The Chinese foreign ministry was predictably critical.

“There is only one China and Taiwan is an inalienable part of China’s territory. The one-China principle is the common consensus of the international community, including India, and also serves as the political foundation for China to develop relations with any other country,” said foreign ministry spokesperson Zhao Lijian at the daily briefing on Tuesday.

He added that China was “firmly opposed to any official exchanges of any form and the signing of any agreement of official nature between Taiwan and any country having diplomatic relations with China”.

“The Indian side should earnestly abide by the one-China principle and handle the Taiwan question prudently and properly,” said Zhao.

In 2018, India and Taiwan signed an updated bilateral investment treaty. Trade has grown substantially from $1 billion in in 2000 to $7.5 billion in 2019.

According to Reuters, three top Taiwan firms, Foxconn Technology group, Wistron Group and Pegatron Corp – all of them top contract manufacturers for Apple – were approved for investment plans of upto $900 million (roughly Rs. 6,630 crores) in India in the next five years.

Earlier this month, Modi’s government gave approval to firms including Taiwan’s Foxconn Technology Group, Wistron Corp and Pegatron Corp as he looks to attract investment worth more than Rs 10.5 lakh crore ($143 billion) for smartphone production over five years.

Indian commerce ministry spokesman Yogesh Baweja did not immediately respond to a request seeking comment. Taiwan’s top trade negotiator, John Deng, also did not immediately respond to emails seeking comment.

Also read: India Condoles Passing Away of Taiwan’s ‘Mr Democracy’, Lee Teng Hui

Any formal talks with India would amount to a big win for Taiwan, which has struggled to begin trade negotiations with most major economies due to pressure from China. Like most countries, India does not formally recognise Taiwan, with the two governments maintaining unofficial diplomatic missions in the form of “representative offices.”

India and Taiwan in 2018 signed an updated bilateral investment agreement in a bid to further expand economic ties. Trade between them grew 18% to $7.2 billion in 2019, according to India’s department of commerce.

Taiwan’s profile in India has increased as the worst India-China military stand-off shows no sign of resolution.

There had been no official greetings from India on Taiwan’s national day on October 10, but the spokesperson of BJP’s Delhi unit put up posters with Taiwanese flag outside on the road near Chinese embassy. The civic body took them down.

Taiwan’s President Tsai Ing-wen has mentioned India’s friction with China in her national day speech. She also thanks Indians for sending greetings and tweeted a number of post to showcase her affinity with India, with photographs of her visit to Taj Mahal and love for Indian food.

Taiwan Thanks ‘Friends in India’ on National Day as Posters Erected outside Chinese Embassy

The move came after the Chinese embassy issued a ‘letter’ to the Indian media with instructions to not use certain terms that would violate the ‘One China’ policy.

New Delhi: It was an unusually noticeable 109th Taiwan National Day in India, with posters and flags hung outside the Chinese embassy by a ruling party member and Taiwan’s president thanking “dear friends in India” for sending wishes for their annual celebration

There had been heightened awareness about the Taiwan national day, especially after the Chinese embassy issued a ‘letter’ to the Indian media with instructions not to use certain terms that would violate the ‘One China’ policy.

India has followed the ‘One China policy’, which means that it doesn’t have diplomatic ties with Taiwan. However, both sides have trade offices which operate as de-facto embassies.

Subsequently, India’s Ministry of External Affairs dismissed the Chinese embassy’s instructions, by stating that the “free” Indian media would report “as it sees fit”.

India and China are currently involved in a military stand-off since May in eastern Ladakh. While both sides are still talking, the negotiations have stalled with China unwilling to return to its side of the Line of Actual Control. There have been heightened emotions in India due to the stand-off, which have already led to the first casualties along the border in over four decades.

The Bharatiya Janta Party’s Delhi unit spokesperson Tajinder Pal Singh Bagga had tweeted pictures of having erected posters with flags of Taiwan in a sidewalk near the Chinese embassy in the capital’s diplomatic enclave on Friday night.

According to PTI, an official of the New Delhi Municipal Council (NDMC) had stated that the flags were brought down within a few hours. “We have removed the posters which were put up close to Chinese embassy,” an NDMC official said Saturday.

Later in the night, Chinese embassy spokesperson tweeted, “One-China policy is long-standing position of Indian government. China firmly opposes any individual or any move trying to create “two Chinas” or “One-China, one Taiwan”, which violates this position”.

Also read: Indian Media Can Report as it Sees Fit: MEA on Chinese Embassy’s Letter on Taiwan

Taking a swipe at the Taiwan government, the embassy spokesperson said, “DPP authorities can’t change the fact Taiwan is an inalienable part of China, any attempt to engage in political manipulation & separatist activities to create “Taiwan independence” will lead to a dead end. China is determined to safeguard sovereignty & territorial integrity.”

