Energy Cooperation Strength

STRENGTHS

Energy Cooperation: Energy has been a source of cooperation and competition between the two Asian giants in question. While India imports about 70 per cent of its requirements, Beijing imports almost 50 per cent of its oil. Strong competitive bidding by New Delhi and Beijing in third countries has often pushed up the oil prices, prompting them to agree to joint-bid in many third countries.

Joints Efforts: Joint efforts are underway to diversify India’s and China’s trade baskets, strengthen mutual cooperation in the area of information and communication technology, improve flood season hydrological data, launch joint projects on earthquake engineering, climate change, and weather forecasting. Nano-technology, with a focus on advanced

Will Hutton, the former economics editor of the left-leaning British newspaper The Guardian, call this view “the prevailing view”. However, in his book The Writing on the Wall, Hutton seeks to overturn it. Nearly all Sinologists have debated the question of China’s future for quite some time and may raise the likelihood of potholes down the Chinese road. All problems within China and the lack of freedom due to the authoritarian nature of the government are likely to affect its trade strategy. There are also problems related to China’s exchange-rate policy, financial infrastructure and the inefficiency of its state-owned enterprises. Other limitations include its Communist politics, a lack of democracy, indiscriminate environmental destruction, a lack of public opposition, little free press and Internet censorship. China’s authoritarianism creates political uncertainties, which works against orderly change. Corruption and human rights abuses are also problems for China. A flood of Chinese exports leads to ever-increasing fears of job-loss and reduced wages in the USA, for example. Here, there will be a strong temptation on the part of the US government to exploit human rights violations as an opportunity of roll back the import of Chinese goods. The problems that lie ahead for China are by no means negligible - rising

Washington’s wooing of India appears to have surprised Chinese policymakers and caused them to reassess Chinese policies towards India. The result is that China is increasingly wary of India-US and India-Japan strategic partnerships.

The potential for Global Hud: Outside of USA, IBM relies on China as the primary procurement source for its hardware business and has decided to relocate its global procurement headquarters to Shenzhen. Complementing these moves, IBM has made its Indian operations one of its most important global hubs for the delivery of IT services. Nearly one-sixth of IBM’s global workforce is now based in India.

Largest Market After China: The two countries will become the world’s largest and fastest-growing markets for mass consumption goods, industrial raw materials, energy and capital goods. Trade between India and China, the two key emerging economies in the world with 17 per cent and 20 per cent of the world’s population respectively, is expected to cause significant changes in global trade