Japan: Food from China Better than Foof from US

Japanese government released some data about food imports in 2006.

The data show that only 0.58% of the food from China could not meet Japanese standards. But 1.31% from US caused safety concerns. 0.62 from EU were sunstandard.

Japan has very strict policies for agricultural product imports for protecting incompetitive domestic agriculture.

The data come from:
http://finance.sina.com.cn/world/gjjj/20070724/05513813298.shtml

Joel Goebel relives: f.u.c.k.u.Germany

The following is a response to Chinese by a German comany that put "f.u.c.k.u.china" words on its logo. You could understand that why Joel Goebel was a German. Germans are really propaganda genius. I would take it for granted that Germans welcome all of us say "f.u.c.k.u.Germany" since stands for “the fascinating & urban collection: kiss you Germany”.



　　Dear Sirs,

　　Here some explanation concerning a logo we used for a special and limited T-shirt edition produced last season.

　　On this specific T-shirt collection we had printed the letters f.u.c.k.u.china.

　　The PHILIPP PLEIN Int. AG company would like to explain what lies behind this abbreviation and give the following statement:

　　f.u.c.k.u.china stands for “the fascinating & urban collection: kiss you China ”.

　　We would like to specify that we never intended to hurt or offend the citizens of China .

　　On the contrary, with this collection we wanted to thank China because it gives us the possibility to produce some articles of our collection on a competitive price basis.

　　In addition, the man craft we found in China is very precise and leads to a good quality of the clothes.

　　This is a great satisfaction for us and for our end customers.

　　We are a young and dynamic company and this is why we intituled this limited T-shirt edition “fascinating and urban” collection and “kiss” is a way to thank the Chinese savoir-faire.

　　Since we have been pointed out that the message is not clear and leads to controversy, these T-shirts - that were already limited to start with (max. 100 T-shirts have been produced) - have been retired from the market.

　　Once again, we are sincerely sorry if the abbreviation of the logo has been misinterpreted. We never wanted to offend anyone.

　　Thank you for comprehension.

　　Philipp Plein International AG

　　Säntisstrasse 7

　　8580 Amriswil

　　Tel.: 0041-71-414-2550

　　Fax: 0041-71-414-2560

India had US$7.06 billion Deficit on US$10.57 billion Export in April

In the past April, India exported US$10.57 billion of goods but imported US$17.63 billion.

The trade deficit of US$7.06 billion is almost 70% of India's export. That is really huge.

More details can be found here.

China doubles auto exports in 2006

China was expected to produce and sell over 7 million vehicles in 2006 and may bypass Germany to become the third largest automobile producer judging by the number of units.

With the rapid improvement of the auto industry. China made big progress in the international market.

Over the past few years, China's exports of vehicles and parts have grown rapidly. In 2005, exports reached 10.9 billion dollars, an increase of 34 percent on the previous year.

China's auto exports doubled in 2006 from the previous year to hit a record 340,000 units, state media reported Monday.

Xinhua News Agency quoted a Ministry of Commerce official as saying of the total, sedan exports topped 90,000 units, a 200 percent increase over 2005.
The total is up from 78,000 units

More detail could be reached here.

Remove iron ore and Indian exports to China will be halved

When Chinese president Hu visited India, both countries agreed to set the US$40 billion trade target for 2010. This report reveals some difficulties on the India side: India's weak industry sector cannot provide something competetive for China even China's market is so open today.

As the euphoria over Chinese President Hu Jintao's visit to India subsides, industry on both sides is waking up to the huge amount of work to be done for bilateral trade between the two nations to touch $40 billion by 2010.

Even as the two sides are studying the possibility of a regional or free trade agreement, an inter ministerial group set up by the Prime Minister's Office to formulate a policy on iron ore exports will decide the flow of bilateral trade at least in the shorter term. As on 2005, India exported 90 million tones of iron ore and as much as 83 per cent of it went to China alone.

In fact a deeper analysis shows iron ore alone has led the charge in Indian exports to China, as its share went up from 20 per cent to almost 50 per cent of total exports between 2001 and 2005. Overall bilateral trade itself achieved some much needed critical mass after 2001 as the two countries realised each others potential. In 1990 trade flows between the two countries stood at $260 million and rose to $2.988 billion in 2001 and to $17.62 billion in 2005 with a cumulative aggregrate growth of 42.6 per cent.

In such a scenario a ban or a cap on ore exports may have some dramatic but short-term impact on trade and may need redrawing some targets. “The surge in exports has only been due to ore and if it is capped or banned the buoyancy will be lost and the target of $40 billion for 2010 will not be achieved,” said Federation of Indian Mineral Industries secretary general R.K. Sharma.

But what concerns industry and the commerce ministry is that the trade deficit is growing overwhelmingly in China’s favour (see table). While ore exports have checked the deficit to some extent, it is an exhaustible resource being used by China to manufacture steel that’s export back to India. No wonder commerce minister Kamal Nath and minister of state for commerce Jairam Ramesh have been stressing the need to expand India's trade basket.

In the long run, industry is upbeat about trade prospects. “In the times to come textiles, pharma, food products, steel and chemicals will be the products that will see a jump in exports to China. Share of iron ore exports are at a peak right now and has to come down and stabilise at 10-15 per cent in the longer run,” said CII head, trade policy international agreements T.S. Vishwanath.

Ficci feels trade is already at a higher level but for the problem of logistics which needs third country involvement. “We’ve recommended setting up a core group to tackle the problem. Even if 30 per cent of indirect trade is converted into direct between the two nations, the resulting trade inflow will more than offset any uncertainity arising out of ore exports,” said Ficci Secretary General Dr Amit Mitra. The chamber has also recommended core groups on harmonisation of data, IPR rules for pharmaceuticals and chemicals and Sanitary and Phyto-Sanitary(SPS) standards for food processing.

“There’s a will to work jointly on IPR issues, which China is working on currently. We’ll have to enlarge our trade even if iron ore exports aren’t capped or banned. We can’t have a sustainable model based on that as the steel upcycle will not last forever in China,” Mitra added.

Hu Jintao's visit may not herald a revolution in trade between the two countries but it has brought a note of caution for Indian industry that trade cannot increase solely on the basis of iron ore. While the $40 billion trade target is not unachievable, it can’t be taken for granted.

sumant.banerji@expressindia.com

Fruit and veg gaining value for China

This news was copied from here. agriculture is very important for China who has more than 20% of the world population but only has less than 6% of the world's arable land. China today is basically self-sufficient for the domestic food needs. That's a great achivement. Thanks for the hardworking of Chinese farmers and the preogress in the agricultural technologies.