Incidentally, some Indian journalists, who had posted on Taiwan on their social media accounts, received private messages from the Chinese embassy on Saturday. “We have noticed your twitter on Taiwan. Hope you could stick to Indian government’s position on Taiwan question and do not violate the One-China principle when you do the report. We are willing to maintain communication with you and … (media organisation) on China-related reports,” said the uniform template for the messages from the Chinese embassy’s press section sent out to journalists.

China’s state-run English language tabloid, Global Times also published an article quoting analysts that the posters hung outside the embassy will “only exasperate already soured China-India ties” and called on “India’s ruling party to give up its irrational behavior and to realize it is playing with fire”.

Taiwan’s top authorities. including the President, made specific references to India in their remarks during the day.

In her national day speech, President Tsai Ing-wen referred to the military stand-off among the steps taken by China in the region. “From sovereignty disputes in the South and East China Seas and the China-India border conflict, to developments in the Taiwan Strait, as well as the “Hong Kong version of the National Security Law” that has garnered international concern, it is clear that democracy, peace and prosperity in the Indo-Pacific are currently facing serious challenges,” she said.

On Sunday, she tweeted thanks to “dear friends in India”. “Together, we can take pride in safeguarding our shared values like freedom & human rights, & defending our democratic way of life,” said Tsai.

The other countries to which she had expressed appreciation through her Twitter timeline were St Kitts and Nevis and Honduras. Both these countries are among the 15 nations who have full diplomatic relations with Taiwan.

A day earlier, Taiwan’s foreign ministry had already geared up for Indian ‘support’ by thanking “friends in India” for getting ready to mark Taiwan’s national day. Previously, Taiwan’s foreign ministry had tweeted that China should “get lost” following the guidelines issued by the Chinese embassy to the Indian media.

On Saturday, Taiwan foreign ministry posted a signed tweet from foreign minister Jaushieh Joseph Wu which singled out India for marking Taiwan national day.

Also read: Ahead of Taiwan’s National Day, Chinese Embassy Sends Reminder on ‘One China’ Policy

Tweets related to India from Taiwan’s foreign ministry garnered thousands of retweets, in comparison with other tweets from the handle. Hashtags related to Taiwan’s national day were also trending on Indian Twittersphere during the first half of the day.

Despite the visibility, there were no official statements from the Indian government or its members. India’s representative office, India Taipei Association, which is headed by a senior Indian diplomat, had no posts to mark the national day on its Facebook page.

In July, ITA had posted a condolence message on the passing of former Taiwan president Lee Teng Hui, describing him as ‘Mr Democracy’. The first popularly elected president, Lee had been a thorn in Beijing’s side even in his old age.

The post raised several eyebrows as the ITA had previously never treaded into the sensitive area of cross-Strait relations and was posted just two weeks after the violent Galwan Valley clash in Ladakh.

Hong Kong: Released on Bail, Media Tycoon Jimmy Lai Urges Patience

In a video appearance on Twitter, Lai thanked his supporters and said their action showed the police raid was a “violation of Hong Kong people’s belief” in wide-ranging freedoms.

Hong Kong: Hong Kong media tycoon Jimmy Lai said on Thursday he was overwhelmed by the support he got after becoming the most high-profile person to be arrested under a new national security law and urged patience in a “long-term fight” for democracy.

Lai, a staunch supporter of the city’s democracy movement, was arrested on Monday on suspicion of collusion with foreign forces as police raided the offices of his Apple Daily tabloid.

He was released on bail early on Wednesday, and greeted by a throng of supporters chanting “fight till the end”.

In a #LiveChatWithJimmy video appearance on Twitter, Lai thanked his supporters and said their action showed the police raid was a “violation of Hong Kong people’s belief” in wide-ranging freedoms, which he likened to oxygen.

“The oxygen is getting thin, and we are all choking, but when we’re choking we’re still taking care of each other and keep resisting and keep fighting for our rule of law and freedom,” he said.

Lai, who China sees as a “traitor”, was arrested under a new security law imposed by Beijing on June 30 in response to a year of pro-democracy unrest in the former British colony, which returned to China in 1997 under a “one country, two systems” formula aimed at preserving its autonomy.

Hong Kong’s pro-democracy movement, fuelled by fears that Beijing has been eroding city freedoms, has enjoyed and sustained broad support in the city.

Lai said pro-democracy activists had to play a long game.

“We cannot be radical, we cannot confront them face-to-face because we’re just like an egg and they are a high wall,” he said.

“We have to flexible, and innovative and patient, but persist.”

The law punishes whatever China considers subversion, secession, terrorism and collusion with foreign forces with up to life in prison.

Also read: What You Need to Know about Hong Kong’s National Security Law

Critics say the law brings semi-autonomous Hong Kong closer to mainland China’s authoritarianism, while its supporters say it will bring stability to the city and safeguard its prosperity.

Since Lai’s arrest people have been queuing up early in the morning to buy his Apple Daily, and many have also bought shares in Next Digital, Lai’s media company that publishes his newspaper, sparking a rally of more than 2,000% at its peak.

