/ |

Abe-Modi deals shows Asia’s top powers moving to keep rising China in check

by

Bloomberg

India and Japan took their biggest steps yet to deepen strategic ties, and it’s mostly thanks to China.

Indian Prime Minister Narendra Modi and Japanese counterpart Shinzo Abe reached a slew of agreements in New Delhi over the weekend that underscore how their personal chemistry is translating into ever-warmer economic, military and strategic ties. The steps are designed to ensure that the rise of China, the top trading partner for both nations, doesn’t come at the expense of smaller economies in the region.

“Modi and Abe are telegraphing a striking message: We’re taking this relationship to the next level, even at the risk of roiling China,” said Michael Kugelman, senior associate at the Woodrow Wilson Center in Washington. “As close as these two countries are, they had held off to an extent in order not to overly alarm China.”

Modi and Abe, whose personal ties date back to 2007, are both seen as conservative nationalists seeking to overhaul their economies and strengthen their militaries. Japan offers deep pockets, and India presents a growing market with a population set to overtake China as the world’s largest in 2022.

Abe has shifted Japan away from seven decades of postwar pacifism to empower the Self-Defense Forces, while Modi is investing more than $60 billion in India’s navy to deter China from establishing a foothold in the Indian Ocean. Those actions support U.S. goals to rally Asian nations against China’s efforts to control more of the South China Sea, which carries about a third of global trade.

“I cannot think of a strategic partnership that can exercise a more profound influence on shaping the course of Asia and our interlinked ocean regions more than ours,” Modi said at a joint news conference with Abe on Saturday. “In a world of intense international engagements, few visits are truly historic or change the course of a relationship. Your visit, Mr. Prime Minister, is one.”

Among the highlights of Abe’s three-day visit that ended on Sunday:

A $15 billion deal for Japan to help build India’s first high-speed rail link.

A breakthrough on nuclear energy cooperation that paves the way for companies such as Westinghouse Electric Co. and General Electric Co. to sell equipment to India.

¥1.5 trillion ($12.4 billion) in Japanese financing and export insurance to spur investment in India.

Defense agreements aimed at containing China’s expansion in regional waters.

Japanese funds to build roads in India’s northeast, where one state is claimed by China.

The deals are bringing India, which formally avoids security alliances, further into the U.S. military orbit.

Japan will join India and the U.S. as a regular member in the biannual Malabar naval exercises to “help create stronger capabilities to deal with maritime challenges in the Indo- Pacific region,” the two leaders said in a joint statement. The three nations are already becoming “interoperable” after Japan joined as a guest for their most complex naval exercises in October, U.S. Ambassador to India Richard Verma said last week.

Next year, India and Japan will hold a second round of trilateral diplomatic talks with Australia, another U.S. ally. Modi and Abe also signed pacts to share classified intelligence and pave the way for a long-pending deal to export Japan’s US-2 amphibious aircraft to India.

While neither Japan nor India has claims in the South China Sea, they both have other territorial disputes with Asia’s biggest economy. China has sparred with Japan over the Senkaku Islands in the East China Sea, and India has expressed concern over Chinese moves to send submarines to Sri Lanka and build a port for its archrival Pakistan.

Modi and Abe called for a “peaceful, open, equitable, stable and rule-based order in the Indo-Pacific region and beyond” in their joint statement.

To be sure, both India and Japan remain heavily reliant on China for economic growth. Japan’s trade with India is about 5 percent of its commerce with China, and less than a quarter of India-China trade. China’s Foreign Ministry on Sunday didn’t reply to a fax requesting comment on the growing economic and military ties between India and Japan.

“All countries have the right to make their own decisions about who they want to cooperate with,” Chinese Foreign Ministry Spokeswoman Hua Chunying told reporters in Beijing on Wednesday when asked about the pending rail deal between Japan and India.

There’s more coming that could upset China.

Japan agreed to help finance infrastructure projects in India, including roads in its northeastern states, one of which is the disputed area of Arunachal Pradesh. In recent months, India has pushed ahead with plans to build a $6 billion highway and populate the remote region it has neglected since fighting a war over it with China five decades ago.