By Dominique Patton

30/11/2006 - China, producer of half the world's fruit and vegetables, is set to overtake the Netherlands in the next two to three years to become the world’s third biggest fresh produce exporter in value terms, predicts a new report from agriculture specialists at Rabobank.

The country, which exploits low labour costs to become the dominant grower of produce like persimmons, pears and asparagus, exported fruit and vegetables worth US$7.2 billion last year, according to data from Rabobank and the United Nations.

This amounted to 7.19 per cent of the global trade, behind the Netherlands, the US and top exporter Spain.

Increasing volumes of fruit and vegetable exports, particularly to currently small markets like the EU and US, are expected to drive this increase in value, in combination with stronger sales of higher value-added products.

“The proportion of added-value processed and prepared products compared to fresh has been increasing,” said Patrick Vizzone, head of the bank's food and agricultural advisory and research unit for Asia.

And although China has cost advantages over other fruit and vegetable producers in almost all areas - specifically labour, fertilizer and farm costs - some costs are rising quickly and significantly, he warned.

“China has historically been a price maker but costs, and therefore export prices, are rising,” he told AP-Foodtechnology.com.

These include land prices, which have increased by a compound annual growth rate of 14 per cent for vegetable growers between 1998 and 2004, more than for any other type of land use including corn, soya and cotton.

These costs have combined with other factors to push up prices for products like berries, seeing a large surge in demand, and apple juice concentrate, which was impacted by a poor crop last year.

Higher prices are evident in exports to Japan where new, even stricter controls on pesticides and contamination have stunted volume growth yet the value of vegetable exports are still up by 6 per cent in the first half of 2006.

Vizzone warned that it is difficult to predict structural price increases in China.

“China is still very competitive but prices have increased, underlining the potential for this trend,” he said.

China's fresh produce sector should also benefit from government policies to boost rural incomes, suggests Vizzone.

“The government is really pulling out all the stops to try to help the rural sector. It cut the agricultural tax last year and for the first time in about eight years, the growth of rural incomes is now on a par with urban areas.”

But there will also be rising demand for imports, he said. Rising incomes, particularly in China's growing middle class, will lead to higher spend on fruit in particular.

“Fruit is seen as more of a luxury compared with vegetables, which are a real staple,” said Vizzone.

The biggest fruit exporters to China in 2004 were Thailand, the US and the Philippines, with 29 per cent, 16 per cent and 14 per cent respectively, although Vizzone warns that it is difficult to assess imports with much of the fruit entering through grey channels.

Export data does however show an increasing trend and this is expected to be a real area of opportunity for international markets, fuelled by growth of the retail sector. Wet markets are still the largest channel for fresh produce sales but in major cities, consumers now buy 55 per cent of their fruit from supermarkets.

“Fruit and veg is a destination category for supermarkets and another way for them to grow,” said Vizzone.

Demand from the retail and other developing sectors like foodservice is also creating opportunities for larger fresh produce processors, many of which are international or joint ventures.

“These suppliers have really carved a niche in meeting the strict quality requirements of foodservice,” said Vizzone. “And there are ample more opportunities for foreign companies to participate in the sector both as producers and exporters to the industry. Lots of local companies are looking to partner with foreign firms for knowledge transfer.”

He added that the fruit and vegetable industry is relatively liberalized, allowing for investment for foreign companies.

India, the Largest TV piracy in Asia

Pay TV piracy has cost Asia $1.13 billion so far this year, according to a study by the Cable and Satellite Broadcasting Assn. of Asia and Standard Chartered Bank.

The worst offender was India, with $685 million in losses to the industry.

Part of the problem lies with the thousands of different companies owning the last mile of cable pipes not declaring their full income.

Thailand saw the second highest loss with $160 million

.

For more details, you can vist the source.

China fights back over patent rights

More detail of the article can be obtained from the Source

CHINESE companies have begun to defend their patent rights with increasing aggression in US courts, legal experts say. "Within the past year or two, the Chinese have begun standing up for themselves and testing the limits of intellectual property (IP) rights that are asserted against them," said Mark Hogge, a patent attorney at the law firm Greenberg Traurig.

Some Chinese companies are even going on the offensive in the US for the first time, and filing their own patent lawsuits against US competitors.

"Over the past 10 years, patent owners have won in about half of ITC cases against Chinese companies, but in the other half, Chinese companies have either won, forced the patent owner to withdraw the complaint, or obtained an agreed-upon settlement," said Mr Jarvis.

"The Chinese are now at a place where they aren't taking the hit and are going to take a stand," said Mr Hogge. Like Japan, Korea and Taiwan before it, China is becoming more aggressive in protecting its IP as Chinese industry becomes more sophisticated, moving away from copying foreign products and towards innovation.

The growing importance of IP to Chinese firms was demonstrated earlier this month by figures from the World Intellectual Property Organisation showing patent filings in China (half of them by Chinese) had risen sevenfold in the past 10 years. Getting sued for patent infringement in the US is very costly, but it can have benefits, said Mr Chen. Chinese companies are increasingly realising "it may not be a bad thing to be a defendant in a lawsuit because we get free publicity".

Comparing China With India by Numbers

1. The Geo-demographics of China and India
Land Area: China 9.6 million sq km; India: 2.97 million sq km
Population: China 1.3 billion; India 1.1 billion
Labor force: China 791.4 million; India 496.4 million
Population growth rate: China 0.59% (death rate 0.697%, birth rate 1.325%); India 1.38% (death rate 0.818%, birth rate 2.201%)

2. Economy in General
GDP in 2005: China US$2.225 trillion; India US$719.8 billion or
China US$8.859 trillion; India US$3.611 trillion by PPP
https://www.cia.gov/cia/publications/factbook/geos/ch.html
https://www.cia.gov/cia/publications/factbook/geos/in.html

Economy sectors:
China: Agriculture: 15% of GDP, Industry 52% of GDP, Manufacturing 35% of GDP, service 33% In 2001
India: Agriculture: 24% of GDP, Industry 27% of GDP, Manufacturing 16% of GDP, service 48% In 2001
These data comes from World Bank. You can conclude that China's industry size is almost 6 times of India's after a very simple calculation. You can see how little India's industry is. More important, China’s industry is still growing much faster than India’s.

3. Agriculture
India has more arable land than China. Indian produced 250 million tons of grains in 2003 (Thanks for the good weather).
China usually produces 450 million tons of grains each year no matter how tough the weather is (record is more than 500 million tons) (Thanks for the biotech R&D and expansion of the technologies in agricultural filed in China).

