Monday January 27, 2020
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Vietnam Gets Support to Build Islands in Asia’s Most Disputed Sea While China Receives International Criticism

Vietnam has slowly added buildings on some of its 10 major islets since 2017, the Asia Maritime Transparency Initiative said in a report earlier this month

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FILE - An aerial view of Southwest Cay, also known as Pugad Island, controlled by Vietnam and part of the Spratly Islands in the disputed South China Sea, April 21, 2017. VOA

Both China and Vietnam are building up tiny islets across Asia’s most disputed sea, but while China receives international criticism Vietnam receives very little, and even gets some support because its pace of construction is slower and widely seen as defensive.

Vietnam’s work on islets it has held for decades is kept to areas of the South China Sea closest to its mainland coasts. The country shuns military mega projects that might appear offensive. And it belongs to the 10-country Association of Southeast Asian Nations (ASEAN) known for working out any bilateral differences. These factors differ from China.

“They’ve never had, I think, a standoff with any other country, because all the other claimants have respectfully kept to their developable spheres around the South China Sea, and I think there’s this intra-ASEAN consensus, that within ASEAN the claimants do not rock the boat so as to present a common front towards China,” said Alan Chong, associate professor at the S. Rajaratnam School of International Studies in Singapore.

Vietnam has slowly added buildings on some of its 10 major islets since 2017, the Asia Maritime Transparency Initiative said in a report earlier this month. The initiative under the U.S. think tank Center for Strategic and International Studies also tracked new communications equipment, a sports field and the extension of a runway from 750 meters to 1,300 meters on its largest holding Spratly Island.

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FILE – A Vietnamese floating guard station is seen on Truong Sa islands or Spratly islands, April 12, 2010. VOA

Locking in occupation

Development of military-controlled islands that Vietnam has occupied for decades in the South China Sea’s Spratly Island chain involves landfill work plus installation of solar panels on some buildings, the initiative report says. The report points also to 25 “pillbox” forts that Vietnam has built on sometimes submerged reefs or banks.

Vietnam is very slowly reclaiming land for construction that offers self-defense against harsh weather, said Trung Nguyen, international relations dean at Ho Chi Minh University of Social Sciences and Humanities. Construction has shunned use of large ships that might grab international attention, he said.

“The Vietnamese government has made it very clear they just reclaim the islands for self-defense, and they do not expand massively for other purposes,” Nguyen said. “I don’t think the Vietnamese government wants to draw a lot of attention from other countries on their reclamation, so that’s the reason they want to do it quietly.”

Hanoi hopes its tiny islets can get by without much help from mainland Vietnam, Chong said. He said the country is preparing for a long stay on the islets.

Vietnam is upgrading islets to make them harder for China to take without a cost, not for offensive military use, Asia Maritime Transparency Initiative Director Gregory Poling said.

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FILE – Anti-China protesters shout “down with invasive China” and hold placards that read “The country will not forget – Johnson South Reef – 14th March, 1988” during a gathering to mark the anniversary of the Spratly Islands clashes between Vietnam and China. VOA

“The Vietnamese endgame seems to be making these facilities more survivable, raising the cost for the Chinese to try to take them,” he said. China normally leaves Vietnam alone at sea because they have shown a willingness to “bump shoulders” with Chinese vessels if pushed, he said.

China contrast

China claims about 90 percent of the disputed sea, overlapping Vietnam’s smaller claim as well as tracts that four other governments call their own. The other claimants are Brunei, Malaysia, the Philippines and Taiwan. Chinese reclamation work particularly alarms Vietnam because China controls the full Paracel archipelago, also claimed by Hanoi, and three major islands in the Spratly chain.

Beijing’s reclamation work has created infrastructure for military aircraft and radars, the think tank initiative says. Chinese contractors had used 1,294 hectares of reclaimed land to help develop reefs and atolls under their control, according to a Pentagon estimate in 2016.

China draws attention from other countries, including the United States, when it sends bombers and naval vessels into the sea. Both China and Vietnam cite historic usage to back their maritime claims.

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South China Sea Territorial Claims. VOA

Keeping peace

China and the Philippines have complained occasionally to Vietnam over the years because its islets fall into their claims. But the complaints fade because the other countries do not see Vietnam as a threat, scholars believe.

Vietnam’s armed forces and maritime development budget lag China, which is Asia’s top economic and military power. Chinese officials meet sometimes with ASEAN leaders but lack access to the regular events for Southeast Asian heads of state, defense chiefs and foreign ministers.

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“One ASEAN country is not going to war with another ASEAN country,” said Oh Ei Sun, senior fellow with the Singapore Institute of International Affairs. “We would find consensus. That’s the true spirit of diplomacy.”

Vietnam also has picked up support from Japan and the United States, both keen to limit Chinese expansion. Japan’s agreement in 2014 to donate six coast guard vessels to Vietnam helped prove its “power projection abilities,” Chong said. The U.S. Navy regularly passes ships through the sea to warn China. (VOA)

Next Story

Here’s how China Invaded India with Its Technology

Chinese invasion decimates Indian mobile players, automakers next?