Lai called the rise in share price an “ephemeral phenomenon” and urged people “not to touch it”.

(Reuters)

Hong Kong: Police Arrest Four Students Under New Security Law

In a press conference shortly before midnight on Wednesday, a police spokesman said the three men and a woman, all students, were suspected of being involved in an online group that pledged to use every means to fight for an independent Hong Kong.

Hong Kong: Hong Kong police have arrested four people aged 16-21 for suspected offences under the city’s new national security law, the first such detentions outside of street protests since the legislation took effect a month ago.

In a press conference shortly before midnight on Wednesday, a police spokesman said the three men and a woman, all students, were suspected of being involved in an online group that pledged to use every means to fight for an independent Hong Kong.

“We arrested for … subversions and for the organising and also the inciting (of) secession,” said Li Kwai-wah, police superintendent at the national security department.

“They wanted to unite all the independent groups in Hong Kong for the view to promote the independence of Hong Kong.”

China considers Hong Kong to be an “inalienable” part of the country, so calls for independence are anathema to Beijing’s Communist Party leaders.

Police said some mobile phones, computers and documents were seized in the operation.

Beijing imposed the contentious legislation on its freest city just before midnight on June 30, punishing what it broadly defines as secession, subversion, terrorism and collusion with foreign forces with up to life in prison.

Also read: What You Need to Know about Hong Kong’s National Security Law

Activists in Hong Kong scrambled to shut or rebrand social media accounts that could fall foul of the new security law before it was imposed. Police said the four were suspected of posting content that violated the legislation in July.

Human Rights Watch condemned the arrests and urged governments to impose targeted sanctions on Hong Kong and Chinese government officials responsible for the new law.

“The gross misuse of this draconian law makes clear that the aim is to silence dissent, not protect national security,” Sophie Richardson, China director at Human Rights Watch, said.

The law has been condemned by some Western governments, business leaders and human rights groups who say it represents the latest move by Beijing to tighten its grip over the former British colony.

Beijing says the law is crucial to plug gaping holes in national security defences exposed by months of sometimes violent anti-government protests that rocked the city over the past year.

Authorities in Beijing and Hong Kong say the law will be used to target only a minority of “troublemakers.”

In a Facebook post, Initiative Independence Party said four former members of Studentlocalism, a pro-independence group that was disbanded before the new law took effect, had been arrested on suspicion of violating Articles 20 and 21 of the legislation that includes inciting secession. They were denied bail.

Police did not name the suspects but local media and online posts said Tony Chung, a former convener of Studentlocalism was among those arrested.

Critics of the security legislation fear it will crush wide-ranging freedoms not seen on the mainland, including freedom of speech, that was guaranteed to Hong Kong for 50 years when it returned to Chinese rule in 1997.

Like Studentlocalism, many anti-government groups disbanded just before the law came into force, ranging from pro-independence Hong Kong National Front to pro-democracy Demosisto, which was led by young activist Joshua Wong.

Hundreds of small shops have taken down protest slogans off their walls, while publishers have started to censor or even reject books they fear authorities might deem subversive.

Donald Trump Ends Preferential Status for Hong Kong, China Vows Retaliation

“Hong Kong will now be treated the same as mainland China,” Trump added.

Washington: President Donald Trump on Tuesday ordered an end to Hong Kong’s special status under US law to punish China for what he called “oppressive actions” against the former British colony, prompting Beijing to warn of retaliatory sanctions.

Citing China’s decision to enact a new national security law for Hong Kong, Trump signed an executive order that he said would end the preferential economic treatment for the city.

“No special privileges, no special economic treatment and no export of sensitive technologies,” he told a news conference.

Acting on a Tuesday deadline, he also signed a bill approved by the US Congress to penalise banks doing business with Chinese officials who implement the new security law.

“Today I signed legislation and an executive order to hold China accountable for its aggressive actions against the people of Hong Kong,” Trump said.

“Hong Kong will now be treated the same as mainland China,” he added.

Under the executive order, U. property would be blocked of any person determined to be responsible for or complicit in “actions or policies that undermine democratic processes or institutions in Hong Kong,” according to the text of the document released by the White House.

It also directs officials to “revoke license exceptions for exports to Hong Kong,” and includes revoking special treatment for Hong Kong passport holders.

China’s foreign ministry said on Wednesday Beijing will impose retaliatory sanctions against US individuals and entities in response to the law targeting banks, though the statement released through state media did not reference the executive order.

“Hong Kong affairs are purely China’s internal affairs and no foreign country has the right to interfere,” the ministry said.

Also read: What You Need to Know about Hong Kong’s National Security Law

Critics of China’s national security law fear it will crush the wide-ranging freedoms promised to Hong Kong when it returned to Chinese rule in 1997, while supporters say it will bring stability to the city after a year of sometimes violent anti-government protests.

The security law punishes what Beijing broadly defines as subversion, secession, terrorism and collusion with foreign forces with up to life in prison.