India produces 87.6 million tons rice from 42.4 million hectares on the other hand China produces 178 million tons of rice from a mere 29 million hectares. There is only one big difference; China embraced ‘hybrid rice’ technology in a big way, while India has had a slow start.
http://www.indianexpress.com/story/15440.html

In 1980, China grew 4100 kg of rice per hectare; India, 2000. In 2005, China grew 6300 kg, India 3000 kg. The difference in yields had increased from 2100 kg to 3300 kg per hectare. For wheat the comparable figures were 1900 kg versus 1400 kg in 1980; and 4200 kg versus 2700 kg in 2005. For seed cotton, 1700 kg versus 500 kg in 1980; and 3200 kg versus 800 kg in 2005. For vegetables, 14500 kg versus 8300 kg in 1980; and 19300 kg versus 11300 kg in 2005.
http://www.indianexpress.com/story/16111._.html

4. Industry
As data in “Economy in General” section shows, China’s industry scale is 6 times of India’s. China’s industry is still growing at around 16% pace for many years. That means one year increase in China’s industry revenue equals to the total size of India’s industry. The gap is huge.
China’s industry revenue is about 3.5 times of the revenue from agriculture, but for India, its industry revenue is almost equal to the agriculture.
Around 43 million tons of iron and steel was produced in India in 2005 (An important index of infrastructure construction.) China produced around 349 million tons of iron and steel.
http://english.people.com.cn/200610/12/eng20061012_310940.html

55% of the world cement (Another infrastructure construction index) was used in China. See http://www.economist.com/displaystory.cfm?story_id=2446908

By the data from CIA fact books, India produced around 36 million tons of oil (A natural resource index) in 2003 and will face the resource problem soon.
China produced 160 million tons of oil in 2003 and imported more than 100 million tons in the same year.

Here talks about the Sino-India trade in 2004. It clearly tells that India is only a raw material supplier to China and China mainly sells industrial products to India.
http://www.indianexpress.com/res/web/pIe/full_story.php?content_id=81415

India’s average tariff fell from 56% in 1990 to 28% in 2004. By comparison, China’s average tariff dropped from 32% to 6% over the same period. That means, India has to use tariff to protect its weak industry. While, China’s industry competes against others fairly even in domestic market.
In 2002 the typical monthly wage of a manufacturing worker in India was US$23.80 while in China the figure was US$110.80, according to the IMF.
http://www.deloitte.com/dtt/cda/doc/content/US_ChinaIndiaReality_Research.pdf
Even India’s industry is under the protection of high tariff. India still has a huge trade deficit. The deficit could reach US$50 billion in the fiscal year of 2005-2006.
http://www.boloji.com/analysis2/0109.htm
But China always has a trade surplus. I even don’t bother to provide the links.

5. Service Industry
Calculating from the GDP numbers of both China and India and the percentage of service industry in them, China’s service industry contributed US$742.5 billion to China’s GDP, it is almost the total of India’s GDP. India’s service revenue was only US$345.5billion.

Chinese airlines carried 138 million passengers in 2005, and the loads will nearly double to 270 million passengers in 5 years.
http://www.usatoday.com/travel/flights/2006-10-02-china-airports-usat_x.htm
Passenger traffic grew to 52.12 million in the last fiscal in India, from 43.47 million in 2004-05, to register a growth of 19.9 percent.
http://investinginindianews.blogspot.com/2006/07/indian-aviation-soaring-into-greater.html

The annual insurance premium currently collected in India is $23 billion, which is expected to increase ten fold to $ 239 by 2020. In the same period, China’s insurance premium will rise to $863 billion from the present level of $60 billion.
http://www.hindustantimes.com/news/181_1821048,00020008.htm

Retail sales surged 12.9 percent in 2005 over the year before, to 6.7 trillion Yuan ($847 billion). By 2020, industry forecasts say the market could expand to about $2.4 trillion.
http://www.forbes.com/business/energy/feeds/ap/2006/10/17/ap3096453.html

India’s total retail market reached US $230 billion in 2005 and will grow to US$370 billion in 2011
http://sourcewire.com/releases/rel_display.php?relid=27553&hilite=
http://www.etretailbiz.com/feb06/SPECIALfeature.htm

India’s travel and tourism market was valued at US$42 billion in 2005. 340 million people traveled in 2005. The outbound travelers from India grew to 6.2 million in 2005. This was almost twice the number of arrivals witnessed by the country. That means only 3.1 million visited India in the same time.
http://www.euromonitor.com/Travel_and_Tourism_in_India
China received 47.11 million visitors in 2005. This number should not include the vistors from Hongkong, Macau and Taiwan.
http://www.bernama.com.my/bernama/v3/news.php?id=199299
There were 31 million outbound tourists from China in 2005.
http://travel2.nytimes.com/2006/05/17/world/asia/17travel.html
In 2005, inbound tourists reached 120 million (including Chinese from Hong Kong, Macau, Taiwan economies).
Overseas tourists contributed over $29.3 billion to the Chinese economy. But their contribution was far outweighed by that of domestic Chinese tourists, who contributed $66.7 billion.
http://www.atimes.com/atimes/China_Business/HC07Cb06.html

In 2004, China’s service exports were US$62 billion versus US$40 billion for India. On the other hand, 60% of China’s service exports were travel and transportation services while in India the figure was 22%.
In 2003, India’s exports of commercial services other than travel, transportation, and finance amounted to US$18.9
billion. The figure for China was US$20.6 billion. In other words, China may already be ahead of India in selling IT
services to the world.
http://www.deloitte.com/dtt/cda/doc/content/US_ChinaIndiaReality_Research.pdf

6. Financial Industry and financial stability
Indians always say that their financial industry is better than China’s. This claim can cheat a lot when Chinese banks were completely state-owned. But today, three of the top four Chinese banks were listed in Hong Kong stock market. When it goes to the truth in market, Indian financial industry looks so pitiful comparing with China’s.
After the IPO of The Industrial and Commercial Bank of China, its market value is about US$87 billion, This is almost one and half times of the collective market capitalization of all listed Indian banks - for the 37 listed Indian banks, this is about $ 62.76 billion (Rs 2,86,859 crore). Bank of China's market capitalization is now around $105 billion and that of China Construction Bank $ 99 billion.
India’s ICICI Bank tops the market capitalization chart with $ 13.59 billion (Rs 62,177 crore), followed by the State Bank of India with $11.89 billion (Rs 54,380 crore) and HDFC Bank with $6.29 billion (Rs 28,774 crore). None of the other listed Indian banks has over $5 billion worth of market capitalisation. Punjab National Bank, the fourth bank when it comes to market capitalization, is worth just $3.62 billion. Canara Bank is worth just $2.52 billion.
China’s ICBC has total assets of over $ 812 billion, close to the size of India's GDP! State Bank of India, which accounts for almost one-fifth of total banking assets in India, however, has an asset base of only $84 billion.
http://www.rediff.com/money/2006/oct/07bank.htm