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China has slowly but strategically spread its roots in the Indian IT/technology and allied sectors in India. Pixabay

BY NISHANT ARORA

The Great Wall has slowly but strategically spread its roots in the Indian IT/technology and allied sectors in India, and there is no stopping the dragon which has only grown fierce — threatening industries after industries across the spectrum as India celebrates its 71th Republic Day.

From smartphones to automobile/electric vehicles, from digital payments and consumer electronics to social media, Chinese companies have created massive ripples in the country in the last couple of years, while American giants like Amazon and Facebook/WhatsApp face the political heat.

China, which is a fastest-growing trillion-dollar economy with a current GDP of $14.14 trillion is on the path to become a $20 trillion economy by 2024 and India is its “sweet spot” — with millions of consumers buying Chinese goods which has decimated domestic players in certain sectors.

Technology
Xiaomi, a Chinese company has also established itself well in the country. Pixabay

Take the case of smartphone industry. According to Hong Kong-based Counterpoint Research, Chinese smartphone brands captured 72 per cent of the market in 2019 compared to 60 per cent a year ago.

Behemoth like the BBK Group (the parent company of OPPO, Vivo, Realme and OnePlus brands) captured 37 per cent market share while Xiaomi (along with Redmi and POCO brands) came second at 28 per cent.

Led by Xiaomi and BBK Group, the Chinese brands have invested heavily in manufacturing devices and accessories in India.

Xiaomi currently has seven smartphone manufacturing plants in India in partnership with Taiwanese multinational electronics company Foxconn and Singapore-based technological manufacturer Flex Ltd.

More than 99 per cent of smartphones that are sold in India are manufactured locally. Across these seven plants, Xiaomi has employed more than 25,000 people.

Xiaomi also locally sources and assembles PCBA (Printed Circuit Board Assembly) in India. It has invested in setting up smart TV manufacturing plant in partnership with Dixon Technologies in Tirupati, Andhra Pradesh. The company last year infused Rs 3,500 crore into its Indian business unit.

Vivo has committed Rs 7,500 crore as part of its India expansion plan while Chinese company TCL is investing Rs 2,200 crore in Tirupati for plants that will produce mobile handsets and TV screens.

Amid the onslaught, where do you see domestic players like Micromax, Intex, Lava and Karbonn (known as ‘MILK’ brand)?

According to Navkendar Singh, Research Director, IDC India, while we cannot rule out any player making a comeback, especially in such a dynamic market like India, it looks nearly impossible for Indian mobile phones brands to win back any relevant portion of the market.

“China-based brands have been in India for almost 5 years plus now. In this time, apart from snatching the market share almost entirely from the other brands, they have gained immense knowledge about the workings of the India market in terms of consumer thinking, preferences, channel dynamics and marketing interventions,” Singh told IANS.

The Chinese brands are continuously committing resources and investments in all these key areas.

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As China keeps introducing its technology in India, automobile makers will be affected. Pixabay

“Moreover, with more than 3/4th of the market being with 5 players, it is becoming increasingly challenging for any new or old brands like Indian brands to attempt any sustained comeback,” Singh elaborated.

So what are the options for the Indian smartphone players?

“Indian brands can surely look at the feature phone segment, where almost all major China-based brands have chosen to stay away from (expect Shenzhen-based Transsion Group which is the leader). Also, their brand salience remains strong with that consumer segment and Tier II and III markets,” said the IDC executive.

Cut to the Auto Expo 2020 and you will have a better understanding of how Chinese companies muscle their ways.

Top Chinese firms such as SAIC (owner of MG Motors), BYD (maker of electric buses and batteries), Great Wall (which is the biggest SUV maker in China) and FAW Haima, among others, have reserved nearly 20 per cent space in the annual jamboree of carmakers and industry leaders, at a time when the Indian automobile industry is going through a severe slowdown.

Bucking the slowdown trend, SAIC has recorded healthy sales ever since it launched the Hector SUV. At present, the carmaker’s first offering SUV Hector has an order book of 20,000 bookings. It has till date sold nearly 16,000 units of Hector since its launch in July 2019.

The Chinese automobile major has now launched its first electric offering called ZS EV, at a starting price of Rs 20.88 lakh. The company said that it has secured an overwhelming response for the new-age electric SUV, with over 2,800 bookings in 27 days.

To let its EVs run smoothly in India, MG Motor India is building a five-way EV charging ecosystem in association with major domain players.

China’s leading EV company, Sunra, has expressed interest in setting up a factory in the country as it sees India emerging as the world’s biggest market for electric bikes in the next four to five years.

The EV firm has partnered with 16 private companies in Delhi. Nearly six e-bike models of Sunra are under the Automotive Research Association of India (ARAI) test and two of its models are available in some of the showrooms.

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According to a TechSci Research report, electric vehicle market in India is forecast to reach nearly $2 billion by the financial year 2023.

As the Indian government firms up its EV plans, Chinese companies have already set their eyes on the EV sector roadmap in the country. (IANS)

One response to “Here’s how China Invaded India with Its Technology”

  1. This is a win-win relationship.Is India losing anything? Indians get job, foreign investments, latest technology from China. Do you think local Indian companies have the latest technology? Of course not. Its time for India to open up more, absorb these technologies and then go for home grown solutions. In short do to China what Chinese did to West.