[Modi Diplomacy] Part 2/3: Chinese President Eleventh (haha) Xi Jinping’s India Visit

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  1. Mindmap: Xi’s India Visit
  2. Strategic Agreements
  3. Economy pacts
  4. Transport related
  5. Energy, Environment
  6. Tourism, People2People
  7. Overall
  8. Side-Topics
    1. India without Tibetan Leverage
    2. Xi’s Sri Lanka visit
    3. India vs China: defense comparison

Mindmap: President Xi’s Visit to India (2014)

xi jinping india visit outcome

Mindmap: Xi Jinping India visit Outcome

Strategic Agreements

Inch towards miles

  • Fancy term by Modi
  • Inch (India and China) towards Miles (Millennium of Exceptional Synergy).
  • With every inch we cover, we can rewrite history of humanity.
  • With every mile we cross will go a long way in making this planet a better place.

Border issues

  • 2013: Both the countries have signed a Border Defence Cooperation Agreement (BDCA) in 2013 to ensure peace and tranquility at the LAC.
  • 2014, Aug: National Security Advisor Ajit Doval went to China to finalise the arrangements for Chinese President Xi Jinping’s visit to India.
  • Next stage: Exchanging maps Line of Actual Control (LAC).
  • During Modi-Xi Meeting: Lot of ‘bolbachchan’: will resolve differences through Panchsheel, A climate of mutual trust and confidence is made; we respect each other`s sensitivities and concerns; and, peace and stability etc.

Narendra Modi:

  • Requested Xi to resume the stalled process of clarifying the LAC (Line of actual control) and an early settlement of the boundary question.
  • Discussed China’s stapled visa policy for Arunachal Pradesh and Trans Border Rivers.
  • Agreed that he’ll not allow Anti-China activities in India (e.g. Tibet militant groups)
  • Until we find out final solution to border problem, both sides will maintain peace and tranquility in the border areas.

Chumar Standoff

Map Chumar India China standoff

  • Where? Chumar village inLadakh area, Near Himachal Pradesh border. China says its our land, they keep coming here on foot and through helicopters. Even constructing a road, though Indian army destroyed it recently.
  • Why in News? Because the Chinese soldiers entered here during Xi’s visit.
  • But 72 hours after the Joint statement of Modi and Xi, the Chinese troops began withdrawal.
  • Recent reports say, they’ve also ceased the road construction work here.

UN reforms

  • We’ll strengthen the central role of United Nations. This goes along with Modi’s stand that we need to get out the G4, G20 etc. mentality.
  • China supports India’s wish for UN reforms and UNSC reform.
  •  Developing countries need to be given greater voice in UN Decision Making. We’ll work closely @BRICS, G20 etc to achieve this.

Exercise to get 8-pack abs

  • fourth joint army training at a mutually convenient time,
  • We’ll hold navy/airforce joint exercise
  • Area of cooperation: peace-keeping, counter-terrorism, naval escort, maritime security, humanitarian rescue, disaster mitigation, personnel training, and think tank communication.
Routine lip-service
Terrorism Both Agreed for zero tolerance against terrorism.
Smuggling will share information about cross border illegal trade in narcotics, weapons, wildlife.
Maritime cooperation for security, anti-piracy, freedom of navigation
Nuke weapons yes we’ll work for disarmament and arms control.
Turmoil countries Bilateral consultations on Afghanistan, West Asia, Africa, Central Asia and Counter-terrorism.

Economy pacts

Import export

  • China will take steps to facilitate entry of Indian products in China, thereby balancing the bilateral trade. (Right now India has large trade-deficit with China, ~35 billion USD).
  • For above purpose, China will establish strong links between Indian IT companies and Chinese enterprises, smooth registration of Indian drugs, releasing Indian movies in Chinese cinema, selling Indian tour packages to Chinese and so on.
  • Commercial Bank of China will give loan to IndiGO for new aircrafts.
  • MoUs signed between China’s Export Import bank vs SBI, ICICI, for giving billions USD in loans and importing Chinese products in India.
  • MoU between Reliance and Huwei

Infra / Industries

China to setup two industrial parks
Gujarat Power equipment
Maharashtra Automobile parts.
  • These two industrial parks will be similar to the Chinese manufacturing hub Shenzen.
  • China will invest US$ 20 billion in next five years in Indian infra. (Japan pledged 35 billion$ in investment + 50 billion Yen as loan)
Sister pacts
Sister states Guangdong Gujarat
Sister cities Guangzhou Ahmedabad

Above will cooperate for trade, environment, education, health, science, tourism.