How China’s banks are welcomed in the stock market? The institutional tranche, which makes up 95% of the ICBC offering, attracted more than US$300 billion in orders and is 23 times oversubscribed. In Hong Kong, ICBC's initial public offering (IPO) of H-shares was 76-times oversubscribed with one million retail investors putting in HK$420 billion. This broke the previous record, held by Bank of China, which attracted HK$286 billion (US$36.7 billion) earlier this year. This enables ICBC to price its shares at the upper limit.
http://www.atimes.com/atimes/China_Business/HJ21Cb03.html
After IPO, ICBC's market capitalization jumped to $156.5 billion, trailing the $165.6 billion of the world's fourth-biggest bank, JP Morgan Chase & Co in the world.
http://www.bloomberg.com/apps/news?pid=20601087&sid=afBgyU3agIzY&refer=home

Budget deficit: 10% of GDP in India versus 2% in China. This could have big impact on financial and economical stability.
http://www.deloitte.com/dtt/cda/doc/content/US_ChinaIndiaReality_Research.pdf

China has almost US$1 trillion forex reserves with total of US$ 297.9 billion external debt
http://news.xinhuanet.com/english/2006-10/09/content_5180188.htm
http://www.cctv.com/program/bizchina/20061023/102290.shtml
India has US$165.275 billion forex reserves with US$132.1 billion external debt.
http://www.hindu.com/2006/09/30/stories/2006093001431800.htm
http://www.financialexpress.com/latest_full_story.php?content_id=143426

India has a huge public debt, the ratio of public debt to GDP was 82% in 2005 and still growing fast, which is above the globally recognized alarm level of 60 percent.
http://www.indexmundi.com/india/public_debt.html
China’s public debt was 28.8% of GDP.
http://www.indexmundi.com/china/public_debt.html

7. Software Industry
India is famous for its software and back office service. China's software industry is actually much bigger than that of India even China keeps silent. Chinese companies rely on huge domestic market while India has almost no IT market comparing with the big countries around. China has its own software brands such as KingSoft, Rising(anti-virus), Jiangming (Anti-virus), RedFlag(Working on Linux), WPS ( office software), ufsoft(Enterprise), KINGDEE (Golden Butterfly in Chinese) ( Enterprise), Shanda (Games).
China’s Software industry revenue reached 390 billion RMB (around US$50 billion) in 2005.
http://english.peopledaily.com.cn/200603/17/eng20060317_251505.html
India’s software industry revenue reached US$29.6 billion in the fiscal year ended in March 2006.
http://blogs.zdnet.com/ITFacts/?p=11050

8. Infrastructure
India has total of 127 million cellular users as of the end of September 2006 and around 50 million landline phone users. See
http://www.iht.com/articles/ap/2006/10/10/business/AS_FIN_India_Mobile_Phones.php
http://en.wikipedia.org/wiki/Communications_in_India
China has total of 437 million mobile users and 368 million fixed-line phone users as of the end of August 2006. Total of 800 million phones are being used in China.
http://english.peopledaily.com.cn/200609/21/eng20060921_304974.html

India had 27.7 million internet users by year-end 2005, and had only 1.3 million broadband users. China had 111 million internet users through the end 2005, among which 41.2 million were broadband users. See:
http://www.emarketer.com/Article.aspx?1004144
Don’t forget India defines access speed of 128 kbps as broadband even in 2004.
http://www.dot.gov.in/ntp/broadbandpolicy2004.htm

Railroad: In 1949, there were only 21,800 km of railway lines in China, with only 11,000 km opened to traffic. See: http://www.macrochina.com.cn/english/china/resources/20010412000136.shtml
As of the end of 2004, China had 74, 000KM of railroad with much better quality. See: http://english.people.com.cn/200501/26/eng20050126_171976.html
India had total of about 55,000 km Railroad in 1951. That’s much more than China had in 1952. See: http://irfca.org/faq/faq-history4.html .But India has fewer railroads than China now.

China's expressway (at least 4 lanes, speed limit 110KM/hour or 120KM/hour) reaches 42, 000KM at the end of 2005. http://en.wikipedia.org/wiki/Expressways_of_China
India has only 4,885 km are central-separated expressways.
http://en.wikipedia.org/wiki/Expressways_of_India
In 2002 China spent US$128 billion on power and transport infrastructure compared to US$18 billion for India.
A very small share of India’s roads is composed of highways. Of 3.3 million kilometers of roadway, only 195,000 kilometers are highways. China, on the other hand, has roughly 1.4 million kilometers of highway.
Due to insufficient port capacity, the lead time for Indian exports to the US is roughly three to four times greater than Chinese exports.
http://www.deloitte.com/dtt/cda/doc/content/US_ChinaIndiaReality_Research.pdf

Indian industry has to pay double of what Chinese factories pay for power; for ferrying freight by railways, Indian industry pays three times what Chinese factories pay.
http://www.indianexpress.com/story/16111._.html

India has electricity capacity of 130,000 megawatts.
http://www.iht.com/articles/2006/10/13/business/power.php
At the end of 2006. China will have the power capacity of 590 million kilowatts (590,000 megawatts)
http://english.people.com.cn/200601/03/eng20060103_232522.html
India's power sector, infamous for its distribution sector inefficiencies, shares the top slot in the company of countries such as Nigeria and Nicaragua when it comes to overall transmission and distribution (T&D) loss levels.India's average loss in transmission and distribution (T&D) is about 33 per cent, The T&D lose in China is only 7%.
http://www.thehindubusinessline.com/2005/12/03/stories/2005120303300900.htm

9. Education
Around 30% of Indian male cannot read newspaper and 52% of female cannot read. that means around 40% of Indians cannot read. See
https://www.cia.gov/cia/publications/factbook/geos/in.html
Less than 10% of Chinese cannot read (most of are old person and they missed the education opportunity in the old time). See
https://www.cia.gov/cia/publications/factbook/geos/ch.html

Indians are very proud of their software industry. But for the computer science education, China's education quality is much higher than India.

