PM signal: sitting down with Japan, standing up to China

Modi promised single-window clearances and speedy, non-discriminatory decision-making.

By: Press Trust of India Written by Shubhajit Roy | Tokyo | Updated: September 2, 2014 8:29 am
Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe eat tea cakes at the Omotesenke tea hut, one of the main schools for the Japanese tea ceremony, in Tokyo on Monday. (Source: Reuters) Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe eat tea cakes at the Omotesenke tea hut, one of the main schools for the Japanese tea ceremony, in Tokyo on Monday. (Source: Reuters)

In what would have been music to the ears of the Japanese government, Prime Minister Narendra Modi on Monday said the “expansionist” ideas of the 18th century are still visible in the world — some countries “encroach” on others, some “enter the seas”, and some “capture other’s territory”. While he did not name China, the reference to “encroachment” and “entry into the seas” is being interpreted as a reference to China’s spats with Japan over the Senkaku Islands.

While there was no agreement on the civilian nuclear cooperation, the two sides noted the “significant progress” and asked their officials to “further accelerate” the negotiations with a view to conclude the agreement at an early date.

After the bilateral talks with Modi at the Akasaka Palace, Japanese Prime Minister Shinzo Abe announced his country’s intention to invest 3.5 trillion yen (Rs 2.1 lakh crore) in India over the next five years.

This largescale funding, which will be both public and private, will be invested on the rejuvenation of Ganga, smart cities, transport systems, skill development and next generation infrastructure among other projects. Abe and Modi also agreed to set a target to double Japan’s FDI and the number of Japanese companies in India within five years as part of the “Japan-India investment promotion partnership”.

Modi promised single-window clearances and speedy, non-discriminatory decision-making. “I have decided to set up a Japan-plus special management team directly under the PMO to facilitate proposals from Japan. I also propose that you nominate two people from Japan who would be part of a team which looks into business proposals, and they can be a permanent part of our decision-making process,” he said.

Modi underlined that the India-Japan ties have been elevated from a “strategic and global partnership” to a “special strategic and global partnership”. Stating that adding “special” is not just a “play of words”, he said it signifies Japan’s increasing role in India’s economic development, increased political dialogue and new thrust to defence ties among other issues.

Five agreements, including on defence cooperation, health, roads, women’s development and clean energy, were signed. On the US-2 amphibian aircraft, they sought “working level consultations” to promote defence equipment and technology cooperation. And on the trilateral dialogue between India, US and Japan, the two leaders decided to explore holding the talks among their foreign ministers — another move which China could be concerned about.

Earlier in the day, addressing a gathering of Japanese and Indian industrialists at a lunch meeting, Modi said, “Today, we see all around what happened in the 18th century. There is expansionism visible… kisi desh mein encroachment karna, kahin samundar mein ghus jaana, kabhi kisi desh ke andar ja kar kabza karna, in cheezon ki pravriti chal rahi hai (encroaching on some country, entering the seas somewhere, capturing the territory of a country, we see such trends).”

Stating that “this expansionism cannot be beneficial for mankind in the 21st century”, he said, “Development is essential and I believe that in the 21st century, if Asia is to lead the world, India and Japan should together raise the prestige of the path of development.”

Elaborating on the expansionism versus development idea, Modi said, “The world is divided into two streams — one of vistarvaad (expansionism) and the other of vikasvaad (development). Vikasvaaad is the way ahead… We have to decide whether we want the world to be caught in the clutches of expansionism or should take the path of development.”

Meanwhile, Abe commended India’s efforts in the field of non-proliferation, including the affirmation that goods and technologies transferred from Japan would not be used for WMD (weapons of mass destruction) delivery systems. Modi appreciated the Japanese government’s decision to remove six of India’s space and defence-related entities from Japan’s foreign end users list.

Referring to the Modi government’s proposal to introduce bullet trains, Abe lauded Modi’s vision for development of world class infrastructure in India, including high speed railway system, and expressed hope that India could introduce the Shinkansen system for the Ahmedabad-Mumbai route.

“Abe expressed his readiness to provide financial, technical and operational support to introduce Shinkansen system, for which Prime Minister Modi expressed his appreciation. The two Prime Ministers look forward to the completion of the joint feasibility study on high speed railway system on the Ahmedabad-Mumbai route,” said the joint statement.