More Bolbachchan

WTO have common interests in Doha round. So will cooperate to ensure treaties are made in our favour.
Strategic Economic Dialogue (SED) to explore new areas for economic cooperation, joint projects, smart cities.
Joint Economic Group to facilitate bilateral trade and economic cooperation.

Transport related

Chinese Cooperation in Indian Railways

  • Training 100 people for heavy haul transport
  • Chennai-Bangalore-Mysore section: it’s speed will be increased to 160 kmph
  • Redevelop two rail stations on pilot basis.
  • High speed rail project- feasibility studies + financing part.
  • Setup Railway University.

BCIM corridor

  • will connect Kunming (SW China)- Kolkata (India) – Mandalay (Myanmar) –Dhaka|Chittagong (Bangladesh)
  • Southwest China = landlocked, poor. In recent times many knife-stabbing attacks made by Uighur extremists [Ethnic minority  in Xinjiang province in North West region].
  • China hopes, BCIM corridor will boost trade-tourism, thereby reducing poverty. Then, youth will remain in mainstream. Extremists will find hard to get new recruits and supporters.
  • December 2013, had official talk with India in this regard.
  • 2014: Modi and Xi too discussed BCIM corridor and agreed that it’ll bring collective prosperity

Maritime Silk road (MSR)

  • Xi invited India to join Maritime Silk road (MSR) initiative. Click me to know more about this project.
  • But Modi remained non-committal, saying it requires mutual trust, stability, respect, free flow of commerce and ideas.
  • In other words, if China opens up its economy to indian goods and services, helps reducing India’s trade deficit, maintains peace @border region, then we’ll consider joining M.S.R.

Energy, Environment

  1. Nuke Energy Pact: Will start consultations between the Department of Atomic Energy of India and the China Atomic Energy Authority.
  2. Will promote clean energy.
  3. Common stand on climate change CBDR i.e. first world should spend more money and efforts. We’ll work together @UN Framework Convention on Climate Change in 2015 to ensure this.
  4. Disaster Management: Better sharing of flood-season hydrological data, and emergency management

Tourism, People2People

Tourism years
2015 Visit India year (in China)
2016 Visit China year (in India)
  • During these phase, both sides will do tourism promotion to increase no. of visitors.
  • China will help India promote its tourism products in China, particularly the routes associated with Chinese monk-scholar Xuan Zang (Hiuen Tsang)’s India journey of 7th century.

Kailash Mansarovar:

Map-Kailash mansarovar Nathu la

  • The existing route goes through Uttarakhand.
  • China agreed to opening a new route through Nathu-La to Kailash Mansarovar. It’ll give following Benefits:
  • Road quality is better. Less bumpy rides for older pilgrims.
  • Route is safe even in rainy season. Less danger of landslides and blockades.
  • Will help more pilgrims to travel at shorter duration.
  • Counterview: north Indians will first have to travel to sikkim and from there to Mt.Kailash so journey expense will increase.

Exchange offer on TV

  • 2015-19: we’ll exchange 200 youth per year.
  • Exchanges between the museums and other cultural institutions.
  • China will host Indian Buddhist art exhibitions.
  • China will partner in Delhi International Book Fair 2016.
  • Will mutually support teaching national languages in each other’s countries- Chinese in India and Hindi in China.

Bollywood Movies aka South Indian remakes:

  • MoU for joint production of movies.
  • China will be a guest in Indian International Film Festival 2014.

Finally, Xi invited Pranab to visit China, so that we can return favor of harassing Chinese civil service aspirants.


India became more assertive:

  • During Japan visit Modi indirectly refereed “countries with an 18th century expansionist mind-set: encroaching on other countries, intruding in others’ waters, invading other countries and capturing territory.”
  • Same way, Pranab signed Oil exploration and defence deals with Vietnam.
  • Thus, India became more assertive, pursuing its course without worrying about Chinese reaction.
  • During Xi’s visit- positive outcomes on border, economy and culture.
  • Chumar resolved tacitly, without creating lot of media bravado.

China stopped worrying

After Modi’s US visit, Chinese official newspaper concluded following:

  • India will pursue non-aligned yet all-round foreign policy.
  • Therefore, India will not develop ties with USA, at expense of China.
  • Although border issues unsorted but it’ll not hamper cooperation in trade and Development between India-China.
  • China should worry more about USA’s “Pivot to Asia” strategy, under which:
    1. Japan- ~40,000 American soldiers to be stationed
    2. S.Korea: ~30,000
    3. Australia: 2500
  • India will not be in the picture frame of USA’s “Trans-pacific partnership (TPP)”. Hence USA (And not India) will act as an obstacle to China’s economic rise.