Here is the final list of the famous worldwide IBM ACM contest in 2006. So many Chinese universities were in the top list. You can clearly see Chinese students had much better performance than Indian counterpart.
http://icpc.baylor.edu/past/icpc2006/Finals/Standings.html
Here is another world-wide programmer contest. China and Chinese universities got much better scores than India.
http://www.topcoder.com/stat?c=country_avg_rating (Ranking by country)
http://www.topcoder.com/stat?c=school_avg_rating (ranking by school)
Here is the final list of Google Code Jam 2006, in which, there are 14 Chinese programmers entered the final competition, but you cannot find any Indians in the list.
http://www.google.com/press/annc/codejam06finals.html

Roughly 15% of China’s population aged 18 to 23 is enrolled in higher education compared to 7% in India. 91% of Chinese adults are literate versus 61% in India. Among females, the numbers are 87% and 45% respectively. In China, there are 18 pupils per teacher in secondary schoolsversus 34 in India. Clearly, China has an advantage when it comes to education.
http://www.deloitte.com/dtt/cda/doc/content/US_ChinaIndiaReality_Research.pdf

China’s education also more connected with outside.
South and West Asia is the origin of 194,000 mobile students, with two-thirds coming from India, according to a report from the UNESCO Institute for Statistics (UIS) titled 'The Global Education Digest 2006'. (That means about 130,000 students from India)
Between 1999 and 2004, the number of mobile students worldwide surged by 41 percent from 1.75 million to 2.5 million, according to the Digest. China sends the greatest number of students abroad - 14 percent of the global total - primarily to the US, Japan and Britain. (That means 350,000 students from China)
http://www.indiaenews.com/business/20060604/10169.htm

140,000 international students came to China for studying in 2005. The number will be doubled in 2020.
http://www.china.org.cn/english/2006/Aug/177200.htm
About 8,000 foreign students are studying in India.
http://www.indianexpress.com/story/12586.html


Today, on every parameter for basic education, China is far ahead of India. In 2000, only 47 per cent of all children managed to complete grade 5 of primary schooling in India, as opposed to 98 per cent of Chinese children. The pupil-teacher ratio for primary education in China is one teacher for every 20 students compared to one teacher for every 40 students in India. According to World Bank estimates, youth male illiteracy in India is 20 per cent. In China it's less than one per cent.
http://www.hinduonnet.com/2006/08/10/stories/2006081005691000.htm
Gross enrollment ratio is estimated to be more or less the same in both countries — but the drop out rate in India is 21 per cent, in China it is 1 per cent.
http://www.indianexpress.com/story/16111._.html

10. Science and technology R&D
China spent 245 billion Yuan (30.6 billion U.S. dollars) on scientific research and development (R&D) in 2005, a rise of 24.6 percent. The investment accounted for 1.34 percent of China's 2005 GDP. R&D funds coming from enterprises stood at 167.4 billion Yuan, making up 68.3 percent of the total investment.
http://english.people.com.cn/200609/14/eng20060914_302806.html
India's total domestic spending on R&D rose an estimated 9.7% to $4.9 billion, or 0.77% of GDP, in the fiscal year ended March 2005.
http://www.plunkettresearch.com/
Based on PPP value of the investment on R&D, China invested US$124.03 billion in 2005 and India did US$36.11 billion in the same year. The numbers will go to US$149.80 billion and US$41.81 billion in 2007.
China’s R&D investment was 12.7% of the total of the world, comparing with 32.7% of US, 12.7% of Japan and 3.7% of India in 2005 based on PPP.
57.6% of the R&D investment in China came from industry, 33.4% from government, 2.7 from abroad, 6.3% from others.
23% of the R&D investment in India came from industry, 74.7% from government, 23% from others.
http://www.battelle.org/news/06/2006report.pdf

Even China’s R&D is not high comparing with the developed countries, but it was 6 times of what India did. The huge investment gap can tell many things. The results are so obvious:
The number of papers that are being published by China and India in high-caliber journals - ones that are accessed by Science Citation Index and Social Science Citation Index, papers originating from China had was almost thrice those from India in 2005.
http://www.indianexpress.com/story/12493.html
In 2005, Indians published only 4 articles in the prestigious Journal of American Chemical Society (JACS) versus just 22 for China, 8 versus 28 in the Physical Review of Letters (PRL) and 2 versus 13 in the Journal of Biological Chemistry (JBC).
While China's score on the Knowledge Index has risen from 3.03 in 1995 to 4.21 today, India's has fallen from 2.76 to 2.61 -- that is, India has slipped even relative to itself!
In terms of innovation, which includes the articles published in scientific journals, apart from the number of R&D personnel and the number of patents, India's score has improved from 3.51 to 3.72 -- China, however, has improved from 3.94 to 4.74, another instance of that country's stupendous progress.
http://inhome.rediff.com/money/2006/jul/17china.htm
On public expenditure on higher education, India lags way behind at $406 per student, just a fraction of countries like China (US $2,728), Brazil (US $3,986) and Malaysia (US $11,790)
http://www.indianexpress.com/story/12640.html

Many Indian and west media say India has advantage in innovation over China. Let’s compare the patents from the two countries. The number of Patent applications of a country pretty much stands for the creative and innovation of this country’s economy. In 2004, over 130,000 patent applications were received in China and China became the No. 4 in the world. India only had 17,466 applications in the same year. China filed 51 applications per million people, while India had only seven filings per million people. India was second to last
http://inhome.rediff.com/money/2006/oct/18forbes.htm
China made 2,452 international patent applications in 2005, a growth of 43.7 percent compared with the previous year. http://china.org.cn/english/2006/Feb/156849.htm
India filed 648 PCT applications in 2005, compared to 723 in 2004 and 764 in 2003. The trend is so obvious.
http://www.hindu.com/2006/02/05/stories/2006020502761300.htm

Indians are always boasting about their high technologies even supercomputer technologies. Let's compare the super computer because Indians are always claiming India is the second IT country in the world.
China's homemade supercomputer listed as No. 14. But the fastest one used in India is No. 105. It was made by IBM. India's homemade one is listed as No. 258. Legend (now Lenovo) built another more powerful one this year. It could be listed as No. 3 or No. 4. More powerful and more supercomputers were used in China than in India. See http://www.top500.org/list/2003/11/
China’s Lenovo is working on 1,000 TFLOPS supercomputer already, and it could be ready before 2010.
http://www.infoworld.com/article/05/07/28/HNlenovosupercomputer_1.html?CLUSTERING
The super computer will have domestic CPUs: http://news.xinhuanet.com/english/2006-03/03/content_4254337.htm