According to the statement, the two PMs welcomed “substantial agreement” on a commercial contract for manufacturing and supply of rare earth chlorides from India to Japan and affirmed their strong resolution for the finalisation of commercial contract as well as the commencement of commercial production at the earliest.

Modi met five top Cabinet ministers of the Abe administration, including Foreign Minister Fumio Kishida and Deputy PM and Finance Minister Taro Aso. He is scheduled to meet Japanese Emperor Akihito on Tuesday and visit the Sacred Heart University, apart from meeting other political leaders.

Before the talks, Modi was welcomed with a traditional tea ceremony. He also visited the Taimei elementary school, where he interacted with the students.

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  1. J
    Sep 2, 2014 at 6:48 am
    If only the Indians adopt even 50% of anese work culture it can work wonders. Modi is on the right tract.
    1. A
      Sep 1, 2014 at 6:08 pm
      kyo bhai,,,bahut khujli ho rahi hai kya aage or piche ? what were the undersecretaries waiting for these many years expert?
      1. L
        Sep 2, 2014 at 4:10 am
        Let the anese upgrade the NE Sector
        1. D
          Sep 2, 2014 at 3:55 am
          What else do you expected to achieve?
          1. A
            Sep 2, 2014 at 10:33 am
            why do bjp trolls need religious names only!!also what C. Nandkis said is right MODI pr overinflates his achievements
            1. K
              Sep 2, 2014 at 4:02 pm
              There are also many communal and stone age men who think so called secular parties like congress will uplift them.They also should put the country first than religion. and join the MAINSTREAM.THEY SHOULD NOT EXPLICITLY OR IMPLICITLY SUPPORT TERROR ELEMENTS
              1. a
                Sep 2, 2014 at 12:44 am
                I agree that a 1st grader can build a space ship.
                1. S
                  Sid Harth
                  Sep 3, 2014 at 12:41 pm
                  U.S. Principles and InterestsAt the ociation of Southeast Asian Nations (ASEAN) Regional Forum meeting in Hanoi in July 2010, Secretary of State Hillary Clinton laid out the principles guiding the U.S. government’s policy toward the South China Sea. A positive U.S. role in the South China Sea is possible building on the principles that Secretary Clinton enunciated in 2010, but only if the implementing diplomatic strategy is forward-looking, comprehensive, disciplined and sound.
                  1. S
                    Sid Harth
                    Sep 3, 2014 at 12:40 pm
                    मोदिजी का चीनी दवाखानाSeptember 3, 2014 elcidharth Policy Brief | August 2014Keeping the South China Sea in PerspectiveBy: Jeffrey A. Bader, Kenneth G. Lieberthal and Michael McDevittIn the Brookings Foreign Policy Brief, “Keeping the South China Sea in Perspective,” Jeffrey Bader, Kenneth Lieberthal and Michael McDevitt outline steps the United States can take to pursue U.S. interests in the South China Sea and mitigate current disputes. Read the overview below and download the full brief for detailed analysis and a complete list of recommendations.The United States seeks to promote Asia-Pacific economic interdependence and dynamism and to mitigate security tensions in the region. Unfortunately, maritime territorial disputes in the East China Sea and the South China Sea increasingly threaten these dual objectives of U.S.-Asia policy. This policy brief focuses on the South China Sea set of issues.
                    1. D
                      Dr Robert
                      Sep 3, 2014 at 2:48 am
                      Delighted to read these remarks! You speak truth,
                      1. C
                        Sep 1, 2014 at 2:20 pm
                        What did he achieve in an? An under secretary would have got the same.
                        1. H
                          Sep 1, 2014 at 8:53 pm
                          A lot more than Manmohan Singh ever achieved- a close relationship, finance, development and so much more.
                          1. C
                            Sep 1, 2014 at 11:46 pm
                            I am a Chinese working as a China analyst at a think tank. It is becoming more and more apparent to many people, that the ruling Chinese Communist Party (CCP) knows it is on its last straw of survival.The party is facing severe and endlessly increasing systematic stress on all fronts:1. Increasing external oppositions from all other countries in the world including all of China's neighbors. They are forming more and more alliances and becoming more outspoken with rising strengths against China, in addition to increasing anti-China sentiment from people in all other countries. Many countries including Canada and Australia and U.S. have just tightened their immigration policy to prevent Chinese from entering their countries. Even on these casual internet message boards, when you look past the paid Chinese propaa professional commenters, you notice rising general anti-China feelings from all over the world.2. Increasing internal severe and mive violent social unrest and anti-CCP mutiny from people of all Chinese living places. To beat down internal dissent in mainland China, the CCP every year is forced to spend even more money than on its mive military budget. All the semi-external places (Hong Kong, Xinjiang, Tibet, Macau) are fighting harder and harder to