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Sunday, 2 September 2012 - Asian giants seek better ties; China's defense minister in India |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Aerospace & Defense Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Campaign Polling Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Breakingviews Money Money Home Tax Break Lipper Awards 2012 Global Investing MuniLand Unstructured Finance Linda Stern Mark Miller John Wasik James Saft Analyst Research Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Money Clip Investing 201 Life Health Sports Arts Faithworld Business Traveler Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Video Reuters TV Reuters News Article Comments (0) Pictures Editor's choice Our best photos from the last 24 hours.  Slideshow  Follow Reuters Facebook Twitter RSS YouTube Read Romney's bounce from convention looks short-lived: Reuters/Ipsos poll 01 Sep 2012 French pessimism nears all-time high -poll 01 Sep 2012 Muslim cleric arrested for framing girl in Pakistan blasphemy case 2:28am EDT Exclusive: Google, Apple CEOs in secret patent talks | 30 Aug 2012 Iran would take action if U.S. attacked Syria: official 01 Sep 2012 Discussed 70 Romney tells voters to move on from Obama disappointment 47 Exclusive: Pentagon threatens legal action over bin Laden book 26 French pessimism nears all-time high -poll Sponsored Links Pictures Reuters Photojournalism Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography.  See more | Photo caption  Tech toys make noise The IFA consumer electronics fair kicks off in Berlin, showcasing the world's latest tech gadgets.  Slideshow  Burning Man Strange sights at the Burning Man 2012 arts and music festival in the Black Rock Desert of Nevada.  Slideshow  Asian giants seek better ties; China's defense minister in India Tweet Share this Email Print Related News Analysis: China's aircraft carrier: in name only Tue, Aug 28 2012 Exclusive: North Korean leader seeks trip to China for economic help Fri, Aug 24 2012 Landings, protests stoke Japan-China islands dispute Sun, Aug 19 2012 UPDATE 5-Landings, protests stoke Japan-China islands dispute Sun, Aug 19 2012 Japan sends back Chinese activists in bid to defuse island row Fri, Aug 17 2012 Analysis & Opinion Bernanke on the defensive Liquidity reigns supreme as market ignores data points Related Topics World » China » Chinese Minister of National Defense General Liang Guanglie stands on a balcony overlooking the campus of the U.S. Military Academy in West Point, New York, May 10, 2012. Credit: Reuters/Mike Segar By Frank Jack Daniel and Matthias Williams NEW DELHI | Sun Sep 2, 2012 1:27am EDT NEW DELHI (Reuters) - A rare visit to India by China's defense minister should help avoid flare-ups along the border between the nuclear-armed Asian giants at a time when Beijing is grappling with a change of leadership and friction in the South China Sea. But General Liang Guanglie's trip -- the first by a Chinese defense minister in eight years -- also highlights growing competition between the two emerging powers as they jostle for influence and resources across Asia. Liang is due to arrive in Mumbai on Sunday afternoon after stopping in Sri Lanka, the island nation off the south coast of India that sits on vital ocean trade routes. There he sought to play down Indian fears that China is threading a "string of pearls" -- or encircling it by financing infrastructure and military strength in neighbors stretching from Pakistan to the Maldives. "China attaches great importance to its relations with the South Asian nations, and commits itself to forging harmonious co-existence and mutually beneficial and win-win cooperation with them," he said in speech to Sri Lankan soldiers. "The PLA's (People's Liberation Army) efforts in conducting friendly exchanges and cooperation with its counterparts in the South Asian nations are intended for maintaining regional security and stability and not targeted at any third party." As neighbors and emerging superpowers, India and China have a complex relationship. Trade has grown at a dizzying rate but Beijing is wary of India's close ties to Washington and memories of a border war with China half a century ago are still fresh in New Delhi. Despite 15 rounds of high level talks to resolve the dispute about where their Himalayan border lies, neither side is close to giving up any territory. Liang is not expected to broach the territorial issue on his trip. Analysts say Liang's India tour will demonstrate that Beijing is managing the often twitchy relations with its neighbor just ahead of its once-in-a-decade leadership transition. "China's leadership has one primary objective: how do we continue without any convulsions," said Uday Bhaskar, director of the National Maritime Foundation, a New Delhi think-tank. "You do not want to have anything to do with India just now which is rocking the boat, as it were," he said. AID FOR ISLANDS In Sri Lanka, Liang pledged $12 million in military aid, adding to billions of dollars spent helping President Mahinda Rajapaksa win a 25-year-old civil war and rebuild his ruined nation's ports and roads. Emphasizing China's growing clout in the region, President Mohammed Waheed of the Indian Ocean archipelago nation the Maldives left for Beijing on Friday to arrange $500 million in loans, partly for infrastructure. In turn, India courts close ties with Vietnam. Its exploration of an oil block in the South China Sea has needled Beijing, which claims the sovereignty over almost all of the sea and has stepped up its military presence there [ID:nL4E8IM09R] Both China and India say they are committed to attaining prosperity through peaceful means. Business relations are booming and trade flows have reached an annual $75.5 billion, up from just $3 billion a decade ago. Trade is skewed in China's favor. During the four day trip to India, Liang will talk about border security with his counterpart Defense Minister A.K. Antony, India said this week, and they may announce a new round of joint military exercises -- following on from a recent joint naval practice in Shanghai. No more details have been announced, but the two sides are expected to discuss their mutual neighbors Afghanistan and Pakistan, and the security challenges they face when NATO forces start leaving the region in 2014. TIBET Liang's delegation includes Yang Jinshan, commander of the Tibet military district -- on the vast and troubled Himalayan plateau bordering India. China and India fought a brief border war in 1962, two years after India gave asylum to the Dalai Lama, who Beijing considers a separatist. The last time a Chinese Defense minister visited India was in 2004. Since then, Beijing has spent billions of dollars on train lines, roads and military hardware in Tibet. India has also spent heavily to strengthen its defenses along the frontier, which the two sides dispute, despite years of talks. Minor incidents of both nations' troops crossing the border are common, but major flare-ups are avoided through meetings of low and mid-rank officers, as well as senior military delegations and a cabinet-level hotline. Instability has increased in Tibet in the lead up to the Chinese leadership change, with 51 Tibetans setting fire to themselves in gruesome protests against Beijing's heavy-handed rule in the region. Liang's visit follows a number of high intensity unilateral military exercises by both countries in the border region in the past year. More recently, India's ambassador to China was allowed to tour Tibet, a rare occurrence, and an Indian military delegation was taken to the region's capital Lhasa. Jayadeva Ranade, a retired Indian senior civil servant and China expert, said China's recent warmth toward India reflected its concerns about military escalation in the South China Sea, and perception that India is being drawn into the U.S. "pivot" to Asia, which Beijing sees as containment. While he welcomed Liang's trip, Ranade said India was disappointed China's next president had not yet visited. "It's a tepid gesture -- earlier they were expecting a higher level visit, Xi Jinping was expected to come. That would have been something," Ranade said. (Additional reporting by Ranga Sirilal in Colombo and Sabrina Mao in Beijing; Editing by Raju Gopalakrishnan) World China Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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