Thanks for the large market scale and the recent progress in the technology, China is able and trying to set the international or national technology standards, such as TD-SCDMA, EVD, WAPI, AVS, RFID.
TD-SCDMA was accepted worldwide. http://en.wikipedia.org/wiki/TD-SCDMA
FiberHome is the presenter of ITU-T X.85、X.86和X.87 international telecommunication standard: http://www.fhn.com.cn/fhneng/gyfh.asp?class=About_us
ZTE To Edit Key ITU Standard For Optical Network Technology. http://www.totaltele.com/View.aspx?ID=1226&t=1
China also has its own HDTV, IPTV standards. We know the standard can make more and easier money than the simple production and present the development level of technology in one country. I never hear any international industrial standard come from India.
AVS: http://www.forbes.com/markets/feeds/afx/2005/12/07/afx2376962.html
WAPI: http://english.people.com.cn/200610/13/eng20061013_311470.html

In the telecommunication technology, China is already one of the forerunners in the world.
Huawei along had registered over 8000 patents already. http://www.china.org.cn/english/BAT/142904.htm
Huawei’s global contract sales jumped up 40 pct to US$8.2 billion. http://www.forbes.com/business/feeds/afx/2006/01/15/afx2451344.html
Huawei became the largest supplier in the Optical networking market in the world in 2006.
http://telephonyonline.com/finance/news/huawei_alcatel_optical_090606/

China's IC industry is making great leap in recent years. China uses about 13% of the ICs in the world and will be one of the top IC producers in 2010.
http://en.chinabroadcast.cn/2238/2006-1-28/138@296061.htm

China is to complete its first very-high-temperature gas-cooled reactor (VHTR) by the year 2010. This will be the first such reactor in the world.
http://en.chinabroadcast.cn/2238/2006-2-2/135@296739.htm
http://www.msnbc.msn.com/id/11080908/site/newsweek/
China’s fusion research and achievements,
http://www.hindu.com/2006/09/29/stories/2006092901421800.htm

China today is actually one of the leaders in nano-technology research. 18.3 percent academic publications on nanoscale science and engineering topics were from China in 2004. http://www.smalltimes.com/Articles/Article_Display.cfm?ARTICLE_ID=270358&p=109
China's nanotechnology patent applications rank third in world even before 2003.
http://www.chinadaily.com.cn/en/doc/2003-10/03/content_269182.htm

In agriculture, China is the place where hybrid-rice came from. Yuan Longping is called the “father of hybrid rice” in the world. http://www.china.org.cn/english/2001/Mar/8452.htm
China developed high-yield "super maize": http://www.checkbiotech.org/root/index.cfm?fuseaction=search&search=China&doc_id=9797&start=16&fullsearch=0China aims for 30 pc increase in "super wheat" output by 2020.
http://www.hindu.com/thehindu/holnus/015200610061211.htm
China has taken the lead among developing countries in the research of genetically modified (GM) plants.
http://english.people.com.cn/200512/05/eng20051205_225772.html

11: International Trade
China’s international trade topped US$1.4 trillion (import: US$660 billion, export: US$762 billion) in 2005, and China became the 3rd largest trader in the world. See: http://www.iht.com/articles/2006/01/11/business/yuan.php
India’s international trade reached US$240.8B (export: US$100.6B, import: US$140.2 billion, import > export) in 2005 (ended in March 2006) with huge trade deficit (40% of its export). http://www.sunmediaonline.com/indiachronicleapril/bilateraltrade.html
From the data above, China does not only can sell a lot more to the outside and also provide a much larger domestic market to the outside. China’s market is not only huge on paper or by mouth. It is real.

12: Living standard
Infant mortality rate: China 2.312%, India 5.463%
Life expectancy at birth: China 72.58 years, India 64.71 years
(From CIA facts books)
People living with HIV/AIDS: China 0.64 million, India 5.7 million (The world No. 1 in 2005)
http://www.unaids.org/en/HIV_data/2006GlobalReport/default.asp

46% of general population in Bombay carries an active sexually transmitted disease (the greatest risk factor for HIV spread). Do you believe it? See: http://www.globalchange.com/indi.htm

Indian PC sales hit 4.6 million in 2005 (ended in March 2006) in the so-called the second IT superpower. See: http://www.boston.com/
About 20 million of PCs were sold in China in 2005 (ended in December 2005). China is actually the No. 2 PC market in the world, only after US. See: http://www.vnunet.com/vnunet/news/2150574/china-pc-sales-hit-billion-2005

Only 32% of Indian families have TV. See:
China's number is 94% which is was almost as high as in the developed countries. India will be 2/3 of this number at the end of decade.

India’s health system is worse than neighboring Pakistan and Bangladesh.
http://www.business-standard.com/common/storypage.php?autono=262521&leftnm=3&subLeft=0&chkFlg=
The proportion of children underweight in India is 47.5% higher than the proportion of children underweight in Sub-Saharan Africa as a whole.
http://www.financialexpress.com/fe_full_story.php?content_id=143751
According to UNICEF, India in fact has 57 million children suffering from malnutrition compared to only seven million in China.
In China, underweight prevalence in children under five was reduced by more than half from 19 per cent in 1990 to just under seven per cent in 2005. The under-five mortality rate also sharply dropped from 49 per 1000 live births in 1990 to 31 in 2004.
http://www.hinduonnet.com/2006/08/10/stories/2006081005691000.htm
India ranks 93 among 116 developing countries in the global hunger index. India’s score on the index for 2003, the latest year for which data is available, was 25.73, worse than Sudan at 27.20 but better than Burkina Faso (25.80). The index, comprising three indices - child malnutrition, child mortality and estimates of the proportion of people who are calorie deficient - ranks countries on a 100-point scale, with 0 being the best and 100 being the worst.
nearly 50 percent of the world’s hungry live in India. Around 35 percent of India’s population - 350 million - is considered food-insecure, consuming less than 80 percent of minimum energy requirements.
http://www.dnaindia.com/report.asp?NewsID=1058371

The long list of Chinese medal winners at Sydney 2000 Olympic Games: See: http://www.sportorganizer.com/2000sydney/2000sydney16.htm
Let's congratulate to the only one Indian winner in 2000: See: http://www.sportorganizer.com/2000sydney/2000sydney34.htm
2004 Olympics in Athens, Please look for China from the top of the list and India from the bottom:
http://www.athens2004.com/en/OlympicMedals/medals

13. Political system
Even Indians claim India is a democratic country. But its corruption is worse than China. see
http://www.international.ucla.edu/article.asp?parentid=5299 (The research result for 2003, Corruption Perception Index)
http://www.infoplease.com/ipa/A0781359.html (The research result for 2006, Corruption Perception Index)
Another research report said India's corruption is much worse than China too: http://straitstimes.asia1.com.sg/topstories/story/0,4386,238369,00.html
Do you believe Democracy works in India?

