ONE CHINA

ISLANDS CLAIMED BY CHINA

China and philippines claimè scarborough shoal

Brunei and China claim è maccales field bank

China and vietnam è parcel island

How the island dispute started?

National Geographical channel survey report telecasted in TV it said south china has barrels and barrels of oil is found in south china sea. That news was attracted all the nations especially the surrounding nations. Such as Philippines, Malaysia, Myanmar, Vietnam, Japan,Cambodia, Brunei, India etc. That is why china wanted to show his assertiveness in towards world by exercising its sovereign power over the maritime region. China claim that region is the part and parcel of China. They said it comes under their Exclusive Economic Zone.  In that region only china can explore or involve in anykind of economic activities.

            As per United nations convention on laws of seas(UNCLOS) every nations can exercise right over the maritime regions. That portion is measured as 200 nautical miles. One nautical miles is equal to 1.6 kilo meters. If we take countries which are closely packed or if the distance between the adjacent nations they can share considerable portions. This was one of the provisions of united nations convention on laws of seas. Now china claims 5 groups of island in toto.

The place where the disputed islands exist is called as china pond the same region is called in philippines as west philipine sea.

Why  our country show interest in that region?

Because our indian country ONGC videsh limited  a subsidiary of ONGC  upstream company going to explore the offshores of vietnam. That region has gas resources. This was objected by china.

How china showed his assertiveness regarding this dispute?

1.      When INS Airavat travelled towards vietnam for friendly visit indian naval officers received a threaten call from china

2.      When INS  Godavari entered that region a chinese patrol ship came very close to our naval ship if our naval officers were not alert that would resulted in collision of two ships and accident. In these ways it showed its assertiveness in this matter.

ASEAN countries thinks that India is the only country which can oppose china’s claim in that region. India as the saviour etc

How india going to help other countries in this matter?

Vietnam purchased sukoi aircrafts and kiloclaus submarine but they were not in position to operate those aircrafts and submarine. Our indian officers will expert training to that country so that they also can show their objection againsst china regarding this dispute. We also having the same technology in INS  sindhugosh submarine. We are expertised in operating the submarine and oour pilots also expertised by making 29 aircraft crash/accidentsJJJ

            China claim its exclusive economic zone but India in counter claims the freedom for international navigation..

STRING OF PEARLS THEORY OF CHINA

            China developing ports in Gwader(Pakistan), Male, sudan port (sudan), seychells, columbo and hambontota(sri lanka), sittwa(Myanmar) and chittagang(Bangladesh). In srilanka male they have started their embassy. These ports later may be used as military bases against India. This chitagong and sittwa region is feded with gaseous resources. This china’s strategy is almost at the verge of completion.

NECKLACE OF DIAMOND

            India introduced counter strategy of necklace of diamond. In this India follows three principles:-

1.      Piracy

2.      South to south cooperation

3.      Establishing relationship with maritime democracies

PIRACY:- India earned support of  countries whose ships were pirated. India set up a special group for this purpose. Later the somalian pirates also arranged a round table conferences in that they decided to capture Indian naval ships then slowly India reduced its enthusiasm in piracy matters.

            SOUTH TO SOUTH COOPERATION:- in this aspect IBSA plays an important role. Because India is in south asia, Brazil is in south America, South Africa in southern part of  Africa. All these countries were democratic countries whereas china is one party ruling country. We used to have naval exercise with china its name is IBSA mar. This was stopped after the china’s historic voyage(ice dragon xeulong) in arctic region and near Indian ocean(Liooning). This symbolically represents china claims right over the entire world.

INDO CHINA DISPUTES

India and china dispute is very serious in western and eastern part but the middle part dispute almost solved. In 2010 our Indian Army Northern commander v.s.jaswal wanted to In turn India stopped defence cooperation with china. This cooperation is nick named as hand in hand.  In counter of this china started issuing stapled visa to the passengers from jammu and Kashmir and arunachal Pradesh to china. This symbolically represents these regions were not part of india.

            Then Chinese premier wen jia bo came to india for good relationship then this staple visa problem kept silently now. But in joint statement before media India did not said anything acceptance of one china policy this created some sort of hurt to china. Then china’s defence minister Mr. Lian gwangley came to India and said 2012 as year of friendship cooperation. This cooperation will start from 2013. But they introduced e-visa.  In that website they showed atchai chin region, sikkim and arunachal Pradesh as their part of country..

            The chumbi valley is found in between Sikkim and Bhutan. Border dispute in this region solved only in the northern part of Sikkim and china but that dispute exist in the chumbi valley region.. in this region china laying roads. China has strong infrastructure in Himalayan region. But our country was not having that much infrastructure. They have road transport , train transport and air base going to construct. Newspapers view is that china can spread its wing at any point of time.

TRADE DISPUTE:-

            Our current trade deficit is $175 bn. Between india and china we have $80 bn .. only thing exported from india to china is iron ore that to they get illegally through Bellary brothers. This iron ore returned to india as finished goods.