break free from China. Taiwan is for all practical purposes already a separate democratic country, with its own army specificly trained to fight the PLA, and anti-China sentiment there (especially among younger Taiwanese generation) is at all-time high after seeing how China violently suppress Hong Kong as an example of "reunification". This w situation is continuously worsened by the free flow of information, with Chinese people knowing more and more from travelling abroad and learning about truths from jumping beyond the "Great Fire Wall" on the internet.3. Its own economy and social system never able to advance to higher level beyond m skill-less manufacturing, due to complete absence of law and common morals. High technology and innovations and scientific development all require many citizens working together voluntarily contributing long term in a system they trust, with things like rule of law, no censorship on knowledge, no restrictions on speech and expression, copyrights, open minds, patents, common morals when collaborating and trading with each other etc. These qualities are all destro in modern China by the CCP. When was the last time you heard an announcement of technology development or innovations or scientific breakthrough coming from a Chinese organization / company / university? You haven't because there ain't any. Unlike m manufacturing factory work, high level human developments cannot be forced by or bought with a dictator's central planning. The only way contemporary China gets these things is from stealing and spying from all other countries e.g. secretly installing spywares in foreign executives' electronic devices when they enter China, but that has become much more difficult since the w world has caught on to their act.This systematic fatal flaw is why you do not see even one Chinese b or company that can compete in the international market in any industry of the human race. For example Lenovo, who is already one of the few Chinese bs some people may have heard of, cannot make either the chips that power their computers or the operating system that run them, so it is just one of many plain vanilla boxmakers without any compeive advantage offering only cheap price. Another example Huawei is blacklisted by many countries and international customers because everyone knows Huawei's products send all communication data back to the CCP. This CCP weakness is also why China cannot produce even one home-grown science Nobel Prize winner in its history, nor one famous business guru, nor one cultural figure, not even a third rate national soccer team. No rule of law in China also means no people or businesses, both Chinese and foreign, ever invest in China long-term or on a large scale because everything frequently change on a whim along with the political climate. No one trusts any contract or agreement in China because they are always broken by the Chinese and there is no legal protection whatsoever, meaning China can never advance to a knowledge economy or service economy. Your business can be seized from you any second by the military police working for someone with "guanxi". No rule of law also ensures Shanghai fail to become a financial city despite the CCP dumping huge resources into it for 30 years.4. China's m skill-less manufacturing itself is going away to other countries due to sharply increasing costs and openly hostile and unfair business environment full of frauds and sanctioned protectionism and government robberies. The labor force is endlessly more demanding in wages and benefits expectations and working conditions, especially since all of today's Chinese workers are single child used to coddling and indulgment by their own family. It is further worsened by the rise of robotic automatic manufacturing and 3D printing. This situation is a death knock to the "growth-based legitimacy" of the CCP, which is the only thing CCP can rely on for continuing ruling power. For sure Chinese people tolerate or even "like" the CCP when the economy seemingly explodes, but when one day it crashes and the country's hopeless bad shape hit them in the face the people's "support" for the CCP will turn on a dime.Since six months ago, all the major economic indicators for China have gone on a continuing nosedive - including manufacturing orders, export volume, commercial investments, graduate employment rate, corporate credits, foreign capital inflow, domestic consumptions, real estate prices, consumer spendings, luxury goods demand, HSBC Service PMI, survey of business sentiments etc. Suddenly all the rich Chinese tourists gobbling up luxury goods at different world cities seem to have disappeared altogether. The CCP is on its last resort of printing literally trillions of worthless renminbi to dump into mive failing and zero ROI "state projects" that only enrich corrupted CCP officials. China's huge multi-year increase of M2 money supply (it is afraid to publish the figures citing "national security") causes way more long-term harm on itself than short-term help, and when that is over there is nothing else the CCP can do to prop up the failing economy. China currently ranks 82nd on GDP per capita and that is the highest it can go before falling sharply in the coming near future.5. Fierce unstoppable purges and mutually-destructive infighting among different factions within the party, who are imprisoning and killing each other every day. This power grab goes on under the laughable thin guise of "anti-corruption drive" when everyone knows all officials in china are corrupted. No work to manage the country or guide the ship is being done while this is going on.6. Its many previously-suppressed fatal problems have all grown too big to be contained all catching up to the CCP e.g.