The biggest surprise was a breakthrough on a nuclear cooperation agreement under negotiation since 2010. Japan — the only country to have suffered an atomic bombing — had been holding out for tougher safeguards from India, which hasn’t signed the Nuclear Nonproliferation Treaty.

“The key part has been done,” Foreign Secretary S. Jaishankar said. Japan’s concerns have been addressed by India’s self-imposed moratorium on nuclear tests, though Tokyo would reconsider the pact if the South Asian nation detonates an atomic device, Foreign Ministry spokesman Yasuhisa Kawamura told reporters in New Delhi.

While “technical details” still need to be finalized and the Diet would have to endorse the pact, Abe told Modi that even getting this far wouldn’t have been possible if two other leaders had been in power, according to Kawamura.

“India-Japan working together is an idea whose time has finally come,” said Aparna Pande, the Washington-based director of Hudson Institute’s South Asia initiative. “The relationship has the potential to become ‘the’ defining relationship of this century.”

  • ds sarma

    Delhi – Hyderabad – Amaravathi- Chennai -Bangalore- Hyderabad- Delhi .
    This is the route to connect South India to Delhi. This will be one of the busiest route and unlike northern states, most southern states are richer with high per capita incomes. Hence Japan may consider this route for the next Bullet train. I believe China is already working on this project.

  • disqus_vBekJrf7g5

    ‘Coup for Japan’ ‘defeat for China’ is exactly the kind of zero-sum Japanese thinking that sees them selfishly killing whales and depleting global tuna stocks (not to mention threatening the world with nuclear plants on to of fault lines), because it’s a kind of ‘if you win, then we must be losing, right?’ mentality that prevents Japan from being able to understand ‘win-win’ outcomes. Japan MUST win, everyone else MUST lose.

    • CLJF

      And of course China, by contrast, is the absolute model of a global citizen.

      • tisho

        Actually when it comes to trade and business, China is the role model. Look at what China is doing with Africa, pure trade, no political attachment or conditions, trade is always a win-win relationship for both sides. China has done more to help lift Africa out of the poverty in just a couple of years than American and Europe has done in the past several decades. There is a documentary called – the Chinese are coming, it’s worth watching. There are also a lot of short documentaries about China – Africa trade and relationship. The largest African population in Asia is in China, there are more than 50,000 Africans just in one city – Guanghzou, the majority of them are long term residents. China offers a lot of scholarships to Africans to come to China to study or do business, it’s easy for any African to go to China and do business or trade, a lot of them do. China brings competition to Africa, free trade and opportunities. No other country does that. I suspect as China is moving towards a more consumption driven and high tech economy, the cheap manufacturing will be moved to Africa.

      • CLJF

        You picked a pretty poor example to demonstrate China’s ‘model’ behaviour, unless you’re referring to China’s blatant exploitation and shoddy workmanship.

      • CLJF

        You picked a pretty poor example to demonstrate China’s ‘model’ behaviour, unless you’re referring to China’s blatant exploitation and shoddy workmanship.

      • 99Pcent

        What!!! trade and business, Model? LOL African nations are waking up to a
        horrible reality by trading with Africa. China is draining all their
        natural resources under the act of constructing roads, highways and
        ports that are all designed to transport resources out of the country.
        The people are still in poverty and many of the existing business are
        now losing out because Chinese are copying all the traditional crafts
        such as textiles etc and selling back to the African people at dirt
        cheap prices, destroying the established business sectors. At the same
        time the Chinese are responsible for the destructing of wildlife, now
        they have succeeded in killing of the white rhino for its horn so they
        can get a placebo for a bonner. African gold and diamond mines are also
        being swamped by Chinese mainlander miners and smuggling out good of the
        country by bribery as to escape tax. NO This Is NOt a good business
        model, full stop.

      • tisho

        Actually when it comes to trade and business, China is the role model. Look at what China is doing with Africa, pure trade, no political attachment or conditions, trade is always a win-win relationship for both sides. China has done more to help lift Africa out of the poverty in just a couple of years than American and Europe has done in the past several decades. There is a documentary called – the Chinese are coming, it’s worth watching. There are also a lot of short documentaries about China – Africa trade and relationship. The largest African population in Asia is in China, there are more than 50,000 Africans just in one city – Guanghzou, the majority of them are long term residents. China offers a lot of scholarships to Africans to come to China to study or do business, it’s easy for any African to go to China and do business or trade, a lot of them do. China brings competition to Africa, free trade and opportunities. No other country does that. I suspect as China is moving towards a more consumption driven and high tech economy, the cheap manufacturing will be moved to Africa.