Human Rights in India? See here: 3000 farmers committed suicide in a 11million farming area in one year. http://news.bbc.co.uk/2/hi/south_asia/3855517.stm
Suicide rate for women is as high as 148 per 100,000, and 58 per 100,000 for men in Tamil Nadu. http://www.rediff.com/news/2004/apr/15spec.htm
At least 5% of Mumbai's people live on the roads, and 2% are simply nomads. Another 2.5 million people live in dilapidated buildings which have been officially tagged as 'dangerous'. See the report: http://news.bbc.co.uk/2/hi/south_asia/4222525.stm
Over 12 per cent of disabled women in Orissa have been raped and 25 per cent of those mentally challenged have been sexually assaulted in the state. Isn't that horrible? See: http://www.expressindia.com/fullstory.php?newsid=42099

Twelve protestors killed in police shooting in January, 2006
http://www.wsws.org/articles/2006/jan2006/oris-j17.shtml
Four killed in protests in India's Gujarat state in May, 2006
http://news.monstersandcritics.com/southasia/article_1159863.php
Four were killed in the Violence over Indian star's death in April, 2006
http://news.bbc.co.uk/1/hi/world/south_asia/4905880.stm

The ill-treated Indians have to take their weapons to stand up against Indian government
http://www.guardian.co.uk/india/story/0,,1770612,00.html
http://ottsun.canoe.ca/News/National/2006/06/02/1611463.html
Maoist rebels spread across rural India.
http://www.csmonitor.com/2006/0822/p06s01-wosc.html

The religious conflicts, fighting happens in India over and over again. You can see how divided India is as a country.
http://edition.cnn.com/2002/WORLD/asiapcf/south/12/06/ayodhya.background/

Don’t forget the caste system in India and 160 million Untouchables are living in India.
http://news.independent.co.uk/world/asia/article1868080.ece

In India, :At least 10,000 people, most of them civilians, have died in fighting between government forces and separatists since 1979."
http://www.localnewswatch.com/jordanfalls/stories/index.php?action=fullnews&id=40638

More than 50 were killed in India's Independence movement
http://www.cbsnews.com/stories/2007/01/06/ap/world/mainD8MFTQF03.shtml

It is well known that there is no space for the discrimination against other domestic ethnic groups In China. Women are enjoying the equal rights. Chinese minorities often have more rights or privileges than Han people.

To artificially make Kolkata "shining", gov "bought from farmers for 10,000 to Rs 12,000 per acre and sold to builders for Rs 300,000 to Rs 400,000 per acre ". This can happen in a large city in India.
http://specials.rediff.com/election/2006/apr/27sld2.htm
To make Mumbai as shining as Shanghai, so many slum residents losted their place to live in one day. Around 60% of Mumbai residents are living in slums.
http://www.timesonline.co.uk/printFriendly/0,,1-3-1487253,00.html
60% poor people cannot beat 40% rich people in making policies in a democracy country. If you read the comments after the news, few think about the poor. See the comments: http://www.expressindia.com/fullstory.php?newsid=40309
Also please see the pitiful poor India after their slums were destroyed by Indian government: http://news.bbc.co.uk/

These two articles were written by the same foreign visitor (sounds like a biz man) after he visited both India and China in the same year (2000).
His view about India: http://berclo.net/page00/00en-impressions-india.html
His impression about China: http://berclo.net/page00/00en-impressions-china.html
He also described so-called Indian democracy in this article: http://berclo.net/page00/00en-india-1.html
"India is said to be the world's largest democracy. There is no dispute about its size, one billion is large, but I don't think that a country whose major priorities in the last 50 years have favored a small minority at the expense of the majority can be called "a democracy". "

Socialism or capitalism both are economical models and both can push economy ahead.
Socialism is not associated with slow development in history. USSR was converted into a modern economy in a short time in its socialism era. Germany was also developing very fast before ww2 even the government controlled economy tightly.
China's economy growth was also around 7% every year before the reform even China’s more attention was put on national security. 7% growth can not be thought as slow development even today, let alone China was under embargo.
India's problem was not because of social system. It was largely because the government did not have strategy and had no ability to implement its policy if it has some. That's why India sometimes has good policies, such as education, health care...., but the results are poor.
Today, China's system has both flexibility in policy and ability to implement changes. This can allow us to keep the good policies and makes changes on bad decisions quickly. Good example is China’s education system. Our old education system worked very well at low cost. China's illiterate rate dropped to less than 15% even before the reform when China was much poorer. But we trusted market economy too much and we commercialized many parts of the system. After years, it is now proven a disaster and government got a lot of complains. Government input into the system decreased percentage-wise (not by absolute value). a lot of burden was shifted to families. As a country, the total investment into the education system increased a lot, but families’ burden increased a lot faster, especially for the poorer family.
Now we are making changes again. The totally free compulsory education will be provided before 2007 nationwide. China decided to make changes in 2005, but now many provinces implemented the new policy already. We are very confident that the new policy will be pushed to all the country in time.
China even CCP does not take care of any ideology any more. As long as we think some new policy is good for China, we can try it and then expanded all over the country quickly if the test proves it works.

In Asia, at least in East Asia, countries or economies can only get rich under the dictatorship not democracy. S Korea, Singapore, Taiwan area and Hong Kong, even Japan. There was no exception.
Japan was de facto one party government arranged by US until recent years the rival party could win. S Korea was completely a dictatorship with the support from US before 1990s. Taiwan did not have real election until 2000 (but it is real unfortunate for Chinese on the island. The election is proven to be disaster. Look at what is happening in Taiwan). Singapore is a dictatorship controlled by Lee family even today. There was no any election in Hong Kong until it was returned to China in 1997.
On the contrary, Philippines were some sort of rich. It was even considered as luck if a Taiwan people could find a job there in 1960s. Philippines has the democratic government that is almost a copy if US's. But now it is almost the poorest country in SE Asia. Taiwan’s fast development happened under the dictatorship. Its economy has been stagnant for almost 10 years since election happened on the island.
From both history and today’s truth, democracy does not translate into economical development as many people take for granted. You should understand why Goldman asked India government to following China’s political model.
http://www.financialexpress.com/fe_full_story.php?content_id=142344

14. Economical History
Data show that China developed much faster than India even before China's reform. India was much better than China before the Chinese Communist Party took power. In 1950, India’s GDP per capita was almost 1.5 times of China’s. But China's GDP caught up India in 70s last century. Now China’s GDP per capita is almost 2.5 times of India’s
GDP Per capita ( I believe it is based on PPP)
Country...1820....1870....1913....1950....1973...1998…2003
China.......600......530......552......439......839....3,117…4392
India........533......533......673......619......853....1,746…2160
http://www.ggdc.net/Maddison/Historical_Statistics/horizontal-file_2006.xls

This is only the economical data. China was doing much better than India in social development before the reform, such as education, health service, scientific R&D, …. These laid down a very solid foundation for China’s economical reform that happened in late 1970s. Many people say India lags behind China because of its late economical reform. It is not true in fact. The truth is: China did better than India before the reform and is continuing to do better than India after the reform.