- severe carcinogenic poisonous pollution everywhere in air and water and soil and their own food etc, with the WHO issuing multiple warnings on Chinese potion having the fastest cancer growth rate in the w world- skyrocketing non-performaing loans, local government bad debts, world's biggest amount of corporate debt leveraged to the tilt, "shadow banking" liabilities, unrepayable dodgy financial products etc, their true scope no one on Earth knows because all data from China are faked- biggest housing bubble in human history, in addition to innumerous crumbling "ghost cities" and shoddily-built vanity project "GDP-creating" infrastructure that cannot and will not be used- rapidly aging demographics with a 140:100 male:female ratio (from one child policy, culture of "leftover women", and many Chinese families killing their own daughters so as to chase boys)- world's no.1 wealth inequality, with a Gini coefficient rivaling 18th century France just before the French revolution- complete absence of soft power / cultural influence / social attraction, partly due to CCP censorship. One result of which is minimal and sharply dwindling number of foreign professionals and tourists and students going to China. It also means the CCP only has force as the only tool to use on the international stage- all Chinese chasing foreign-b goods and services while ditching low-quality Chinese-bs, who have a well known history of poisoning their own food and their own baby formula so as to make more money. This dashs CCP's hope to build indigenous industries and a domestic consumption economy- corruptions and fraud throughout the w rotten core of a system- desperate m exodus at all levels of Chinese society to escape the country using emigration or buying houses / study abroad or marriage to foreigners or plain old human smuggling, resulting in all able Chinese leaving taking huge amounts of talents and money out of the country- the law of large numbers, "middle-income trap", "Minsky moment", "Lewis inflection point" all work against the growth-based legitimacy CCP desperately needs for its survivalMost importantly, the CCP knows that if 1.4 billion Chinese learn about basic human qualities such as morals, truth, justice, human rights, rule of law, fairness, freedom, universal values etc the CCP will be toppled very quickly. Therefore its state-controlled brainwashing education and propaa machinations ensure a complete lack of morals and regard for laws in all Chinese growing up and beyond. Coupled with the fact that Chinese do not work well together, this results in failure in all basic aspects of human interactions with every modern Chinese, whether it is business trading / personal dealings / technology development / creating innovations / human communications / scientific research / artistic expressions / teamwork collaborations / academic exchange etc. Another propaa brainwashing technique used by the CCP is to make all Chinese people pathologically nationalistic and very emotional on this issue, so the CCP can always create and point to some "foreign enemies" so as to hide all the domestic crises and government robberies going on. This attention-diverting technique is the same trick magicians have used for more than a thousand years to fool their audience.An interesting example would be the Chinese reaction to this report - they are expected to dismiss this report as total rubbish, accuse the author "unpatriotic" for saying the truth, shout China will only become richer and stronger than all other countries, yet they will give no counter-arguments and they will make no acknowledgement to the horrible factual conditions and complete lack of basic human qualities listed above in modern China. Ironically, the longer Chinese people deny or refuse to acknowledge the CCP problem, the longer they are only digging themselves into the and hurting themselves for any chance of recovery, causing the chinese economy to crash even further. Consider the example of Google, Facebook, Wikipedia, Youtube, Whatsapp, Twitter, Instagram etc - these services are all completely banned in China while at the same time the rest of the planet are on these services every second communicating ideas with each other, making friends, exchanging knowledge, doing business, working together, improving science and technology and arts, and advancing humanity.Some people say China economically developed a lot in past 20 years, but the truth is this "development" is actually debt borrowed against the future. After the 1989 Tiananmen Square macre of their own students, in order to survive and hang on to power, the CCP was forced to pursue short-term explosive economic growth that sacrifice everything else, including a foundation or potential for long-term economic and social development. This "scorched earth" policy is like winning the lottery for corrupted CCP officials who can rob a lot of money from the country in the short-term before escaping to America. The only eny left to suffer is China's future from this point on, a country that has been turned by the CCP into a place with no law, no morals, no system for future scientific or economic or social development, no spiritual support