      • disqus_vBekJrf7g5

        What’s China got to do with it? It’s all about Japan’s binary outlook that makes it totally unable to see the world in anything other than ‘If you win, we must be the losers’ mentality.

      • 99Pcent

        sounds like you are talking about yourself.

    • 108

      You’re so cute…

    • 99Pcent

      The usual hate filled Japan bashing from the Chin-Ko “sour grapes” troll.

  • j mazzini

    The title “Japan picked over China” should have read “Japan picked because China is not eager to loan money to India”.

    China is not eager to finance a competitor and a potential military adversary like India in infrastructure projects. It is interested in building if India can get the financing from elsewhere. India has a sovereign credit rating near junk status. It has a very high risk of defaulting on foreign loans. It is paying very high interest rates for its debts.

    China is investing tens of billion of dollars in friendly Pakistan building multi-billion-dollar port, highways and other mega projects.

    • Rana

      India’s credit rating “near junk status”? Are you under influence of some narcotics drugs? As per the 2015 latest ratings – India has “Positive” and “Stable” ratings from Standard & Poor’s, Fitch, Moody’s, DBRS, China Chengxin Credit Rating Group, Dagong and JCR. Don’t try to spread rumours. Carrying out cyber jehad on behalf of “Islamic Eczema of Phakistan” does not mean spreading rumours. Even the credit agency Dagong (from China) gives your Islamic Republic a “negative” rating.

    • AmIJustAPessimistOrWhat?

      Balance of power can be a good anti-dote to war. And when competition takes the form of financial support for infrastructure projects it is beneficial – much better than pouring resources down the drain of injurious proxy wars, or possibly even worse direct wars..

      Hopefully China’s efforts will help economic growth in Pakistan which will put a damper on its internal and external conflicts.

      How much importance to attach to the bond ratings? I don’t think it has played that much of a role in this case. India has maintained a true democracy since independence in 1947. (In contrast Pakistan’s democracy has been on and off, 2013 marked the first peaceful democratic transition between governments in Pakistan since independence.) India’s GDP growth would be the envy of any developed world nation. (India’s is on average less than China’s, but more than Pakistan’s.)

  • Rana

    Dev Gupta is a coward jehadi from “Islamic Eczema of Phakistan” and is hiding under a fake Hindu name ID. He is simply ashamed to disclose his true Phakistani nationality and is also ashamed to use his own Muhammadi name.

  • Rana

    Dev Gupta is a coward jehadi from “Islamic Eczema of Phakistan” and is hiding under a fake Hindu name ID. He is simply ashamed to disclose his true Phakistani nationality and is also ashamed to use his own Muhammadi name.

  • Squidhead

    Of course they picked Japan over China. They don’t want the thing to break down.

  • woodynatural

    how people get worked up lol, Japan wins because they make the best trains, fulls top. funny how the bash japan brigade always, truly always finds something negative hahaha what a bunch of jokers

    • disqus_vBekJrf7g5

      Well I’m bashing Abe because the only way Japanese companies could win this contract was if the Japanese tax-payer gave India the money first. Corporate welfare and scandalous irresponsibility with my tax money. Japan is a kleptocracy to make Mugabe blush.

  • woodynatural

    how people get worked up lol, Japan wins because they make the best trains, fulls top. funny how the bash japan brigade always, truly always finds something negative hahaha what a bunch of jokers

  • Saurav

    Abe-Modi have taken Indo-Japan relations to a new high. India & Japan are natural strategic partners. We need to cooperate more.

  • Squidhead

    My comment criticizing China’s shoddy quality was deleted. Take note.

  • Ab

    Ideologically, I find, India and Japan on the same plank. And the two decisive leaders at the top leadership, facilitates an opportunity for both country to stop the expansionist mindset of China. Icing on the cake will be, the joining of Russia in this group.