            India requested china to establish IT & ITes and pharma. China also said ok for that.

Trade deficit between india and Pakistan is $2 bn. This is dangerous for india. Because if country has more trade deficit with enemy country then it is a safeguard for opponent country. In this aspect to some part of time we won’t experience any war between india and china but we can expect war between india and Pakistan because we had only 2bn dollars.

3.      SPS AGREEMENT(sanitary and phytosanitary measures)

As per wto agreement many countries using its provision as protectionism by way of imposing duties on the other countries to avoid imports.

India imposing anti dumping and counter veiling duties on china and india is the only country which imposed more duty against china. Still they showing interest in exporting their goods to india.

4.      TBT AGREEMENT:- technical beariers to trade agreement ofwto also used as protectionism provision against a country. According this every country should subject their products to lab testing.

5.      Water dispute:- in Brahmaputra china constructed many dams not only that it tried to change the route of water from south to north. Then they left as state to state relation.

Dispute in Tigerè treating infertility(syrup) using tiger bones. But that tiger is the symbol of our nation

Captive breeding of tiger :- they simply grow tigers after giving birth to cubs they will kill parent tiger.

Rhinoceros è has good value in Vietnam because they use in cocktail parties

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FDI in retail

In order to improve our countries economy government tries to introduce foreign investment in India. Let we see in what way This foreign investment will help  to improve our economy or not. First of all our country is based on agricultural economy. That is why the government mainly says fdi in retail will give benefit to farmers. It will eliminate intermediaries. Give more employment opportunities, etc etc. Why we need foreign investments? We are not having sufficient fund to manage our country. Let us see how our country earning money. In economy balance of payment is divided into two 1.   Current account 2.   Capital account This current account gives us short term term earnings whereas capital account gives long term. Again we can classify this current account into 1.   Visible (goods and commodities we produced, exported, imported) 2.   Invisible (services, transfer, income) This visible current account can be divided into 1.   Exports 2.   Imports The sum of export and import is called as our countries balance of trade. Just like our family income and expenditureJJJ. under invisible current account category transfer is important source of income. Remittance sent by our citizens who are working in abroad generate a considerable income to our country. Here let we talk about second part of balance of payment  that is capital account. This capital account is long term investment. Under this we have 1.   Foreign direct investment 2.   Port folio investment 3.   NRI deposits 4.   Short term capitals 5.   ECBS For the year 2012 we set target $360bn, but as per recent announcement we are not achieving that target in this fiscal year. When we need foreign investment only when we affected with trade deficit. Ok let we see what is trade deficit When import>export it is called trade deficit Whereas Export>import is called trade surplus. We are consuming more that is we are importing more than exporting. That is why we are having $175bn trade deficit. In the year 1991-1992 we had balance of payment crisis. That is why borrowed loan from international monetary fund. Now we come to foreign direct investment This FDI is divided into two 1.   Greenfield FDI 2.   Brown field FDI If we see these types greenfield FDI is for construction purpose whereas brownfield FDI is for consumption purpose. The present proposal of FDI is only for brownfield FDI it is not good for us. Because greenfield fdi gives opportunities from the bottom level whereas the brownfield fdi gives development on the well established existing institutions which means it borrows the shares of the established companies and it will do some jimicsJ The investment also divided into two 1.   Domestic direct investment 2.   Foreign direct investment Domestic direct investments means the assets we have it may be liquid assets. All our citizens having gold as a saving this can be used us.when we have this surplus domestic investment no need for foreign investents. Even if we receive foreign investments only direct investments alone will give some sort of benefits that institutional investments, because this institutional investments, nri deposits etc will investment only when our country gives them more interest rate otherwise they won’t invest on those shares. Under present situation the foreign directinvestments are used in consumption purpose. Do you know when the foreign directt investments will give us benefit only when they were used in construction purpose then only we can get benefit. Present FDI is not used in construction purpose. Secondly we are using it in oil imports, and Gold imports, we have imported 1000 tons of goldJ Ofcourse oil import is import because using oil only we are generating powers. If we use it in this two matters  alone will we get any benefit ? Now let we see about FOREX Forex is divided into two 1.   Asset 2.   Liabilities Assets and liabilities together called as repatriability Under asset forex we have 1. Export earnings, 2. Foreign aid(oc la vara dubbu)  JJ. This foreign aid neet not be repaid by us. Under liability forex we have 1. FDI consumption 2. FIIs 3. NRI external accounts 4. Foreign Currency Non Resident Accounts POSITIVE ASPECTS OF FDI ACCORDING TO OUR COUNTRY 1.   Infrastructure development 2.   Warehouse 3.   Power 4.   Roads 5.   Elimination of middleman 6.   Jobs 7.   Technology 8.   Remunerative price 9.   Managerial capability and operatioinal probability 10.                     Inflation will be controlled As per FDI retail policy what will we get? 1.   $100mn minimum we will get 2.   