apart from money, no trust or cooperation among Chinese, no trust or goodwill from foreigners, no other country as friends, all resources sold away cheaply, entire environment and air and water and soil and food fatally polluted, only social recognition is to make a lot of money for "face", no creativity or personal development for Chinese young people, a populus not allowed to know the truths and not allowed to say the truths.The end result is that majority wealth of this "debt borrowed against the future" has gone to the 0.0000001% elite ruling cl "princeling" CCP families (about 250 of them) who have already smuggled trillions of dollars abroad along with their U.S. pports and their own children (all Chinese elites and Politburo members hold foreign pports, with U.S. and U.K. being the most sought after choice). For the CCP in 1989, 1.4 billion people is great central-planning et when the country start from nothing and you order them to do backbreaking m manufacturing repeive factory work 20 hours a day without workers protection of any kind. But in the 2014 borderless knowledge economy when that no longer works, 1.4 billion immoral and uncooperative and selfish and undeveloped and angry Chinese contained in a lawless system without any hopes of growth is very, very dangerous liability for the CCP.All debts against the future have to be paid back - China is no exception. That moment may arrive a bit later than expected but it surely will come, as it has on 100% of occasions in human history. In normal countries bad conditions correct themselves with short periods of market ups and downs, but in China the CCP suppress all problems and criticisms until inevitable system meltdown. For China the moment has arrived to suffer the consequences for all its own chosen actions in past 30 years. All the festering fundamental systematic problems listed above and much more, are only getting worse and worse everyday until one day when the system can suddenly no longer bear.Think USSR in 1989.( Cliff notes summary for the smartphone generation with ADD, ADHD and Asperger's:- The Chinese Communist Party (CCP) signed a deal with the devil to pursue miraculous short-term economic growth- Miraculous short-term economic growth has been achieved, now China has hit the wall on its path of no return, many bad conditions have caught up- CCP cannot go on externally, it cannot go on internally, economy has no way to go but greatly down, many fatal cancers and huge structural problems from the past now overwhelming the country- Something has to break, what happens is anyone's guess, guaranteed to greatly impact China and the world )
                            1. h
                              Sep 2, 2014 at 3:11 am
                              Sure. An undersecretary and a clerk working for zillion years 8 hours a day.
                              1. O
                                Sep 2, 2014 at 9:05 am
                                Only Modi can't do the magic. Many of his ic and communal followers need to change their perspective of looking at India's problems from a economic perspective instead of a religious perspective
                                1. J
                                  Sep 1, 2014 at 2:30 pm
                                  This is good. It is time India diversify its business partners. Hopefully, the babus in the administration would co-operate.
                                  1. D
                                    Dr.KM Dhasmana
                                    Sep 2, 2014 at 2:57 pm
                                    Having said that Modi is intelligent and courageous prime minister who wants to take india in twenty first century with the help of an's technology.It shows his vision for India in which five will not be sufficient to perform the agreement with AN and may take another five years which he deserves fully.I do hope Indian people will show their faith in him.
                                    1. K
                                      Sep 2, 2014 at 4:51 am
                                      How much do you know aboit Foreign affairs? Can a under sec sign mutual agreements worth billions of dollor? And what did MMS achive last year? U can be congy fan but can be appreciative of Namo's effort 65 yrs no Indian leader had signes biltrl agreemtns worth billions of dollors period.
                                      1. K
                                        kris kumar
                                        Sep 2, 2014 at 6:51 am
                                        It appears that you and Congi like you have to criticise Modi just for the sake of it. If it was so easy for under secretary to achieve that then why Congi did not explore all the options in all those years they were in power. Congress were busy in looting the nation under Italian barmaid. Any way Congress is doomed for a long time and Modi is going to make sure India develops fast and youth of India get the jobs.
                                        1. M
                                          Sep 2, 2014 at 6:39 am
                                          You are a fool..!!
                                          1. S
                                            Sep 2, 2014 at 1:44 pm
                                            great words bro!!! a good leader shows the path but its our duty to show him that his good faith on us is truly virtuous.
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