US relations with China have already been strained over the coronavirus pandemic, China’s military buildup in the South China Sea, its treatment of Uyghur Muslims and massive trade surpluses.

Trump’s handling of the coronavirus pandemic has raised doubts about whether he can win re-election on November 3, 2020, amid a surge of new infections. He has attempted to deflect blame onto China.

“Make no mistake. We hold China fully responsible for concealing the virus and unleashing it upon the world. They could have stopped it, they should have stopped it. It would have been very easy to do at the source when it happened,” he said.

Asked if he planned to talk to Chinese President Xi Jinping, Trump said: “I have no plans to speak to him.”

Double-edged sword?

Analysts say that completely ending Hong Kong’s special treatment could prove self-defeating for the United States.

Hong Kong was the source of the largest bilateral US goods trade surplus last year, at $26.1 billion, US Census Bureau data shows.

According to the State Department, 85,000 US citizens lived in Hong Kong in 2018 and more than 1,300 US companies operate there, including nearly every major US financial firm.

The territory is a major destination for US legal and accounting services.

The United States began eliminating Hong Kong’s special status under US law in late June, halting defence exports and restricting the territory’s access to high-technology products as China prepared to enact the security legislation.

In May, Trump responded to China’s plans for the security law by saying he was initiating a process to eliminate the special economic treatment that has allowed Hong Kong to remain a global financial centre.

He stopped short then of calling for an immediate end to privileges but said the moves would affect the full range of US agreements with Hong Kong, from an extradition treaty to export controls on dual-use technologies.

A US official, speaking on condition of anonymity, said the administration was also preparing sanctions against Chinese officials and entities involved in the Hong Kong crackdown, including further US travel bans and possible Treasury sanctions.

The timing remained unclear. The White House has previously threatened such sanctions but so far has only imposed restrictions on visas for an unspecified number of unnamed Chinese officials.

(Reuters)

Watch | Why China’s New Security Bill Puts Hong Kong Activists at a Loss?

Many activists are afraid of the consequences of continued protests. But some aren’t ready to give up just yet.

Critics of the controversial new security law China has imposed on Hong Kong fear it will end freedom of speech in the autonomous territory. Many activists are afraid of the consequences of continued protests. But some aren’t ready to give up just yet.

The video was originally published on DW and is being brought to you here by The Wire and DW’s global content partnership.

China is Needling India on Land When its Main Security Threat is from US Maritime Power

If continental China wants the land bridges it is building to be secured, it will have to devise a different strategy that relies less on the use of force – and which befriends rather than alienates India.

Despite shared economic opportunities, border disputes continue to haunt India and China’s relationship. After 60 years, the two countries are once again engaged in a bloody mini-war in the Himalayas.

During recent clashes in the Galwan Valley, both have killed each other’s soldiers, yet there is a greater sense of loss in India. In the battle of perceptions, the Chinese seem to be ahead in this current round. Uncertain calm prevails on the India-China borders. However, those seeking a quick solution are likely to be disappointed.

China-India tensions will persist because they are tethered to the ensuing US-China Cold War, which itself is a titanic battle over who will dominate the world – sea-power or land power. America rules the waves and sets the terms and conditions for the vast majority of global commerce. China, on the other hand, is busy building a land bridge across Eurasia, which would undermine US maritime dominance.

Wake-up call

There is little doubt that India under Prime Minister Narendra Modi has fostered the nation’s strategic embrace of the US. Both have been deliberating on their collaborative military posture in the Indo-Pacific to contain China and a more conscious collective effort by like-minded (democratic) countries to curtail Chinese president Xi Jinping’s aggressive foreign policy. Hence, the current India-China dispute must be viewed in a broader Indo-Pacific perspective.

To influential American observers such as Michele Flournoy, former under-secretary of defense for planning, the Sino-Indian border confrontation should“serve as a wake-up call to accelerate and deepen security co-operation among like-minded states.” Flournoy claims that while the region’s geopolitics is often portrayed as a US-China contest, in reality, there is a group of democracies with increasingly converging interests.

Many in India and the US see the current tense situation between India and China as an opportunity to push for India’s overt alignment with the US-led security intuitive in the Indo-Pacific.

Also read: Chinese Pullback at Galwan Comes at a Cost, Indian Retreat Shifts LAC to its Disadvantage

US’s broader vision of containing China

For the US, the border dispute in the Himalayas is just one of several flashpoints in Asia: Taiwan’s independence; Tibetan freedom; Hong Kong’s democracy and relative autonomy; and freedom of navigation in the South China Sea.

Washington enjoys deep network connections in Taiwan, India, Hong Kong, and the South China Sea to spark flash points to pressurise and probe China, to make it react. China has been engaged aggressively, legally, economically, or militarily to secure its frontiers from a possible onslaught by the US or its allies.

For example, in the Himalayas, the Chinese have fortified their claim line through the use of force against India and a massive military buildup to avoid getting caught by surprise. In Hong Kong, the Chinese have approved a national security law, which they claim is directed to control subversive activities.

