- G. Parthasarathy (21.07.2011) - Nilanjan banik (21.10.

2011)

 Dr Henry Kissinger makes some interesting

revelations about China's invasion of Vietnam in March 1979 in his recent book on China. explains how Deng Xiao Ping made elaborate preparations to invade Vietnam by embarking on a charm offensive, with visits to Japan, South East Asia and last but not least, to the US. According to Kissinger, Deng indicated that China's plan was to mount a limited punitive strike, followed by a retreat in Vietnam, as it had done in the 1962 conflict with India.

 According to china, China in these days is

becoming more and more assertive in nature. Major issue is the chinese border claims with its neighbours. Also works on its projects in diverting waters of the river BRAHMAPUTRA. Clearly alarmed by China's growing assertiveness' on its maritime boundaries, from Japan, South Korea and Vietnam to the Philippines, Malaysia and Brunei, Hillary Clinton joined Asean Foreign Ministers at an Asean Regional Forum meeting in Vietnam in July 2010, expressing concern about growing Chinese disinclination to work constructively with its Asean neighbours.

 The US' concern was again expressed at a

meeting of Defense Ministers of Asian and its partners in Hanoi in October 2010. During the past year China has not hesitated to use force along its maritime boundaries with Japan, Vietnam and the Philippines. In May 2011, a Chinese fishing boat escorted by two Chinese naval vessels deliberately rammed a Vietnamese seismic survey ship. Vietnam was told: China will take whatever measures are necessary to protect its interests in the South China Sea.

 The Finance Minister, Mr Pranab Mukherjee,

told Vietnam's Prime Minister, Mr Nguyen Tan Dung, on May 8 that India would continue to assist Vietnam in the modernisation of its armed forces, focusing attention primarily on its Air Force and Navy. If we are really serious about developing Vietnam's capabilities to defend its maritime boundaries, we should be prepared to transfer potent weapon systems, such as the Brahmos Cruise Missile, to that country.

 Not only is claim being laid to the entire State

of Arunachal Pradesh, but China is now alluding to the length of the Sino-Indian border as 2,000 km instead of the actual length of 3,488 km, thereby excluding its borders in the western sector with Jammu and Kashmir from the ambit of differences over the Sino-Indian border. India needs to play an active role in building an inclusive architecture for security in the South China Sea and across the Asia-Pacific. We are expanding defence ties with Japan and participating in multilateral naval exercises.

 These aggressive actions of china are an

outcome of a combination of factors, such as protectionist measures in the US and the EU against Chinese exports; unabated price rise in China, including higher labour costs, energy prices and land rents; and the appreciation of the renminbi. In this scenario, the South-East Asian region promises access to a bigger market.

China after 2008:

During 2008, Chinese exports to the EU and

the US fell by 19.4 per cent and 12.5 per cent, respectively. Global Trade Alert (a database tracking number of protectionist measures imposed around the world) has indicated that as many as 659 measures were initiated against Chinese exports after 2008. Chinese firms are looking for alternative production bases to evade such protectionist measures. Given its geographical proximity to mainland China, the South-East Asian region becomes a natural choice.

 Active intervention of the chinese central

bank in Foreign exchange market to appreciate renminbi and increase in incomes in China, have resulted in overheating of the economy. On a year-on-year basis, as of November 2010, labour costs were up by 21 per cent, and the home prices across 70 cities in China have gone up 7.7 per cent. If allowances are to be added with annual wages, Chinese labour costs are at least double compared with other regions in South-East Asia.

Access to a bigger market:

Trade and investment measures undertaken

in the South-East Asian region are nondiscriminatory and complementary in nature. Asean nations such as Cambodia, Laos, Myanmar and Vietnam are increasingly driving down tariff barriers and other border costs. Free market access for Chinese exports into this region means a larger market for their manufacturers.

 China has also granted zero tariffs treatment

to Cambodia (83 products), Laos (91 products) and Myanmar (87 products). The US wanted to mediate using the Asean forum, which China has been opposing. So what the Indian media calls Chinese aggression appears to be quite rational on the part of China. Hence, China a shows a greater interest in the south east asian countries on the border wise and also market wise which indeed in whole Making china as a supreme power of ASIA.

 COURTESY: BUSINESS LINE

THANK YOU