Keep China away from core sectors: Intelligence

SAYING NO
India turned down a port terminal contract to a consortium of Chinese companies

Huawei Technologies, a Chinese telecom-equipment major, has also been repeatedly rebuffed in its expansion plans

Central Electricity Authority checks the power generation equipment supplied by Chinese firms such as Dongfang Electric Corp and Shanghai Electric Power Co Ltd

Intelligence experts have warned against opening strategic sectors like telecom, railway signalling and cyberspace for Chinese companies. This comes ahead of Chinese president Xi Jinping's proposed visit to India later this month, seeking investments in various sectors.

Former Research and Analysis Wing (RAW) official Jayadeva Ranade, who has headed India's intelligence mission in Beijing, says before allowing any Chinese investment, prime minister Narendra Modi should clearly keep strategic sectors away.

Ranade and former foreign secretary Shyam Saran said the time has perhaps now come to build a public opinion in the country to settle the border dispute with Beijing on the basis of a status quo.

"While Tibet, Xinjiang, and Taiwan are issues of security concern, the Chinese leadership, in its recent assessment, has not mentioned border dispute with India. So, there is a room for manoeuvre," said Saran.

"President Xi Jinping's visit is aimed at striking a personal equation with prime minister Narendra Modi to prevent India from getting closer to Japan and the US. After Modi's visit to Japan, it is likely that the Chinese will now give concrete figures for investment in India," said Ranade.

In fact, China has already done that. Unlike Japan, which committed itself to invest $34 billion in In India, Chinese officials have informed government officials that they are willing to commit as much as $300 billion. The sectors they have been looking at include infrastructure, energy, agriculture, railways, and urban development among others.
China is also keen on developing student and teacher exchange programmes between Indian and Chinese universities, and the first few scholarships were already announced last year.

Privately, senior officials close to India-China discussions informed dna that the government is willing to announce some key deals for China as an initial gesture. These include upgradation of railway tracks – which are badly in need of repair and modernization (high speed trains have been ruled out for now). China may also be given the mandate to develop a special economic zone in the country, and even set up a couple of manufacturing units related to automobiles.
Saran said only when India appears moving closer to either the US or Japan will Beijing be concerned and offer more concessions to India. For example, the Chinese agreed to negotiate parameters to settle the border issue in 2005 when India was moving closer to the US.

Ranade cautioned even if Chinese secure investments in building a multi-million dollar project of bullet train, the signalling system should not be handed over to Chinese companies. "We should keep the signalling system out from Chinese hands, even if they come to build the bullet train," he said.

There are identical risks for the telecom sector as well. Though the US has also been found involved in espionage, Chinese telecom companies, which are mostly owned by the government, are used to tap information and to make intrusions.

Ranade said the 2013 Depsang incident in Ladakh, when Chinese forces intruded into Indian territory, was sanctioned by the highest authorities in Beijing. Three three-week stand-off between India and China in the Depsang plain had begun when an Indian patrol had found that a Chinese platoon had established a camp in what was clearly the Indian side of the Line of Actual Control.

After weeks of consultations and flag meetings, the Chinese and Indian sides agreed to restore status quo ante in the area, and the Chinese removed the five tents they had set up. "Depsang was planned and approved at highest level. Officials at its embassy at Delhi had cleared it," he said.