If America has simultaneously deployed, for the first time in many years, three aircraft carriers, then China too has been active since the outbreak of the global pandemic, to beef up its research and military aviation capabilities on the Fiery Cross Reef and Subi Reef.

Spectre of Chinese land-power haunts American strategists

US maritime power is asserting its reach and range to let its allies know that the “maximum pressure” game on China is underway. Offensive realism, consisting of assertive containment and deterrence, is America’s new theoretical and political mantra against China.

There is a bipartisan resolve in the US that a continental power like China cannot be allowed to change the international political order designed by the maritime world. But how is a conflict between Indian and Chinese armies 14,000 feet above sea-level related to US naval dominance?

The U.S. Navy aircraft carrier USS Harry S. Truman transits the Strait of Gibraltar April 7, 2020. Photo: Reuters

“The Army is a projectile to be fired by the navy,” argued Admiral Jackie Fisher, British First Sea Lord (1904-1910) summing up naval historian and geo-strategist Julian Corbett’s view that it was critical for a sea power to influence operations on land.

For maximum international trade to flow on the oceans, land borders must remain sealed. The army helps the sea power ensure that borders stay tense through conflicts while trade continues to seek the smooth sea lines of communication under the watchful eyes of the superior naval forces and marine service industry. This is exactly how British and American sea power ensured that 90% of global trade continues to use oceanic routes.

Also read: US Navy: Moving Forward by Going Back to Buccaneering?

China, the great disruptor of the 21st-century, is challenging this 200-year-old maritime order by building alternative supply lines across Eurasia, many of which will make the existing sea lines of communication redundant. Besides the loss of dollars and technological hegemony, a world map that shows a connected Eurasia and an isolated America through the systemic undermining of sea power haunts American strategists.

Key Anglo-American strategy: keeping Eurasia divided

The Americans were aware of this geographic imperative when they took over the reins of the maritime domain from Britain after World War II. America’s Eurasian dilemma got heightened with the communists coming to power in China in 1949.

The spectre of socialist supply lines running from China to Poland via the Soviet Union led to the “China Lobby”, directed by Henry Luce (founder of Time magazine and advocate of “American Exceptionalism” and the “American Century”), which lamented the “loss of China” to Mao Zedong.

However, another strategic stream in the US saw Mao’s arrival in Beijing as an opportunity to contain the Soviet Union by causing a schism in the communist bloc. The Yugoslavian communist leader Joseph Tito, a staunch anti-Stalin activist, was America’s trump card in eastern Europe.

Mao was expected to shape up as the “Chinese Tito,” who would raise the banner of protest against Soviet domination of the communist bloc. Breaking the ideological affinity between China and the Soviet Union was one aspect of America’s grand strategy, but more important was to keep the two continental powers apart and to prevent them from building a Eurasian land bridge on which socialist trade would be plied free from the constraints on the flow of international trade imposed by maritime powers.

India’s historic role in the great game

The Indian elite got drawn into the geopolitical game of initiating the Sino-Soviet split. In the late 1950s, India-China relations nosedived. India got involved in US-driven covert operations inside Tibet. The border settlement issue suddenly sprang up as a core issue between China and the Soviet Union.

The Aksai Chin road connecting Xinjiang with Tibet became a bone of contention. India started claiming Aksai Chin as a part of its territory, and China retaliated by asking for Tawang. Before this, India had never raised the issue of Aksai Chin, and China had not objected to India hoisting its flag in Tawang in 1951.

This was also when the Soviet leader Nikita Khrushchev was impressing the West with his de-Stalinization drive and had started building bridges with the West by visiting Washington in 1959.

The US, however, was more interested in seeing New Delhi distancing from Beijing than in controlling India veering towards Moscow. Washington saw Moscow’s interest in the non-communist “swing states” such as India, Indonesia, and Egypt as a welcome development. This is exactly what was needed to convince the Chinese that the Soviets’ commitment to building a strong socialist bloc was a farce: they were more interested in expanding their imperial reach.

In the late 1950s, the US nudged India towards the Soviet Union. India started inching towards the Soviet Union and seeking its military hardware when Indo-US ties had hit a purple patch. India collaborated with America on the Tibet issue, and the US organised a massive economic aid package for it.

India-China war exacerbated Sino-Soviet rivalry

The 1962 India-China war offered a perfect setting to accentuate the differences between the two communist giants. China was irked by Moscow’s neutral stance on the India-China border skirmishes, which began in 1959 and culminated in a war in 1962. According to the assessment of Indian Intelligence Bureau Chief Bhola Nath Mullik, China went all out attacking the Soviet Union because the latter had not backed China in the Sino-Indian conflict.