50% invested in infrastructure 3.   30% outsourcing to be outsourced from the local markets i.e through SMEs COUNTER TO THE POSITIVE ASPECTS OF GOVERNMENT VIEW ON FDI 1.   Elimination of intermediaries According to the present market situation we have 1 or more intermediaries. When FDI is coming to our country they will be eliminated. Indirectly they say lobbying giants of US will act as intermediaries which will hidden from our eyes. They are walmart, tesco, sainsbury, carrefloor 2.   Cold chain and Warehouse Why our government waiting for someone to come and to it. He also will buy everything from india or where it is cheaply available.(i.e from china more cheap than our market) so benefit will go to the giants and other countries not for us. As per Rao manmohan model FDI should be banned in india but the government did not considered the recommendations of this panel 3.   Predatory pricing will be controled by our competition commission of india but in reality the CCI can’t do anything in this matter because it can impose only penalty. That penal amount is very meagre compare to what they earned. For example essar company earned more in 2G when we questioned it russia threatening us we will go to ICJ ADR etc,same thing will happen. 4.   Infrastructure If we talk about power and roads it is completely under our government control.if anything done in this respect it should be done by our country not by those giants. Government hide this truth from us. 5.   Technology, mangerial and operational process Already we saw this FDI going to be invested in consumption purpose only meagre amount will be invested in infrasture. Even if they invest in infrasture the benefit will be enjoyed by the reality sector not by our agricultural sector. Already the reality sector earning much more if they earn through FDI they become much more wealthier people of our country not our agricultural community. 6.   Jobs:- if we talk about employment we have two sectors 1.   Agricultural 2.   Manufacturing Present GDP contribution in agricultural sector is only 16-17%. Our country is suffering from under employment, at this juncture this proposal will not work. Second thing our government introduced krishi vikash yojana but its target of 4% was not yet achiveed so far. Manufacturing contributes 14-15% to the GDP Target=25% This target was mentioned in National manufacturing policy Our country shows China as role model for introducing FDI in retail. Just think their economy is manufacturing sector based but our’s is service sector based economy. Service sector’s contribution in GDP is 50-60%. Will this fdi help us? India has the highest density population=11/1000 95% belongs to BPL families. These BPL people running small shops and earning for their life. If the FDI is introduced these shops will be entirely abolished. This FDI will give opportunities only to the younger generation the older generation will be left unemployed. AS PER US STUDY Walmart’s turn over is $450bn 2bn employment opportunity Our tirana’s turnover is$460bn 44mn employment opportunity REMUNERATIVE PRICING US STUDY Every 20 minutes one farmer quitting agriculture. If this walmart provide good opportunities why they are doing so? Not only that US provides more subsidy to  their farmers. Walmart has no role in their benefits. If this walmart introduced in india our country people should beg before the another country for their daily bread. INFLATION This fdi will not control our inflation in any manner. It will introduce dictatory pricing and predatory pricing MIDDLE MAN This walmart will introduce standardisation, quality control and certification. INDIAN STUDY Our country introduced cooperatives. We are the largest producer of milk in the world.70% were given to the farmers as remunerative pricing in india at present and 30% to the retailer. If FDI introduced this ratio will change 30 to farmers,70 to retailers/ OUTSOURCING Our country introduced dereservation policy in SMEs earlier 374 items produced by our SMEs now  only  24 items produced by SMEs. They were not in a position to fulfil the requirements of those giant companies. WTO agreement:- As per Trade related investment measures(TRIMs) we introduced national treatment policy i.e. foreign players and national players must be treated equally. Finally our state government said we will not introduce this FDI in tamilnadu. Can they stop introduction of FDI in tamilnadu? As per 7th schedule of our constitution, foreign investment , foreign policy are under the control of union list but retail is under state list. State government can’t do anything in union decision. We have signed bilateral investment protection agreement(BIPA) with 84 countries using that russian president vladimir putin threatening us. This BIPA has two draw backs 1.   National treatment(according to this we should treat foreign players equally with our players. Our people already in bad condition can they compete with them?) 2.   Most favoured nation status(this is to establish normal trade relations between two nations. But it will benefit the hidden middlemans walmart, testco, carrefloor) INDIAN STUDY Parliamentary standing committee chaired by Mr. Murlimanohar Joshi analysed four aspects 1.   Jobs 2.   Predatory pricing 3.   Dictatory pricing 4.   Environmental issues. Then they recommended complete blanket ban on FDI in india. ICRIER STUDY  In this study only 300 people from high class and middle class people were surveyed but main target people below poverty level families didn’t surveyed. LOBBYING:- In us lobbying is not an offence infact they have to produce a report once in 3months under the lobbying disclosure act. Implicit lobbies of india are 1. ASSOCHAM 2.CII 3. FICCI FEMA:- Our RBI recommended to introduce amendment in FEMA when a person filed a writ against FDI. But our supreme court said it is executive policy we can’t intervene in this matter. ENVIRONMENTAL ISSUE:- There is a threat that these companies many compel our farmers to produce same crops for number of time and use of pesticides in our soil. This will affect soil fertility. The farmers can’t produce as per their wish.