China Research Center

- Overview

The China Research Center promotes understanding of Greater China based on in-depth research and experience. Center Associates (freelance) are experts in Greater China's history, contemporary politics, science, technology, economics, business environment, language, culture and media, working to build bridges between EITA and Mainland China, Taiwan, Macau and Hong Kong.

- China's Massive Belt and Road Initiative

China's Belt and Road Initiative (BRI), sometimes called the New Silk Road, is one of the most ambitious infrastructure projects ever undertaken. A series of development and investment initiatives launched by President Xi Jinping in 2013 initially aimed to connect East Asia and Europe through physical infrastructure. In the decade since, the program has expanded to Africa, Oceania and Latin America, significantly expanding China's economic and political influence. 

Some analysts see the project as a troubling extension of China's rising power, and opposition has grown in some countries as the cost of many projects has soared. At the same time, the U.S. shares some Asian countries' concerns that the Belt and Road Initiative could become a Trojan horse for China-led regional development and military expansion

[South China Sea Map - Nations Online]

- The 9-Dash Line (or The 11-Dash Line), The South China Sea 

The nine-dash line, also known as the eleven-dash line in Taiwan, is a set of line segments on various maps claimed by the People's Republic of China (PRC, "Mainland China") and the Republic of China. 

The disputed areas include the Paracel Islands, the Spratly Islands, Dongsha Island and Verwick Shoal, Macclesfield Shoal, and Scarborough Shoal. Some places have been reclaimed by the People's Republic of China, the Republic of China, and Vietnam. 

The People’s Daily of the People’s Republic of China uses a dotted line or the South China Sea dotted line, and the government of the Republic of China uses an eleven-dash line . ‘eleven-dash line’). 

The government of the Republic of China first published a 1946 map on December 1, 1947, showing a U-shaped eleven-dash line. 

In 1952, as relations with North Vietnam warmed, Mao Zedong of the People's Republic of China decided to remove two dashes in the Gulf of Tonkin. However, the ROC government still uses the eleven-dash line. 

In 2013, some people were surprised by the tenth dash east of Taiwan, but it was on the map of the People's Republic of China as early as 1984. The government of the People's Republic of China does not always use this line when asserting its sovereignty. It doesn't clarify how the dashes are connected and which features are specifically included or excluded. 

On July 12, 2016, an arbitral tribunal established under the United Nations Convention on the Law of the Sea concluded that China’s historic claims to the high seas would have no legal effect if they exceeded the provisions of the United Nations Convention on the Law of the Sea. 

One of the arguments is that China does not exercise exclusive control over these waters and resources. However, the Tribunal cannot rule on issues of territorial sovereignty. Governments of more than two dozen countries have called for the ruling to be respected. It has been rejected by eight governments, including the People's Republic of China and the Republic of China.

- Can India Replace China as a Manufacturing Hub?

While India has the potential to become a significant manufacturing hub, it's unlikely to completely replace China in this role. 

India's strengths lie in its large, skilled workforce, lower labor costs, and a growing domestic market. However, China's established infrastructure, strong supply chains, and decades of experience in manufacturing give it a significant advantage. 

India's Strengths:

• Large and skilled workforce: India has a vast, relatively young workforce with a growing pool of skilled workers, making it attractive to companies looking for labor-intensive production.
• Lower labor costs: Labor costs in India are generally lower than in China, potentially making it more cost-effective for some manufacturing operations.
• Growing domestic market: India's large and rapidly growing domestic market provides a significant opportunity for manufacturers to sell their products locally.
• Government support: The Indian government has implemented policies like "Make in India" and "Production-Linked Incentive" to attract foreign investment and boost domestic manufacturing.

China's Advantages:

• Established infrastructure: China has invested heavily in infrastructure, including roads, ports, and railways, which facilitate efficient manufacturing and logistics. 
• Strong supply chains: China boasts a well-established network of suppliers and a highly integrated manufacturing ecosystem, allowing for quick responses to market demands. 
• Experience and expertise: China has decades of experience in manufacturing, giving it a competitive edge in terms of production efficiency and quality. 
• Scale and economies of scale: China's massive manufacturing base allows it to achieve economies of scale, leading to lower production costs.

Challenges for India:

• Infrastructure gaps: India's infrastructure, particularly in areas like ports and transportation networks, lags behind China's, potentially hindering its ability to compete globally. 
• Supply chain challenges: India's supply chains are less developed than China's, making it harder for manufacturers to source components and materials efficiently. 
• Logistical bottlenecks: India's logistics and transportation networks are still struggling to keep pace with the needs of a growing manufacturing sector. 
• Regulatory hurdles: India's regulatory environment can be complex and bureaucratic, making it challenging for businesses to set up and operate factories.

While India is making strides in attracting foreign investment and developing its manufacturing sector, it's unlikely to replace China as the world's manufacturing hub in the near future. 

China's established infrastructure, strong supply chains, and vast experience give it a significant edge. However, India's strengths, coupled with ongoing infrastructure development and policy reforms, could position it as a major player in global manufacturing, potentially becoming a "China Plus One" strategy for companies seeking to diversify their supply chains. 

- China is India Major Supply Chain

China is a major source of imports for India, and plays a significant role in India's supply chain, particularly for industrial products and electronic components. 

India's growing reliance on China for specific inputs raises concerns about security of supply and trade imbalances. 

• Major Import Source: China remains India's largest source of imported goods, with a substantial share of India's total imports. 
• Industrial Products and Electronics: India heavily relies on China for imports of machinery, telecom equipment, and electronic products, which are vital for India's growing consumer electronics sector. 
• Pharmaceutical Ingredients: India's pharmaceutical industry also relies on China for key ingredients like paracetamol. 
• Dependency and Potential Risks: This reliance on China for certain inputs raises concerns about supply chain resilience and vulnerability to disruptions, as well as potential trade imbalances. 
• India's Efforts to Diversify: India is actively working to diversify its supply chains and reduce its dependence on China through initiatives like "Make in India" and attracting foreign investment to boost local manufacturing. 
• Trade with China: Bilateral trade between China and India remains substantial, with a significant trade deficit for India. 

[More to come ...]