Who get India?
Both United States and Chinese leaders visited India recently, actions by the two world economic giants which clarify the relentless competition between the two nations. Strategically, India's rising economic power, dubbed the world fastest growing industrial economy, is not taken for granted. It now depends on what goals these two super powers are aiming to achieve by winning India's trust. One question we must ask ourselves is why India? Why should the US and China slogged it out with the intent of identifying with India prospect, making promises of support in terms of share in trade relations.
Common among Yoruba saying is; "people make facial gestures on pretense of portraying sincerity but within them is element of selfishness". It is glaring that the so called 'gestures of friendship' by the US and China have different core objectives. Demystifying these objectives must start with analyzing economic problems existing between these two powers.
The current economic status of china is threatening to the US. It is no big news that China, presently at her peak, is to overtake the US economy statistically in the near future. Also, open among Uncle Tom foreign policies is focus on changing China approaches in respect to International Trade. US claimed that China failed to follow international rule through her currency and export regulations since opening up her market to WTO countries. Her subsidy on exports and devalued currency in international market is harming US export trades. Co-incidentally, China's foreign investment had overtaken that of US and Germany (manufacturing based economy giant).
The effect of the last economic recession that crippled major investment companies most especially insurance and mortgages, still formed a torn on US and European countries where bankrupts is high. Chinese investors made incursion, securing ownership of affected companies. US companies were also not spared. During their last Economy Summit in Beijing, 25 May 2010, US delegation led by Timothy Geithner and Hilary Clinton accused China of purposely undervaluing the Yen in prospect of making her export cheaper.
In simple term, US demanded that China, operating within WTO mandate, must follow its rules. Putting government control undermines other countries export market. With her recent successes in manufacturing based export, China still holds the ayes (so it seems). Not subjecting to US demands and playing large export role in the Euro zone made China indisputable.
The above reasons is potent enough to arose discontent between the US and China. it is not surprising however, new method of economic combat is appearing so soon. First China intensive incursion into Europe is to break US hold but rather than crush US, a drop in the value of Euro made Yen more valued thereby increasing her export prices. Bad for China; export price rise means a drop Europe customer rates.
The latest is India coming into the fray. Obama economic summit visit to India is to give the later a nudge in breaking china dominance. The saying now is; even India has the prospect of over taken China and also carving a niche for herself in the Asian Market. Forget the political problems that bedevil India and Pakistan, important US ally, critical to the war in Afghanistan. US slogan is to give India more access to her market and also open up her domain for employment opportunities for her buoyant human resource; one area where India is now respected strategically.
China had also put up a fight; Hu Jintao visit to India recently is to counter American hold on India. Her slogan is Friendship. The Chinese deny any competition with India and propagate more collaboration between the two Asian giants. Despite the past problems of border dispute which saw China military confrontation in 1962, India seems to be the new darling of two powerful nations.
To be continued
Common among Yoruba saying is; "people make facial gestures on pretense of portraying sincerity but within them is element of selfishness". It is glaring that the so called 'gestures of friendship' by the US and China have different core objectives. Demystifying these objectives must start with analyzing economic problems existing between these two powers.
The current economic status of china is threatening to the US. It is no big news that China, presently at her peak, is to overtake the US economy statistically in the near future. Also, open among Uncle Tom foreign policies is focus on changing China approaches in respect to International Trade. US claimed that China failed to follow international rule through her currency and export regulations since opening up her market to WTO countries. Her subsidy on exports and devalued currency in international market is harming US export trades. Co-incidentally, China's foreign investment had overtaken that of US and Germany (manufacturing based economy giant).
The effect of the last economic recession that crippled major investment companies most especially insurance and mortgages, still formed a torn on US and European countries where bankrupts is high. Chinese investors made incursion, securing ownership of affected companies. US companies were also not spared. During their last Economy Summit in Beijing, 25 May 2010, US delegation led by Timothy Geithner and Hilary Clinton accused China of purposely undervaluing the Yen in prospect of making her export cheaper.
In simple term, US demanded that China, operating within WTO mandate, must follow its rules. Putting government control undermines other countries export market. With her recent successes in manufacturing based export, China still holds the ayes (so it seems). Not subjecting to US demands and playing large export role in the Euro zone made China indisputable.
The above reasons is potent enough to arose discontent between the US and China. it is not surprising however, new method of economic combat is appearing so soon. First China intensive incursion into Europe is to break US hold but rather than crush US, a drop in the value of Euro made Yen more valued thereby increasing her export prices. Bad for China; export price rise means a drop Europe customer rates.
The latest is India coming into the fray. Obama economic summit visit to India is to give the later a nudge in breaking china dominance. The saying now is; even India has the prospect of over taken China and also carving a niche for herself in the Asian Market. Forget the political problems that bedevil India and Pakistan, important US ally, critical to the war in Afghanistan. US slogan is to give India more access to her market and also open up her domain for employment opportunities for her buoyant human resource; one area where India is now respected strategically.
China had also put up a fight; Hu Jintao visit to India recently is to counter American hold on India. Her slogan is Friendship. The Chinese deny any competition with India and propagate more collaboration between the two Asian giants. Despite the past problems of border dispute which saw China military confrontation in 1962, India seems to be the new darling of two powerful nations.
To be continued
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