Security implications of China's growing role in key sectors of India's 
economy
 
 
A case of once bitten but not twice shy
Author: G Parthasarathy

http://www.dailypioneer.com/columnists/item/52716-a-case-of-once-bitten-but-not-twice-shy.html
There is little awareness of the security implications of 
China's growing role in India’s key sectors like power and communications, or of 
the dangers posed by the domination of the Chinese companies in these 
areas
India’s younger generation can scarcely comprehend the feeling of 
humiliation, trauma, shame and anger that prevailed in the immediate aftermath 
of the country’s diplomatic, military and strategic debacle in the 1962 border 
conflict with China. Responding to President Sarvepalli Radhakrishnan’s 
admonition of his “credulity” and “negligence”, Prime Minister Jawaharlal Nehru 
acknowledged: “We were getting out of touch with reality in the modern world and 
living in an artificial atmosphere of our own making”. Nehru had proclaimed in 
1959 to the Congress that the Chinese were “unlikely” to invade India, because 
they knew that this would lead to a “world war”. He believed that a China faced 
with a growing rift with the Soviet Union and at odds with the United States, 
would just not go to war with India.
What followed was a disastrous ‘forward policy’ of deploying poorly 
equipped troops in forward positions to contest Chinese claims, despite 
logistical and operational reservations expressed by then Army Chief, General KS 
Thimayya, and other senior operational commanders. This policy sought to give 
credibility to a claim in Parliament that “not an inch of Indian territory”, 
would be left undefended. Having raised expectations publicly, the Prime 
Minister put himself in an untenable position of not being able to negotiate on 
suggestions by Prime Minister Zhou Enlai, involving Chinese acceptance of the 
McMahon Line in Arunachal Pradesh (then called NEFA); in return for China 
diluting its claims in the western sector (Ladakh). Taking any Chinese 
suggestion on its border claims at face value could, however, have been 
hazardous, as China’s claims continued to change repeatedly, as they do, even to 
this day.
Compounding the diplomatic bungling and the incredible naiveté in believing 
that China would never attack India, was the erratic and arrogant behaviour of 
then Defence Minister VK Krishna Menon. The Defence Minister regularly spoke 
disparagingly to senior military officials, who disagreed with him. He was also 
given to acting arbitrarily and whimsically on issues like the appointment of Lt 
General BM Kaul, an Officer of the Army Supply Corps, with no combat experience, 
as the Corps Commander of the newly established 4 Corps in Tezpur, tasked to 
“throw the Chinese out” in the eastern sector. Not only was the formal chain of 
command bypassed, but Kaul was allowed to continue commanding active operations 
from his sick bed in New Delhi. After initial setbacks near the McMahon Line, 
India’s defences collapsed totally on November 19, with its elite 4 Infantry 
Division beating an ignominious retreat.
India’s hour of shame was, however, not over. As Indian defences in the 
eastern sector collapsed on November 19, a panic-stricken Prime Minister Nehru 
wrote to President Kennedy seeking American air support by 12 squadrons of 
supersonic fighters, with radar cover, all operated by US pilots. India’s proud 
claims to non-alignment lay in tatters. The Chinese had planned their diplomacy 
and military operations brilliantly. A few months before the conflict commenced, 
the Chinese Ambassador had learnt in secret negotiations in Warsaw with the 
Americans, that the US would not get involved in the event of border tensions 
with India escalating.
With the Sino-Indian conflict coinciding with the Cuban Missile crisis, the 
Chinese compelled the Soviet Union to initially remain neutral. Rather than 
assist India, the Americans and the British demanded that India should resolve 
its differences with Pakistan over Jammu and Kashmir. It was the Soviet Union 
that moved meaningfully to help India bolster its defence. The Chinese, however, 
learned following incursions in 1967 in Nathu La in the Sikkim sector and in 
Wangdung in Arunachal Pradesh in 1986, that India was better prepared militarily 
and diplomatically to respond to challenges they posed to its security.
China has significantly bolstered its defences on Tibet’s borders with 
India since 1962. Apart from developing impressive road and rail communications, 
China has deployed 2,20,000 troops in the Lanzhou military region bordering 
Ladakh, including airborne and motorised divisions. Another 1,80,000 troops are 
deployed in the Chengdu military region facing our North-Eastern States. Beijing 
has also been augmenting capabilities and training for high altitude warfare. 
Frontline J 10 aircraft (an Israeli designed variant of the F 16) have been 
carrying out exercises over High Himalayan peaks. Militarily, the main lesson of 
1962 is the need for stronger Indian conventional capabilities along our borders 
with China which persuade the Chinese that future conflicts will not remain 
confined to the Indian side of the border. It remains to be seen if the 
faint-hearted in South Block will endorse such a strategy.
China today has the world’s second largest economy. It has made remarkable 
strides in areas ranging from space to cyber warfare. But, it faces serious 
internal tensions arising from contradictions inherent in having a relatively 
open economy on the one hand and a closed and increasingly corrupt one-party 
political system, on the other. The Han Chinese has historically been extremely 
chauvinistic. The political and military leadership is now pandering to such 
chauvinism, by stridently asserting maritime boundary claims on virtually all 
its neighbours and enhancing claims on the land border with India.
China is continuing nuclear weapons, missile and defence collaboration with 
Pakistan. It is expanding its role in Pakistan Occupied Kashmir. It has 
consistently sought to undermine India’s ‘Look East’ policies, by efforts like 
seeking to block India’s entry into the East Asia Summit. It has attempted to 
prevent the Nuclear Suppliers Group from giving India a waiver on nuclear 
cooperation. It is ambivalent on India’s quest for a Permanent Seat in the UN 
Security Council. These are all an integral part of a policy of ‘strategic 
containment’ of India.
There is little awareness of the security 
implications of China’s growing role in key sectors of India’s economy like 
power and communications, or of the dangers posed by the domination of these 
sectors by Chinese companies like Huawei or ZTE. India has, therefore, to 
combine pro-active diplomacy and the build up its offensive military 
capabilities along its borders with China, by formulating and implementing 
measures to achieve substantial indigenization in key sectors like power and 
communications.
Moreover, if present policies continue, our imports of electronic and 
communication equipment will exceed the imports of oil and natural gas by 2020. 
A serious effort has to be made to enable our public and private sectors to 
develop capabilities comparable to those developed by the Chinese.
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