Joe Shearer
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Good Post. Specially about the relevance of your 3 trillion dollar reserves in trade wars.
Indian Posters - Keep your calm. Don't give into baits. Let me give a quasi realistic picture =
China right now will eat India alive in a trade war. They will outbid us in each and every off shore contracts like purchasing oil fields, non IT exports and major E&C contracts. They have capability to put a run on rupee. They can impose serious inflation in India by cutting supply.
All this will come at a cost to China - but a cost they can afford considering they will be finishing off the India story at their terms.
Does this mean we throw in the towel or embark on a glorious but ultimately suicidal charge on China? No. Here is what I think we should do -
LEARN FROM CHINA
1. Engage China and make them a partner in Indian growth story:
Chinese companies are very interested in India as a growth engine. Alibaba and countless other firms are ready to invest in India - an amount which will dwarf Japanese and American investments. Their E&C firms are ready to provide lucrative financing options. Their capital goods manufactures already provide best in class Trade Credits.
More China gets into India, further it will become a stakeholder in Indian prosperity and work in alliance with Indian interests. You win the war by co-opting the enemy
2. Be a coward
India cannot confront China on territorial and geo-political issues alone and hope to come out ahead. This is a an UNDENIABLE FACT. So confront China as a part of a bloc from the rearguard. Let the Americans and Japanese take the body blows and be ready to feast on the left-overs.
The mistake this time made in NSG is that India took the front seat while in '08 USA was running the show. India for all it's cumulative power is a rookie when it comes to power posturing. It also doesn't have the leverages, a country like US acquires throughout decades of wheeling and dealing. We will get there but this was too soon. So you see what happened - We got back-stabbed by the Swiss and the Brazilians, Russians gave us their support but refused to lobby on our behalf, US made half -hearted attempts as it suits them to make India loose and drive India further into their camp.
We should have either negotiated a stronger commitment from US where it would have threatened dire consequences to China or we should have dealth with China directly by offering them concrete benefits such as Bullet Train contracts, Preferential trade terms and Reactor deals as @Chinese-Dragon suggested
3. [B]Break Rules
[/B]
Sign the goddamn NPT and then renege on it. China signed it and is a member of NSG but does it give two hoots for it? No! It breaks them with impunity. We bit the bullet and did the nuclear tests - did the sky fall? No! After couple of years of mild pain, we were back in business. Now we are in a even more favorable situation. Only currency in this world is commerce, rest is all BS. As they say in India "Paisa Phek, Tamasha Dekh" crude translation "Throw money to make other dance to your tunes"
Regards
[USER=37361]@MilSpec @Joe Shearer[/USER]
Great analysis. That's the way to go. Meanwhile continue to grow our Air and Sea joint commands and keep our own hold on the two Indian Ocean choke points.