10/6/2014 Mrunal Diplomacy: China's Maritime Silk Road Initiative, India's stand

http://mrunal.org/2014/10/diplomacy-china-maritime-silk-road-initiative-purpose-salient-features-india-stand.html/print/ 1/5
- Mrunal - http://mrunal.org -
[Diplomacy] Chinas Maritime Silk Road initiative,
Purpose, Salient Features, Indias stand
1. What is MSR initiative?
2. Why New Maritime Silk Road?
3. How to implement Maritime Silk Road? (2+7)
1. TWO = consensus on two issues
2. SEVEN proposals
4. Indias stand on Maritime Silk Road?
5. New updates
What is MSR initiative?
Old topic, carving out separate article for continuity in revision of another topic
i.e. Xis India visit.
In 2013, both leaders of China announced this initiative:
1. President Xi Jinping @Shanghai Cooperation Organization (SCO) summit in
Bishkek.
2. PM (Premier) Li Keqiang @ASEAN+China summit in Brunei.
Objectives
1. Connect 12 inland Chinese regions with 14 neighboring countries. (revive
ancient silk road)
2. Get new export markets
3. Secure lanes to import raw material.
4. Counter the influence of USA and Russia.
Why New Maritime Silk Road?
Yes why does China want to build New Silk road? Why not simply build military
naval ports in chillar nations like Pakistan and SriLanka and nuke India and USA to
obliteration!?
10/6/2014 Mrunal Diplomacy: China's Maritime Silk Road Initiative, India's stand
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#1: Economic reasons
Subprime crisis => global economic crisis => Fed Tapering=> less FDI and
import orders from US and EU.
Result? Chinas Export & FDI driven economic model is losing its effect.
China needs to find new export markets (those 14 neighbor countries).
Just like we have India vs Bharat- similarly China has Rich Coastal areas vs
poorly developed interior regions.
The growing disparity between Coastal China vs Inland China = creating social
problems, helping extremists and junta demanding for democracy. Hence China
needs to develop those 12 inland regions (mostly located in Western Part of
10/6/2014 Mrunal Diplomacy: China's Maritime Silk Road Initiative, India's stand
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China).
#2: Defusing tension
Since 2011, because of South China Sea dispute, Chinas relations became
bitter with- Cambodia, Laos, Thailand, Malaysia, Japan. New Silk Road policy
seems to be aimed at defusing tensions- via soft language and economic offer.
This can be seen as Chinas olive branch to ASEAN countries.
#3: Countering US+Russia
China wants to counter / balance following:
1. USAs Pivot Policy in Asia Pacific
2. USAs proposed Trans-Pacific Partnership (TPP)
3. U.S. support for democratic transition in Myanmar
4. USAs security cooperation with Singapore, the Philippines, Indonesia,
Malaysia, Thailand and Brunei.
5. Russias proposed Customs Union (now Crimea will giveem access Black
sea and Suez Canal.)
#4: Strategic supply lines
Strait of Malacca= pirate infested waters but >80% of imports to China come
from this route. China wants to secure this lane.
China wants to gain access to Bengal Bay and Indian Ocean = Need better
relations with Myanmar and ASEAN.
How to implement Maritime Silk Road? (2+7)
The gist of New Maritime Silk Route is
1. Develop port cities along the silk route
a. above the wind region: Indian Ocean
b. Below the wind region: Malacca, South China Sea, Java Sea and Far East.
2. Via these port cities, link Asia and Africa with Chinese hinterland.
This will be implemented via 2+7 cooperation framework.
TWO = consensus on two issues
#1:
Strategic
relation
1. Strategic relations with good neighbors.
2. Signed strategic partnership agreements with Kyrgyzstan and
Turkmenistan.
#2:
Economic
With chillar countries in Central Asia, China signed preferential
trade agreements, gave them cheap loans.
Heavy investments via Chinese PSUs. Mainly in energy (oil-
gas pipelines) and transport (railway, highway and ports).
10/6/2014 Mrunal Diplomacy: China's Maritime Silk Road Initiative, India's stand
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cooperation Joint infrastructure projects (rail-road-ports)
Even proposed Asian Infrastructural Investment Bank. Its
offices will be setup in the capital cities of various Maritime
silk road countries.
SEVEN proposals
1. sign China-ASEAN good neighbor treaty
2. get maximum benefit from China ASEAN FTA
3. Conclude RCEP by 2015. China led Regional Comprehensive Economic
Partnership (RCEP)= the FTA between ASEAN and China, Japan, South Korea,
India, Australia and New Zealand); eliminate trade barriers.
4. Regional financial cooperation (to prevent subprime/ BoP crisis) recall that
China gave maximum funding to BRICS Banks emergency fund against Fed
Tapering.
5. Maritime cooperation- Already working on Gwadar (Pak), Hambantota
(SriLanka) and Chittagong (Bangladesh). Proposal for Bangladesh-China-India-
Myanmar (BCIM) corridor
6. security cooperation
7. People to people contact for culture, science and environment.
Indias stand on Maritime Silk Road?
As per PTI reports, the Chinese Officials discussed this with NSA Shivshankar
Menon and asked India to join in the Maritime Silk road (MSR) project.
But then Mohan got too busy denying Modi ki Lahar, Sanjay Baru ki Kitaab,
with Elections hence MSR decision postponed.
Presently, India has two opposite options:
a. Work together with China, letem gain presence in Indian ocean and reap the
collateral economic benefits from this project.
b. Dont work with China, and prevent Chinese influence in Indian Ocean.
The Next government will take the final decision.
New updates
1. Xi invited India, Sri Lanka and Maldives to join Maritime Silk road (MSR)
initiative
2. But Modi remained non-committal, saying it requires mutual trust, stability,
respect, free flow of commerce and ideas.
3. In other words, if China opens up its economy to indian goods and services,
helps reducing Indias trade deficit, maintains peace @border region, then well
consider joining M.S.R.
Mock Questions
Answer following in 200 words each:
10/6/2014 Mrunal Diplomacy: China's Maritime Silk Road Initiative, India's stand
http://mrunal.org/2014/10/diplomacy-china-maritime-silk-road-initiative-purpose-salient-features-india-stand.html/print/ 5/5
1. What is Chinas new Maritime Silk Road Policy? How is it different from its
String of Pearls strategy sufficient?
2. Discuss Indias strategic and economic interests in Maritime Silk Roa proposal.
Should India accept President Xis invitation to join it?
Published on 05/10/2014 @ 10:28 pm under Category: Diplomacy
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initiative-purpose-salient-features-india-stand.html