There is no conceivable reason for any big power to put road blocks on the path of an India-Pakistan normalisation process, asserts Ambassador M K Bhadrakumar. IMAGE: An Indian soldier keeps guard from a bunker near the border with Pakistan in Abdullian, southwest of Jammu. Photograph: Mukesh Gupta/Reuters The extraordinary joint statement ( external link ) last Friday at the level of the directors generals of military operations of India and Pakistan came like a bolt from the blue. Of course, it is preposterous to contemplate that the Indian Army went out on a limb without political directive, or that some 'grand bargain' involving India, China and Pakistan is unfolding. From such a premise, what needs to be understood is as regards the Indian calculus. The government is taking time to voice an official opinion on Friday's development even after Pakistan Prime Minister Imran Khan's tweets ( external link ) on Saturday. But actions speak better than words and ... » Learn More about Is Modi weighing his options on Pakistan?
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New Delhi: Chinese investments in sectors critical for India or where local companies don’t have adequate capacity will be considered for approval but the country is unlikely to adopt an open-door policy any time soon, according to people familiar with the matter. This is part of a three-pronged standard operating guideline the administrative ministries will follow for vetting Chinese investments in India. The other two types of proposals that will get a green light will be those from companies or investors headquartered elsewhere but routing funds via Hong Kong and those that entail small investments by Chinese investors. Security clearance would continue to be mandatory in all the three cases. “Proposals are being examined as per three key guidelines... Any proposal entailing large investment would have to be in a critical area where there is minimal or negligible local presence,” said a government official. Border tensions escalated between the two countries last year. ... » Learn More about Large Chinese FDI only in sectors critical for India
There is growing alarm at the inexorable rise of China, both of its military prowess and its aggressive bullying of other countries plus its subjugation of whole portions of its own population. IMAGE: People's Liberation Army soldiers in Beijing. Photograph: Jason Lee/Reuters Under Chairman Xi Jinping, China has accelerated its militarisation, with constant remonstrations for the People's Liberation Army (PLA) to modernise and to boost its loyalty to the Chinese Communist Party (CCP). Ominously, Xi spends a lot of time telling the populace to prepare for an all-out 'struggle'. At the same time, Xi has stamped his authority on every single aspect of Chinese society so as to control the thinking and behavior of his 1.4 billion subjects. There is growing fear among China's neighbors, and Western countries like the United States, that China will stoke a war. For now, the PLA is using 'gray zone' tactics, behavior short of armed struggle but which is nonetheless coercive ... » Learn More about Why the rise of China’s military worries the world
However, that could only be for sectors where 100 per cent FDI is allowed under the automatic route and pose no risk to national security. Illustration: Uttam Ghosh/ Rediff.com The government is looking at easing restrictions for Chinese foreign direct investment (FDI) by allowing companies from the bordering country to invest up to 25 per cent in a company through automatic route. This is being discussed only for non-sensitive sectors such as manufacturing, automobile, services and technology. “We are deliberating on reverting FDI of certain percentage to the automatic route coming from land bordering nations including China. "However, that could only be for sectors where 100 per cent FDI is allowed under the automatic route and pose no risk to national security,” said a government official privy to the discussion. Large FDI proposals, involving more than 25 per cent of Chinese investment, may undergo scrutiny at multiple levels to examine the veracity ... » Learn More about Govt likely to ease restrictions on Chinese FDI