Also read: Debate: Galwan Is a Chapter in China’s Tireless Pursuit of ‘Lost’ Territory

In a post-war discussion with his intelligence personnel, Indian Prime Minister Jawaharlal Nehru mentioned some articles in the media that reflected Chinese fury against India and the Soviet Union. A 1963 CIA document titled Implications of Sino-Soviet Rupture for the US stated that, “for most practical purposes there was now an open split in Sino-Soviet relations. The virulence of the present confrontation, the directness of the most recent insults and accusations at Moscow, and the theological certainty of both disputants reflect new dimensions of antagonism too extensive to be bridged.”

The alignment of the Indian elite with their counterparts in America to push their class goals then became one of the most critical factors for the causes of the India-China war of 1962.

The dominant elite in India showed great eagerness to confront the Chinese and settle the border dispute through the forward deployment of the military in disputed areas because it helped them achieve their domestic political goals.

One such goal was to defeat and demonise Indian communists for opposing the war and, secondly, to ensure the rise of conservatives within the ruling Congress party by projecting left-liberals like Krishna Menon, then defence minister, as the chief culprit for India’s defeat at the hand of Chinese. The war also helped Rashtriya Swayamsevak Sangh (RSS), the Hindu cultural-political outfit, to parade itself as a nationalist force. This was essential for the RSS because its role in the national freedom struggle was negligible.

The Nimitz-class aircraft carrier USS Carl Vinson and the Indian navy fleet oiler INS Shakti conduct a refuelling at sea exercise Malabar 2012. Photo: U.S. Navy photo by Mass Communication Specialist Seaman Apprentice Andrew K. Haller/Released

Back to the future with Trump-Modi axis?

A similar class-alignment is visible today when Donald Trump’s administration launched a virulent hate campaign and trade war against the Communist Party of China to browbeat it into halting all its endeavours to alter the global power matrix by building alternative global supply lines running through Eurasia.

The current India-China conflict is connected to Anglo-American geopolitical plans to halt the Chinese from reaching the Arabian Sea through a much shorter route via Pakistan. The maritime powers see the development of the China-Pakistan Economic Corridor (CPEC) as a direct assault on their sea power strategy that aims to choke Chinese merchant shipping in the Strait of Malacca between the Indonesian island of Sumatra and Malaysia.

India is opposed to the CPEC, a flagship project of the Belt and Road Initiative launched by Xi in 2013, because it passes through Gilgit-Baltistan (GB), a Pakistani province in the north, to reach the Chinese-operated Gwadar port in the south.

Also read: China and India Need a Way to Get Out of the Maze in Ladakh

India considers GB, a critical hub that connects South and Central Asia, to be under the illegal Pakistani occupation. India has become more vocal about GB only after the CPEC project picked up momentum in 2014. India’s Minister of Home Affairs, Amit Shah, recently asserted that, “The boundaries of Jammu and Kashmir decided in our Constitution, and also in the Constitution of Jammu and Kashmir, includes PoK (Pakistan Occupied Kashmir) and Aksai Chin.”

Last year, after the bifurcation of Jammu and Kashmir, India issued a fresh set of maps that showed Aksai Chin and GB as parts of the Union territory of Ladakh. The Chinese objected and said India was unilaterally changing the status quo.

Galwan Valley – the flashpoint of the recent clashes between the Indian army and the People’s Liberation Army (PLA) of China is close to Aksai Chin – is the same area that became a bone of contention between the two Asian nations during the 1962 war.

The Modi government brought the area back into the discourse, making it contentious once again. With the Indian establishment’s renewed resolve to reclaim regions in China and Pakistan, security in the area became tense and has finally resulted in the brutal killings of soldiers.

As long as the subcontinent remains caught in the “territorial trap” and refuses to see its borders as opportunities, both Indian and Pakistani armies will continue to be used as projectiles fired by maritime America to achieve its broader goal of keeping the borders shut, the Eurasian landmass divided, and maximum trade flowing on US-controlled sea routes.

If continental China wants the land bridges it is building to be secured, it will have to devise a different strategy that relies less on the use of force – and which befriends rather than alienates India.

Inderjeet Parmar is professor of international politics at City, University of London, a visiting professor at LSE IDEAS (the LSE’s foreign policy think tank), and visiting fellow at the Rothermere American Institute at the University of Oxford. Dr Atul Bhardwaj is an honorary research fellow in the department of international politics at City, University of London. He is the author of India-America Relations (1942-62): Rooted in the Liberal International Order (Routledge, 2018).

This article was first published in the Defense Post website.

Why Hong Kong’s Security Law Will Not Upend Its Status as a Global Financial Centre

Hong Kong’s legal system, which remains stronger than China’s for international business activity, will ensure it has a competitive edge over mainland China for the time being.

Following the introduction of a new Chinese national security law, some are questioning the sustainability of Hong Kong’s position as an international financial centre. These doubts are augmented by China’s plans to transform Hainan, another island off the southern coast of the Chinese mainland, into a free-trade hub. This further calls into question the idea that Hong Kong is irreplaceable for some.

But Hong Kong’s success as a centre of international finance, connecting the world to mainland China, is built on several foundations. These include having a stable business environment, the free flow of capital, low tax rates and a reliable legal system based on English common law.