  • Earlier reports indicated, Xi would announce 100 billon$ investment.
  • During Xi visit, 16 agreements yet just 20 billion investment. (Japs giving 35).
  • MSR did not materialize.
  • Hard to believe that Chumar incident happened without Xi’s knowledge and approval. Perhaps it was Xi’s way of showing displeasure over Pranab signing oil deals with Vietnam.


India without Tibetan Leverage

Gist of the matter: Chinese are cozying up with Tibet. So in long term, we may not have Tibet issue to arm-twist China to get things done.

China vs Dalai lama

Before nowadays
  • Chinese official would call him “Splittists” and his followers as “terrorists”
  • Making polite references to Dalai lama in their Government newspapers.
  • Acknowledging Dalai Lama’s religious status.
  • Talking with his envoys- on how to bring him back to Tibet.
  • Tibetan protests and self-immolations increasing in 2008 because of Beijing Olympic and media attention.
  • Security was tight.
  • Migrant Han Chinese controlling Tibetan economy.
  • Government pumped billions in infrastructure.
  • Tibetan economy growing at 12%, Junta back to business and jobs. Hence protests declined.
  • Security is reduced.
China looked at Tibet as a ‘trouble’ region. China portraying Tibet as a Buddhist tourist destination.

India’s position on Tibet:

  • India diplomats sheltered Dalai Lama and Tibetan refugees as some sort “leverage” against China.
  • But India has already recognized to “One China” and does not recognize a “Free Tibet”. So most of the leverage is gone.
  • And once Dalai Lama returns to Tibet, the leverage will vanish entirely.
  • Benefit: If Dalai Lama returns to China, then it may lead to clearing of some historical burden of misunderstandings, China may stop cozying with Pakis and the secessionist leaders in North East. (Because Chinese use that as leverage against India)

Xi’s Sri Lanka visit

Xi visited Sri Lanka, while on his way to India:

  1. Called Sri-Lanka a “Pearl in the Indian Ocean”. But maintained that China has no plans of “containing” India through any so called “strings of pearl strategy”.
  2. Opposed Foreign intervention in Sri Lanka’s internal affairs. (e.g. India and UNHRC)
  3. Invited Sri-Lanka (And Maldives) to join Maritime silk road (MSR)
  4. Began FTA negotiation with Sri Lanka.
  5. 30 agreements
  6. Since 2009: in invested ~4 billion in Sri Lankan infra.. Additional $1.4-billion port city development project + several infrastructure projects.
  7. Final phase of power plant in Noracholai, in Shri Lanka’s North-west.

Will Sri Lanka really benefit from sitting in China’s lap?

  1. Chinese gives loans at expensive interest rate to Sri Lanka. While India spend truckload of money in grants. (i.e. no need to repay).
  2. Sri Lanka owns ~200 billion loan money to China.
  3. FTA with China will ruin Sri-Lankan economy. Because Cheap Chinese goods will flood their market. And in return, Sri Lanka doesn’t have much to export to Chinese consumers!
  4. On the contrary,  Sri-Lanka gained immensely with CEPA with India.
  5. Sri Lanka tried to play “China card” against India, but they should remember, that during natural and man-made disasters, only the immediate neighbor will come to rescue.

India vs China: defense comparison

Sector China India
Defense budget >130 billion USD ~38 billion USD
Troops 2.2 million 1.3 million
Submarines 56( 5 nuke powered) 14(1 nuke powered)
Warships 75 (1 aircraft carrier under trial) >30 (2 aircraft carriers)
Fighter jets >1600 >550
Battle tanks >7000 >3000
Missiles Large arsenal

  • ICBM (intercontinental ballistic missiles)
  • SLBM (submarine launched): upto 7200 kms range
Limited arsenalNo ICBM and SLBMAgni-V (5000 kms) but still under testing.

Mock Questions

Answer following in 200 words each

  1. Unless the LAC issue is clarified, India-China cannot move towards Millennium of Exceptional Synergy. Do you agree? Justify your stand.
  2. Success of a bilateral visit, cannot be measured in financial terms alone. Elaborate.
  3. Discuss India’s strategic and economic interests in joining Maritime silkroad  and SCO.
  4. List the measures announced during President’s Xi’s India visit for trade deficit, infrastructure and tourism.
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66 Comments on “[Modi Diplomacy] Part 2/3: Chinese President Eleventh (haha) Xi Jinping’s India Visit”

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  5. I feel enriched with more wider dimensions on indo-china relations. thnx

  6. Sir, Just 3 points-

    1. Industrial Commercial Bank of China (ICBC) & not Commercial Bank of China gave loan to Indigo worth $2.6 bn.
    2. MoU between Reliance Infocomm & Huawei (Information & Communications Tech) .
    3. Please include Axis bank in the MoU between China EXIM bank & SBI, ICICI.

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