Write your abstract here.
Summary by Konthai of an article by TB MACDONALD
in Outlook "CAUTION: BENDS AHEAD+++ Part 2.__________________________________________ _______________________________________________________________________________ The
"Chindia " theme declared in 2006, by China''s Premier Wen Jiabao
envisaged that China and India will be a source of economic power in
the 21st century: "Cooperation is just like two pagodas - one hardware
and one software." Chinese and Indian businesses are likely to become
rivals. Currently China easily dominates in manufacturing, while India
dominates the service sector. However, China seeks to move further into
services and India into manufacturing. While India has been
criticized for not further developing its industrial sector . the
process is gaining momentum as reflected by the globalization of such
firms as Tata Motors (auto motives), Vedanta Resources (metals and
mining), Hindalco (metals) and Dr. Reddy Laboratories
(pharmaceuticals)From oil exploration to revitalizing Africa''s mining
industry, Indian and Chinese
companies are present in far away places
such as Zambia, West Africa and Latin America. While the two-pagoda
theme, conceives a more visible affinity between the
countries for
soldering Sino-Indian relations, there is still cause for rivalry.
China with the advantage of an earlier start in globalization and
broader diversified export base. is in an advantageous position but
India is catching up,'' Driven by its service sector, and and also
getting into on the industrial side. Indian takeovers of Western assets
occur with much less opposition than China''. Of the two major South
eastern countries , India is a more comfortable fit - politically,
as a fellow democracy; linguistically, with English; and socially, as a
member state of the Commonwealth.While China has little desire to
remain in the hardware pagoda, and similarly India also is not
eager to remain in the software pagoda. Both have competent companies
moving into both sectors. China seems to envisage that India remain a
regional power that can be contained. But , India has greater
aspirations, especially as its companies enjoy a period of global
expansion.The aspirations of the two nations portend a future of
growing rivalry, in which both seeking advancement in their national
interests by offering market and capital, and through the projection
of soft power, but with military power in the background. Considering
the earlier border issues and the competition over natural resources ,
also a still-fluid international system for Asia and the rest of the
world, the Big question is how New Delhi and Beijing will manage the
ups and downs of tectonic economic shifts and the potential for their
competing world views.
India''s democracy project envisages a change of
government in a relatively orderly fashion; but changes of government
in China are much more of a Byzantine affair, and discontent with
market-Leninism opens the door to decisions being made in the street
rather than in the voting booth,. The ultimate result of all these
will impact everyone in Asia and is likely to put to rest any notion
of "Chindia condominium. "
KONTHAI