While we cannot underestimate some individuals’ fears that they may be arbitrarily detained under the new national security law, there is also evidence that the law will curb the social unrest that has been detrimental to business in Hong Kong. Crucially, our research supports the idea that Hong Kong’s legal system remains stronger than China’s for international business activity. This will ensure it has a competitive edge over China for the time being.

Under Article 8 of the Basic Law of Hong Kong, which serves as the city’s de facto constitution, Hong Kong has a common law system that it inherited from the UK. In this kind of legal system, judges have the ability to make laws in the form of case law, which is determined by rulings on legal precedents. This makes Hong Kong’s legal system much stronger than China’s civil law system, where vast numbers of laws have been written in recent decades but have not necessarily been tried, tested and applied yet.

Also read: What You Need to Know about Hong Kong’s National Security Law

The ability of judges to make new laws in a common law system means that any issues arising from rapidly evolving financial markets can be dealt with more efficiently. And there is also research showing that common law countries tend to be more responsive to investors’ interests. Hence, in Hong Kong’s new pitch book to the global financial industry, it emphasises the city’s “common law system familiar to international investors”.

Research shows that a robust legal system is of paramount importance to financial development. It makes investors feel more comfortable and thereby expands the size of financial markets.

In our research, we’ve found that Hong Kong’s economic success since the 1997 handover can be attributed to the “one country, two systems” principle. We argue this is due to its common law system and because Hong Kong has been able to maintain an independent set of company and financial laws from the ones in China.

Riot police officers detain a demonstrator during a protest against the second reading of a controversial national anthem law in Hong Kong, China May 27, 2020. Photo: Reuters/Tyrone Siu

Closing the gap

Nevertheless, the regulatory gap between Hong Kong and China is becoming narrower and narrower. Nowadays, China is doing very well in investor protection – something that has been recognised by both the Centre for Business Research at the University of Cambridge and World Bank research. Generally speaking, investor-protection mechanisms include corporate transparency, shareholders’ decision rights, and their rights to sue when things go wrong. All of this contributes toward investors feeling that their money is adequately protected.

When the two stock markets in China were established in the early 1990s, China did not even have a proper set of company and financial laws. But it has succeeded in writing the necessary laws and for the most part, making sure they are stuck to.

In 2009 the Chinese government decided to turn Shanghai into an international financial centre. Shanghai is now home to the fourth-largest stock exchange in the world in terms of market capitalisation, with Hong Kong the fifth. Shanghai has also recently leapfrogged Hong Kong to the fourth in the recent Global Financial Centres Index, showing its increasing global recognition and competitiveness.

There have been many economic initiatives in China over the years to create new financial centres. Some have been more successful than others but the strategies of development have been similar. They do not go much beyond financial incentives and offering investors a more open business environment. Yet Shanghai, and indeed the rest of mainland China, still suffer from limitations like currency control and impartiality of judges. To pose more threats to Hong Kong, deeper reform may be required to address these shortcomings.

Also read: As China Imposes National Security Laws on Hong Kong, A Timeline of the Protests

China is introducing a more case-based approach to its legal system, reflecting the importance of the common law system for international investors. But before this development gains more traction, we believe that Hong Kong still occupies a unique position in China’s future economic development given the prominence of English legal principles in international finance and commerce. Traditional English legal principles, such as good faith and the legal concept of trusts, still lie at the heart of the legal language of modern commerce. These have yet to become embedded in mainland China’s legal system.
The Conversation
Horace Yeung is an associate professor in Commercial Law at the University of Leicester and Flora Huang is a professor of Law and Business at the University of Derby.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

What You Need to Know about Hong Kong’s National Security Law

The reach of the new national security law has stunned some legal scholars, who say that even peaceful actions could now bring years in jail if foreign links could be proven.

Hong Kong: China’s sweeping new national security law for Hong Kong took effect in the global financial hub at 11 pm local time (1500 GMT) — the same moment the city authorities published the law. It is expected to mark the biggest change in the freewheeling former British colony since it returned to Chinese rule in 1997.

Just how far does it go?

Early assessments of the law, whose content was kept secret until it took effect, suggest that some elements are stronger than many feared, both in scope and penalties.

The crimes of secession, subversion of state power, terrorism and colluding with foreign countries and external elements will face penalties of up to life in prison.

Also read: Hong Kong: New National Security Law Allows Suspects to Be Tried in Mainland China

The reach of the law has stunned some legal scholars, who say that even peaceful actions such as the pro-democracy Occupy protests of 2014 could now bring 10 years jail if foreign links could be proven.

It also provides for more active state management and oversight of foreign groups, organisations and media based in what for decades has been China’s freest and most international city.

In a move certain to rile democracy activists in the run-up to crucial legislature elections on September, it also demands disqualification for elected politicians who breach the law.

The law confirms, however, that it will not be applied retroactively against crimes committed before it was implemented.