15. Some more links
India asks how its economy can catch up with China's
http://www.forbes.com/home_europe/newswire/2003/11/19/rtr1154472.html
India Versus China-- Was written by some Indians
http://www.samachar.com/tech/archives/techtalk51.html
Can India Catch-Up With China? -- Was written by some Indians
http://www.indiadefence.com/ind-china.htm
The Population Bomb that can devastate India, actually it is a comparison between India and China
http://www.india-watch.com/4.htm
Can India catch up with China?
http://www.flonnet.com/fl1715/17150480.htm
Can India Overtake China? -- The famous article saying India will overtake China
http://www.alternatives.ca/article1053.html

16. Conclusion
The above links come from various resources. I collect these data to show the facts to people because I have heard too much from Indian high rank officials and Indian and western media that say: India is better than China, India has more potential than China, India is more innovative than China, India is better in quality and China is better in quantity… All of these claims are basing on no facts, at least today.

India’s economy is doing well in recent 3 or 4 years and the trend could continue for some time. I wish Indian people can enjoy their good life and make progress.

China has been high economical growth since 1949 even China had some setback during the Great Leap during 1959-1961 and the early stage of the Cultural Revolution during 1966-1970. The Cultural Revolution lasted for 10 years from 1966-1976, but China’s economy recovered and was in growth path after 1970.

In the past about 60 years, India’s economy was caught up by China and was put behind by China. Today, China’s economy is still growing at more than 10% pace, India, around 8%. These are simple facts.

Undoubtedly, China is a developing country with population of 1.3 billion. It has a lot of issues in the past, in today and in the future. I don’t deny that.

China's Overseas Engineering Contracts Grow 45.5% in value

According to Xinhua news on Oct. 6th, China completed 17.1 billion US dollars of overseas contract business in the January to August period, up 45.5 percent year on year.

The statistics released by the Ministry of Commerce show that total of US$32.7 billion new contracts were signed in the first eight months, a 105.6 percent jump.

The US$6.25 billion western sections of the Algerian East-West Highway project won by China's CITIC Group and China Railway Construction Corporation is the largest one by value.

China had accumulated revenues of 152.9 billion US dollars on overseas contracts and signed contracts worth a total of 218.6 billion US dollars.

Sinophobia Grips India's Telecom

http://www.postchronicle.com/news/technology/article_21221358.shtml

by Indrajit Basu
Jun 2, 2006


CALCUTTA, India - June 2, 2006 (UPI) -- Worried by the potential security threats that could rise from allowing Chinese telecom companies' to become deeply involved with the country's telecom sector, the Indian government is planning to put on hold the India expansion plans of Zhongxing Telecom Co (ZTE) and Huawei Technologies, the two largest telecom equipment makers in China.

Both these companies have operations in India and are keen to pump in substantial investments to participate in the development of the world's fastest-growing telecom market.

According to Times News Network, a local news agency, reacting to the objections from the country's intelligence agencies, the Indian government has put on hold ZTE Telecom's plan to enter wholesale trading in telecom equipment and is even planning to conduct a detailed probe into the Chinese company's activities globally.

ZTE had sought permission to enhance its equity capital and enter after-sales service and wholesale trading of telecom equipment.

But according to the report, India's Foreign Investment Promotion Board has been instructed by its security agencies, The Intelligence Bureau and The Research and Analysis Wing, not to grant permission until the agencies finish their probe.

This is the second time in the past 12 months that the Indian security agencies have moved to slow down the India expansion plans of Chinese telecom companies. Last year in August the Indian government disallowed Huawei Technologies' $60 million investment proposal in its Indian subsidiary, Huawei Technologies India Pvt. Ltd, citing the same reasons.

Subsequently the state-owned Bharat Sanchar Nigam Ltd, which is the country's largest telecom company, cancelled a $31.16 million contract bagged by Huawei for supplying equipment for 1.05 million wireless telephone lines in partnership with two Indian telecom companies.

The agencies alleged that China's intelligence apparatus and military may be using its telecom companies (which both deny) to gather intelligence from the country, and even added that the telecom companies' equipments (denied too by them) are used for debugging operation in Chinese establishments in India -- like the embassies and trade representative offices.

Indeed, for years India's fears about Chinese companies -- especially the high-technology categories -- were just subterranean. But lately it seems that the paranoia about Chinese investments in the country's telecom sector, fears of cyberwarfare and the reluctance of exposing a strategic network to Chinese telecom companies has gone on an overdrive.

India's Insecurity Feeling Hurts China-India Business

China and India are two neighbors. The relwtionship between them are improving in recently years, and the two sides vow to enhance the trade and business relationships. But it seems that India government has very strong insecurity sense against China. Is that caused by the war in 1962 in which India was defeated?

Here are some examples:

1. Shenzen Cimac-Tianda Airport Support Ltd's bid for supplying aerobridges for Indian airports was turned down by the Airports Authority of India on security grounds. Even the company's bid was the lowest at Rs 79.10 crore, leaving a single bidder, Spain's ThyssenKrupp, that quoted Rs 189 crore for the same job. (Source). Actually Cimac-Tianda's products have been using in other Indian airports.

2. In 2005, for the second time in the last five years, Indian security agencies have moved to slow Huawei's expansion plans out of concern for India’s strategic telecom network. In 2001, U.S. intelligence sources reportedly tipped off the Indian government about Huawei’s activities here. (Source).

3. In 2006, India will not allow equipment maker Huawei to bid for BSNL's GSM project due to security reasons. (Source). Huawei's products are sold well in Asian, African, European and American countries.

4. India’s Cabinet Committee on Security (CCS) has referred the question of giving security clearance to Hutchison Port Holdings (HPH)’s bid for the Mumbai offshore container terminal to the country’s security advisor M K Narayanan. (Source). HPH is a world top port operator based in Hongkong and has business in all over the world.

Indian government's insecurity sense reaches a ridiculous point. It does not only hurt business of Chinese companies, it also hurt India own business operations.