Signalling a transition
China is now the world's second largest economy, having overtaken Japan in terms of the size of its GDP. It is true that this is partly due to Japan's poor performance. The change in rankings coincided with news that Japan's GDP grew at just 0.4 per cent in the three months to the end of June, well below an expected 2 per cent plus. It is also true that in per capita terms China's GDP is less than a tenth of that in Japan. Yet the fact that the change in China's ranking is the result of a scorching pace of growth sustained over a period of three decades, which shows no signs of relenting, suggests that this is by no means the end of a journey. Hence, despite the many statistical issues relating to estimation procedures used in different countries and the exchange rates at which local currency figures are converted to a common currency, the new GDP numbers are seen as signalling a transition to a new era in terms of the global balance of power.
China has responded with much maturity and not displayed any triumphalism after the release of these numbers. This is partly because, measured in purchasing power parity exchange rates, its GDP has been ahead of Japan's for quite some time now. It has also had a more important role and greater influence in the global system. But Chinese caution may also be because of concern regarding the quality of its growth process. For example, there is a call within China for measures to dampen growth and redress the problem of “overheating,” the most important sign of which is a speculative boom in the property market. But of greater concern for the country is the dependence of its growth on global markets in general and that of the United States in particular. This makes growth vulnerable, as governments respond either with protectionist measures or with demands for adjustments on China's part that could be expensive. It also increases international hostility towards the rapidly rising power. An influential view outside China is that its growth contributes to global imbalance and economic fragility. That argument is buttressed with data on the size of its trade surplus. Often these arguments are a cover for the ideological and political hostility generated by fear of a country which till recently was substantially centrally planned and even now has an economic and political system with unique characteristics. China must respond well; and it has clearly done so in recent times. It is making an effort at reorienting growth to the domestic market. It is making careful and calibrated adjustments of the value of the renminbi. It is seeking to rebalance growth in ways that make it more equitable and more environmentally friendly. It must now also take on a global role indicative of its status that favours justice and equality and helps make the current period of transition orderly and peaceful.
source; Hindu
Wednesday, 18 August 2010
China deploys new CCS-5 missiles on borders with India
The Indian Express
Tue, Aug 17 02:47 PM
China has moved new advanced longer range CSS-5 missiles close to the borders with India and developed contingency plans to shift airborne forces at short notice to the region, according to Pentagon.
Despite increased political and economic relationship between India and China, the Pentagon in a report to the US Congress said, tensions remain along the Sino-India borders with rising instances of border violation and aggressive border patrolling by Chinese soldiers.
However, a senior Defense Department official told reporters that the US has not observed any anomalous increase in military capabilities along the Sino-India border.
Noting that China continues to maintain its position on what its territorial claim is, the official said, the two
capitals – Beijing and New Delhi – have been able to manage this dispute, in a way, using confidence-building measures and diplomatic mechanisms to be able to maintain relative stability in that border area.
“But it’s something that China continues to watch; but I wouldn’t say that there’s anything in this report that demonstrates a spike or an anomalous increase in military capabilities along the border.
“It’s something that China’s paying very careful attention to. It’s obviously something that India is paying careful attention to as well,” the Senior Defense Department official said.
In its annual report, the US Defence department said, to improve regional deterrence, the PLA has replaced older liquid-fueled, nuclear capable CCS-3 intermediate range missiles with more advanced and survivable fueled CSS-5 MRBMs.
“China is currently engaged in massive road and rail infrastructure development along the Sino-India border primarily to facilitate economic development in western China: improved roads also support PLA operations,” the Pentagon said.
The report presented to the Congress said despite increased political and economic relations over the years between China and India, tensions remain along their shared 4,057 km border, most notably over Arunachal Pradesh, which China asserts as part of Tibet and therefore of China, and over the Aksai Chin region at the western end of the Tibetan Plateau.
“Both countries, in 2009, stepped up efforts to assert their claims. China tried to block a USD 2.9 billion loan to India from the Asian Development Bank, claiming part of the loan would have been used for water projects in Arunachal Pradesh. This represented the first time China sought to influence this dispute through a multilateral institution,” the Pentagon said.
The report said: “The then governor of Arunachal Pradesh announced that India would deploy more troops and fighter jets to the area. An Indian academic also noted that, in 2008, the Indian Army had recorded 270 border violations and nearly 2,300 cases of ‘aggressive border patrolling’ by Chinese soldiers”.
China refers to its intervention in the Korean War (1950-1953) as the “War to Resist the United States and Aid Korea.” Similarly, authoritative texts refer to border conflicts against India (1962), the Soviet Union (1969), and Vietnam (1979) as “Self-Defense Counter Attacks,” the Pentagon report said.
The Pentagon said Beijing remains concerned with persistent disputes along China’s shared border with India and the strategic ramifications of India’s rising economic, political, and military power.
The Indian Express
Tue, Aug 17 02:47 PM
China has moved new advanced longer range CSS-5 missiles close to the borders with India and developed contingency plans to shift airborne forces at short notice to the region, according to Pentagon.
Despite increased political and economic relationship between India and China, the Pentagon in a report to the US Congress said, tensions remain along the Sino-India borders with rising instances of border violation and aggressive border patrolling by Chinese soldiers.
However, a senior Defense Department official told reporters that the US has not observed any anomalous increase in military capabilities along the Sino-India border.
Noting that China continues to maintain its position on what its territorial claim is, the official said, the two
capitals – Beijing and New Delhi – have been able to manage this dispute, in a way, using confidence-building measures and diplomatic mechanisms to be able to maintain relative stability in that border area.
“But it’s something that China continues to watch; but I wouldn’t say that there’s anything in this report that demonstrates a spike or an anomalous increase in military capabilities along the border.
“It’s something that China’s paying very careful attention to. It’s obviously something that India is paying careful attention to as well,” the Senior Defense Department official said.
In its annual report, the US Defence department said, to improve regional deterrence, the PLA has replaced older liquid-fueled, nuclear capable CCS-3 intermediate range missiles with more advanced and survivable fueled CSS-5 MRBMs.
“China is currently engaged in massive road and rail infrastructure development along the Sino-India border primarily to facilitate economic development in western China: improved roads also support PLA operations,” the Pentagon said.
The report presented to the Congress said despite increased political and economic relations over the years between China and India, tensions remain along their shared 4,057 km border, most notably over Arunachal Pradesh, which China asserts as part of Tibet and therefore of China, and over the Aksai Chin region at the western end of the Tibetan Plateau.
“Both countries, in 2009, stepped up efforts to assert their claims. China tried to block a USD 2.9 billion loan to India from the Asian Development Bank, claiming part of the loan would have been used for water projects in Arunachal Pradesh. This represented the first time China sought to influence this dispute through a multilateral institution,” the Pentagon said.
The report said: “The then governor of Arunachal Pradesh announced that India would deploy more troops and fighter jets to the area. An Indian academic also noted that, in 2008, the Indian Army had recorded 270 border violations and nearly 2,300 cases of ‘aggressive border patrolling’ by Chinese soldiers”.
China refers to its intervention in the Korean War (1950-1953) as the “War to Resist the United States and Aid Korea.” Similarly, authoritative texts refer to border conflicts against India (1962), the Soviet Union (1969), and Vietnam (1979) as “Self-Defense Counter Attacks,” the Pentagon report said.
The Pentagon said Beijing remains concerned with persistent disputes along China’s shared border with India and the strategic ramifications of India’s rising economic, political, and military power.
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