Also read: As China Imposes National Security Laws on Hong Kong, A Timeline of the Protests

Both Hong Kong and Chinese central government officials have said the law is vital to plug gaping holes in Hong Kong’s national security defences – deficiencies exposed in the months of sometimes violent protests that rocked the city in the last year.

Protesters in Hong Kong, in October. Photo: Reuters/Umit Bektas/File Photo

What is most likely to cause concern?

The first official presence of mainland Chinese security and intelligence agents in Hong Kong and powers granted to them that go beyond local laws represent a major threat to the city’s liberties, according to security experts, diplomats and some politicians.

The law allows them to take enforcement action from a new base at a mainland security commission in the city. The Hong Kong government will have its own commission, backed by its own special police unit. The law stipulates, for example, that the mainland agents cannot be detained or inspected by local authorities while carrying out their duties.

Is anything still unclear?

As earlier stated by Beijing, the law allows for Hong Kong’s chief executive to appoint judges for national security cases – a move lawyers’ groups have said imperils the city’s rule of law traditions.

But it also allows for mainland courts to hear serious and complex Hong Kong cases in certain situations – including those allegedly involving collusion with foreign forces – a major change and one that is likely to be intensely debated in coming days, including how suspects will be taken to the mainland without formal extradition arrangements.

It was not immediately clear whether the city’s foreign judges would be excluded from national security cases.

Up until now, Hong Kong has boasted a proudly independent judiciary and separate, common law-based legal system that have long been deemed key to its success as a global financial centre.

What comes next?

The big issue will be enforcement. Many in the city are waiting to see if action will be swift or whether authorities will wait to test their new institutions and cautiously build cases.

Some high-profile democracy and independence activists have said they expect to become the first to be detained under the new regime, and disbanded their groups.

Within two hours of the law being announced, the government revealed that special local police and justice department prosecution units had already been formed to enforce the law.

For weeks now, Hong Kong and Chinese officials have repeatedly said that only a tiny number of people will be targeted by the new laws and that the rights and freedoms of ordinary people will not be affected.

But fear has been building in some political, activist, academic, religious and business circles and some predict that, beyond high-profile cases, the law will chill the openness that they have taken for granted. Some say privately they are questioning whether they should leave Hong Kong.

(Reuters)

‘Inaccurate and Biased’: Hong Kong Government Rejects UK Criticism of New Security Law

“There is still time for China to reconsider, to step back from the brink and respect Hong Kong’s autonomy,” British Foreign Minister wrote in a report on Hong Kong.

Hong Kong: The Hong Kong government hit back on Friday at a report by Britain criticising Beijing’s move to impose national security legislation on the global financial hub, saying the report was “inaccurate and biased”.

The British government said the proposed security law was a clear violation of China’s international obligations and a breach of the “one country, two systems” formula that has governed the former British colony since its handover to Chinese rule in 1997.

“There is still time for China to reconsider, to step back from the brink and respect Hong Kong’s autonomy and respect its own international obligations,” British Foreign Minister Dominic Raab wrote in the foreword to his government’s six-monthly report on Hong Kong.

Raab said a solution to the unrest fomented by a year of frequently violent pro-democracy rallies in the city “must come from Hong Kong, and cannot be imposed from mainland China.”

However, the Hong Kong government said it firmly opposed the report’s “inaccurate and biased remarks on the national security law and the high degree of autonomy enjoyed by (Hong Kong).”

Authorities in both Hong Kong and Beijing have insisted the security legislation will focus on small numbers of “troublemakers” who pose a threat to national security and will not curb freedoms or hurt investors.

Also read: How China’s New National Security Law Subverts Hong Kong’s Cherished Rule of Law

“Any allegation that the law will undermine Hong Kong people’s freedoms and ‘one country, two systems’ is no more than alarmist speculation and simply fallacious,” the Hong Kong government said in a statement.

Legislating on national security was within the purview of Beijing, it added, and the law would help better protect the rights of Hong Kong people while restoring stability in the financial centre.

The exchange over the security legislation, which is expected to be implemented by September, came as Hong Kong marked the anniversary of a major protest that saw a turning point in the city’s pro-democracy movement.

On June 12 last year, police fired tear gas and rubber bullets as protesters rallied in the heart of the business district against a proposed bill that would have allowed extraditions to mainland China.

While the bill was withdrawn in September, the protest movement evolved into broader appeals for democracy in the city amid fears Beijing was reneging on its pledge to give Hong Kongers freedoms not enjoyed in the mainland.

Protests are planned in the city on Friday night.

Britain has been joined by the US, Australia and Canada in criticising the proposed security laws.

US Secretary of State Mike Pompeo this week singled out HSBC as one of the major companies back the law, saying such “corporate kowtows” got little in return from Beijing and criticising the Chinese Communist Party’s “coercive bullying tactics.”

US Treasury Secretary Steven Mnuchin went a step further on Thursday, saying he was working on various capital markets responses to the security law, including some measures that could restrict capital flows through the territory.

(Reuters)